press release announcement

MINING RIGHT APPROVED FOR MOABSVELDEN THERMAL
COAL PROJECT
The Directors of Xceed Resources Limited are pleased to advise that the South African
Department of Mineral Resources (DMR) has granted a mining right in respect of the
Company’s 70% held Moabsvelden thermal coal project. The Company will now
arrange for the posting of the required environmental bond and the notarial
registration of the right in order for the right to become effective.
Commenting on the granting of the mining right, the Company’s Managing Director
Ian Culbert said: “We are delighted with this development. The granting of the mining
right for Moabsvelden is unquestionably a significant milestone for the project and
maintains our momentum towards commencing with project construction this year.”
Mr Culbert further noted that Xceed’s management team have been working closely
with Thebe Mining Resources, the proposed co-sponsor of the Moabsvelden project.
Thebe’s engagement, not only with respect to the DMR, but with all elements of the
project, is adding impetus to the project development timetable, which Xceed is
pleased to acknowledge.
Significant progress has been made in recent months with the receipt of a credit
approved offer of project finance from Standard Bank of South Africa, which together
with a proposed equity subscription by Thebe for its direct project interest, accounts
for approximately 90% of the expected project construction and commissioning
expenses. It is anticipated that a coal supply agreement with Eskom, the State owned
power utility, will be finalized shortly and that the remaining development permits will
follow in due course.
When developed, Moabsvelden will be one of the largest new mines located in the
vital Witbank coal basin and will also be one of the closest mines to Johannesburg, the
most important industrial/inland market in South Africa. Entirely open cast, and
characterized by a very low stripping ratio, Moabsvelden has a mine life in excess of
14 years.
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