Rietkuil Coal Project Granted Mine Right

Sable Mining Africa Ltd/ Index: AIM / Epic: SBLM / Sector: Natural Resources

1 February 2011

Sable Mining Africa Limited ('Sable Mining' or 'the Company')

Rietkuil Coal Project in South Africa Granted Mine Right

Sable Mining Africa Limited, the AIM listed resource company, is pleased to announce the Mining Right for Delta Mining Consolidated Limited's ('DMC') Rietkuil Coal Project ('Rietkuil') in South Africa has been granted by the South African Department of Minerals and Energy. The granting of the Mining Right is the next stage in the development of a mine at Rietkuil, which is being designed to process 3Mtpa Run of Mine coal with a thirty year Life of Mine.

The initial mine construction is expected to be principally funded through debt financing and DMC is in discussion with two major South African financial institutions to act as the lead arrangers for the debt. The financing will be finalised following completion of the Bankable Feasibility Study ('BFS') which is now targeted for the end of February 2011.

Progress has also been made on many aspects of the development process including designs for the Coal Handling and Processing Plant and relevant infrastructure. Additionally, the formal processes for export allocations from Richards Bay have been submitted and negotiations with regards to off-take agreements are progressing well.

Rietkuil, which has a SAMREC compliant gross in-situ tonnage resource of 199.9 million tonnes (156.9Mt in Measured and 42Mt in Indicated categories) is located 80km east of Johannesburg, 8km south of Delmas and is adjacent to Exxaro Resources Limited's Leeuwpan Colliery and Kuyasa Mining (Pty) Limited's Delmas Colliery, situated in the Mpumalanga Province.

Sable Mining CEO Andrew Groves said, "The granting of the Mining Right for Rietkuil marks another major step towards its development. DMC has made strong progress on a number of fronts including financing initiatives and mine design. The finalising of the BFS is imminent, and this will be yet a further key milestone as the Rietkuil project is brought to fruition."

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