Springlake Coal Mine

Petmin Ltd reported South African operational results for the fiscal year ended June 30, 2010. The Anthracite division produced 467 843 tonnes and sold 411 630 tonnes of anthracite in the year to 30 June 2010. Due to market conditions prevailing in the first half of FY 2010, commencement of extraction of coal from Area 1 was delayed, pending a visible sustainable increase in market demand. Mine development has commenced in Area 1 subsequent to 30 June 2010. At Veremo iron ore project a project team is in the process of completing a bankable feasibility study in support of the mining right application.

Reported that increased profits were generated from improved export sales at Springlake. For the 6 months ended Dec31/08, the company's anthracite division (Somkhele & Springlake) produced 615,360 t coal. Springlake produced 365,058 (2006: 313 363) and sold 335 812 (2006: 334 391) tonnes of anthracite in the six months ended 31 December 2007. The increased production was sourced from the opencast sections (up 24%), with production volume from the underground sections increasing by 2%.

Springlake has signed a dollar-based offtake agreement for 350,000 tonnes of its duff material until March 2009. In order to reduce rand volatility and underpin profitability, the mine has entered into forward exchange contracts for 68% of the contracted sales at a rand/dollar exchange rate of R7.36/$. Production increased by 30% (313,363t) in 1st half of 2007 & by 18% (369,960t) in 2nd half of 2007.