CONTINENTAL COAL LTD: ASX Price Query

10 January 2013

Continental Coal Limited's ("Continental" or the "Company") response to a share price and volume query received yesterday from the Australian Securities Exchange is set out below:

1. Is the Company aware of any information concerning it that has not been

announced which, if known, could be an explanation for recent trading in

the securities of the Company?

Please note that as recent trading in the Company's securities could indicate

that information has ceased to be confidential, the Company is unable to rely

on the exception to listing rule 3.1 contained in listing rule 3.1A when

answering this question.

The Company is not aware of any information concerning it, that has not been

announced and which, if known, could be an explanation for recent trading in

the securities of the Company.

2. If the answer to question 1 is yes, can an announcement be made

immediately? If not, why not and when is it expected that an announcement

will be made?

Please note, if the answer to question 1 is yes and an announcement cannot be

made immediately, you need to contact us to discuss this and you needs to

consider a trading halt (see below).

    Not applicable.

3. Is there any other explanation that the Company may have for the price
   change and increase in volume in the securities of the Company?
       No.

The Company has provided a number of updates to shareholders over the past 2

months that have confirmed that it has achieved several major operational

milestones at its 3 coal mining operations in South Africa, at its proposed 4th

mine development and at its exploration projects in Botswana. These include:

* The Company now operating 3 thermal coal mining operations with a combined

    ROM production rate of 2.8Mtpa of thermal coal for sales into both the
    export and domestic markets
      * First coal production and first export thermal coal sales completed from
    the Company's 3rd mine, the Penumbra Coal Mine
      * Mine development costs at the Penumbra Coal Mine fully funded and on budget
      * Financial settlement during the December 2012 Quarter of the first Penumbra
    Coal Mine hedge contracts completed, and demonstrated the benefit of the
    Company's coal and foreign exchange hedging program that was implemented
    earlier this year (664,550 tonnes of coal at an average price of ZAR1,057/t
    (approx. US$123/t) to mitigate its exposure to a fall in US$ coal prices or
    appreciation of the ZAR:US$
      * Confirmation by the Company of forecast sales of approx. 200,000t of a
    high-quality export thermal coal from the Penumbra Coal Mine in FY 2013 at
    total costs of approx. US$55/t FOB. With revenue forecast to rise to
    approx. US$45m in FY2014 on full year export thermal coal sales of 500,000
    tonnes generating between US$15m and US$20m of forecast cashflow based on
    current export coal prices.
      * Optimization work on the 2011 Feasibility Study on the De Wittekrans Coal
    Project, the Company's proposed 4th mine development, demonstrated the
    opportunity to enhance the projects technical and financial fundamentals
    with proposed exports of 2.4Mtpa of a thermal coal product, over an initial
    30 year mine life generating an indicative Equity Project NPV10 in excess
    of US$110m and an IRR of +20%
      * Renewal of the Company's three coal Prospecting Licenses in Botswana, the
    Serowe and Kweneng Coal Projects by the Botswana Department of Mines for a
    further 2 years.

In addition the Company has also provided a number of updates to shareholders

over the past 2 months that have confirmed that a number of corporate

developments in respect to drawdown on its project debt facilities, divestment

of non-core assets and negotiations over an acquisition and/or direct

investment or joint venture into the Company's South African coal assets have

    been advanced. These include:

  * First drawdown of its secured debt project finance facility with ABSA
    Capital (a subsidiary of Barclays Capital) completed with the ZAR253m
    (approx. US$30m) seven year term loan facility and ZAR17.5m (approx.
    US$2.1m) standby facility to be used to fund the outstanding capital, mine
    equipment and working capital costs associated with the development and
    commissioning of the Penumbra Coal Mine.
      * Settlement of the proposed US$10m sale of the Company's interest in its
    non-core VanMag Project proceeded with initial payment of approx. US$1m
    received with a final US$9m payment scheduled to be received in the current
    quarter.
      * Proceeds from the sale of VanMag used towards acquisition of the minority
    shareholders in Mashala Resources with agreement reached to extend the
    final acquisition of the minority shareholders of Mashala Resources to 28
    February 2013
      * Further divestment of the Company's other non-core assets advanced with
    indicative proposals received and under review and with any sales proceeds
    to be used to reduce debt and meet ongoing working capital requirements
      * Due diligence and bidding process completed with Indian based coal and
    power utility companies, major global commodity trading and private equity
    groups with offers received for the Company's interest in its South African
    business and for acquisition and/or joint venture of specific operating and
    development projects. Negotiations in respect to these offers are
    continuing and an update is planned to be made in the current quarter.
     4. Please confirm that the Company is in compliance with the listing rules
    and, in particular, listing rule 3.1.

The Company confirms that it is in compliance with the ASX listing rules and,

in particular listing rule 3.1.

For and on behalf of the Board.

Don Turvey Chief Executive Officer

For further information please contact:

Investors/ shareholders

Jason Brewer Don Turvey Finance Director Chief Executive Officer

T: +61 8 9488 5220 T: +27 11 881 1420

E: admin@conticoal.com W: www.conticoal.com

Media (Australia) Media (UK)

David Tasker Mike Bartlett/Lydia Eades/Jos Simson Professional Public Relations Tavistock Communications

T: +61 8 9388 0944 T: +44 20 7920 3150

Nominated Advisor

Stuart Laing

RFC Ambrian Limited

T: +61 8 9480 2500

Joint Brokers Joint Brokers

Mark Wellesley-Wood/Chris Sim Andrew Young Investec Bank plc GMP Securities Europe LLP

T: +44 20 7597 4000 T: +44 20 7647 2800

                   


About Continental Coal Limited

Continental Coal Limited (ASX:CCC/AIM: COOL/US-OTCQX:CGFAY) is a South African
thermal coal producer with a portfolio of projects located in South Africa's
major coal fields. The Company operates three thermal coal mines, the
Vlakvarkfontein, Ferreira and Penumbra Coal Mines, producing 2.8Mtpa of thermal
coal for the export and domestic markets. The Company commenced development of
its first underground mine, the Penumbra Coal Mine, in September 2011 and
completed its first coal sales in December 2012. In 2011, a Feasibility Study
was also completed on the Company's proposed fourth mine, the De Wittekrans
Coal Project, with further optimisation studies completed in 2012. The Company
has further concluded strategic off-take and funding agreements with EDF
Trading for its export thermal coal production, signed a joint development
agreement with KORES, Korea Resources Corporation and secured debt funding from
ABSA Capital to fund its growth.

Forward Looking Statement

Certain statements made during or in connection with this communication,
including, without limitation, those concerning the economic outlook for the
coal mining industry, expectations regarding coal prices, production, cash
costs and other operating results, growth prospects and the outlook of
Continental's operations including the likely commencement of commercial
operations of the Penumbra and De Wittekrans, its liquidity and the capital
resources and expenditure, contain or comprise certain forward-looking
statements regarding Company's development and exploration operations, economic
performance and financial condition.

Although the Company believes that the expectations reflected in such
forward-looking statements are reasonable, no assurance can be given that such
expectations will prove to have been correct. Accordingly, results could differ
materially from those set out in the forward-looking statements as a result of,
among other factors, changes in economic and market conditions, success of
business and operating initiatives, changes in the regulatory environment and
other government actions, fluctuations in coal prices and exchange rates and
business and operational risk management. For a discussion of such factors,
refer to the Company's most recent annual report and half year report. The
Company undertakes no obligation to update publicly or release any revisions to
these forward-looking statements to reflect events or circumstances after
today's date or to reflect the occurrence of unanticipated events.
                           South Africa Australia                              

T +27 11 881 1420 F +27 11 881 1423 W T +61 8 9488 5220 F +61 8 9324 2400 W

www.conticoal.com www.conticoal.com

9th Floor Fredman Towers, 13 Fredman Ground Floor, 1 Havelock Street, West

                    Drive, Sandton 2196 Perth, WA 6005                         
                                                                               
            PO Box 787646, Sandton 2146 PO Box 684, West Perth WA 6872         
                                                                               

 Independent Non-Executive Chairman Mike Kilbride Chief Executive Officer Don  
                    Turvey Executive Director Jason Brewer                     

Non-Executive Directors: Johan Bloemsma Peter Landau James Leahy Connie Molusi

END

-0- Jan/10/2013 07:00 GMT