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FERREIRA COAL MINE EXTENSION
ACQUISITION OF ADJACENT PROSPECTING RIGHT

Continental Coal Limited (“Continental” or “the Company”) is pleased to announce that through its South African subsidiary Mashala Resources (Pty) Limited (“Mashala”), it has entered into agreements that will allow the Company to extend the operating mine life at the Ferreira Coal Mine and its production of high quality thermal coal through the acquisition and development of the adjacent and adjoining Prospecting Right.
Under the terms of a recently executed Sale and Purchase agreement with Misty Sea Trading (Pty) Limited, Mashala has acquired the right to develop the Prospecting Right comprising Portion 25 of the farm Witbank 262 IT. This Prospecting Right is located immediately adjacent to and adjoining the current open cast mining activities being conducted by the Company at the Ferreira Coal Mine and on Portion 19 of the farm Witbank 262 IT. The Prospecting Right has been acquired by the Company for a market related monthly royalty payment on each tonne of run-of-mine coal mined from the C-lower, C-upper and B-lower coal seams.