Continental Coal Completes First Tranche of A$30 Million Equity Raising

Emerging mid-ticomplete micronized calcium carbonate planter Southern African focussed coal producer Continental Coal is pleased to announce that further to its announcement of 19 October 2010 it has completed the first tranche of the A$30 million equity raising with the allotment today of shares to institutional investors in Europe and South East Asia and investors in Australia.

The funds will immediately be used by the Company towards settlement by its South African subsidiary Continental Coal Limited (CCL), of the acquisition of unlisted South African thermal coal mining and export coal producing company Mashala Resources and the development of the Company’s third coal mine, the Penumbra Underground Project.