MC MINING LIMITED — Capital/Financing Update 2009

Oct 22, 2009

Appendix 3B New issue announcement

Rule 2.7, 3.10.3, 3.10.4, 3.10.5

Appendix 3B

New issue announcement, application for quotation of additional securities and agreement

Information or documents not available now must be given to ASX as soon as available. Information and documents given to ASX become ASX’s property and may be made public.

Introduced 1/7/96. Origin: Appendix 5. Amended 1/7/98, 1/9/99, 1/7/2000, 30/9/2001, 11/3/2002, 1/1/2003.

Name of entity

Coal of Africa Limited

ABN

98 008 905 388

We (the entity) give ASX the following information.

Part 1 - All issues

You must complete the relevant sections (attach sheets if there is not enough space).

	+ +	+ +
	1Class ofsecuissued	rities issued or to be	Shares
	2Number of+securities issued or tobe issued (if known) or maximumnumber which may be issued
			1,990,000 shares
	3Principal terms	of the+securities (eg,
			Fully paid	ordinary
	if options, exerdate; if partlyamount outsta	cise price and expirypaid+securities, thedin and due dates
	forpayment;securities, the	g if+convertibleconversion price and
dates for conver	dates for conver	sion)

• See chapter 19 for defined terms.

Appendix 3B Page 1

1/1/2003

Appendix 3B New issue announcement

• 4 Do the[+] securities rank equally in all Yes respects from the date of allotment with an existing[+] class of quoted +securities? If the additional securities do not rank equally, please state: • the date from which they do • the extent to which they participate for the next dividend, (in the case of a trust, distribution) or interest payment

• • the extent to which they do not rank equally, other than in relation to the next dividend, distribution or interest payment

• 5 Issue price or consideration Deemed issue price of 34 pence each. 6 Purpose of the issue Acquisition of 6% interest in Limpopo Coal (If issued as consideration for the Company (Proprietary) Ltd, owner of Vele acquisition of assets, clearly identify Project. those assets)

• 7 Dates of entering[+] securities into 23 October 2009 uncertificated holdings or despatch of certificates Number +Class

• 8 Number and +class of all 414,374,875 Fully paid ordinary +securities quoted on ASX shares ( including the securities in clause 2 if applicable)

• See chapter 19 for defined terms.

Appendix 3B Page 2

1/1/2003

Appendix 3B New issue announcement

9Numberand+classofall+securities not quoted on ASX(_including_the securities in clause 2if applicable)

Number+Class9,200,000250,0007,000,000171,3051,000,000600,0001,650,000ClassAOptionsexercisable at $0.50each on or before 30September 2011.ClassBOptionsexercisable at $2.05each on or before 1May 2012.ClassDOptionsexercisable at $1.25each on or before 30September 2012.ClassEOptionsexercisable at £0.65each on or before 30November 2009.ClassGOptionsexercisable at $1.90each on or before 30September 2012.ClassHOptionsexercisable at $1.25on or before 1 May2012.ClassIOptionsexercisable at $3.25on or before 31 July2010.

• 10 Dividend policy (in the case of a Not applicable trust, distribution policy) on the increased capital (interests)

Part 2 - Bonus issue or pro rata issue

Questions 11 to 33 – Not Applicable

Part 3 - Quotation of securities

You need only complete this section if you are applying for quotation of securities

34 Type of securities ( tick one )

• (a) Securities described in Part 1

• See chapter 19 for defined terms.

Appendix 3B Page 3

1/1/2003

Appendix 3B New issue announcement

• (b) All other securities

Example: restricted securities at the end of the escrowed period, partly paid securities that become fully paid, employee incentive share securities when restriction ends, securities issued on expiry or conversion of convertible securities

Questions 35 to 42 - Not Applicable

Quotation agreement

• 1 +Quotation of our additional +securities is in ASX’s absolute discretion. ASX may quote the +securities on any conditions it decides.

• 2 We warrant the following to ASX.

  • The issue of the[+] securities to be quoted complies with the law and is not for an illegal purpose.

  • There is no reason why those[+] securities should not be granted[+] quotation.

  • An offer of the[+] securities for sale within 12 months after their issue will not require disclosure under section 707(3) or section 1012C(6) of the Corporations Act.

Note: An entity may need to obtain appropriate warranties from subscribers for the securities in order to be able to give this warranty

• Section 724 or section 1016E of the Corporations Act does not apply to any applications received by us in relation to any[+] securities to be quoted and that noone has any right to return any[+] securities to be quoted under sections 737, 738 or 1016F of the Corporations Act at the time that we request that the[+] securities be quoted.

• We warrant that if confirmation is required under section 1017F of the Corporations Act in relation to the[+] securities to be quoted, it has been provided at the time that we request that the[+] securities be quoted.

• If we are a trust, we warrant that no person has the right to return the[+] securities to be quoted under section 1019B of the Corporations Act at the time that we request that the[+] securities be quoted.

• 3 We will indemnify ASX to the fullest extent permitted by law in respect of any claim, action or expense arising from or connected with any breach of the warranties in this agreement.

• 4 We give ASX the information and documents required by this form. If any information or document not available now, will give it to ASX before[+] quotation of the[+] securities begins. We acknowledge that ASX is relying on the information and documents. We warrant that they are (will be) true and complete.

Sign here: Date: 23 October 2009 (Company secretary)

Print name: SHANNON COATES

• See chapter 19 for defined terms.

Appendix 3B Page 4

1/1/2003