Company Information for CoAL of Africa Ltd

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Company Statement

Coal of Africa Limited (’CoAL’), formerly GVM Metals Ltd, is primarily focused on the acquisition, exploration and development of thermal and metallurgical coal projects in South Africa. The Company’s key projects, along with their leading metals processing company Nimag Group (Pty) Ltd are in South Africa. The Company was incorporated in Western Australia and listed in 1980. Since 2005, the Company has also listed on both the AIM and JSE markets, allowing further growth in the Company’s coal assets.

Current Operations

Mooiplaats (Mpumalanga) (70% owned)
The Mooiplaats coal project is located 1.8km from the Camden power station. Mooiplaats is predominantly comprised of thermal coal but also has anthracitic coals which will be sold to both the domestic and export markets.  The mining and washing of the coal at Mooiplaats will be undertaken by contractors and the first phase calls for the annual production of 6 million tonnes of thermal coal and 1 million tonnes of anthracitic coal.

CoAL has currently drilled 65,000 of the 23,00ha property with the aim of increasing the 76mt reserve to in excess of 100mt. Production is set to commence in the second half of 2008 with production ramp up to 6mtpa to be completed by the end of 2009.

Baobab
The Baobab project comprises some 65,000ha over 24 farms. The properties straddle the railway line which runs from Musina and which is an important link to the Richards Bay coal terminal. The alternative route, through Mozambique to the port of Maputo, requires an upgrade which has been committed by the owners of both the rail line and the Maputo coal terminal. A co-operation agreement has been signed with Transnet Freight Rail whereby CoAL will be able to acquire coal transport capacity from Transnet.

CoAL has acquired the exploration results from a 1200 borehole drilling program undertaken by Iscor (now Exxaro) which has shortened the development timetable by at least 18 months.

Gemecs (Pty) Ltd recently completed an initial geological evaluation of the Fripp and Tanga properties based on the data obtained from Exxaro. The evaluation yielded potential open cast resources of over 140 million tonnes of coal in 'Measured, 'Indicated' and 'Inferred' resource categories. Total resources at these two farms stand at 710 million tonnes.

Production at Boabab is expected to commence mid 2009.

Thuli
The Thuli project is located in the Limpopo region and was previously explored by Utah Mining in the late 70s & early 80s.

A 65 borehole drilling program on the project commenced in August 2007 and data collected in the terrain model will be used in the identification of the drilling targets.

The current drilling programme is expected to expand and upgrade the current resource of 350mt into JORC/SAMREC compliant ‘inferred’ status in the second quarter this year.

Preliminary discussions with various infra-structure participants are underway to ascertain the export capacity of the coal mined. Management have received valuations from independent third parties mandated to assess the value of the surface rights comprising the Thuli Coal Project. Preliminary consultations with the current surface rights owners on CoAL’s potential acquisition of these rights have been undertaken. CoAL will continue these discussions together with the drilling program during the 2008 financial year.

Holfontein Coal Project (Mpumulanga province) (100% owned post Motjoli acquisition)
The Holfontein coal project is situated in the Highveld coal field, immediately east of the town of Kinross. A renowned mining region for over 100 years, the area is well served by infrastructure including rail, road and electricity.
The project comprises two underground mineable coal seams- the No 5 seam which is a coking coal seam and the No 4 seam which is a low grade steaming coal. The total indicated coal resource amounts to some 56 million tonnes in situ including a saleable tonnage of 22mt.

Additionally, a Bankable Feasibility Study is underway along with Environmental Impact Studies, Environmental Management Plans and Social and Labour Plans, all of which are required to convert the prospecting licenses to a mining right.

The Company plan to produce 400,000tpa of soft coking coal from the 5 seam and 800,000tpa of thermal coal from the 4 seam with first production expected in the second quarter of 2009.

Geographical Spread

South Africa

Board of Directors and Key Management

Richard Linnell	Non-Executive Chairman
Simon Farrell	Managing Director
Peter Cordin	Non-Executive Director
Steve Bywater	Non-Executive Director
Blair Sergeant	Finance Director

Company Address Level 1 Old Swan Brewery 173 Mounts Bay Road Perth, Australian Capital Territory, Australia 6000 Telephone: +61 8 9322 6776 Facsimile: +61 8 9322 6778 Email: perth[at]coalofafrica.com Website: http://www.coalofafrica.com

Capital Ordinary Shares - 301,873,917

Annual General Meeting November 2008

Year End 30 June

Nominated Brokers Blue Oar Securities/ Mirabaud Securities

Nominated Advisors Blue Oar securities

Broker/Analyst Reports

27/02/07 - GVM research note - By Corporate Synergy & Equity for Growth Ltd

Major Shareholders

ArcelorMittal

L P African Global Capital

Nortrust Nominees Limited

Nutraco Nominees Limited

South African Coal Limited

Greenwood Nominees Limited

Zero Nominees Pty Ltd

HSBC Custody Nominees (Australia) Limited

State Street Nominees Limited

Credit Suisse Client Nominees (UK) Limited

Related News

06/03/08 - Coal of Africa Has The Wind In Its Sails
03/10/07 - GVM Metals Aims For Large Scale Coal Production Next Year
29/03/07 - GVM Metals Has Assembled An Enviable Coal Portfolio

Most Recent Statement

26/08/08 - CoAL SECURES LONG TERM PORT ALLOCATION
04/08/08 - BEE PARTNER RECEIVES FIRB APPROVAL
30/07/08 - REPORT FOR THE JUNE 2008 QUARTER
22/07/08 - RESOURCE UPGRADE MAKHADO PROJECT
10/07/08 - CLARIFICATION
08/07/08 - Rio Tinto And Coal Enter Into JV And Farm Swap Agreement