Dear Name Surname 10 June 2010

9 September 2014

Company Announcements Office Australian Securities Exchange Level 6, 20 Bridge Street

SYDNEY NSW 2000

Via E Lodgement

UNDERWRITTEN ENTITLEMENT ISSUE PROSPECTUS DESPATCHED TO SHAREHOLDERS

Continental Coal Limited ("CCC" or the "Company") confirms that the Entitlement Issue Prospectus for its non-renounceable entitlement issue as announced on 28 August 2014, to raise approximately A$35.1m by way of the issue of up to 7,035,234,408 new shares has been despatched to shareholders.

For and on behalf of the Board

Peter Landau Executive Director

South Africa Australia

T +27 11 881 1420 F +27 862064487 W www.conticoal.com T +61 8 9488 5220 F +61 8 9324 3400 W www.conticoal.com

9th Floor Fredman Towers, 13 Fredman Drive, Sandton 2196 Ground Floor, 1 Havelock Street, West Perth, WA 6005

PO Box 787646, Sandton 2146 PO Box 684, West Perth, WA 6872

Interim Executive Chairman: Dr Paul D'Sylva Interim Executive Director: Mr Peter Landau

Non-Executive Directors: Mr Connie Molusi and Dr Lars Schernikau

For further information please contact:

Investors | Shareholders Media (Australia)

Peter Landau David Tasker

Continental Coal Limited Professional Public Relations

T: + 61 8 9488 5220 T: +61 8 9388 0944

E: peter@conticoal.comE : David.Tasker@ppr.com.au

Nominated Advisor Brokers (UK)

Oliver Morse/Trinity McIntyre Jonathan Williams

RFC Ambrian Limited RFC Ambrian Ltd

T: +61 8 9480 2500 T : +44 203 440 6817

About Continental Coal Limited

Continental Coal Limited (ASX:CCC/AIM: COOL) is a South African thermal coal producer with a portfolio of projects located in South Africa's major coal fields including two operating mines, the Vlakvarkfontein and Penumbra Coal Mines, producing approx. 2Mtpa of thermal coal for the export and domestic markets. A Feasibility Study was also completed on a proposed third mine, the De Wittekrans Coal Project with a mining right granted in September 2013.

Forward Looking Statement

This communication includes certain statements that may be deemed "forward-looking statements" and information. All statements in this communication, other than statements of historical facts, that address future production, reserve potential, exploration drilling, exploitation activities and events or developments that the Company expects to take place in the future are forward-looking statements and information. Although the Company believes the expectations expressed in such forward-looking statements and information are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in the forward-looking statements and information. Factors that could cause actual results to differ materially from those in forward-looking statements include market prices, exploitation and exploration successes, drilling and development results, production rates and operating costs, continued availability of capital and financing and general economic, market or business conditions. Investors are cautioned that any such statements are not guarantees of future performance and actual results
or developments may differ materially from those stated.

South Africa Australia

T +27 11 881 1420 F +27 862064487 W www.conticoal.com T +61 8 9488 5220 F +61 8 9324 3400 W www.conticoal.com

9th Floor Fredman Towers, 13 Fredman Drive, Sandton 2196 Ground Floor, 1 Havelock Street, West Perth, WA 6005

PO Box 787646, Sandton 2146 PO Box 684, West Perth, WA 6872

Interim Executive Chairman: Dr Paul D'Sylva Interim Executive Director: Mr Peter Landau

Non-Executive Directors: Mr Connie Molusi and Dr Lars Schernikau

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