Cokal : PT. BBM Update Definitive Feasibility Study Update

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E info@cokal.com.au

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PO Box 7122, Brisbane QLD 4001

ABN 55 082 541 437 (ASX: CKA)

www.cokal.com.au

ASX ANNOUNCEMENT

4thOctober 2016

Cokal Limited (Cokal ASX:CKA, "Cokal"or "the Company") is pleased to announce that it has engaged consultants PT Resindo Resources (Resindo) to update the Definitive Feasibility Study (DFS) for PT Bumi Barito Minerals (BBM) coking coal project in Central Kalimantan, Indonesia. Resindo completed the original DFS in 2014.

Recently, the cost of construction materials, power and fuel, have reduced significantly as the price of commodities reduced, particularly for thermal coal. This reduction in costs has also translated to reductions in contract mining rates which has been compounded by the downturn in thermal coal mining activity in Indonesia. Contractors are offering competitive mining rates in order to win the few projects that are surviving through downturn in the thermal coal industry.

Resindo, a well-established and well renowned engineering consultancy, conducted the original DFS for BBM in 2014. Cokal has engaged Resindo to update the DFS using current costs and pricing to determine savings in CAPEX and OPEX

The results from this study are expected to be announced in two to three weeks.

Graph of DBCT spot pricing for coking coal 03/10/16 courtesywww.MetalBulletin.com

With the spot price of coking coal reaching US$208/tonne in recent days, it is expected that the quarterly contract benchmark pricing for premium coking coal will settle well at a price short of the current spot market but much higher than the previous quarterly benchmark. As a consequence, it is expected that

the long-term brokers consensus pricing for coking coal will be revised upwards once the negotiations have been completed.

Cokal Chairman Peter Lynch said "This is exciting times in our industry as our expectations for a recovery of coking coal pricing have been exceeded by far. It is no doubt that recent events will greatly improve the value of BBM and its attractiveness to investors looking to enter the coking coal market via a project which has all its approvals ready in place to commence construction."

For further information, contact: Garry Kielenstyn

Chief Operating Officer

+62 21 5790 3265

Cokal Limited (ASX:CKA) is an Australian listed company with the objective of becoming a metallurgical coal producer with a global presence. Cokal has interests in five projects in Central Kalimantan and one project (which holds three exploration licences) in West Kalimantan, Indonesia considered prospective for metallurgical coal.

This release includes forward looking statements. Often, but not always, forward looking statements can generally be identified by the use of forward looking words such as "may", "will", "expect", "intend", "plan", "estimate", "anticipate", "continue", and "guidance", or other similar words and may include, without limitation statements regarding plans, strategies and objectives of management, anticipated production or construction commencement dates and expected costs or production outputs. Forward looking statements in this release include, but are not limited to, the capital and operating cost estimates and economic analyses from the Study.

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