COKAL LIMITED — Capital/Financing Update 2012

Oct 9, 2012

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T +61 7 3001 4100 E info@cokal.co m .au Level 34, 123 Eagle Street, Ri v erside Centre, Brisbane QLD 4 000 GP O Box 7122, Ri v erside Centre, Brisbane QLD 4 001 ABN 55 082 5 4 1 437 (ASX: C KA) www.cokal.com.au

ASX Announcement

October 10, 2012

COKAL ESCALATES BUMI BARITO MINERAL (BBM) PROJECT, GRANTED FORESTRY PERMIT

HIGHLIGHTS

• Indonesian government approves exploration forestry permit (IPPKH)

• Cokal mobilises larger machinery and increasing exploration drilling activity

• Results of Pre‐Feasibility Study on BBM to be released in the near future

• AMDAL standard EIS substantially completed

Global m etallurgical coal grou p Cokal Ltd ( ASX:CKA) i s pleased to announce t he compa n y has recei v ed Ministr y approval f o r explorati o n forestry p ermit, Pinj a m Pakai (IPPKH), cover i ng its premier Bumi Barito Mineral (BBM) metallurgical C o al Project. T he IPPKH i s critical for the use of larger capacity equipment which w ill allow for high impact exploration drilling acti v ity of its Indonesian coal targets.

Cokal E x ecutive Ch a irman Pete r Lynch said t he company expects to complete a nd announ c e the result s of its BBM pre‐feasibility this mon t h and has also substantially comple t ed its Envir o nmental Impact Statement (EIS). T h e Pre‐Feasi b ility Study p rovides a n u mber of o p tions for de v eloping an open‐cut coal mine in BBM and the associated infrastructure and coal transporta t ion. This directs our f o cus to studies and acti o ns specific a lly required for the Pro j ect to com m ence prod u ction quick l y. The com p letion of these Studies will enable t he compan y to make i n vestment d ecisions an d ultimately commence constructio n of the mi n ing operati o n.

Mr Lyn c h said the latest devel o pments m o ved the co m pany closer to the pr o duction ph a se for its B u mi Barito M ineral (BB M ) coal proje c t in the Ind o nesian pro v ince of Cen t ral Kaliman t an.

“The a p proval of t h e forestry p ermits fro m the Indon e sian gover n ment mea n s Cokal can now use l a rge drills in order to co n vert the previously an n ounced 20 0 – 350Mt Exploration T arget[(1)] to J ORC compliant Coal Re s ources,” he said.

“This p e rmit allows Cokal to develop a roa d way syste m within BB M for bette r access of p eople, supplies and medical care. A s well, Co k al will com m ence surv e y of mine site infrastr u cture including the barge loading port, mine o ffices acco m modation and mainten a nce workshop.

“The ex p loration fo r estry permi t and the EI S approval a r e also critic a l pre‐requi s ites for applying to con v ert the BB M exploration IUP licence into a pr o duction IUP licence. Co k al’s EIS ha s made signi f icant progr e ss, allowin g the compa n y to move q uickly towards applyin g for the min i ng licence.”

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Executi v e Director, P at Hanna, s aid “The approval from the Forestr y Departme n t confirms C okal’s strategy in developing cokin g coal open‐cut coal mi n e in Indonesia. We hav e always believed this is the right place to oper a te, because the system works here i n Indonesia if you follo w the rules. W e now ha v e a coal pro j ect which i s legally owned by Cokal (60% foreig n ownershi p approved b y Badan Ko o rdinasi Pe n anaman M o dal [BKPM] the Indon e sian equivalent of the Foreign In v estment R e view Boar d ), and the licence has no outstan d ing legal o w nership iss u es as it wa s approved b y the Centr a l Governm e nt and liste d on the “Cl e an and Cle a r List”.

“Cokal i s one step c loser obtai n ing Environ m ental App r oval and a M ining Lice n ce” Pat Ha n na said “There are not many place s in the world where yo u can develop a coal mine from gre e nfields expl o ration thro u gh to min e production in three t o four years. Our workforce on sit e at BBM is entirely In d onesian ski l led people w ho are co n ducting activities to Int e rnational s t andards an d in accord a nce with th e JORC Cod e as require d by the Aus t ralian Secu r ities Exchange.”

Cokal h a s impleme n ted a Com m unity Dev e lopment P r ogram fro m Day 1 and we believe we are loo k ed upon fa v ourably by t he local Co m munity, m a ny of who m form a par t of our tea m .

BBM co v ers an area of 19,920 h a , immediat e ly adjacent to BHPBillit o n’s Juloi te n ement, straddling the Barito River, ex p loration ef f orts to dat e have confi r med 77Mt of Indicated (7Mt) and I nferred (70 M t) JORC re s ources whi c h is 80% pr e mium coki n g coal and 2 0% high qu a lity low vol a tile PCI.

Meanw h ile Cokal c o ntinues to m ake progr e ss on its ot h er IUP, Bor n eo Bara Prima (BBP), c o vering an area of 13,0 5 0 ha, locate d adjacent t o BHPBillito n ’s Maruwai tenement.

Cokal M anaging Dir e ctor Jim Middleton sai d the company expects to release th e BBM Pre‐ F easibility St u dy in the n e ar future.

“Cokal h as a Pre‐Fe a sibility Study underway which is fo c used on an e arly produ c tion scenario utilising o p en cut min i ng methods, producing a direct shi p ped, premi u m quality p r oduct and u tilising rive r barging fro m a port loc a ted on the Barito River,” Mr Middl e ton said.

“We ha v e also subs t antially co m pleted sup p orting docu m ents for o u r Mining Li c ence applic a tion.”

Mr Hanna said exp l oration activity is continuing to d e fine further coal resou r ces which a re generall y in areas o f low strip ra t io and with higher perc e ntages of c o king coal.

Cokal a n nounced o n June 27, 2 0 12, an Expl o ration Target[(1)] of 200 M t to 350M t down to a depth of 20 0 m. This ex p loration res u lt is in addi t ion to the 77Mt total (7 Mt Indicated and 70 M t Inferred) R e sources.

ENDS

Further enquiries:

Peter L y nch Andre w Crook Chairm a n Media E nquiries Mobile: 0419 764 7 4 7 Mobile: 0419 788 431 About Cokal Limited

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Cokal (A S X:CKA) is an A ustralian listed company w i th the objective of becomi n g a metallurg i cal coal prod u cer with a gl o bal presence. Cokal has interests in four p r ojects in Cent r al Kalimantan, Indonesia con s idered prosp e ctive for metallurgical coal. Cokal has also signed a joint venture with Tanzoz Reso u rces to explo r e for coal in Tanzania and a co‐operation agreement w ith Mozambi q ue Government Mining Corporation, EME M , to explore for coking coal in the emerging c oal province o f Mozambique.

Forward Looking Statements

Statemen t s regarding plans with resp e ct to the Com p any’s explora t ion properties are forward‐l o oking statem e nts. There ca n be no assurance that the C o mpany’s plan s for developm e nt of its prop e rties will proc e ed as currentl y expected. T h ere can also b e no assuranc e that the Company will be a b le to confirm t he presence o f additional d e posits, that a n y mineralisati o n will prove t o be economic or that a mine will successfully be develope d on any of th e Company’s exploration prop e rties.

Competent Persons Statement

The infor m ation in this report relatin g to Explorati o n Results and Coal Resourc e s is based on information c o mpiled by Pa t rick Hanna w h o is a Fellow of the Australasian Institut e of Mining and Metallurgy a nd is a cons u ltant (through Hanna Consu l ting Services) to Cokal Ltd a nd Tri Yoso w ho is a mem b er of the Au s tralasian Insti t ute of Minin g and Metallur g y and a full t ime employe e of Cokal Ltd.

Mr Hann a and Mr Yoso a re qualified g e ologists and t h ey have sufficient experienc e which is rele v ant to the style of mineralis a tion and type o f deposit und e r consideration and to the a c tivity which th e y are underta k ing, to qualify as Competent Persons as defined in the 20 0 4 Edition of th e “Australasian Code for Rep o rting of Explor a tion Results, M ineral Resour c es and Ore Reserves”.

Mr Hann a and Mr Yoso c onsent to the inclusion in the report of th e matters base d on the infor m ation, in the f o rm and conte x t in which it appears.

Note 1: Exploration Target

All state m ents as to Exploration Target s of Cokal Limi t ed and statements as to potential quality a n d grade are conceptual in na t ure. There ha s been insuffici e nt exploratio n undertaken t o date to defin e a coal resour c e and identifi c ation of a res o urce will be to t ally depende n t on the out c ome of furth e r exploration . Any statement contained i n this docum e nt as to exploration result s or Explorati o n Targets has been made co n sistent with t h e requiremen t s of the Austr a lasian code fo r reporting of e xploration results, mineral r e sources and o r e reserves (“J O RC Code”).

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