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Res - Resource Generation Secures Second Coal Off-take Contract

Release Date: 15/12/2010 08:19:01      Code(s): RSG
RES - Resource Generation secures second coal off-take contract                 
Resource Generation Limited                                                     
Registration number ACN 059 950 337                                             
(Incorporated and registered in Australia)                                      
Share code on the JSE Limited: RSG                                              
Share code on the Australian Stock Exchange: RES                                
ISIN Code: AU000000RES1                                                         
("Resgen" or "the Company")                                                     
Resource Generation secures second coal off-take contract                       
Resgen has today signed a contract with Bhushan Steel Limited (Bhushan), which  
will purchase coal for 20 years from Resource Generation`s Boikarabelo mine in  
South Africa.                                                                   
Under the terms of the contract, Bhushan (BSE:BHUSSTEEL IN), will purchase      
500,000 tonnes of thermal coal per annum for the first five years of production 
from the Boikarabelo mine and a minimum 500,000 tonnes per annum for a further  
15 years. The price will be at international market prices at the time of each  
shipment.                                                                       
Bhushan is one of the fastest growing steel companies in India.  Based in Delhi,
it has operations in Delhi, Orissa and Mumbai.  Current primary steel making    
capacity is around 2.5 million tonnes per annum, which is being expanded to 5   
million tonnes per annum by October 2012.  Bhushan`s sales revenue in the last  
financial year was USD1.3 billion with a net profit of USD188 million.  Its     
market capitalisation is approximately USD2 billion.                            
Bhushan`s growth plan includes diversification into power generation through its
subsidiary, Bhushan Energy Limited, which already has installed capacity of     
300MW.  The supply of coal from Boikarabelo is targeted for the expansion of    
Bhushan`s power generation capacity.                                            
Paul Jury, managing director of Resource Generation, said: `This is the second  
long term export contract demonstrating confidence in the quality of the        
Boikarabelo mine as well as its potential into the expanding Indian market.`    
Resource Generation`s planned Boikarabelo mine is in the Waterberg region of    
South Africa, one of the country`s largest remaining coal deposits.             
Sydney, Australia                                                               
15 December 2010                                                                
Contacts                                                                        
Paul Jury, Managing Director on +61 2 9376 9000 or                              
Steve Matthews, Company Secretary on + 61 2 9376 9000                           
Sponsor: Deloitte & Touche Sponsor Services (Pty) Ltd                           
Date: 15/12/2010 08:19:01 Supplied by www.sharenet.co.za                     
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