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RESOURCE GENERATION LIMITED - Boikarabelos substantial value expected to be confirmed by project financiers due diligence

Release Date: 31/07/2012 08:23:00      Code(s): RSG     
Resource Generation Limited
Registered in Australia under the Corporations Act, 2001 (Cth) with registration number ACN: 059 950 337
ISIN: AU000000RES1
Share Code on the ASX: RES
Share Code on the JSE: RSG
("Resgen" or the ?Company?) 

31 July 2012

ASX/media release

          Boikarabelo?s substantial value expected to be confirmed
                    by project financiers? due diligence
Resource Generation Limited, which has secured its major regulatory approvals and
transport contracts for development of its Boikarabelo mine on one of South Africa?s
largest remaining coal deposits, today released its quarterly report for the three months to
30 June 2012. This confirms that banks are undertaking due diligence before offering
terms for project finance for the mine?s stage 1 development.

?Offers of project finance would confirm banks? confidence in Boikarabelo?s cash flow
and, assuming completion, would support a substantial increase in Resource Generation?s
enterprise value. This value would then determine the price at which equity is raised for
the balance of the stage 1 capital development cost and working capital,? said Paul Jury,
managing director of Resource Generation.

?We estimate that construction of stage 2 of the project will be financed from cash flow
and it is not expected to require a further equity raising,? said Mr Jury.

Confirming management?s confidence that project finance and equity capital can be
secured, the quarterly report also announces that the company has started to expand its
South African management team to enable construction to begin early in 2013.

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


Date: 31/07/2012 08:23:00 Supplied by www.sharenet.co.za                     
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