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CONTINENTAL COAL LTD

Ramping up coal exports
Recommendation Sector: Exchange & Ticker: Shares in issue: Fully diluted shares Market cap: Target Price: ANALYST: BUY Mining ASX: CCC 2,993m 3,600m A$183m 13

6.1
11 March 2011

Phil Swinfen +44(0)20 7518 2609 ps@oldplc.com Forbes Cutler +44(0)20 7518 2603 fc@oldplc.com

CORPORATE BROKING:

Continental Coal reported a strong set of production results from its export dominated Ferreira mine and Delta Processing plant. The results reinforce our view that Continental is successfully rejuvenating the Ferreira mine with increased production and sales coinciding with a period of strong coal prices. Export coal sales for January and February were 40,448 tonnes and 48,532 tonnes, exceeding Decembers sales by 25% and 50% respectively. The company expects production to remain on track during March and is targeting total export production of 141,000 tonnes for the quarter, in line with our estimates. Future budgeted export sales guidance remains unchanged at 120,000 tonnes per quarter. The increased production validates the companys earlier decision to appoint a new mining contractor. Continental Coal has survived the last two months relatively unscathed by heavy rains, national strikes and a number of train derailments on the Richards Bay coal line that have affected other producers. The companys share price has somewhat languished since its 8.8 peak in late January, with the stock trading in the 6.0 to 7.0 range in recent days. We argue that the stock has simply followed other coal equities and the coal price in recent weeks. Excluding any further near term volatility in coal prices, we expect Continental Coals shares to return to trading based on fundamental factors. We expect the stock to regain traction as the company proceeds with its aggressive growth plan. See inside for key catalysts. We remain bullish on thermal coal. As a result of the potential growth in Asian demand, infrastructure bottlenecks and the potential for more supply-side shocks, we believe that thermal coal prices remain well supported above $100/tonne. It is our view that the long term outlook for global energy demand and coal consumption presents a compelling investment case.

We reiterate our price target of A$0.13 per fully diluted share. Given the recent share price weakness, we believe the shares now represent a cheap entry point into a quality coal play. With strong leverage to thermal coal prices and a quality pipeline of predominantly export projects, we expect a significant rerating of the stock as Continental ramps up production.

A marketing communication from OPLC. Continental Coal is a corporate client of OPLC.

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Ferreira update strong export coal sales

Continental Coal (ASX: CCC) released an update on export coal sales from the companys Ferreira mine and Delta Processing operations in South Africa. The company has reported a strong set of production results for the first two months of the March quarter, in line with both company expectations and our forecasts. Export coal sales for January and February were 40,448 tonnes and 48,532 tonnes, exceeding Decembers sales by 25% and 50% respectively. The company expects production to remain on track during March and is targeting total export production of 141,000 tonnes, in line with our existing estimate of 140,000 tonnes. This implies export sales of approximately 51,000 tonnes in March to finish off the quarter. Going forward we retain our forecast of 120,000 tonnes of export coal sales per quarter. The latest results reinforce our view that Continental Coal is successfully rejuvenating the Ferreira mine with increased production and sales coinciding with a period of strong coal prices. The average realised net preliminary export thermal coal price received for sales during the months of January and February has been US$118/tonne. For the quarter to date, the Ferreira mine produced 46,697 tonnes of a primary export thermal coal product and a further 20,568 tonnes of a secondary domestic thermal coal product. A total export yield of 59% was achieved representing a 20% improvement over the December quarter. The company estimates total FOB costs of between US$70 and US$80 per tonne for the quarter which is in line with our modelled forecast of US$75 per tonne. Continentals second shipment of export coal from the Richards Bay Coal Terminal was made on 7 March 2011 for an amount of 32,996 tonnes. A similar scheduled shipment is due to be made in April. Total export coal sales from Ferreira mine / Delta Processing Plant
Export coal sales (tonnes)
60,000 OPL forecast 50,000 40,000 30,000 20,000 10,000 0 Nov-10 Dec-10 Jan-11 Feb-11 Mar-11

Source: Continental Coal, OPL estimates

Dodging the bullet of strikes, derailments and heavy rains Continental Coal has survived the last two months relatively unscathed by heavy rains, national strikes and a number of train derailments on the Richards Bay coal line that have affected other producers. Five production days were lost at the Ferreira mine in January, due to the holiday period and minor industrial action and heavy rains. However, the Delta Processing Plant operated continually throughout this period, unaffected by the rains and national strikes. The plant processed 122,970 tonnes during the first two months of the quarter.

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Ringing the changes is starting to pay off Continental Coal has been ringing the changes at Ferreira in order to run the operation more efficiently. Having made some tough decisions since taking over the operation, the company is now starting to see some progress. In our view, this adds further kudos to the company and reaffirms our view that the management are experienced operators capable of extracting the best from an operation. The turning point was the decision to replace the mining contractor in October due to poor operational performance of the previous contractor. The new mining contractor, Steffanutti Stocks Mining was mobilised to site and commenced mining activities in the Northern Pit. Continental revised the mining plan and schedule for the Northern Pit in conjunction with Steffanutti in order to increase productivity and reduce mining costs. The establishment of the Northern Pit mining operations and change of contractor has already produced results and the improved operating performance can be seen clearly from the production graph on the preceding page. The largest increase in run of mine (ROM) production was from January to February and demonstrates the success and efficiency of the new contractor. As a result, the company believes that a corresponding reduction in mining costs will be forthcoming, especially considering that the higher cost to establish the initial boxcut at the Northern Pit operation is now out of the way.

High utilisation rates key to success In part, the companys success throughout a time plagued by adverse weather and strike action is due to the high utilisation rate at the Delta Processing plant. The high level of utilisation is down to the ability of Continental to source raw export quality coal from neighbouring mines for treatment in the plant. Many of the neighbouring mines do not have processing facilities and thus cannot wash their coal in order to achieve an export thermal coal product. Thus, by buying in raw ROM coal from other operations, Continental can keep utilisation rates at the Delta Processing plant high to achieve improved efficiencies and lower costs. This reinforces the value of the Delta Plant as a strategic hub in the area, with the ability to process ROM coal directly from the companys own Ferreira mine, or by buying in coal from other operations.

Continentals Delta Processing plant and Anthra rail siding

Source: Continental Coal

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Share price cools off but in line with coal prices

Continental Coals (CCC) share price has somewhat languished since its 8.8 peak in mid to late January, with the stock trading in the 6.0 to 7.0 range in recent days. Whilst this is rather disappointing in absolute terms, we do not believe there is any cause for alarm if CCC is viewed in relative terms against other companies in the sector and in context with global coal prices.
Volume (RHS) 9.0 CCC.AX Closing Price (LHS) 250

Share Price (Aus )

200

150 7.0 6.0 5.0 4.0 Oct 10 100

50

0 Nov 10 Dec 10 Jan 11 Feb 11 Mar 11

Source: Proquote

The price index for coal exported from Richards Bay in South Africa (where CCC sends its export coal) hit a peak of close to US$130/tonne in mid-January. Since then, coal prices have moderated from their peak as drier weather has returned to north eastern Australia, prompting the resumption of exports and shipping from the region. From the chart below it is clear that CCCs share price shows a degree of correlation to coal prices, offering part explanation for the stocks price performance in 2011. Both CCC and Coal of Africa (CZL.L), a close comparator to CCC, have largely tracked the coal price over the last three months. The correlation is particularly apparent from mid-December at the start of the strong upswing in thermal coal prices to mid-January where the coal and share prices declined by an equivalent degree. Going forward, we would now expect a degree of decoupling between equity prices and the coal price. Thermal coal prices have stabilised in recent weeks as force majeure at many Australian operations is lifted and operations move back to normality. Thus, excluding any further near term volatility in coal price we expect Continental Coals shares to return to trading based on fundamental factors. We expect the stock to regain traction as the company proceeds with its aggressive growth plan. See Key Catalysts on the next page for more information on Continental Coals potential news flow over the next few months.
145 RB export coal price CCC.AX CZA.L 135 125 115 105 95 85 Oct 10

Index to base 100

Nov 10

Dec 10

Jan 11

Feb 11

Mar 11

Source: Proquote, OPL estimates

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Volume (m shares)

8.0

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Key Catalysts
After the flurry of activity relating to the acquisition of Mashala Resources late last year, 2011 has thus far been a relatively quiet period for Continental Coal, certainly on the press release front. However, from the latest export update at Ferreira, it is clear that behind the scenes it is still very much full steam ahead. Over the coming months we expect robust news flow as outlined in the chart below and in particular the company expects progress on a number of fronts during Q1 2011 including: First full quarter of export coal sales from Ferreira An update on major logistic developments in respect of port allocation for increased exports Updated reserve and resource update for Continentals South African operations Commencement of mine development at Penumbra De Wittekrans BFS progress Start of exploration in Botswana and mobilisation of drilling contractors Kenya Mui Coal Basin submission of tender to participate in coal exploration

The companys current focus is on the development of two new mines during 2011 with Penumbra the next cab off the rank, followed by De Wittekrans. Continental Coal is undergoing a period of rapid growth that should take the company from two to four operating mines by the end of the year. In particular, we believe that any news on mine development and finalisation of project finance at Penumbra should justify a rerating of the stock. This expansion forms the backbone of the companys target run rate of 7 Mtpa ROM coal by 2012 compared to current production running at the annualised rate of 1.9 Mtpa ROM Coal. We retain our view that the company has the potential to become a leading mid-tier coal player in the sector. In line with the companys growing ambitions, Continental Coal is also busy building the framework for a planned listing on the London AIM market with a potential listing before the end of Q2 2011.

Cal yr Mashala transaction completed (to 64.1%) Penumbra - development approved First export coal sales to EDF Trading Acquisition of remaining 35.9% of Mashala First full quarter of export coal sales Penumbra project financing Commence mine development at Penumbra Reserve and Resource update (S.Africa projects) AIM Listing in London Botswana drill results De Wittekrans BFS completion (June 2011) New Order Mining Right approval - De Wittekrans Penumbra underground - first coal De Wittekrans mining decision and construction Vlakplaats - BFS completion
Source: Old Park Lane Capital Estimates

2010A Q1 Q2 Q3 Q4

2011F Q1 Q2 Q3 Q4

2012F Q1 Q2 Q3 Q4

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Strong Project Pipeline

Continental Coal has two operating thermal coal mines and majority interests in a portfolio of export and domestic thermal coal projects in South Africa. The company has over 600 Mt of gross in-situ coal resources and a production target rate of 7 Mtpa ROM run of mine coal by 2012. Penumbra and De Wittekrans are the next projects to be developed, with Penumbra the most advanced. The company then plans to develop the wider De Wittekrans complex which may include the Vaalbank deposit. In late 2010, Continental also entered into an agreement to jointly develop the Vlakplaats deposit with KORES, the Korea Resources Corporation which is the Korean Governments mining vehicle. The partners aim to complete a bankable feasibility study within the next 12 to 18 months. In addition the company has a further interest in a broad portfolio of pre-development projects including a 6 to 7 billion tonne coal exploration target in Botswana. At the moment this is a conceptual target, as insufficient exploration has been undertaken in order to define a JORC compliant resource. During the quarter, the company approved a ZAR 90 million exploration budget for Botswana which will include a 90 hole drill programme. Along with an accompanying coal quality analysis, this will allow an initial JORC compliant resource to be calculated. This exceptional opportunity is of course tempered by the current road and rail infrastructure which requires significant investment for the district to succeed. In Kenya, the Company has submitted an Expression of Interest to the Kenyan Ministry of Energy to participate in coal exploration and development of Kenyas Mui Coal Basin. The Company received a Notification of Successful Bidder from the Ministry of Energy and will over the March 2011 quarter submit a detailed technical and financial proposal for the Companys proposed exploration, exploitation and development of identified coal deposits within the Mui Coal Basin. The company is also reviewing a number of additional acquisition and development opportunities for both thermal and coking coal assets in Africa as part of the companys growth and diversification plan. Continental Coals project pipeline

Source: Continental Coal

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Coal prices slip from peak but outlook remains robust

The price index for coal exported from Richards Bay in South Africa hit a peak of close to US$130/tonne in mid-January. Since then, coal prices have moderated from their peak as drier weather has returned to north eastern Australia. The situation is not as rosy in Indonesia where monsoonal wet weather is expected to continue until June, and may provide a further fillip to thermal coal prices. The strength in thermal coal export prices throughout late 2011 and into the beginning of 2011 was fuelled by monsoonal conditions in Australia and Indonesia. The adverse impacts of flooding included disruption to road access, production and rail transportation. This in turn impacted freight rates which remain depressed and at levels not seen since the depth of the financial crisis in late 2008. Many of the big players including Anglo American, Xstrata and Rio Tinto were forced to declare force majeure on output from coal mines, largely in Queensland. The region mainly produces coking coal but thermal coal producing mines were also affected. Industry sources estimate that by the end of 2010 approximately 30% of Australias annual coal exports were under force majeure. In recent weeks, drier conditions in Australia have prevailed and exports have resumed with force majeure lifted at many operations signalling a return to contracted export shipments. We remain bullish on the outlook for thermal coal prices given the on-going risk of infrastructure bottlenecks and potential for further supply-side shocks. This is coupled with our belief that demand for thermal coal will grow for use in power generation in Asia, primarily India. India is currently the fastest growing coal importer as domestic production struggles to keep pace with surging power demand. Our forward coal price assumptions (see table below) are relatively conservative, in particular our long term price forecast of US$80/tonne. As a result of the potential growth in Asian demand, infrastructure bottlenecks and the potential for more supply-side shocks we believe that the Richards Bay API4 price remains well supported above the $100/tonne level. We note that the new projects being developed in Continental Coals pipeline have a strong export focus and will increase the companys exposure to export thermal coal prices. This of course must be balanced against any further strengthening in the Rand, inexplicably linked to the pace of global recovery.
180 160 140 RB API4 Coal Price (US$/tonne) OPL LT coal price

140 RB API4 Coal Price (US$/tonne) 130

US$ / tonne

120 100 80 60 40

US$ / tonne Jul-08 Jul-09 Jul-10 Jan-08 Jan-09 Jan-10 Apr-08 Apr-09 Apr-10 Oct-08 Oct-09 Oct-10 Jan-11

120 110 100 90 80

Jan-11

Nov-10

OPL forward coal price assumptions (US$/tonne) Cal yr Export coal forecast Domestic coal 2011 $118 $26 2012 $115 $26 2013 $110 $26 2014 $110 $26 2015 $110 $26 LT $80 $26

Source: OPL estimates, Continental Coal, Mining Journal

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Dec-10

Feb-11
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Oct-10

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Coal remains the backbone of global power generation

We remain bullish on thermal coal. Whilst the threat of further supply-side shocks and infrastructure bottlenecks certainly has the potential to support prices over the near term, we believe that the long term outlook for global energy demand and coal consumption should act as the main investment driver. The latest statistics from the EIA (US Energy Information Administration) suggests that the growth rate of world coal consumption will increase by 56% from 132 quadrillion Btu in 2007 to over 206 quadrillion Btu by 2035. The majority of this increase is forecast to be driven by demand in Asia, especially India. EIA forecast of growth in world coal consumption and imports
World Coal consumption by country grouping, 1980-2035 Coal imports by major importing region, 1995-2035

(quadrillion Btu)
250 History 200 Total 20 150 15 Non-OECD 100 10 EIA Projections 25 30

(quadrillion Btu)
History EIA Projections Total

Asia

Europe 50 OECD 0 1980 5 America 1995 2007 2020 2035 0 1995 2007 2015 2025 2035

Source: EIA, International Energy Statistics database (as of November 2009), SSYs Coal Trade Forecast, Vol. 17, No. 4.

The EIA expects China to remain a net importer through to 2035, but even with a substantial increase in imports, a large share of the coal consumed in China will continue to be supplied by its own coal mines. Nevertheless, coal remains the leading source of energy for Chinas growing industrial sector. Even more intriguing is India, where the EIA expects 56% of the growth in coal consumption to be in the power sector and the remainder in the industrial sector. As a result, the EIA estimates that Indias coalfired generating capacity must increase from 84 gigawatts in 2007 to 135 gigawatts in 2035. The EIA estimates that India's coal imports will be four times the 2008 level by 2035, spurred by rising imports of both coking and steam coal. Due to lack of investment and on-going infrastructure issues, India is faced with domestic coal supply and quality issues. Indian domestic coal is relatively poor quality in comparison to foreign sourced coal. The country is building new supply with new power stations under construction but construction delays are commonplace in India and demand for imports continues to grow. According to the EIA, planned infrastructure improvements include coastal port expansions at Goa and Paradip in order to overcome port bottlenecks. The global reliance on coal and the forecast demand growth represents an opportunity for Continental Coal as the company continues on its strong growth curve and increases export coal production.

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Coal is forecast to increase share of power generation

GDP growth is a principal driver of growth in demand for energy, and according to the IEA World Energy Outlook, coal is set to increase its share of primary energy demand, when compared to other sources such as gas, oil and nuclear energy. See chart below. Couple Indias shortfall in domestic coal production with the high forecast GDP growth for the country and India then emerges as a key driver of export demand for thermal coal. According to Richards Bay Coal Terminal data, the percentage of coal being exported to India from Richards Bay has increased to 30% in 2010, from 5% in 2008. The implication is that coal that would have previously been supplied to Eskom is now being shipped to India because producers can secure higher prices. As such, Indian companies have been active in Southern Africa and other coal exporting regions to secure long term supplies of thermal coal. A lower quality thermal coal product called RB3 (5,600 kCal) has been developed largely for Indian markets.

Coal consumption growth driven by Asia

Non-OECD coal consumption by region 160 1980
(quadrillion Btu)

Coal to increase share of generation

* Mtoe

Coal forecast to increase share of primary energy 2030 2007

6,000 2007 2035 5,000

2020 120

4,000

80

3,000

2,000 40 1,000

0
Non-OECD Europe and Eurasia Non-OECD Asia Other NonOECD Total NonOECD

0
Coal Oil Gas Nuclear Hydro Biomass Other

* Million tonnes of oil equivalent

Source: EIA, International Energy Statistics database (as of November 2009), IEA World Energy Outlook 2009.

Model Update
We have updated our model to reflect production results for the first two months of the March quarter. Our valuation remains at A$0.13 per share (fully diluted) and we retain our buy recommendation. Given the recent decline in the companys share price, we believe that shares now represent a very cheap entry point into a quality coal play. As such we are confident that the stock will show significant upside throughout 2011 as the company ramps up export production.

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Continental Coal Ltd

ASX:CCC
All A$m unless noted / Fiscal Year End June. (A) Actual, (F) Forecast CAPITAL STUCTURE Share Price Shares Outstanding (m) Shares Fully Diluted (m) Net Debt (Cash) $m P/NAV Return to target valuation ASSUMPTIONS Export thermal coal (RB) Domestic thermal coal ZAR/USD Exchange rate ZAR/AUD Exchange RESOURCES 100% Project Basis Resources (M&I) Resources (Inferred) Resources (Total) 191 Mt 441 Mt 632 Mt 2009A 0 0 0 0 Attributable Resources (M&I) Resources (Inferred) Resources (Total) 2010A 64 0 64 120 2011F 1,405 287 1,035 232 162 Mt 382 Mt 543 Mt 2012F 2,083 580 1,337 244 2013F 5,520 1,715 2,722 196 US$/t US$/t ZAR/US$ ZAR/A$ A$0.061 2,993 3,600 A$12.0 0.49 106% 2009A 92 26 9.00 6.76
2010A 2011F 2012F 2013F

METRICS Ticker Market Capitalisation 12-Month High 12-Month Low Enterprise Value (EV) CCC A$183 A$0.09 A$0.03 A$193 Shares Outstanding - basic (m) Shares Outstanding - FD (m) EPS (A$/sh) EPS Growth P/E CFPS (A$/sh) P/CFPS EBITDA EV/EBITDA (x) ROE ROCE Debt-Equity ratio INCOME STATEMENT (A$m) Group Revenue Cost of Sales Other expenses (inc G&A) Depreciation Finance costs Other (inc impairments) Profit before tax Tax Disc. Operations Profit / Loss for the year Minority interests Net Profit attributable to parent CASH FLOW (A$m) 9,000 8,000 7,000 6,000 5,000 4,000 3,000 2,000 1,000 0 Profit after tax Depreciation Other Net change in working capital Cash flow from operations Acquisitions / Disposals (net) Capex (inc exploration) Other Cash from investing activities Issue of shares Net borrowing Cash from financing activities Net Increase (Decrease) In Cash Beginning Cash Ending cash South Africa, Botswana Thermal Coal (export and domestic) Fully diluted Type Domestic Export /Domestic Export /Domestic Export /Domestic Export /Domestic Discount 8% 10% 8% 15% 15% 100% Interest * 60% 100% 100% 100% 75% % NAV 10% 21% 4% 47% 13% 4% 0% 100% A$m 50 109 22 241 64 22 0 A$509 (1) (25) (31) $452 A$/sh 0.01 0.03 0.01 0.07 0.02 0.01 0.00 A$0.14 (0.00) (0.01) (0.01) A$0.13 BALANCE SHEET (A$m) Cash Other current assets Total current assets Property, plant equipment Other fixed assets Total non-current assets Total assets ST borrowing Other current liabilities Total current liabilities LT borrowing Other non-current liabilities Total non-current liabilities Total Liabilities Shareholder's Equity Total Liab. & S'holder's equity 73 26 7.58 6.64 108 26 7.49 6.87 115 26 7.94 7.00 113 26 7.95 7.00

2009A 281 1,126 -0.05 -0.02 -3.9 0% 0% 109% 2009A 0.0 0.0 -3.9 0.0 -3.8 -6.8 -14.6 0.0 -0.4 -14.9 0.0 -14.9 2009A -14.9 0.0 9 3 -2.7 1 0 -18 -16 3 15 18 -1 1 0 2009A 0 16 16 0 37 37 53 8 5 13 13 1 14 28 25 53

2010A 1,023 1,798 -0.03 49% -0.02 -13.1 0% 0% 95% 2010A 0.4 0.0 -13.5 -0.1 -12.3 -2.0 -27.5 0.0 0.0 -27.5 -2.6 -24.9 2010A -27.5 0.1 10 16 -1.0 0 -22 -9 -30 19 12 31 0 0 0 2010A 0 12 12 0 66 66 78 20 16 36 0 2 2 38 40 78

2011F 2,993 3,600 0.00 101% 274x 0.00 103x 13.2 14.6 -3% 4% 68% 2011F 75.5 -47.3 -15.0 -1.1 -5.0 0.0 7.1 -6.4 0.0 0.7 3.8 -3.2 2011F 0.7 1.1 0 0 1.8 -31 -56 0 -88 63 32 95 10 0 10 2011F 10 3 12 77 86 162 174 0 16 16 52 2 54 70 104 174

2012F 3,919 4,526 0.00 25% 218x 0.00 75x 26.5 7.3 -1% 3% 130% 2012F 116.5 -75.0 -15.0 -2.1 -14.4 0.0 10.0 -8.9 0.0 1.1 3.4 -2.3 2012F 1.1 2.1 0 34 37.0 -14 -199 0 -213 65 115 180 4 10 14 2012F 14 5 18 267 106 373 391 0 47 47 167 7 174 221 170 391

2013F 3,919 4,526 0.02 7823% 3x 0.03 2x 119.2 1.6 29% 24% 73% 2013F 300.0 -165.9 -15.0 -12.7 -16.7 0.0 89.8 -3.0 0.0 86.7 11.3 75.5 2013F 86.7 12.7 0 25 124.0 0 -35 0 -35 0 -60 -60 29 14 43 2013F 43 6 49 270 126 395 444 0 70 70 107 11 118 187 257 444

PRODUCTION & COSTS (attributable) ROM Coal Export Coal Domestic Coal Opex per ROM tonne 000t 000t 000t ZAR/t

ROM coal production forecast (Cal yr basis)

Total Domestic Total Export Total ROM

9,000 8,000 7,000 6,000 '000 t coal 5,000 4,000 3,000 2,000 1,000 0 2010 PROFILE Location Commodities NET ASSET VALUATION Coal Projects Vlakvarkfontein Penumbra UG Ferreira De Wittekrans Vaalbank Other Projects Botswana Net Operating Assets Working Capital LT Debt Corporate G&A Net Asset Value
*interest post Mashala transaction Source: Company reports, Old Park Lane Capital estimates

2011E 2012E 2013E 2014E 2015E 2016E 2017E 2018E 2019E 2020E

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DISCLOSURES AND RISK WARNING The recommendation system used for this research is as follows. We expect the indicated target price relative to the FT All Share Index to be achieved with 12 months on the date of this publication. A Hold indicates expected performance relative to this index of +/-10%, a Buy indicates expected outperformance of >10% and a Sell indicates underperformance of >10%. This Marketing Communication is provided for information purposes only. It does not constitute a personal recommendation and should not be construed as an offer or solicitation for investment. This publication is not intended to be an offer to buy or sell any securities of any of the companies referred to herein and any opinions expressed are subject to change without notice. Recommendations may not be suitable for all recipients of this publication and if you have any doubt you should seek advice from a financial adviser. Except for any liability owed under FSMA 200 or the regulatory system, Old Park Lane Capital plc (OPLC) accepts no liability for any losses which may be incurred by the client acting on such recommendation. Companies mentioned in this research/document may be corporate finance clients of OPLC. The analyst(s) responsible for this document may receive compensation based either directly or indirectly on profits derived from fund management activities. OPLC its directors and employees may have a position or holding in any of the above investments or in a related investment, therefore OPLC is not holding out this research as being impartial or objective as defined by the FSA Conduct of Business Rule 7.16.5, as set out in our conflicts of interest policy and procedures. This document has been prepared, approved and issued by OPLC on the basis of publicly available information, internally developed data and other sources believed to be reliable. All reasonable care has been taken to ensure the facts stated and opinions given are fair and not knowingly misleading in whole or part. Prices and factual details are deemed to be correct at the time of publication. However, OPLC offers no guarantee as to the accuracy or completeness of any such information or data. The views expressed are as at the date stated and are subject to change at any time There is an extra risk of losing money when shares are bought in some smaller companies, including those quoted on AIM, sometimes known as penny shares. There can be a big difference between the buying price and the selling price of these shares. If they have to be sold immediately, you may get back much less than you paid for them. The price may change quickly and it may go down as well as up. Past performance of investments referred to above is not necessarily a guide to future performance and the value of the investment may go down as well as up. Some investments are not readily realisable and investors may have difficulty in selling or realising the investment or obtaining reliable information on the value or risks associated with the investment. This publication may not be reproduced or copies circulated without authority. Old Park Lane Capital plc is a member of the London Stock Exchange and is authorised and regulated by the Financial Services Authority (FSA no. 477870). Registered address: 49 Berkeley Square, Mayfair, London, W1J 4AZ.

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