talk to the company, page-5

So, I have talked with the company, and received the following replies (below is a paraphrase, not verbatim), regarding some of the points raised here - thanks mainly to the indefatigable BigBillBrown. Permission has been granted for me to relay this information.

CCC recognise that some errors (unfortunately) appeared in the half-yearly report, without being picked up by the company before the asx release:

1. The coupon rate on the convertible note is 10% not 15%

2. EDF trading facility is a 4 year facility. Over the next 12 months an amount of 38,400 tonnes is deliverable to EDF as payment on the coal loan, representing less than one months' production at current rates. This loan is to be repaid in full by end December 2014. CCC have already made the first delivery/payment in January 2011.

3. Regarding the auditors' going concern test in relation to Current Ratio - this year CCC have cleared A$4.75m of debt (via repayments & equity conversion). CCC subsequently satisfies auditors' concerns.

4. CCC has had secured debt facilities since it became a SA focussed coal company in Jan. 2009. For example: LinQ A$20m facility (now fully repaid/converted) & the EDF Trading US$20m facility (which is now amortising). These secured debt facilities have not impeded CCC from securing other facilities, such as the unsecured A$25m CNote. Additional debt facilities and limits are available to fund additional project development(s). Mihal: From this, I understand that there will be no equity dilution required to fund Penumbra - i.e. that sufficient debt funding is currently available.

5. Golden Falls is related to VanMag. This issue has always been regarding control of the asset and whether or not VanMag is consolidated into the accounts. Please refer to previous annual reports for details.

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Cheers,

Mihal