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Leeuwfontein

The Leeuwfontein Project which is a nine-hectare property about 35 kilometres to the south of Middelburg. A Measured Coal Resource of 922 000 tonnes (MTIS) of open-pittable coal has been declared and is included in the Coal Resource and Reserve Statement. The Board has resolved that an application for a mining right be prepared and submitted with a view to bringing the project into production in 2010. The project will be very similar to the existing Klip Colliery and will have a relatively short life of about 18 months with run-of-mine coal likely to be sold for processing elsewhere.

Leeuwfontein Project Coal Resource Statement (May 2009) Air Dried Basis

Seam	Density	Average Width (m)	Volume (m3)	Tonnage (GTIS) (‘000 t)	Tonnage (MTIS) (‘000 t)	Category
4	1.69	2.64	201,828	342	290	Measured
1/2	1.59	5.80	467,084	744	632	Measured
Total			668,912	1,086	922	Measured