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Coal of Africa Limited ("the Company") advises that the Save Mapungubwe Coalition ("the Coalition") has confirmed its withdrawal from the Memorandum of Understanding ("MoU") signed with CoAL on 24 November 2011. The Coalition and CoAL signed the MoU committing to working together and strengthening cooperation in the interest of sustainable development and the preservation and protection of the Mapungubwe Cultural Landscape.

In a public statement released on 7 December 2012, the Coalition stated  that there is additional information that highlights past and on-going non-compliance with water legislation at the Vele Colliery ("Vele" or "the mine"), as well as existing detrimental impacts that now require remediation. The Company is of the firm view that the basis on which the Coalition is withdrawing and its allegations are inaccurate , which CoAL has addressed on numerous occasions with the Coalition. In addition, the Coalition has to date not been to the Vele mine site in spite of the numerous invitations from the Company for it to visit in order to observe and appreciate the systems introduced to manage the environment.

A copy of this announcement is available at the Company's website, www.coalofafrica.com or click here.

If you require assistance to access this report please contact Sakhile Ndlovu, sakhile.ndlovu@coalofafrica.co.za