pre open ann pending, page-8

Great announcement - in spite of all those problems, the company raises production, raises sales & even using bought in coal seems to be keeping costs down ($70 - $80) and coal sold for avg price of $118

Key points

Export thermal coal sales from Continental's Ferreira and Delta Operations increase by over 52% to 48,532 tonnes in February from 31,875 tonnes in November 2010

Average net sales price of US$118/tonne realised quarter to date on sales of 88,980 tonnes

Limited impact to operations from the heavy rains and train derailments on the Richards Bay Coal Line reported during January 2011

Increase in run of mine production for February 2011 supports the decision to appoint a new mining contractor and commence development of the Northern Pit opencast operations with further forecast increases in March 2011

Continental on schedule to exceed budgeted export sales of 120,000 tonnes and meet targeted sales of 141,000 tonnes for the March quarter 2011

Targeted export sales of 48,000 tonnes for the month of March 2011
South African focused coal mining producer Continental Coal Limited is pleased to provide shareholders with an update on its Ferreira Coal Mine and Delta Processing Operations in South Africa.

Operations during the first two months of the March quarter have proceeded in line with the Company's forecasts and the targeted increase in sales of export thermal coal planned.

Export coal sales for the months of January and February 2011 of 40,448 tonnes and 48,532 tonnes have exceeded the previous months' sales by 25% and 50% respectively.