Waterberg Coal : Extension to Voluntary Suspension

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21 April 2016

ASX Limited

Level 40, Central Park

152 - 158 St George's Terrace

PERTH WA 6000

Attn: Ben Secrett

Dear Ben,

By email: tradinghaltsperth@asx.com.au

Request for Voluntary Suspension - The Waterberg Coal Company Limited

The Waterberg Coal Company Limited (the Company) hereby requests an extension to its current voluntary suspension in the trading of its securities.

In accordance with ASX Listing Rule 17.2, the Company advises that:

1. it is seeking the extension to the voluntary suspension to allow time to finalise a proposed third party funding arrangement to replace its existing funding facility (the Facility) with Standard Bank of South Africa (SBSA) which was due for repayment on 9 April 2015 (as announced on 17 March 2015);

2. as advised to the market on 17 September 2015, a transaction with Sibanye Gold Limited (Sibanye) was contemplated originally expected to be completed by end of November 2015, then revised to the end of February 2016;

3. a Company market release dated 25 February 2016 advised that Sibanye had, on 24 February 2016, submitted a new offer which was

   .

   This offer was withdrawn by Sibanye when the Company was unable to give due consideration within the approximately 24 hours turn around time stipulated.

4. on 10 March the Company advised that it was in negotiations with South African company Villora Limited to assist in recapitalisation of the Company's balance sheet including, inter alia, a potential transaction to acquire the convertible note facility held by SBSA (Replacement Funding).

5. the Replacement Funding represents a significant transaction and the final terms of the proposal will impact the Company's ability to carry out its future objectives;

6. SBSA has previously advised that it will maintain the Facility as "on demand", rolling daily basis, to give the discussions time to progress;

7. the Company is of the view that re-instatement of trading for its securities at this time is likely to be materially prejudicial to its ability to successfully complete the complex funding transaction contemplated which is critical to the Company's financial viability;

8. it expects the voluntary suspension to remain in place until the earlier of:

9. the date that it has made an announcement in respect of the proposed Replacement Funding arrangement; and

10. commencement of trade on Tuesday, 24 May 2016;

11. it is not aware of any reason why the securities should not be suspended; and

12. is not aware of any other information necessary to inform the market about the suspension. Yours faithfully

13. E L (Lee) Boyd

    Company Secretary The Waterberg Coal Company Limited

    Level 2, 1 Walker Ave, West Perth WA 6005 | PO Box 8136, Subiaco East WA 6008 W: http://www.waterbergcoal.com.au | ABN: 64 065 480 453

    P: +61 8 9485 0888 | F: +61 8 9485 0077| E: info@waterbergcoal.net