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RSG - Resource Generation Limited - Resource Generation to raise up to A$20

Release Date: 04/11/2010 11:01:47      Code(s): RSG
RSG - Resource Generation Limited - Resource Generation to raise up to A$20     
million through an equity raising                                               
Resource Generation Limited                                                     
(Incorporated and registered in Australia)                                      
(Registration number ACN 059 950 337)                                           
Share code on the JSE Limited: RSG ISIN: AU000000RES1                           
Share code on the Australian Stock Exchange Limited: RES ISIN: AU000000RES1     
("Resource Generation" or "the Company")                                        
Resource Generation Limited is pleased to announce that the Company is          
undertaking an equity capital raising to raise up to A$20 million at A$0.50 per 
share.  The Company may accept additional subscriptions of up to an additional  
A$10 million.  Citigroup Global Markets Australia Pty Limited is acting as Sole 
Lead Manager and Bookrunner to the placement and is placing shares with         
institutional and sophisticated investors today 4 November 2010.                
The placement shares will be issued in two tranches, with an initial            
unconditional tranche of 27.4 million shares to be issued on Wednesday, 10      
November 2010 and the balance of placement shares to be issued conditional on   
the receipt of shareholder approval. Resource Generation will seek shareholder  
approval for the conditional tranche of the placement and ratification of the   
unconditional tranche at a general meeting to be held on or about 13 December   
Resource Generation has previously announced that it is bringing forward the    
need to construct the rail link from the Boikarabelo mine to the existing rail  
network in South Africa.  The proceeds raised under the equity raising will be  
used primarily for the rail link land acquisitions and access rights as well as 
other expenditure for the Company`s Boikarabelo Mine in South Africa and for    
working capital.  Specifically, other uses are for associated costs for the rail
link, initial expenditure on power and water infrastructure and payments to BEE 
partners for the increase of the Company`s shareholdings, in accordance with the
shareholders` agreements.                                                       
The construction of the rail link will need approval under the National         
Environmental Management Act.  In order to secure approval, the directors       
believe that it is essential to acquire land and obtain land access rights      
required for the rail link construction.  The Company has recently concluded    
negotiations for the purchase of land and easement agreements for two-thirds of 
one of its preferred rail link routes.                                          
The Board has also decided to invite shareholders to participate in the Resource
Generation Share Purchase Plan ("the SPP").  The SPP entitles shareholders in   
the Company, irrespective of the size of their shareholding, to purchase up to  
$15,000 worth of shares in the Company at A$0.50 cents per share, being the same
price paid by institutional shareholders in the share placement.  The record    
date for participation is 3 November 2010. Further details will be sent to      
shareholders shortly.                                                           
Paul Jury, managing director, said: `This is an important step in providing     
funds to unlock the development of the Boikarabelo mine.  Securing the land     
access rights is a key step in our ability to construct the rail link, which    
itself is critical to opening up the export and domestic markets for our coal`. 
Sydney, Australia                                                               
4 November 2010                                                                 
Deloitte & Touche Sponsor Services (Pty) Limited                                
Date: 04/11/2010 11:01:46 Supplied by www.sharenet.co.za                     
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