No Decision Yet from EPA Regarding Vele Colliery Development - Coal of Africa

Coal notes the recent article published by Bloomberg on 14 October 2010 rgrinding mills manufacturers in south africaegarding the Company’s Vele Colliery in the Limpopo Province of South Africa.

The Company would like to clarify that no decision has been made as yet by the Department of Environmental Affairs (“DEA”) or the Department of Water Affairs in relation to the recommencement of development and the granting of the Integrated Water Use License application for the Vele Colliery.

CoAL is in active dialogue with the DEA and remains hopeful development can re-commence in Q4 2010. The Company will continue to keep the market informed of relevant progress.