1. Why was the Mudimeli community not included in the Makhado BEE agreement? Your information is not correct. An agreement has been signed with the communities enabling their acquisition of a 20% share in the project. Seven communities affected by the project, including the Mudimeli community, are included in this transaction. Depending on future coal prices, the community benefit of this transaction may run into billions of rands. Please note that CoAL has undertaken an extensive and rigorous stakeholder engagement process with a number of land claimant communities, as well as landowners in the area, in line with the MPRDA and the National Environmental Management Act (NEMA). As Makhado remains a project at this stage, engagement will continue prior to and during mining operations. Stakeholders were identified in line with the requirements of the MPRDA and included communities, government, landowners, environmental groups and other I&APs. A comprehensive public participation process was designed and implemented for the Makhado Project to enable meaningful and interactive communication with all of the project’s stakeholders. This process continues and has involved: • An Integrated Government Forum (IGF) has been established with members of the Department of Mineral Resources (DMR), the Limpopo Department of Economic Development, Environment and Tourism (LEDET) and the regional Department of Water Affairs (DWA), among others. The mandate of the IGF is to engage on the impacts and benefits of the project, and to develop an approach towards co-existence. • Parallel processes have been implemented for the applications of the new order mining right and integrated water use licence. • Focus groups have been set up to provide initial baseline information, and to identify any specific and common issues. • Working groups have been created as structured forums to engage on critical issues. These include water, biodiversity, sensitive and protected areas, and socio-economic concerns. • To enable communities to engage, it was necessary, at the outset, to support them in unifying as a voice. Elections were held in each of the seven communities, including the Mudimeli community, to establish the Makhado Colliery Community Consultative Forum (MCCCF) as a unified and representative structure to engage with CoAL. The company continues to engage with the affected communities through this structure. Further, a socio-economic model has been developed that will maximise the benefits of the Makhado Project, with specific reference to ownership, employment, procurement, community investment and the project’s SLP. An amount of R36 million has been committed for the first five years of the Makhado Project, with a focus on education and infrastructure development. Three projects will form the basis of the SLP: • establishment of a Learning Centre of Excellence; • a community water services upgrade; and • a community roads upgrade. 2. Apparently the lack of participation has now also come to the attention of a Swiss NGO, which has been looking into it because of Vitol’s offtake agreement with CoAL and Ikwezi. An SA NGO is compiling a report. So, basically, where did things go skew and what is being done to rectify it? Again, that is not our understanding. CoAL has engaged with both the Bench Marks Foundation and the NGO Bread for Life. It is our understanding (and of which we have been advised by Bench Marks) that Bench Marks is undertaking a review of coal juniors following its review of larger companies last year. This research is being funded by Bread for Life. CoAL has in fact responded to questions posed by Bench Marks and has met with both Bench Marks and Bread for Life. Any linkage that you suggest was not disclosed to us. This is in line with CoAL’s approach of engaging meaningfully with all of its stakeholders, including affected communities and NGOs, guided by the principles of direct, comprehensive and collaborative engagement. In line with the company’s stakeholder engagement policy and legislated requirements, public meetings, focus group meetings and one-on-one meetings are held with stakeholders. With specific regard to Makhado, more than 100 meetings have been held with individual representatives and groups, including the Mudimeli community, to date. 3. We have seen some new investors in CoAL, including guys like Marco Fernandes. How did CoAL attract the new investors? CoAL discloses its investors in line with stock exchange requirements. It is not appropriate that we discuss the interests of any particular investors. The company can indicate that it believes that by implementing its turn-around strategy and through ongoing engagement with investors and the market, the company has received much support for its investment case. Shareholders have continued to demonstrate their support through the recent fundraising. 4. year? Where does it see the company heading financially and operationally in the next Please refer to the announcements available on our website at www.coalofafrica.co.za. CoAL will provide a detailed update at its year end results presentation scheduled for August. The company will continue to implement its strategy as indicated. CoAL can confirm that it has been able to raise sufficient funds to focus on the development of its projects, and that shareholders continue to show commitment to the strategy of the Company. You will have seen the announcement made today that Stage 3 of a capital raising will be implemented no later than 29 May 2015. 5. When does it expect to mine first coal, where are the hurdles that still need to be crossed to achieve this? A decision to progress Makhado is dependent on the company being granted a new order mining right, for which all the necessary steps have been taken in a process that is underway. CoAL has initiated discussions with potential customers and the granting of the NOMR would be a critical step in the process to secure off- take agreements. Construction could begin in late 2016. Construction will take approximately 26 months, with a further four months planned for ramp-up to produce 5.5Mtpa of saleable product. 6. Just one further question is on the capital raising and why the capital raising did not go ahead as planned and what this means for Coal of Africa? The capital raising has proceeded and will proceed. Stage 3 was slightly delayed but this has had no impact on the company. Stage 3 of the capital raising will raise gross proceeds of £7.92 million and it will conclude the capital raising, which will have raised gross proceeds of £38.225 million. 7. Does the company have a replacement for Michael Messer yet? Not at this stage. Announcements will be made in due course.