COOL Conti.Coal

 
TIDMCOOL 
 
18 November 2013 
 
           CONTINENTAL COAL PROVIDES OPERATIONS AND CORPORATE UPDATE 
 
Continental Coal Limited (ASX: CCC) ("Continental" or "the Company") the South 
African thermal coal production, development and exploration company, is 
pleased to provide an operations and corporate update. 
 
Production at the Company's recently opened Penumbra underground coal mine 
located in the Ermelo coal fields of South Africa reached 51,000 run-of-mine 
(ROM) tonnes for October 2013. Free-on-board cost per tonne for October 2013 
was ZAR645/t (US$64.5/t) and continues to improve as production volumes 
increase. The availability of the continuous miners during November 2013 had a 
negative impact on the month to date production. This matter is being addressed 
by the Company's operations team with the support of the equipment 
manufacturer. A conventional drill-and-blast section has been established and 
production from this section is expected to ramp up in the next few months. The 
Company's Vlakvarkfontein Coal mine continues to exceed production budget 
targets with another strong production performance of 127,400 ROM tonnes at a 
Free-on-truck cost of ZAR167/t (US$16.7/t) during October 2013. 
 
The independent Special Committee (the Committee) appointed by the Board has 
been engaging with potential funders to enable the Committee to evaluate 
proposals received and recommend the most appropriate funding partners and 
structure to the Board as soon as practicable. The Committee will be evaluating 
the funding structures under review against stringent criteria taking into 
account the current capital structure of the Company as well as the 
sustainability of the future capital structure to allow the share price to 
reflect the underlying asset value of the Company. A further progress 
announcement on the refinance will be made in December 2013. 
 
The Company has recently submitted its draft Pre-listing statement to the 
Johannesburg Stock Exchange for review. The listing timeline will be impacted 
by the timing and structure of the refinancing of the Company's convertible 
debentures. 
 
The Company plans to relinquish prospecting licence 339 to the Ministry of 
Minerals, Energy and Water Resources of Botswana. Required future exploration 
expenditure, the Company's assessment of low exploration prospectivity and the 
lack of farm-out or divestment opportunities has resulted in the 
relinquishment. The Company is currently reviewing opportunities to minimize 
future spend and still extract value from the remaining prospecting licences in 
Botswana. 
 
Mr Jason Brewer has resigned as Non-Executive Director of the Company on 15 
November 2013. The Board thanks Mr Brewer for his contribution to Continental 
over the past 4 years and wishes him well with his future endeavours. 
 
Continental Chief Executive Officer, Mr Don Turvey said: 
 
"We are delighted with the continued progress being made at Penumbra as well as 
the continued good production results from our Vlakvarkfontein coal mine. We 
are making good progress to refinance the Convertible debentures that have 
created a significant overhang in our share price over the past few months. We 
will continue to update the market with developments in the next few weeks. I 
would like to thank Jason for his effort the past 4 years and wish him well 
with his future plans." 
 
For and behalf of the Board 
 
Don Turvey 
 
Chief Executive Officer 
 
For further information please contact: 
 
Investors/ shareholders                 Lou van Vuuren 
 
Don Turvey                              Chief Financial Officer 
 
Chief Executive Officer                 T: +27 11 881 1429 
 
T: +27 11 881 1429                      E: admin@conticoal.com 
 
E: admin@conticoal.com                  W: www.conticoal.com 
 
W: www.conticoal.com 
 
Media (Australia)                       Nominated Advisor 
 
David Tasker                            Stuart Laing 
 
Professional Public Relations           RFC Ambrian Limited 
 
T: +61 8 9388 0944                      T: +61 8 9480 2500 
 
Brokers                                 Jonathan Williams 
 
Jeremy Wrathall / Chris Sim             RFC Ambrian Ltd 
 
Investec Bank plc                       T : +44 203 440 6817 
 
T: +44 20 7597 4000 
 
About Continental Coal Limited 
 
Continental Coal Limited (ASX:CCC/AIM: COOL) is a South African thermal coal 
producer with a portfolio of projects located in South Africa's major coal 
fields including three operating mines, the Vlakvarkfontein, Ferreira and 
Penumbra Coal Mines, producing approx. 2.2Mtpa of thermal coal for the export 
and domestic markets. A Feasibility Study was also completed on a proposed 
fourth mine, the De Wittekrans Coal Project. 
 
Forward Looking Statement 
 
This communication includes certain statements that may be deemed 
"forward-looking statements" and information. All statements in this 
communication, other than statements of historical facts, that address future 
production, reserve potential, exploration drilling, exploitation activities 
and events or developments that the Company expects to take place in the future 
are forward-looking statements and information. Although the Company believes 
the expectations expressed in such forward-looking statements and information 
are based on reasonable assumptions, such statements are not guarantees of 
future performance and actual results or developments may differ materially 
from those in the forward-looking statements and information. Factors that 
could cause actual results to differ materially from those in forward-looking 
statements include market prices, exploitation and exploration successes, 
drilling and development results, production rates and operating costs, 
continued availability of capital and financing and general economic, market or 
business conditions. Investors are cautioned that any such statements are not 
guarantees of future performance and actual results or developments may differ 
materially from those stated. 
 
 
 
END 
 

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