Acacia Coal : March Quarter Activity and Cashflow Report

Maiden JORC 2012 compliant Mineral Resource Statement completed for the RAC (Riversdale Anthracite Colliery) Project in South Africa

Appointment of Managing Director, Finance Director and experienced management team for the RAC Project

Pre-Feasibility Studies for the Riversdale Anthracite Colliery (RAC) project progressed on time and on budget for release in the June 2017 quarter

RAC Project demonstrated to be a strategically important supplier of high quality anthracite to South Africa's world leading ferrochrome sector

The Directors of Acacia Coal Limited (Acacia or the Company) are pleased to present the March 2017 Quarterly Report, which saw the Company make significant progress towards its objective of developing its new flagship asset, the 74%-owned Riversdale Anthracite Colliery (RAC) Project in South Africa, being acquired from Rio Tinto.

On 16 October 2016, Acacia Coal entered into a Sale and Purchase Agreement with Coalvent Ltd to acquire a 74% interest in the RAC Project, with its partner African Onca to acquire the remaining 26%. An application for transfer of the licences under the relevant mining legislation has been prepared for submission in the June quarter of 2017.

A key focus of activity during the quarter was the Pre-Feasibility (PFS) which is being undertaken on the RAC Project. The PFS is scheduled for completion in early May 2017 - on budget and ahead of schedule.

During the quarter, new officers and management were appointed within the Company to oversee its development strategy at the RAC Project. Mr Hugh Callaghan was appointed as Managing Director, Mr Robert Scott as Finance Director, Mr Filippo Faralla as General Manager Strategy and Marketing, and Mr Peet Snyders, who was appointed to head project delivery.

The newly appointed team includes several former key members of the original management team which founded Riversdale Mining, including Mr Callaghan (the founding Managing Director of Riversdale) and Mr Snyders, the former founding Chief Operating Officer of Riversdale who led the original feasibility study on the RAC Project.

During the quarter, Acacia entered into an option agreement with Bowen Coking Coal Pty Ltd a full subsidiary of Cape Coal Pty Ltd, in terms of which Acacia Coal Granted an option to Bowen Coking Coal to acquire the Comet Ridge Project for 2 option payments totalling A$100,000, a cash payment of A$300,000 and the issuance of A$400,000 in shares in a listed entity when Bowen Coking Coal Pty Ltd achieves a listing on the ASX. The option agreement is subject to due diligence which will be completed in the June quarter.

Acacia Coal Limited Registered & Principal Office

ABN 13 009 092 068 Level 7, 1008 Hay Street

www.acaciacoal.com Perth, Western Australia

Email: info@acaciacoal.com Telephone: +61 8 9320 4700

ASX: AJC

The RAC Project had previously been the subject of a positive feasibility study in 2006, based on resources in the Gus Seam as defined under the 2004 JORC Code. The feasibility study was based on 74 boreholes and 32 adit samples, including a bulk sample of 150 tonnes taken by Rio Tinto in 1987.

During the quarter under review, a 10 cored hole drilling programme was completed which resulted in a further resource upgrade subsequent to the end of the quarter. The programme added significant confidence levels to the resource classification and demonstrated potential with further drilling for the Alfred Seam to be brought into appropriate resource classification.

The Pre-Feasibility Study continued on budget and is set to be released in early May, ahead of schedule. The studies have revisited, and then added to, the very substantial body of knowledge accumulated in the 2004-2006 drilling and feasibility programme led by Mr Peet Snyders. No substantial revisions to the original plan have been identified to date.

Extensive market research conducted by in-house and external experts has demonstrated that South Africa's world leading ferrochrome industry is increasingly challenged by the shortage of low phosphorus and low sulphur anthracite as local reserves of low impurity coal are rapidly depleted.

The RAC product washes at high yields to a suitable mid ash 15-18% product to deliver specific sizing fractions for particular applications within this world-leading industry. While RAC will retain the flexibility to wash a low ash fraction for the ilmenite smelting industry (particularly the globally significant and Rio Tinto-owned Richards Bay Minerals) and then a higher ash export middlings product, the intention is to focus on a single wash plan supplying the ferrochrome industry.

Discussions with key customers have commenced and a non-binding letter of intent to buy the production has been received from one major customer, and discussions with others will commence in May 2017.

The Pre-Feasibility Study is being conducted to a ±15% certainty level, and will be released in early May 2017.

At 31 March 2017 Acacia had approximately $1.5million cash-at-bank.

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Release Date: 27th April 2017

For enquiries, please contact:

Investors

Mr Hugh Callaghan, Managing Director - Acacia Coal

+61 8 9389 2000

Media

Nicholas Read / Paul Armstrong Read Corporate

+61 8 9388 1474

Acacia Coal Limited is involved in coal exploration and development. The Company identifies, acquires and takes advantage of opportunities in coal resources.

Schedule of Tenements as at 31 March 2017

The Company has a 100% interest in a coal exploration permit covering approximately 80 km² in Queensland's Bowen Basin, being EPC 1230 Comet Ridge.

Acacia has entered into a sale and purchase agreement to acquire the Riversdale Anthracite Colliery in South Africa.

ASX Listing Code: AJC Directors

Mr Adam Santa Maria Executive Chairman Mr Hugh Callaghan Managing Director Mr Rob Scott Finance Director

Mr Brett Lawrence Non‐Executive Director Mr Logan Robertson Non‐Executive Director

Registered and Principal Office

Level 7, 1008 Hay Street, Perth Western Australia 6000

Telephone: +61 8 9320 4700

Website and Email Address

Please visit Acacia Coal's website for the Company's latest announcements and news:www.acaciacoal.com Email:info@acaciacoal.com

Issued Capital and Market Capitalisation

At 30 March 2017 Acacia Coal's issued capital was 1,559,034,168 ordinary shares. Based on a share price of $0.006 (26 April 2017), the undiluted market capitalisation was $9.3 million.

Shareholder Enquiries

Matters relating to shares held and changes of address should be directed to the Company's Share Registry:

Link Market Services Level 12 QV1 Building 250 St Georges Terrace Perth WA 6000

Telephone: 1300 554 474

Outside of Australia:: +61 1300 554 474

Email:registrars@linkmarketservices.com.au Website:www.linkmarketservices.com.au