core sector communique

Ncondezi Coal Company Limited

("Ncondezi" or the "Company")

Audited final results for the year ended 31 December 2010

Ncondezi Coal Company Limited (AIM: NCCL), a coal exploration and development company with coal assets in the Tete Province in Mozambique, announces its audited final results for the year ended 31 December 2010:

Highlights:

· Successful fundraising of £35.6m (US$52m) and admission to AIM on 10 June 2010

· Maiden JORC coal resource of 1.8 billion tonnes (‘bt’) classified on licences 804L and 805L (the “Ncondezi Project”) by SRK Consulting

· Scoping study on the Ncondezi Project completed in February 2010 by SRK Consulting:

o Indicated economic viability of 10 million tonnes per annum (‘Mtpa’) export thermal coal operation with first production in H2 2014/H1 2015

o Coking coal potential at Ncondezi Project

o Total mine capital cost estimated at US$376m with a life of mine of 37 years and average life of mine FOB cash costs of US$48.6/t

· Over 16,500 meters of drilling completed during 2010 from 81 percussion holes.

· Mapping and Aeromagnetic Surveys completed in October 2010, providing better definition of surface geology and structural features at the Ncondezi Project

· Definitive Feasibility Study (“DFS”) Work Programme commenced in August 2010 and scheduled for completion by July 2012.

· Equity placing in January 2011, raising £23.4m (US$36.5m) from institutional investors and introduction of a Chinese strategic investor.

· Dos Santos call option exercised in January 2011 at an exercise price of 110.7 pence.

Financial Highlights

	2010	2009
	US$000s	US$000s
Loss after tax	472	807
Loss per share expressed in cents	(0.004)	(1.0)
Cash and cash equivalents	38,068	15
Net assets	69,436	2,531

Graham Mascall, Chief Executive Officer of Ncondezi commented:

“The Company has had a very successful 2010 including the completion of our Initial Public Offering and listing on London’s AIM market together with the completion of the first phase of a fast track drilling programme at the end of the year.

During 2011, we plan to enhance shareholder value through greater definition of the scale and scope of the Ncondezi Project together with the identification of opportunities for rail and port infrastructure solutions. The Group’s target and objectives for the next 12 months remain ambitious and I am confident these will be met by our experienced and dedicated team.”