Continental Coal : Section 708 Notice

30 June 2014

Company Announcements Office Australian Securities Exchange Level 6, 20 Bridge Street

SYDNEY NSW 2000

Via E Lodgement

S708 Notice and Appendix 3B S708 Notice

The Company gives this notice pursuant to section 708A(5)(e) of the Corporations Act 2001

(Cth) ("Act").

The Company advises that it has issued ordinary fully paid shares in the capital of the

Company ("Securities") as per the Appendix 3B lodged with the ASX today.

The Company advises that the Securities were issued without disclosure to investors under

Part 6D.2 of the Act. The Company, as at the date of this notice, has complied with:

(a) the provisions of Chapter 2M of the Act as they apply to the Company; and

(b) section 674 of the Act.

As at the date of this notice there is no information that is excluded information for the purposes of sections 708A(7) and (8) of the Act.

Please find attached the Appendix 3B. For and behalf of the Board

Paul D'Sylva

Interim Executive Chairman

South Africa Australia

T +27 11 881 1420 F +27 862064487 W www.conticoal.com T +61 8 9488 5220 F +61 8 9324 3400 W www.conticoal.com

9th Floor Fredman Towers, 13 Fredman Drive, Sandton 2196 Ground Floor, 1 Havelock Street, West Perth, WA 6005

PO Box 787646, Sandton 2146 PO Box 684, West Perth, WA 6872

Interim Executive Chairman: Dr Paul D'Sylva Interim Executive Director: Mr Peter Landau

Non-Executive Directors: Mr Connie Molusi and Dr Lars Schernikau

For further information please contact:

Media (Australia)

David Tasker

Professional Public Relations

T: +61 8 9388 0944

Nominated Advisor

Oliver Morse

RFC Ambrian Limited

T: +61 8 9480 2500

Brokers

Jonathan Williams

RFC Ambrian Ltd

T : +44 203 440 6817

About Continental Coal Limited

Continental Coal Limited (ASX:CCC/AIM: COOL) is a South African thermal coal producer with a portfolio of projects located in South Africa's major coal fields including two operating mines, the Vlakvarkfontein and Penumbra Coal Mines, producing approx. 2Mtpa of thermal coal for the export and domestic markets. A Feasibility Study was also completed on a proposed third mine, the De Wittekrans Coal Project with a mining right granted in September 2013.

Forward Looking Statement

This communication includes certain statements that may be deemed "forward-looking statements" and information. All statements in this communication, other than statements of historical facts, that address future production, reserve potential, exploration drilling, exploitation activities and events or developments that the Company expects to take place in the future are forward-looking statements and information. Although the Company believes the expectations expressed in such forward-looking statements and information are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in the forward-looking statements and information. Factors that could cause actual results to differ materially from those in forward-looking statements include market prices, exploitation and exploration successes, drilling and development results, production rates and operating costs, continued availability of capital and financing and general economic, market or business conditions. Investors are cautioned that any such statements are not guarantees of future performance and actual results or developments may differ materially from those stated.

Rule 2.7, 3.10.3, 3.10.4, 3.10.5

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 01/07/96 Origin: Appendix 5 Amended 01/07/98, 01/09/99, 01/07/00, 30/09/01, 11/03/02, 01/01/03, 24/10/05, 01/08/12

Name of entity

ABN

We (the entity) give ASX the following information.

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

1 +Class of +securities issued or to be issued
Ordinary Fully Paid Shares

2 Number of +securities issued or to be issued (if known) or maximum number which may be issued
40,000,000 Fully Paid Ordinary Shares

3 Principal terms of the

+securities (eg, if options,

exercise price and expiry date; if partly paid +securities, the amount outstanding and due dates for payment; if

+convertible securities, the

conversion price and dates for conversion)
40,000,000 Fully Paid Ordinary Shares

+ See chapter 19 for defined terms.

01/08/2012 Appendix 3B Page 1

4 Do the +securities rank equally in all 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
Yes

5 Issue price or consideration 40,000,000 Fully Paid Ordinary Shares issued in lieu of financing costs.
6 Purpose of the issue
(If issued as consideration for the acquisition of assets, clearly identify those assets)
40,000,000 Fully Paid Ordinary Shares issued in lieu of financing costs.

6a Is the entity an +eligible entity that has obtained security holder approval under rule 7.1A?

If Yes, complete sections 6b - 6h in relation to the +securities the subject of this Appendix 3B, and comply with section 6i

N/A

6b The date the security holder resolution under rule 7.1A was passed
N/A

6c Number of +securities issued without security holder approval under rule 7.1
N/A

6d Number of +securities issued with security holder approval under rule 7.1A
N/A

6e Number of +securities issued with security holder approval under rule 7.3, or another specific security holder approval (specify date of meeting)
N/A

6f Number of securities issued under an exception in rule 7.2
N/A

6g If securities issued under rule
7.1A, was issue price at least 75% of 15 day VWAP as calculated under rule 7.1A.3? Include the issue date and both values. Include the source of the VWAP calculation.
N/A

6h If securities were issued under rule 7.1A for non-cash consideration, state date on which valuation of consideration was released to ASX Market Announcements
N/A

6i Calculate the entity's remaining issue capacity under rule 7.1 and rule 7.1A - complete Annexure 1 and release to ASX Market Announcements
N/A

7 Dates of entering +securities into uncertificated holdings or despatch of certificates
27 June 2014
8 Number and +class of all

+securities quoted on ASX

(including the securities in section 2 if applicable)

+ See chapter 19 for defined terms.

01/08/2012 Appendix 3B Page 3

9 Number and +class of all

+securities not quoted on ASX

(including the securities in section 2 if applicable)

10 Dividend policy (in the case of a trust, distribution policy) on the increased capital (interests)
N/A

11 Is security holder approval required?
N/A

12 Is the issue renounceable or non- renounceable?
N/A

13 Ratio in which the +securities will be offered
N/A

14 +Class of +securities to which the offer relates
N/A

15 +Record date to determine entitlements
N/A

16 Will holdings on different registers (or subregisters) be aggregated for calculating entitlements?
N/A

17 Policy for deciding entitlements in relation to fractions
N/A

18 Names of countries in which the entity has +security holders who will not be sent new issue documents

Note: Security holders must be told how their entitlements are to be dealt with.

Cross reference: rule 7.7.

N/A

19 Closing date for receipt of acceptances or renunciations
N/A

20 Names of any underwriters N/A

21 Amount of any underwriting fee or commission
N/A

22 Names of any brokers to the issue
N/A

23 Fee or commission payable to the broker to the issue
N/A

24 Amount of any handling fee payable to brokers who lodge acceptances or renunciations on behalf of +security holders
N/A

25 If the issue is contingent on

+security holders' approval, the

date of the meeting
N/A

26 Date entitlement and acceptance form and prospectus or Product Disclosure Statement will be sent to persons entitled
N/A

+ See chapter 19 for defined terms.

01/08/2012 Appendix 3B Page 5

27 If the entity has issued options, and the terms entitle option holders to participate on exercise, the date on which notices will be sent to option holders
N/A

28 Date rights trading will begin (if applicable)
N/A

29 Date rights trading will end (if applicable)
N/A

30 How do +security holders sell their entitlements in full through a broker?
N/A

31 How do +security holders sell part of their entitlements through a broker and accept for the balance?
N/A

32 How do +security holders dispose of their entitlements (except by sale through a broker)?
N/A

33 +Despatch date N/A

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
(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

Tick to indicate you are providing the information or documents

35 If the +securities are +equity securities, the names of the 20 largest holders of the additional +securities, and the number and percentage of additional +securities
held by those holders
36 If the +securities are +equity securities, a distribution schedule of the additional

+securities setting out the number of holders in the categories

1 - 1,000
1,001 - 5,000
5,001 - 10,000
10,001 - 100,000
100,001 and over
37 A copy of any trust deed for the additional +securities

38 Number of securities for which

+quotation is sought

39 Class of +securities for which quotation is sought

40 Do the +securities rank equally in all 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

+ See chapter 19 for defined terms.

01/08/2012 Appendix 3B Page 7

41 Reason for request for quotation now

Example: In the case of restricted securities, end of restriction period

(if issued upon conversion of another security, clearly identify that other security)
42 Number and +class of all

+securities quoted on ASX

(including the securities in clause
38)

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 no-one 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.

 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.

30/06/2014

Sign here: ..........................................................Date: ..................................... (Company Secretary)

Jane Flegg

Print name: .........................................................

== == == == ==

+ See chapter 19 for defined terms.

01/08/2012 Appendix 3B Page 9

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