how can a $175m market cap be justified?, page-28

Is momentum building for CCC's 'buy' recommendation?:

1. Is the coal still there? tick

2. Fundamental Analysis suggests Investor Money about to move back in? tick

3. Technical Analysis suggests Investor Money about to move back in? tick

4. Currently drilling to expand the coal resource? tick

5. Strong broker valuations and expert recommendations? tick

6. Solid gains suggested by the broker and expert valuations? 250%... tick

MIHAL USED TO SAY " IF YOU READ A POST, GIVE IT A THUMBS UP ".

Regarding point 4 above:

4.1 "Production is set to increase with acquisition of adjacent surface rights
With the recent acquisition of adjacent surface rights (Portion 3 and 13 of the Farm Vlakvarkfontein 213 IR), Continental Coal has started to expand its mining activities to the east and is confident that this will allow it to maintain monthly production of 100,000t. For Q111, the company expects to achieve its targeted production rate of 300,000t. However, for the same period, Continental Coal is forecasting higher sales, of 450,000t, as it draws down from the existing ROM stockpile." March 2011, Edison Valuation.

4.2 "In September this year, Continental Coal appointed geological consultants Gemecs to provide a high-level assessment of the coal potential at Serowe and Kweneng. Gemecs reported a total coal exploration target of between 6bt and 7bt, of which 2.7bt occurs at shallow to moderate depths and could potentially be mined by conventional methods. In 2011, Continental Coal plans to commence a ZAR20m, 90 hole exploration programme at the two projects." Thanks Murad.

4.3 "Gemecs is currently in progress and the Company expects to receive from them in May 2011 an updated assessment of the coal potential within each of its projects" Thanks Murad.

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