FIRST PRODUCTION MILESTONE AT KANGALA COAL MINE Universal Coal Plc (“Universal Coal”) (ASX:UNV) is pleased to announce that production has now commenced at its Kangala mine, located 65 km from Johannesburg, South Africa. First delivery of coal will commence during March 2014 in line with our first commercial production having commenced in February as per the 2Mtpa offtake agreement with South Africa’s leading power utility, ESKOM. Remaining production will target the lucrative export markets, via a 100 ktpa offtake agreement with leading South African coal producer Exxaro Resources. Kangala is the company’s first coal mine. The operation is now ramping up towards its nameplate capacity of 2.4 million tonnes per annum (Mtpa), of which 2.1 Mtpa is saleable. Commenting on the occasion, Universal Coal’s CEO Tony Weber said, “This marks a significant milestone as we progress towards becoming a mid-tier coal producer. “Kangala will provide steady and strong cashflow for the decade to come, laying the foundation for further growth in helping to fund the progress of our pipeline of quality coal assets including our next operation, Roodekop/ New Clydesdale Colliery.” “We thank our dedicated management team, employees and contractors who have worked tirelessly to build this project into an operating mine on schedule and within budget, and so transition Universal Coal into a producer.” With regards to the NCC acquisition, Universal is in the process of finalizing the legal agreements and regulatory processes together with the seller, and will update the market regarding details in the near future For further information please contact: Institutions & Media Tony Weber Chief Executive Officer Universal Coal Plc +27 12 460 0805 [email protected] Robert Williams FCR T: +
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