- Uithoek EIA submitted
- Prospective area in KZN increased to 61,300 hectares

1. Sesikhona Kliprand Colliery ("Sesikhona")

Miranda Coal is making good progress in preparing to move into production at Sesikhona. Negotiations on the marketing of the coal as well as with mining contractors are at a sensitive stage. The board will make a further detailed announcement as soon as arrangements have been finalised, which is expected to be before the end of July.

2. Uithoek project

As reported in the interim financial results on 7 April 2009, a mining right application was submitted and accepted by the Department of Minerals and Energy ("DME") for the group`s Uithoek project. Situated in the Glencoe district within the Klip River coalfields, Uithoek has a measured resource of 6.7 million tons ("mt") in situ, of which 4.1mt is minable by open pit. The Environmental Impact Assessment ("EIA") has now been completed and will be submitted to the DME by mid-July. The EIA represents an important step in the process of obtaining the Mining Right. The board anticipates that DME approval of the Mining Right application should take place before the end of 2009.

3. New coal prospecting rights acquired

Miranda Coal has made significant advances in further increasing its coal footprint in KwaZulu Natal ("KZN"). The group`s prospective area has been increased to more than 61,300 hectares, of which 24,000ha is already under either Prospecting or Mining Right. Applications for Prospecting Rights have been accepted by the DME on properties covering a further 12,600ha. New projects acquired by Miranda include:

3.1 Dwalalamadwala Mining Resources (Pty) Ltd ("DMR")

DMR was awarded a Prospecting Right in the magisterial district of Dannhauser in KZN over an area of 1,337ha. Miranda has entered into heads of agreement with DMR in terms of which it will obtain a 65% stake in a NewCoalCo, which will house the DMR Prospecting Right, at a nominal cost. The DMR prospecting area is contiguous with Miranda Coal`s existing Sesikhona Colliery project, extending it in a western direction. Sesikhona`s existing mining license covers 864ha.

Sesikhona and the DMR prospecting areas are situated in the centre of the Klip River coalfield, which is considered to be the most important coalfield in KZN with a history of good coking coal and anthracite production. The old Cambrian Coal Mine, which was in operation between 1903 and 1958, produced over 10mt of saleable coal and lies to the north of the DMR prospecting area. To the west is situated Durban Navigation Collieries (Durnacol), which started production of coking coal in 1903, employed some 5,000 people at the height of its activities, and was closed in 2000. Sesikhona itself boasts a total resource of 22mt of which 5.4mt is measured in terms of SAMREC. The phase one mining plan is based solely on the open-cast section, estimated at about 40% of the resource.

Current indications are that the DMR prospecting area presents a continuation of the coal horizon to be mined at Sesikhona. This is based on results derived from a total of 10 non-discriminatory holes that were drilled in the past on Goede Geloof 8703, one of the farms in the DMR prospecting area. Both the top and bottom seams were intersected at depths and seam widths suitable for potential opencast mining, particularly during the crucial initial phases of development.

The depths at which coal was intersected and the seam widths of some of the boreholes are indicated below (taken from Geological Survey information, which is not SAMREC-compliant):

Miranda Coal is embarking on a drilling program in the DMR prospecting area using both percussion and core drilling techniques, including wire-line logging of the boreholes, to confirm the continuation of the coal seams throughout the properties.

The group`s exploration program in the Klip River coalfields remains on track. The in-fill drilling program at Sesikhona is on schedule and initial drilling has commenced at Majestic Silver (refer to the SENS announcement dated 5 March 2009). Further announcements of these results will be made in due course.

3.2 Utrecht coalfields properties

* Alston project

Miranda Coal has secured a 70% shareholding in Juxtox (Pty) Ltd, whose application for a Prospecting Right over the farms Alston 10373 and Paardeberg 1068 has been accepted by the DME. This acquisition was at nominal cost. The prospecting area covers 3,070ha in the Utrecht district. The Environmental Management Program ("EMP") has been completed and submitted to the DME.

Geologically, on Paardeberg 1068 the displacement of the dolerite has caused an uplift of the coal seams of 46m to 61m. Evidence from an outcrop of the

Top Seam on the same farm and a borehole on a neighbouring farm indicate a seam thickness of 1.27m (source: Geological Survey).

* Planet Waves

Planet Waves 522 (Pty) Ltd has applied for five separate Prospecting Rights on the farms Frischgewaagd 17076, Uitzicht 284, Witklip 98, Altemooi 17091 and Twijfelfontein 160. Miranda Coal acquired a 70% interest in Planet Waves for a nominal investment, the five properties also being situated in the Utrecht district and covering an area of over 9,500ha.

The DME has accepted all five the Prospecting Right applications and Miranda Coal is presently engaged in completing the EMPs.

Geological Survey data indicates a seam thickness of 1.2m on the farm Witklip 98. Historically, the Umgala and Balgray Collieries, whose mining leases included different portions of the farm Twijfelfontein 160, used to operate in the area, both collieries having commenced with production in 1967. Using the bord-and-pillar mining system, the collieries produced 80,000 and 17,000 saleable tons per month, respectively.

4. Conclusion

Miranda Coal is now more strongly than ever positioned to achieve critical mass in KZN, which makes the upgrade of the three train sidings it has under long-term lease, economically viable. By extending and securing its coking coal and anthracite pipeline, Miranda Coal will also be better placed when negotiating off-take and forward sale agreements.

Centurion
14 July 2009
Sponsor PricewaterhouseCoopers Corporate Finance (Pty) Ltd
Corporate adviser
Touchstone Capital (Pty) Ltd Date: 14/07/2009 11:54:01 Supplied by www.sharenet.co.za

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