Continental Coal Limited (CCC) ASX Announcement 26 February 2010 MINING ACTIVITIES GAIN MOMENTUM AT CONTINENTAL'S VLAKVARKFONTEIN COAL MINE IN SOUTH AFRICA Key Points: - Mining activities commence at Vlakvarkfontein Coal Mine following recent appointment of mining contractor to oversee mine development - Activities to date include topsoil stripping, site meetings and community meetings - Two shift operation to commence immediately following arrival of additional mining equipment - First blasting operations to commence within three weeks time - Mining contractor to deliver an initial 100,000 tonnes of -40mm crushed coal on a product stockpile per month according to an agreed mine plan and schedule - Vlakvarkfontein to be the first of Continental Coal's South African coal projects in production, with the others to commence production within the next 12-18 months South African focused coal company Continental Coal Limited (ASX: CCC) ("Continental" or "the Company") remains on track for the commencement of coal production and sales from its Vlakvarkfontein Coal Mine during Q2 2010, following the commencement of a range of activities by mining contractor Trollope Mining Services ("TMS").

TMS, who were appointed recently (refer ASX announcement 1 February 2010), have already successfully: - established a community forum with the nearby community, with initial recruitment from this community already underway - hosted a number of visits to site by community leaders, governmental authorities, potential off-take/equity partners and likely service providers, and - mobilised to site and commenced topsoil stripping activities on site ahead o of the commencement of mining within a month.

TMS has also commenced construction of its workshop and offices as part of the site establishment, which is expected to be completed by Mid March.

Mr Bruce Buthelezi, Managing Director of Continental Coal Limited, said "While only recently appointed, TMS have proven that they are clearly a mining contractor capable of meeting our production deadlines for the development of the Vlakvarkfontein coal mine." "The progress to date will ensure that we are able to commence coal production and sales at Vlakvarkfontein during Q2 2010," Mr Bruce Buthelezi said.

TMS mobilised to site on 15 February and have rapidly moved towards commencing pre-stripping activities.

As part of these topsoil stripping activities in the box-cut area, TMS is forecast to remove up to 10,000 cubic metres by early March 2010.

By this time a two shift operation will be commence with another excavator and three more dump trucks already on site, allowing TMS to further increase pre-stripping activities to over 6,000 cubic metres of material per day.

The first blasting operations are forecast to commence within three weeks time.

Mining of coal from the 5 metre width 4-seam will commence in 1Q2 2010. Monthly sales production of 100,000 tonnes of a predominantly domestic quality thermal coal are scheduled to commence in May 2010 before ramping up to full production by August 2010.

To view a full copy of the ASX announcement please click here: http://esp.gewru.com/em/message/email/view.php?id=497956&u=15636 Ends For further information: Peter Landau, Executive Chairman, Continental Capital Limited Ph: 08 9488 5220 David Tasker, Professional Public Relations, Ph: 08 9388 0944/0433 112 936 Em:
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