Pacific American Coal : 12.01.2017 Appendix 3B

Appendix 3B

New issue announcement,

Rule 2.7, 3.10.3, 3.10.4, 3.10.5

application for quotation of additional securities and agreement

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, 04/03/13

Name of entity

PACIFIC AMERICAN COAL LIMITED

ABN

83 127 131 604

We (the entity) give ASX the following information.

Part 1 - All issues

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

Ordinary fully paid shares and Options

1 +Class of +securities issued or to be issued

Number of Shares	Number of Options
Placement	3,000,000	1,500,000

1. Number of +securities issued or to be issued (if known) or maximum number which may be issued

2. Principal terms of the

   +securities (e.g. 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)

   Ordinary fully paid shares

   Options - each acquire one Share, exercisable at 25 cents each on or before 31 December 2017.

   Yes

3. Do the +securities rank equally in all respects from the +issue date 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

     $0.10 cash each New Share

4. Issue price or consideration

   As per the Company's market announcement on 21 October 2016, funds are to advance the Elko Coking Coal Project through exploration and supporting activities and working capital.

5. Purpose of the issue

(If issued as consideration for the acquisition of assets, clearly identify those assets)

Yes

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

5 May 2016

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

Number
Shares	3,000,000
Options	1,500,000

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

Nil

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

Nil

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

6f Number of +securities issued under an exception in rule 7.2

Nil

Not applicable

6gIf +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.

Not applicable

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

Number of Securities
Capacity under Listing Rule 7.1	15,966,710
Capacity under Listing Rule 7.1A	15,989,426

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

12 January 2017

7 +Issue dates

Note: The issue date may be prescribed by ASX (refer to the definition of issue date in rule 19.12). For example, the issue date for a pro rata entitlement issue must comply with the applicable timetable in Appendix 7A.

Cross reference: item 33 of Appendix 3B.

Number	+Class
141,830,887	Ordinary fully paid shares
50,296,102	Options - each acquire one Share, exercisable at 25 cents each on or before 31 December 2017
Number	+Class
23,475,002	Ordinary fully paid shares (ASX Mandatory Escrowed for 24 months commencing 16 February 2015)
14,587,505	Options - each acquire one Share, exercisable at 25 cents each on or before 31 December 2017 (ASX Mandatory Escrowed for 24 months commencing 16 February 2015)

1. Number and +class of all

   +securities quoted on ASX (including the +securities in section 2 if applicable)

2. Number and +class of all

   +securities not quoted on ASX (including the +securities in section 2 if applicable)

   There has been no change to the dividend policy.

3. Dividend policy (in the case of a trust, distribution policy) on the increased capital (interests)