COKAL LIMITED — Capital/Financing Update 2012

Aug 5, 2012

T +61 7 3001 4100 E info@cokal.com.au

Level 34 Riverside Centre, 123 Eagle Street, Brisbane QLD 4000 PO Box 7122, Brisbane QLD 4001

ABN 55 082 541 437 (ASX: CKA) www.cokal.com.au

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ASX ANNOUNCEMENT/MEDIA RELEASE August 6, 2012

COKAL ANNOUNCES ADDITIONAL JORC INFERRED AND INDICATED RESOURCES FOR BBM PREMIUM COKING COAL PROJECT

HIGHLIGHTS

• Increases to 7Mt Indicated and 70Mt Inferred Resource estimate, Total Resources of 77 Mt at BBM, a 28% increase

• Resource increase totally attributed to the ‘J’ Seam which is 100% Premium Coking Coal

• Product split of total BBM Resource is now 70% Coking Coal and 30% PCI

• ‘J’ Seam has direct ship potential

• Exploration continuing to define further Coal Resources

Global metallurgical coal group Cokal Ltd (ASX:CKA) announced today the addition of 7 Mt Indicated and 10Mt Inferred Coal Resources from the recently defined ‘J’ Seam in JORC Resource Statement for Bumi Barito Mineral (BBM) coal project. The project now consists of 7 Mt Indicated and 70Mt Inferred Resource, 77 Mt Total JORC Resources of metallurgical coal in accordance with the JORC Code (2004).

The coal quality is all metallurgical coal products comprising of coking coal (70%) and PCI (30%).

Cokal Executive Director, Mr Pat Hanna, said “the upgrade in Indicated and Inferred Resource estimate is attributable to the recently defined ‘J’ seam. This increase is 100% premium coking coal confirming our view that the coal quality of the BBM project continues to develop as a primarily coking coal project as we progress towards the east.” he said

Mr Hanna said drilling is continuing to define further Coal Resources which are generally in areas of low strip ratio and with higher percentages of coking coal.

BBM covers an area of 19,920 ha, immediately adjacent to BHPBilliton’s Juloi tenement, straddling the Barito River and has numerous outcrops of bright coal. Another Cokal tenement, BBP, covering an area of 13,050 ha, is located adjacent to BHPBilliton’s Maruwai tenement.

The details of the Indicated and Inferred Resources, in accordance with JORC, have been reported in terms of various parameters in the following tables:

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Table 1: BBM JORC Resources by Category and Seam

		T Seam hickness (m)	Indic Resou (M ated rces t)	R Inferred esources (Mt)	Tot Resou (M al rces t)
	Seam Name
	J	1.40	7. 0	10.0	17 .0
	D	1.30		25.0	25 .0
	C	1.06		20.0	20 .0
	B	0.87		15.0	15 .0
	Total		7. 0	70.0	77 .0

Drilling ha s utilised c o nventional triple-tube HQ coring, providing 6 3mm dia m eter core. A ll sample s have bee n transported by air courier su c h that th e y arrive i n ALS’s l a boratory i n Brisbane , Queensla n d, within 5 to 6 days o f core rec o very. This e nsures th e Total Moi s ture result s reflect th e in-situ coal moisture a nd that th e metallurgi c al properti e s have su f fered mini m al degrad a tion due t o oxidation.

Table 2: BBM JORC Resources by Category and Depth of Cover

	Indica Resour (Mt) ted ces	In Re ferred sources (Mt)	Tota Resour (Mt) l ces
Dept (m) h Range
0-50	4.0	8.0	12.0
0-100	7.0	21.0	28.0
0-150	7.0	33.0	40.0
0-200	7.0	44.0	51.0
0-300	7.0	70.0	77.0

Mr Jim M i ddleton, Cokal’s Managing Dire c tor said “ t he ‘J’ sea m exhibits the same remarkabl e coking fea t ures as th e ‘B’, ‘C’ and ‘D’ seam s . The coal has very a ttractive at t ributes bei n g very lo w in impuriti e s while c o ntaining t h e right e s sential metallurgical a ttributes s ought by A sian stee l makers.

This coal h as excellent properti e s which allow coke m akers to e n hance th e performa n ce of othe r coals pur c hased for t heir coke b lends. It c a n be used to offset elevated co n taminants which ma y be presen t in the ble n d.

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6 August 2012

Table 3: In-situ Average Coal Quality by Seam (B, C and D) and Product Type (% adb)

Seam	Product	Inherent Moisture	Ash	Volatile Matter	Fixed Carbon	Total Sulphur	Calorific Value Kcal/kg	CSN	R D elative ensity	P ph hos- orous
D	PCI	0.9	5.1	10.3	83.7	0.43	8,204	1.5	1.36	0.002
D	Coking	0.9	5.1	14.4	79.7	0.39	8,287	9.0	1.33	0.002
C	PCI	1.0	5.5	9.3	84.3	0.41	8,191	1.0	1.36	0.001
C	Coking	0.5	5.5	14.5	79.5	0.24	8,265	8.5	1.33	0.001
B	PCI	0.9	14.0	9.5	75.6	0.41	7,676	1.5	1.40	0.004
B	Coking	0.5	12.6	13.8	73.1	0.23	7,591	7.5	1.38	0.002

Table 4 : In-situ Coal Quality and washed product, ‘J’ Seam (%adb)

Produ ct	Yiel (%) d	Inherent Moisture			V olatile Matter	Fix Car ed bon	Total Sulphu r	Calorific Value	Calorific Value		Rel De ative nsity	Phos phoru - s
				Ash						CSN
Raw Coal		0.8		4.6 – 14.3
					17.9	71.1	0.4 0	7,752		>9	1.35	0.00 3
Washed Co @ F1.60 al		1.0
	87.9 5	1.0		5.2	18.3	75.5	0.4 7	8,237		>9		0.00 2

“The low in-situ ash content in d icates the r e is a rea s onable o p portunity t h at a direc t ship styl e operation can be de v eloped, a v oiding the need to construct a coal wash i ng plant w hich woul d involve significant tim e and capit a l, this is indeed a dis t inct advantage” he said

“Cokal ha s a pre-fe a sibility stu d y underw a y which i s focused o n an earl y producti o n scenari o utilising o p en cut mining metho d s producin g a direct s hipped product utilisi n g river bar g ing on th e Barito Ri v er. The a d ditional Indicated a n d Inferred Resource s identified in the ‘J’ seam ar e sufficient t o underwrit e a 1 – 2 Mtpa initial production r a te.” Mr Mi d dleton sai d .

Cokal ann o unced on the 27[th] of June, 201 2 an Explo r ation Targ e t[1] of 200 M t to 350M t down to a depth of 2 00m. This exploratio n result is in addition to the 77 Mt total (I n dicated a n d Inferred ) Resource s . As exploration continues the f ocus will b e on converting the E xploration Target[1] t o Inferred a n d Indicate d Resource s thereby underwriting an expanded product i on rate.

Exploratio n efforts to date have Identified t hirteen se a ms of met a llurgical q u ality coal a t the BB M project.

ENDS

Further enquiries:

Peter Lyn c h Andrew C r ook Chairman Media En q uiries Mobile: 0419 764 74 7 Mobile: 0 4 19 788 431

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About Cokal Limited

Cokal (ASX: C KA) is an A ustralian listed company w ith the objec t ive of becoming a metallu r gical coal pr o ducer with a global pres e nce. Cokal h as interests in four proj e cts in Centr a l Kalimantan, Indonesia c onsidered p r ospective fo r metallurgical coal. Cokal h as also signe d a joint vent u re with Tanz o z Resources to explore fo r coal in Tanz a nia and a co - operation a g reement wit h Mozambiqu e Governme n t Mining Corporation, E M EM, to expl o re for cokin g coal in th e emerging co a l province of Mozambique .

Forward Looking Statements

Statements r egarding pla n s with respe c t to the Com p any’s explor a tion properties are forward - looking state m ents. Ther e can be no assurance tha t the Compa n y’s plans for developmen t of its prope r ties will proc e ed as curre n tly expected . There can also be no assurance that t h e Company w ill be able t o confirm the p resence of a dditional dep o sits, that an y mineralisation will prove to be econo m ic or that a mine will s u ccessfully b e developed o n any of the Company’ s exploration p roperties.

Competent Person Statement

The informa t ion in this report relating t o exploratio n results and coal resourc e s is based o n informatio n compiled b y Patrick Han n a who is a F e llow of the A u stralasian In s titute of Mini n g and Metallurgy and is a consultant (t h rough Hann a Consulting Services) to C o kal Ltd.

Mr Hanna is a qualified g e ologist and h a s sufficient e x perience wh i ch is relevant to the style o f mineralisati o n and type o f deposit und e r considerati o n and to the a ctivity which he is underta k ing, to qualif y as Compet e nt Person as defined in th e 2004 Edition of the “Austr a lasian Code f or Reporting o f Exploration Results, Min e ral Resourc e s and Ore R e serves”.

Mr Hanna c o nsents to the inclusion in t h e report of th e matters based on the information, in th e form and context in whic h it appears.

Note 1: Exploration Target

All statemen t s as to Explo r ation Target s of Cokal Lim i ted and statements as to potential qualit y and grade a re conceptua l in nature. T h ere has bee n insufficient e xploration u n dertaken to d ate to defin e a coal reso u rce and ide n tification of a resource will be totally de p endent on th e outcome of further explo r ation. Any st a tement cont a ined in this d o cument as t o exploration r e sults or Exp l oration Targ e ts has been m ade consist e nt with the r e quirements o f the Austral a sian code fo r reporting of e xploration re s ults, mineral resources an d ore reserve s (“JORC Code”).

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6 August 2012