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RESOURCE GENERATION LIMITED - Terms agreed for Boikarabelo CHPP

Release Date: 13/11/2013 07:15:00      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

                          Terms agreed for Boikarabelo CHPP

  -   Expected cost of coal handling and preparation plant (CHPP ) reduced by 20%
  -   Danish state guarantee expected to support 50% of the CHPP cost

Resource Generation Limited has taken a major step towards constructing and funding its
Boikarabelo coal mine in the Waterberg region of South Africa with terms agreed for design
and supply of the CHPP. A binding term sheet has been signed with FLSmidth Roymec (Pty)
Limited, the South African black economic empowerment subsidiary of FLSmidth & Co, the
leading supplier of complete plants, equipment and services for the global minerals industry.

The cost of the CHPP is now expected to be below US$200 million, more than US$50 million
less than earlier estimates. Resource Generation Limited is in discussions with EKF, the
Danish state-owned export credit agency, regarding a guarantee to cover over 50% of this

?This agreement is in line with our plan to raise the capital needed to construct the mine from
a variety of sources, including supplier finance, project finance and the $62.6 million equity
entitlement offer completed in October. The EKF guarantee, if confirmed, is expected to
facilitate raising project finance for the CHPP,? said Paul Jury, managing director.

?The CHPP is the largest capex item in Boikarabelo?s budget, and this agreement represents
significant progress. We are completing final drawings for the plant and look forward to
working with FLSmidth to bring the mine to fruition, with production currently targeted to
begin in late 2015.?

FLSmidth & Co, headquartered in Denmark, employs over 15,000 people in more than 50
countries and is listed on Nasdaq OMX Nordic Exchange Copenhagen.

13 November 2013

JSE Sponsor:
Macquarie First South Capital Proprietary Limited

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, which accounts for 40% of the country?s remaining coal resources.
 There are probable reserves of 744.8 million tonnes of coal on 35% of the tenements
 under the company?s control. Stage 1 of the mine development targets saleable coal
 production of 6 million tonnes per annum.

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

Date: 13/11/2013 07:15:00 Supplied by www.sharenet.co.za                     
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