Coalworks Limited : 5 April 2012 - Coalworks Raises 17.4 million and Welcomes Noble as Significant Shareholder

5 April 2012

COALWORKS RAISES $17.4 MILLION; WELCOMES NOBLE AS SIGNIFICANT SHAREHOLDER

• $17.4 million raised from placement to new and existing institutional investors in

Australia and overseas

• Noble Group becomes significant holder with 9 per cent of Coalworks' issued capital

• Funds for development of the Vickery South and Ferndale projects and additional working capital

• Coalworks to benefit from Noble's global capabilities in coal supply chain management and strategic direction on coal placement into Asian markets

• Advances strategy to create an independent Australian coal producer

Emerging independent coal company, Coalworks Limited (ASX: CWK or "Coalworks"), announces that it has successfully raised $17.4 million through a share placement to international and domestic investors, including global supply chain manager Noble Group Limited (SGX: N21 or "Noble").
Coalworks will issue 22,363,343 shares at 78 cents per share. The placement, which was oversubscribed, will be made within Coalworks' available 15 per cent capacity as defined under ASX listing rule 7.1. As part of the placement, Noble will receive 11,430,707 shares in Coalworks, to become a significant shareholder in the company by increasing its holding to 9 per cent.
Proceeds of the capital raising will enable Coalworks to purchase long lead items for the Vickery South project, and to apply for capacity at the Port Waratah coal export terminal at Newcastle. Funds will also be used to increase Coalworks' land holding at Ferndale and to strengthen the company's working capital.
The capital raising ensures Coalworks is well funded as it advances its strategy of building a new independent Australian coal producer. Coalworks will also benefit from the strategic alliance with Noble Group whose commercial capabilities, deep knowledge of the global coal sector and strategic support will underpin the next stage of Coalworks' development.
The Noble investment acknowledges a number of major milestones achieved by Coalworks in recent months including the announcement of a maiden JORC Inferred coal resource at Ferndale. In addition Noble have been appointed strategic advisor in relation to Coalworks' share of its coal production from both the Vickery South and Ferndale Coal Projects. Noble's fees will commence on coal production and are calculated by reference to revenue received by Coalworks for the coal it is entitled to from the projects. The agreement is structured to retain optionality for Coalworks' shareholders and Coalworks' is confident that its engagement with Noble will result in Coalworks' achieving a better outcome on its two major assets at Vickery South and Ferndale.
Coalworks Chairman Wayne Mitchell said: "This placement has received strong support from both domestic and international institutions. It demonstrates confidence in both our strategy and our high quality asset base and brings financial and marketing strength to accelerate our development.
"We continue to make good progress at Vickery South and Ferndale. The proceeds of this placement position us to fund advancement of both of our flagship assets over the coming months.
"In particular, we are pleased to welcome Noble's decision to become a significant shareholder in Coalworks. Noble's experience in developing integrated supply chain platforms for emerging coal producers will be invaluable as we pursue the successful development of our project pipeline."
BBY Limited acted as lead manager to the placement.

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For further information, please contact: Nathan Bartrop Company Secretary Tel: [phone] Fax: [phone] Email : [e-mail] www.coalworks.com.au	For media inquiries, please contact: Dudley White / Garry Nickson MAGNUS Investor Relations + Corporate Communication Tel: [phone] Email: [e-mail]/ [e-mail]
	Noble Group media enquiries Martin Debelle [phone] mobile CITADEL [phone] phone [e-mail]

Cautionary Note:

This release may contain forward-looking statements that are based upon management's expectations and beliefs in regards to future events. These statements are subjected to risk and uncertainties that might be out of control of Coalworks Limited and may cause actual results to differ from the release. Coalworks Limited takes no responsibility to make changes to these statements to reflect change of events or circumstances after the release.

Coalworks has a portfolio of projects in Australia including: 1. Vickery South, Gunnedah Basin (exploration target coking/thermal coal) # JORC Resources Increase by 15% to 58.5 Mt - see ASX Announcement 18.07.2011 # ITOCHU to proceed with BFS for Vickery South - see ASX Announcement 18.05.2011 # ITOCHU signs Farm In Agreement in $11m deal - see ASX announcement 04.05.2010

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# Preliminary Feasibility Study - positive with semi soft coking coal forming 83% of product - see ASX announcement 15.06.2011 2. Ferndale Coal Project # Coalworks includes its 92.5% owned subsidiary Loyal Coal Pty Ltd # JORC Inferred Resource 743 Mt: 443 Mt Open Cut Inferred and 300 Mt Underground Inferred Resource #Boardwalk Resources signed Farm-In and Joint Venture Agreements in $25m deal - see ASX announcement 09.12.2010 3. Oaklands Coal Project (JORC measured, indicated and inferred 822Mt thermal coal) #see ASX announcement 5.11. 2009; #Strategic Alliance with Synthesis Energy Systems Inc to develop Oaklands coal-to-petrol plant announced - see ASX announcement 2.12.2009

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