Coal Of Africa Gets Approval For Makhado Coking Coal Project Farm Swap

Coal of Africa Ltd. (CZA.AU), a coal mining and development company operating in South Africa, said Monday it has received confirmation from the South African Department of Mineral Resources, or DMR, that the application for Ministerial consent to effect the exchange of prospecting rights agreement with Kwezi Mining and Exploration (Proprietary) Ltd. and Chapudi Coal (Proprietary) Ltd., joint venture companies held by the Rio Tinto PLC (RIO.LN)and the Kwezi Group of South Africa has been granted by the DMR.

MAIN FACTS:

-Approval of the Rio farm swap agreement allows CoAL to lodge a new order mining right, or NOMR, application for the Company's flagship Makhado coking coal project.

-It is anticipated that the NOMR application will be lodged before the end of the year, followed by an application for an integrated water use license and further relevant approvals, as required.

-The Rio farm swap agreement creates another three significant coal projects around Makhado, namely the Mount Stuart coking coal project, the Voorburg coking coal project and the Jutland coking coal project, together with an additional two farms which will form a natural extension to Makhado.

-Currently validating the data that has the potential to significantly increase coking coal portfolio.

-Coal of Africa shares at 0805 GMT up 4.75 pence, or 5.8%, at 86.5 pence valuing the company at GBP458.9 million.

-By Ian Walker, Dow Jones Newswires; 44-20-7842-9296; [e-mail]