Universal Annex and Mopane

Exotic Coal Exploration Pty Ltd holds coal prospecting rights over 12 farms under two Prospecting Rights (PR’s):

PR Reference No: LP/5/1/1/2/1594 PR.
Farms: Vrienden 589 MS, Gruisfontein 368 MS, Renfrew 620 MS, Riebelton 488 MS, Thurso 619 MS and Mansfield 356 MS.
Rights Holder: Exotic Coal Exploration (Pty) Ltd.
Executed: June 2011.

PR Reference No: LP/5/1/1/2/1685 PR.
Farms: Kaal Kraal 100 MS, Icon 95 MS, Hartz 233 MS, Kilgour 176 MS,
Mirrior 111 MS and Rietfontein 109 MS.
Rights Holder: Exotic Coal Exploration (Pty) Ltd.
Executed: June 2011.

The Soutpansberg coalfield is divided into three separate sectors named from west to east as Mopane, Tshipise and Pafuri. Within the Mopane Sector are the Coal of Africa Limited / Rio Tinto projects (Makhado and Chapudi), Optimum Coal’s project (Mpefu) and the Universal Coal project (Berenice). The twelve farms that make up these two projects are located in the Mopane sector that forms the western part of the Soutpansberg Coalfield. Coal of Africa Limited (CoAL) has a pending mining license for their Vele Project which is located in the Limpopo Coalfield, several kilometres to the north of the project area.

Secondary to the adjacent project underway by Universal Coal, CoAL has two projects within the strike zone of the Signet Project – Voorburg and Jutland. After CoAL’s most recent acquisition of Rio Tinto’s Chapudi Project, the following CoAL announcement has shed even more light on the potential of this particular region of the Mopane coalfield – “….. CoAL’s Makhado, Mt Stuart, Voorburg and Jutland Projects exhibit coking coal properties and are more likely to be developed as such. CoAL intends to develop the coking coal properties….”.

South Africa has historically has produced and consumed coking or anthracite coals, only exporting a small fraction. Therefore exploration and production has always been primarily contained to provinces of lower grade sub-bituminous coal (Waterberg, Witbank and Highveld). These areas satisfied domestic consumption and export quotas. However under explored coalfields such as Soutpansberg offer immense possibilities of virgin territories of coking and anthracite coals, based on limited but current data sources. The Soutpansberg coalfield is well known for producing and exhibiting high hard coking coal values.