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Resource Generation Limited - Funding Update

Release Date: 19/03/2013 08:01:00      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?) 

Funding update
After receiving credit-approved offers of project finance that deviate from the agreed
terms sheet, Resource Generation Limited today announced that it is considering
alternative sources of funding to construct its Boikarabelo mine on one of South Africa?s
largest remaining coal deposits.

The credit approvals received from Resource Generation?s mandated debt financiers
include commercial conditions which are unacceptable to the company. Negotiations on
these conditions are continuing; meanwhile, parallel discussions are at an advanced stage
with existing and potential customers which have expressed interest in providing equity
funding to enable major construction to begin.

Paul Jury, managing director of Resource Generation, said: ?Without contingencies and
costs associated with debt funding, capital expenditure is estimated at $530 million,
which includes $100 million for mobile equipment. If we secure finance from alternative
sources to part-fund this expenditure, the company will have flexibility to raise the
remaining capital required to complete construction of the mine by way of equity or debt
at a later time.

?The due diligence conducted by independent experts on behalf of the financiers
identified no material issues and I believe the credit-approved offers of finance confirm
Boikarabelo?s viability and potential. All regulatory approvals have been received, the
land for the mine and rail link has been acquired, and we have contracts providing rail
haulage and port access. In addition, we have three significant export contracts for
thermal coal with major Indian customers and the global trader Noble Group.?

Construction of site infrastructure, roadworks, and water and power connections has
begun, and the site is now classified as an operating mine site.

Sydney
19 March 2013

JSE Sponsor:
Macquarie First South Capital (Proprietary) Limited

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 has coal interests in South Africa. Its current priority is to
 develop its planned Boikarabelo mine in the Waterberg region of South Africa where
 there are probable reserves of 744.8 million tonnes of coal on 35% of the company?s
 tenements.


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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Date: 19/03/2013 08:01:00 Supplied by www.sharenet.co.za                     
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