🕐01.02.11 - 10:00 Uhr

Sable Mining Africa Limited - Rietkuil Coal Project in South Africa Granted Mine Right



Sable Mining Africa Ltd/ Index: AIM / Epic: SBLM / Sector: Natural Resources 1 February 2011 Sable Mining Africa Limited (Sable Mining or the Company) Rietkuil Coal Project in South Africa Granted Mine Right Sable Mining Africa Limited, the AIM listed resource company, is pleased to announce the Mining Right for Delta Mining Consolidated Limiteds (DMC) Rietkuil Coal Project (Rietkuil) in South Africa has been granted by the South African Department of Minerals and Energy.

The granting of the Mining Right is the next stage in the development of a mine at Rietkuil, which is being designed to process 3Mtpa Run of Mine coal with a thirty year Life of Mine. The initial mine construction is expected to be principally funded through debt financing and DMC is in discussion with two major South African financial institutions to act as the lead arrangers for the debt.

The financing will be finalised following completion of the Bankable Feasibility Study (BFS) which is now targeted for the end of February 2011. Progress has also been made on many aspects of the development process including designs for the Coal Handling and Processing Plant and relevant infrastructure.

Additionally, the formal processes for export allocations from Richards Bay have been submitted and negotiations with regards to off-take agreements are progressing well. Rietkuil, which has a SAMREC compliant gross in-situ tonnage resource of 199.9 million tonnes (156.9Mt in Measured and 42Mt in Indicated categories) is located 80km east of Johannesburg, 8km south of Delmas and is adjacent to Exxaro Resources Limiteds Leeuwpan Colliery and Kuyasa Mining (Pty) Limiteds Delmas Colliery, situated in the Mpumalanga Province. Sable Mining CEO Andrew Groves said, "The granting of the Mining Right for Rietkuil marks another major step towards its development.

DMC has made strong progress on a number of fronts including financing initiatives and mine design.

The finalising of the BFS is imminent, and this will be yet a further key milestone as the Rietkuil project is brought to fruition." ** ENDS ** For further information please visit www.sablemining.com or contact: Andrew Groves Sable Mining Africa Ltd Tel: 020 7408 9200 Jonathan Wright Seymour Pierce Ltd Tel: 020 7107 8000 David Foreman Seymour Pierce Ltd Tel: 020 7107 8000 Robin Henshall Matrix Corporate Capital Tel: 020 3206 7000 Nick Stone Matrix Corporate Capital Tel: 020 3206 7000 Hugo de Salis St Brides Media & Finance Ltd Tel: 020 7236 1177 Susie Geliher St Brides Media & Finance Ltd Tel: 020 7236 1177
Susie Geliher St Brides Media & Finance Ltd Chaucer House 38 Bow Lane London EC4M 9AY T: +44 (0) 207 236 1177 | M: +44 (0) 7976 749 561 | F: +44 (0) 207 236 1188 | www.sbmf.co.uk



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