Coal of Africa Ltd CZA Receipt of US$20 million into escrow from BHE

  Coal of Africa Ltd (CZA) - Receipt of US$20 million into escrow from BHE

RNS Number : 9679P
Coal of Africa Limited
31 October 2012




ANNOUNCEMENT
31 October 2012





       RECEIPT OF US$20 MILLION INTO ESCROW FROM BEIJING HAOHUA ENERGY

Coal of Africa Limited ("CoAL" or the "Company") confirms that, in  accordance 
with the agreement with Haohua Energy International (Hong Kong) Co. Limited, a
wholly owned subsidiary of Beijing Haohua Energy Resource Co. Limited ("BHE"),
US$20 million has  been received into  the escrow account  to be held  pending 
Foreign Investment Review  Board ("FIRB") approval  (required for all  foreign 
direct investments into Australian companies).

Submission by BHE for FIRB  approval took place on  23 October and a  decision 
could be anticipated  on or before  22 November 2012,  following the  standard 
review period of up to 30 calendar days.

AUTHORISED BY:



John Wallington

Chief Executive Officer



For more information contact



John Wallington Chief Executive Coal of Africa                          +27 11
                Officer                                                 575
                                                                        4363
Wayne Koonin    Financial       Coal                                 of +27 11
                Director        Africa    575
                                                                        4363
Shannon Coates  Company         Coal of Africa                          +61 89
                Secretary                                               322
                                                                        6776
Sakhile Ndlovu  Investor        Coal of Africa                          +27 11
                Relations                                               575
                                                                        6858
Jos             Financial    PR Tavistock                               +44 20
Simson/Emily    (United                                                 7920
Fenton          Kingdom)                                                3150
Chris  Sim/Neil Nominated       Investec Bank plc   +44 20
Elliot          Adviser                                                 7597
                                                                        5970
Robert Smith    JSE Sponsor     Investec Bank Limited                   +27 11
                                                                        286
                                                                        7000
Charmane        Financial    PR Russell & Associates              +27 11
Russell/Jane    (South                                                  880
Kamau           Africa)                                             3924
                                                                        or

                                                                        +27 82
                                                                        372
                                                                        5816



About CoAL:

CoAL is an AIM/ASX/JSE listed coal exploration, development and mining company
operating in  South Africa.  CoAL's  key projects  include the  Vele  Colliery 
(coking and thermal coal), the Greater Soutpansberg Project, including  CoAL's 
Makhado Project (coking  coal) and the  Mooiplaats and Woestalleen  Collieries 
(both thermal coal).

The Mooiplaats Colliery commenced production in 2008 and is currently  ramping 
up to  produce  1.6  Mtpa.  The Woestalleen  Colliery,  acquired  through  the 
acquisition  of  NuCoal  Mining  (Pty)  Limited  in  January  2010,  currently 
processes approximately  2.5Mtpa  of saleable  coal  for domestic  and  export 
markets. The Woestalleen Complex also incorporates three beneficiation  plants 
with a total processing capacity of 350,000 run-of-mine (ROM) feed tonnes  per 
month.

CoAL's Vele  Colliery commenced  production  in Q1  2012. During  the  initial 
phase, the operation is targeting 2.7  Mtpa ROM production to produce  1.0Mtpa 
of saleable coking coal. The Makhado  Project, CoAL's flagship project in  the 
Soutpansberg coalfield,  is well  into  the feasibility  stage, with  a  draft 
Definitive Feasibility Study having been reviewed  by the CoAL Board in  March 
2012. An application for a New Order Mining Right for the Makhado Project  was 
submitted in January 2011.

In May 2012,  CoAL acquired the  Chapudi coal project  and several other  coal 
exploration properties  in  the  Soutpansberg  coal  basin  in  South  Africa, 
subsequently renamed  the  Greater  Soutpansberg Project,  from  the  previous 
owners,  including  Rio   Tinto.  The  Greater   Soutpansberg  Project  is   a 
consolidation of nine potential  coking and thermal  coal assets grouped  into 
three proximate regions, namely Mopane,  Makhado and Chapudi. The  acquisition 
of these  assets strengthens  Coal of  Africa's position  as one  of the  most 
substantial holders of prospecting and mining rights for coking coal in  South 
Africa's Soutpansberg coalfield.

The updated resource estimates are presented in detail in the "Independent
Technical Statement for Greater Soutpansberg Projects for Coal of Africa
Limited, 31st May 2012" ("Technical Statement") prepared by Venmyn Rand (Pty)
Ltd ("Venmyn"), which is available on the Coal of Africa website,
www.coalofafrica.com.

                     This information is provided by RNS
           The company news service from the London Stock Exchange

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