mashala signed, page-3

CONTINENTAL EXECUTES KEY MASHALA MILESTONE

Key Points:
Final Share Sale Agreements executed by Continental and Mashalas shareholders
Initial 64.1% interest in Mashala now secured with balance to be acquired within the next
12 months
Closing and settlement of the acquisition now only remains subject to approval by the
South African Reserve Bank and the South African Department of Minerals and Resources
Acquisition provides Continental with immediate export coal production, key Richards
Bay Coal Terminal and Transnet rail contracts, extensive project portfolio to be
developed over the next 5 years and strengthened management team
A$38m of equity funding now completed following receipt of A$11m under the 2nd
tranche of share placement (A$11m received in 1st tranche on 4 August 2010) and
A$16m received from a heavily oversubscribed share purchase plan
Oversubscriptions from the share purchase plan to be used to enable development to
commence at the Penumbra Coal Project - to be Continentals third coal mine - in the December 2010 quarter