Resource Generation

ASX: RES

22 June 2015

ASX Release Funding Update

Resource Generation (the Company) has received numerous recent enquiries about the status of its funding, accordingly it has decided to provide an update. As previously announced the Company has been negotiating with various parties including a club of potential financiers to provide project finance for the construction of the Boikarabelo mine.
Negotiations are still continuing with the previously announced club of financiers with work continuing on an extensive terms sheet and bank case financial model. The process in reaching an agreed term sheet has been protracted due to several factors including the variable nature of the envisaged loan structure and maintaining deliverable outcomes within prevailing debt and coal markets.
Expectations are that the project finance will provide all required remaining funding for the mine construction. Consequently, if the proposed facility is made available, the Company does not envisage the need for an associated equity raising.
In addition to the above, the Company continues to explore alternative funding arrangements.

Contacts

Paul Jury, Managing Director on (02) 9376 9000 or

Steve Matthews, Company Secretary on (02) 9376 9000

Media enquiries

Anthony Tregoning (02) 8264 1000

Resource Generation is developing the Boikarabelo coal mine in the Waterberg region of South Africa where there are probable reserves of 744.8 million tonnes* of coal on 35% of the tenements under its control (refer ASX announcement dated

16 December 2010). Stage 1 of the mine development targets saleable coal production of 6 million tonnes per annum.

*This information was prepared and first disclosed under the JORC Code 2004. It has not been updated since to comply with the JORC Code 2012 on the basis that the information has not materially changed since it was last reported.

Resource Generation Limited (ACN 059 950 337) www.resgen.com.au

Level 12 Chifley Tower, 2 Chifley Square, Sydney NSW 2000

GPO Box 5490, Sydney NSW 2001. Phone +61 2 9376 9000 Fax +61 2 9376 9013

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