Continental Coal Ltd : - Refinancing Update

8 January 2014

Continental Coal Limited (ASX Ticker: CCC; AIM Ticker: COOL)

Refinancing Update

Further to its announcement on 6 January 2014, Continental Coal Limited (ASX:
CCC; AIM: COOL) ("the Company") wishes to advise that it is still endeavouring
to complete a recapitalization of the Company that will allow it to settle its
Convertible Notes that mature from November 2013 to February 2014 as well as
other creditors. As such the Company's shares remain suspended from trading on
both the AIM and the ASX markets.

The Company has been in active discussions with the holders of Convertible
Notes, other creditors, royalty holders and various investor groups in relation
to a comprehensive recapitalization of the Company. Such discussions have been
overseen by the previously announced Special Committee of the Board established
to review various refinancing and restructure proposals. At this point, no
restructure and/or refinancing arrangements have been agreed that are
acceptable to all parties. The Directors would like to acknowledge the
understanding demonstrated to date by creditors and financiers while the
Company seeks to complete the recapitalization.

The Company notes that its financial position has been affected by the
production impact of the previously announced availability of the continuous
miners at its new Penumbra operation, which has resulted in lower than expected
production in recent months. Whilst the production will be augmented by the
implementation of an additional conventional drill and blast production
section, the ramp up of production from this is expected to take several months
placing additional pressure on the Company's working capital requirement.

If no acceptable restructure and/or refinancing arrangements can be agreed in
the near term, the Board considers that the appointment of a voluntary
administrator to the Company in Australia may be necessary, as it will have
insufficient funds to meet the repayment obligations on the Convertible Notes
and other creditors.

The Company currently expects to be able to make a further announcement on this
matter by Monday 13 January 2014.

For and behalf of the Board

Don Turvey
Chief Executive Officer

For further information please contact:

Investors/ shareholders
Don Turvey (Chief Executive Officer)
Lou van Vuuren (Chief Financial Officer)
T: [phone]
E: [e-mail]
W: www.conticoal.com

Media (Australia)
David Tasker
Professional Public Relations
T: [phone]

Nominated Advisor
Stuart Laing
RFC Ambrian Limited
T: [phone]

Brokers

Jeremy Wrathall / Chris Sim               Jonathan Williams
Investec Bank plc                         RFC Ambrian Ltd
T: [phone]                       T : [phone]

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 three operating mines, the Vlakvarkfontein, Ferreira and
Penumbra Coal Mines, producing approx. 2.2Mtpa of thermal coal for the export
and domestic markets. A Feasibility Study was also completed on a proposed
fourth mine, the De Wittekrans Coal Project.

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.