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RESOURCE GENERATION LIMITED - Resource Generation establishes strategic partnership with Noble

Release Date: 02/04/2013 08:39:00      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?) 

ASX Release

    Resource Generation establishes strategic partnership with Noble

   -   Noble acquires 7.5% shareholding at 40c per share
   -   US$123 million loan facility to be provided by Noble
   -   Substantial increase in Noble?s off-take contract
   -   Noble appointed supply chain manager and exclusive marketing agent

Resource Generation Limited, which is developing one of South Africa?s largest
remaining coal deposits, today announced a strategic partnership with Noble Group that
will facilitate construction of Resource Generation?s Boikarabelo mine.

Resource Generation has made a placement of 21,352,350 ordinary shares at 40 cents per
share to Barsington Limited, a wholly-owned subsidiary of Noble Group, to raise

In addition, Noble Group has agreed to provide Resource Generation with a secured loan
facility of up to US$123 million on normal commercial terms. The facility can be drawn
down until 31 December 2013 and will be repayable 21 months after the first draw-down.
This loan facility is in addition to the $20 million secured debenture issued to Noble
Group in January 2013.

Noble Group has increased the tonnages and term of the off-take contract announced in
January 2013 from 2.5 million tonnes which was to be supplied over five years to the

                          Delivery Period        Annual Quantity
                             Years 1-8               500,000
                            Years 9-12              1,500,000
                            Years 13-14             2,000,000
                            Years 15-35             2,500,000

Prices will be set by reference to an internationally recognised index at the time of each

Resource Generation has entered into an exclusive supply chain management and
marketing agreement with Noble Group under which Noble Group will manage the
supply chain and marketing of Boikarabelo?s domestic and export coal sales for 35 years.


Paul Jury, managing director, said: ?This agreement gives Resource Generation a strong
strategic partner as we continue with the construction of Boikarabelo?s infrastructure.
Noble Group?s investment and loan facility and its increased off-take commitment
demonstrate the group?s confidence in the mine?s potential. They also provide a platform
for continuing to secure additional funding for the project.?

Noble Group (SGX: N21) manages the global supply chain of agricultural and energy
products, metals and minerals. Noble operates from over 140 locations, employing more
than 70 nationalities. Noble manages a diversified portfolio of essential raw materials,
integrating the sourcing, marketing, processing, financing and transportation of those
materials. Noble owns and manages a portfolio of strategic assets, sourcing from low
cost producers such as Brazil, Argentina, Australia and Indonesia and supplying to high
growth demand markets including China, India and the Middle East. Today, Noble has
interests in grain crushing facilities, coal and iron ore mines, fuel terminals and storage
facilities, sugar and ethanol plants, ports, vessels and other key infrastructure facilities.

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

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

02 April 2013

JSE Sponsor:
Macquarie First South Capital (Proprietary) Limited


Date: 02/04/2013 08:39:00 Supplied by www.sharenet.co.za                     
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