my oh my how things have changed in ten days, page-5

An update on IRESS:

LONDON--Continental Coal Ltd (CCC.AU), the South African thermal coal production,
development and exploration company, said Monday that subject to coal market conditions,
it expects initiatives it has taken to strengthen its balance sheet to be more than
sufficient to meet forecast working capital requirements for the next 12 to 24 months.

MAIN FACTS:
-Extension of Acquisition of Mashala Resources Minority Interests; settlement is
anticipated to be made from proceeds expected to be received from either the sale of
non-core assets or from the successful conclusion of a transaction with one of several
parties regarding a direct investment in or acquisition of its South African coal assets.

-Acquisition and Direct Investment in the Company's South African Coal Assets;
company has received several approaches from Indian based coal and power utility
companies, as well as major global commodity trading and private equity groups, looking
to acquire all or part of the Company's South African thermal coal mining business.

-Based on these approaches and the company's objective to strengthen its balance
sheet and increase working capital, the company formalized a due diligence and bidding
process with its advisors in South Africa.

-Final binding and committed offers are scheduled to be received by the company at end
of the current quarter and subject to the offers received the Company anticipates
completion of the transaction by the end of the year.

-Sale of Non-Core Assets; company has further received non-binding expressions of
interests to acquire a number of the Company's exploration projects within its
thermal coal mining portfolio in South Africa that are designated as non-core.

-Penumbra Update and ABSA draw-down; company is well advanced in the underground mine
development activities at the Penumbra Coal Mine, its third mine in South Africa.

-This development is currently progressing well, with first coal production forecast
for Oct. 30, 2012

-Forecast total capital cost for this project is ZAR328 million with ZAR90 million
spent by the Company to date from cashflow and cash reserves in South Africa.

-Company is on target to meet its funding requirements for the Penumbra Mine
development and with first coal production due to commence at the end of October 2012

-Annual corporate costs forecast to reduce by 60% to A$3.6 million in FY2013 from A$9
million (excluding SIOC-cdt transaction costs) in FY2012

-Shares closed Friday at 3 pence valuing the company at GBP14 million