ANNOUNCEMENT                                                               13 November 2014

Stage 1 Equity Raise Cash Flow Received

Coal of Africa Limited ("CoAL" or "Company"), the coal exploration and project development company operating in South Africa and traded on the ASX, AIM and JSE is pleased to announce the successful completion of the Stage 1 Share Placementand the receipt of funds on the 11th of November 2014. The Stage 1 Placement resulted in the issue of 251 million additional shares split according to the various subscription agreements on the AIM and JSE to the value of GBP 13,805 million (US$ 21,8 million). For more information regarding the announced equity raise please refer to the announcement made on the 26th of August 2014.

David Brown commented:

"The receipt of funds from the Stage 1 placement is most welcome and will enable the Company to continue on our value creation strategy"

AUTHORISED BY:

David Brown

For more information contact:

Company advisors:

Investec Bank Limited is the nominated JSE Sponsor

About CoAL:

CoAL is an AIM/ASX/JSE listed coal exploration, development and mining company operating in South Africa. CoAL's key projects include the Vele Colliery (coking and thermal coal), the Greater Soutpansberg Project /MbeuYashu, including CoAL's Makhado Project (coking and thermal coal).