class action and compensation plan, page-25

Hi Abu, refer below from the 2011 Annual Report. Royalties very much known by management/board- -why was this not considered as a material item in the half year accounts as you mentioned. Given the state of the red ink in the last half of the year - you really have to question the validity of the half year profit reported and the consequential marketing hype ?

Also what about the impairment charge this year- unless they changed their strategy right on 30th June 2012 - why was this not earmarked to the market earlier especially given the same assets were hit with red ink last year?

Taking into consideration these reporting issues plus the capital management issues there certainly appears to be some key financial controls/skills missing that were not addressed by the board. That is until recently with the appointment of a group CFO (but to late?)

cheers

Note 29: Contingent Liabilities and Contingent Assets
? A royalty arrangement is in place with respect to the Group’s $20m debt facility instrument equating to US$1 per
tonne, capped at 15m tonnes, of all coal produced by Continental Coal Ltd in South Africa in proportion to the
investment percentage of each Royalty holder.
? A royalty equivalent to 2% of all sales of coal produced from the Project X, Vaalbank, Lemoenfontein, Witbank and
Loskop projects is payable to the facilitator of the acquisition of Continental Coal Ltd.
? A royalty is payable by the subsidiary Continental Coal Limited in South Africa of between Rand 0.15 and Rand 3.00
per tonne of coal sold from the Mashala acquisition producing mines.
? A 5% facilitation fee is payable on the proceeds of the Vanmag sale.