Project Overview

Review of Operations
Continental Coal Limited (ASX:CCC : US-OTCQX:CGFAY) is well on target to become a Mid-Tier Southern African thermal coal producer through its growing portfolio of producing and advanced coal projects.

Continental currently has two operating mines, Vlakvarkfontein and Ferreira, producing approx. 2Mtpa of thermal coal for the export and domestic markets. In 2011 and 2012 Continental is set to commence development of two further thermal coal mines, putting it on target to achieve a ROM production rate of 7Mtpa by the end of 2012/13.

The Company has concluded strategic off-take and funding agreements with EDF Trading for its export thermal coal production and recently signed a joint development agreement with KORES, Korea’s state mining and exploration company.

Future Developments, Prospects and Business Strategies
To further improve the group’s profit and maximise shareholders wealth, the following developments are intended to be implemented in the near future;

• The Group will continue to expand its coal interests in South Africa. It has established its first two operating coal mine, namely Vlakvarkfontein and Ferreira and has commenced development of the Penumbra coal project and is about to complete a Bankable Feasibility Study (BFS) at the De Wittekrans Coal Complex Project – which is set to the Company’s largest new mine development in the coming years
• The Group plan to develop these investments to production through its South African subsidiary Continental Coal Ltd.
• The Group commenced a two-phase, 60 hole drill-hole exploratory program over the Company’s interests in two early stage and located Botswana Coal Projects

These investment opportunities, together with the current strategy of continuous improvement and an adherence to quality control in existing markets, are expected to assist in the achievement of the group’s medium-term goal of investing in highly prospective coal resources in Southern Africa, with early cash flow to fund its ongoing financial requirements and minimum equity dilution.

Looking Forward

• High quality portfolio of advanced development/pre-production mines
• Location within one of the world’s largest, most developed coal mining regions
• Excellent access to surface infrastructure including rail sidings, wash facilities, road, port, power and water
• Conventional open cast and underground mines
• Production ramping up to over 10Mtpa of run of mine coal by end of 2015
• EDF Trading off-take and funding arrangements
• Strong financial platform and robust operating margins
• Strong fundamentals in a very bullish coal market
• Ongoing review of future opportunities with EDF Trading
• Outlook exceptional for Continental in short-term with revaluation expected on continuing development of coal production, coal sales and generation of positive operating cashflow
• Future – Consolidation opportunities in SA, growth potential in Botswana and other Southern African Countries