CONTINENTAL COAL LTD - Operations and Corporate Update

18 November 2013

           CONTINENTAL COAL PROVIDES OPERATIONS AND CORPORATE UPDATE

Continental Coal Limited (ASX: CCC) ("Continental" or "the Company") the South
African thermal coal production, development and exploration company, is
pleased to provide an operations and corporate update.

Production at the Company's recently opened Penumbra underground coal mine
located in the Ermelo coal fields of South Africa reached 51,000 run-of-mine
(ROM) tonnes for October 2013. Free-on-board cost per tonne for October 2013
was ZAR645/t (US$64.5/t) and continues to improve as production volumes
increase. The availability of the continuous miners during November 2013 had a
negative impact on the month to date production. This matter is being addressed
by the Company's operations team with the support of the equipment
manufacturer. A conventional drill-and-blast section has been established and
production from this section is expected to ramp up in the next few months. The
Company's Vlakvarkfontein Coal mine continues to exceed production budget
targets with another strong production performance of 127,400 ROM tonnes at a
Free-on-truck cost of ZAR167/t (US$16.7/t) during October 2013.

The independent Special Committee (the Committee) appointed by the Board has
been engaging with potential funders to enable the Committee to evaluate
proposals received and recommend the most appropriate funding partners and
structure to the Board as soon as practicable. The Committee will be evaluating
the funding structures under review against stringent criteria taking into
account the current capital structure of the Company as well as the
sustainability of the future capital structure to allow the share price to
reflect the underlying asset value of the Company. A further progress
announcement on the refinance will be made in December 2013.

The Company has recently submitted its draft Pre-listing statement to the
Johannesburg Stock Exchange for review. The listing timeline will be impacted
by the timing and structure of the refinancing of the Company's convertible
debentures.

The Company plans to relinquish prospecting licence 339 to the Ministry of
Minerals, Energy and Water Resources of Botswana. Required future exploration
expenditure, the Company's assessment of low exploration prospectivity and the
lack of farm-out or divestment opportunities has resulted in the
relinquishment. The Company is currently reviewing opportunities to minimize
future spend and still extract value from the remaining prospecting licences in
Botswana.

Mr Jason Brewer has resigned as Non-Executive Director of the Company on 15
November 2013. The Board thanks Mr Brewer for his contribution to Continental
over the past 4 years and wishes him well with his future endeavours.

Continental Chief Executive Officer, Mr Don Turvey said:

"We are delighted with the continued progress being made at Penumbra as well as
the continued good production results from our Vlakvarkfontein coal mine. We
are making good progress to refinance the Convertible debentures that have
created a significant overhang in our share price over the past few months. We
will continue to update the market with developments in the next few weeks. I
would like to thank Jason for his effort the past 4 years and wish him well
with his future plans."

For and behalf of the Board

Don Turvey

Chief Executive Officer

For further information please contact:

Investors/ shareholders                 Lou van Vuuren

Don Turvey                              Chief Financial Officer

Chief Executive Officer                 T: [phone]

T: [phone]                      E: [e-mail]

E: [e-mail]                  W: www.conticoal.com

W: www.conticoal.com

Media (Australia)                       Nominated Advisor

David Tasker                            Stuart Laing

Professional Public Relations           RFC Ambrian Limited

T: [phone]                      T: [phone]

Brokers                                 Jonathan Williams

Jeremy Wrathall / Chris Sim             RFC Ambrian Ltd

Investec Bank plc                       T : [phone]

T: [phone]

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 three operating mines, the Vlakvarkfontein, Ferreira and
Penumbra Coal Mines, producing approx. 2.2Mtpa of thermal coal for the export
and domestic markets. A Feasibility Study was also completed on a proposed
fourth mine, the De Wittekrans Coal Project.

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.

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