penumbra project commencement and aim listing, page-23

Continental Coal anticipates September AIM listing date, commences Penumbra development


Continental Coal (ASX: CCC) continues to move operations forward quickly in South Africa, with the commencement of the Penumbra mine development - and now the company will expand its shareholder base with a London Stock Exchange AIM listing.

Continental is targeting around 19 September 2011 to hit the AIM boards, with the company having now lodged the ?Pre-admission Announcement?.

RFC Corporate Finance is acting as the nominated adviser and GMP Securities Europe LLP and Renaissance Capital are acting as joint AIM Brokers.

Showing major support for Continental's operations, and as part of the AIM admission process, the directors, (excluding the resigning Bruce Buthelezi), and their associates, have agreed not to dispose of any of their securities currently held in the company for one year from date of admission.


Penumbra Coal Project development

The development of the Penumbra Coal Project is set to proceed following tendering of final development contracts, with the mobilisation of contractors to site within two weeks, fully funded by ABSA Capital and proceeds from the SIOC-cdt transaction.

Continental said activities at Penumbra are scheduled to increase significantly in the next few months as excavation of the box-cut and major civil works and environmental and pollution control measures proceed.

Importantly, production from Penumbra is forecast to achieve a targeted rate of 750,000tpa run-of-mine in the September quarter of 2012.

The metrics for Penumbra is forecast to be developed at capital costs of A$40 million (ZAR284 million) as set out in the Bankable Feasibility Study.

The majority of the capital expenditure will be incurred in 2011/12 on development and infrastructure of the underground mine.

The run-of-mine coal produced at Penumbra will be beneficiated through the existing Delta Processing Operations, which is currently processing production from the company?s Ferreira Coal Mine, and railed from the 1.2Mtpa Anthra Rail Siding through to RBCT under existing offtake agreements.


Other Continental Coal news

In other Continental news, operating performance at the company?s Ferreira and Vlakvarkfontein Coal Mines continues to meet expectations with run-of-mine coal production of 149,155 tonnes in July 2011.

In Botswana, exploration on the company?s thermal coal projects to commence with appointment of drilling contractors moving towards completion.

Also - the one for ten share consolidation is proceeding with the last day for trading in pre-consolidated securities being the 25 August 2011.

http://www.proactiveinvestors.com.au/companies/news/18754/continental-coal-anticipates-september-aim-listing-date-commences-penumbra-development-18754.html