Resource Generation : Consolidated financial statements – 30 June 2017

30th August 2017 ASX Announcement

Consolidated Financial Statements - 30 June 2017

The Company is pleased to release the Consolidated Financial Statements for Resource Generation Limited and its subsidiaries for the year ended 30 June 2017.

Resgen draws shareholders attention to the disclosure in Note 26 of the Consolidated Financial Statements where the Group has today agreed with Noble Resources International Pte Ltd to extend the commencement of repayment of the amounts borrowed under the Facility Agreement dated 3 March 2014 from September 2017 to April 2018.

Denis Gately Chairman

For and on behalf of the Board

Resource Generation Australia (ACN 059 950 337)

c/o Level 1, 17 Station Road, Indooroopilly, QLD, 4068

GPO Box 126, Albion QLD 4010. Phone +27 (012) 345 1057 Fax +27 (012) 345 5314

Directors: Denis Gately (Chairman), Lulamile Xate (Deputy Chairman), Robert Croll, Dr. Konji Sebati, Colin Gilligan, Leapeetswe Molotsane, Manish Dahiya

CEO: Rob Lowe

Company secretary: Mike Meintjes

www.resgen.com.au

About Resgen:

Resource Generation Limited (Resgen) is an emerging ASX and JSE-listed energy company, currently developing the Boikarabelo Coal Mine in South Africa's Waterberg region. The Waterberg accounts for around 40% of the country's currently known coal resources. The Coal Resources and Reserves for the Boikarabelo Coal Mine, held through the operating subsidiary Ledjadja Coal, were recently updated based upon a new mine plan and execution strategy. The Boikarabelo Coal Resources total 995Mt and the Coal Reserves total 267Mt applying the JORC Code 2012 (ASX Announcement :23 January 2017- In accordance with Listing Rule 5.23.2 the Company confirms that it is not aware of any new information that would impact on the Reported Coal Resources and Coal Reserves). Stage 1 of the mine development targets saleable coal production of 6 million tonnes per annum. Ledjadja Coal is a Black Economic Empowerment subsidiary (BEE) operating under South Africa's Broad-based Black Economic Empowerment Act, Section 9(5): Codes of Good Practice

ResGen's primary shareholders are the Public Investment Corporation of South Africa (PIC), Noble Group and Altius Investment Holdings.

For further information please contact:

Mike Meintjes, Company Secretary on mmeintjes@resgen.com.au or +61 413 706 143

Media enquiries:

Australia: Martin Debelle on + 61 282 340 102

South Africa: Marion Brower/ Charmane Russell on +27 11 880 3924

PAGE 2

ABN 91 059 950 337

Directors' report Independence statement

Consolidated statement of profit or loss and other comprehensive income Consolidated statement of financial position

Consolidated statement of changes in equity Consolidated statement of cash flows

Notes to the consolidated financial statements Directors' declaration

Independent auditor's report to the members Supplementary information

Coal Resources and Coal Reserves Corporate directory

1

15

16

17

18

19

20

41

42

46

49

51

The financial report covers Resource Generation Limited, comprising the consolidated entity and its subsidiaries. The financial report is presented in Australian Dollars.

Resource Generation Limited is a company limited by shares, incorporated and domiciled in Australia. Its registered office and principal place of business are as follows:

Registered Office: Level 1

Principal place of business:

Unit 2, Carrera House

17 Station Road 15 Sovereign Drive

Indooroopilly QLD 4068

Australia

R21 Office Park Irene 0157 South Africa

The financial report was authorised for issue by the Directors on 30 August 2017.

Through the use of the internet, we have ensured that our corporate reporting is timely, complete and available globally at a minimum cost. All market releases, quarterly reports, financial reports and other information is available at our Investors and Media page on our website: www.resgen.com.au

Your Directors present their report on the consolidated entity (referred to hereafter as the Group) consisting of Resource Generation Limited (the Company) and the entities it controlled at the end of, or during, the financial year ended 30 June 2017 (FY17).

1. Directors

The following persons were Directors of the Company during FY17 and up to the date of this report, unless otherwise stated:

Mr M Meintjes has been Company Secretary since 26 November 2015.

(i) Information on Directors

Denis Gately BA, LLB (Syd), FAICD

Independent Chairman

Experience and expertise

Denis is a senior energy and resources lawyer who was a partner in Minter Ellison for 23 years until his retirement in 2010. He has extensive experience in the energy and resources industry sectors both in Australia and overseas. Since his retirement as a partner, he has gained considerable experience as a non-executive director of a number of listed and unlisted Australian companies, including those with business interests offshore. These include Gloucester Coal Ltd, Alligator Energy Ltd (chair), Xanadu Mines Ltd (chair) and Murphy Pipe and Civil (chair).

Other current listed directorships or former listed directorships in the last three years

None.

Interests in shares and performance share rights 400,000 ordinary shares in Resource Generation Limited Nil performance share rights

Special responsibilities

Member of the Audit Committee Member of the Remuneration Committee Chairman of the Nomination Committee

Lulamile Xate B.Compt; Post Grad. Diploma Energy Studies

Deputy Chairman

Experience and expertise

Lulamile has a wide range of business experience. Having completed articles at PricewaterhouseCoopers he has developed a number of successful businesses in the fishing, gas and forestry industries and is a director and chairman of a number of unlisted companies. Lulamile is a founding member and director of Altius Investment Holdings (Pty) Limited (Altius). Altius is rated BBBEE level 1, being the highest rating under a statutory programme to integrate black South Africans into the economy.

Lulamile has degrees and qualifications from UNISA and University of Murdoch, Perth in Australia, where he studied energy management and renewable energy systems at post graduate level.

Interests in shares and performance share rights Nil ordinary shares in Resource Generation Limited Nil performance share rights

Other current listed directorships or former listed directorships in the last three years

None.

Annual Report 2017 1