Merger to be implemented via a Scheme of Arrangement, subject to...

Merger to be implemented via a Scheme of Arrangement, subject to Cape Alumina shareholder and court approval
• MetroCoal to offer approximately 1.12 MetroCoal shares for every 1 Cape Alumina share
• MetroCoal to provide Cape Alumina with a $3 million convertible note to supplement Cape Alumina working capital to accelerate work on the Pisolite Hills project (with $1 million available on execution of the MIA and a further $2 million available subject to the approval of Cape Alumina shareholders)
• Major Cape Alumina shareholder Resource Capital Funds will convert its $5 million convertible note into Cape Alumina shares at 12 cents per share prior to the merger proceeding
• Cape Alumina Board unanimously recommends the proposal and intends to vote all shares they control in favour
• Merger is anticipated to be effective by late December 2013, pending necessary approvals.