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RESOURCE GENERATION LIMITED - Resource Generation reduces funding requirements by obtaining a US$65 million loan for infrastructure

Release Date: 02/01/2014 07:06:00      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?)
   Resource Generation reduces funding requirements by obtaining a
                US$65 million loan for infrastructure
Resource Generation has signed a binding term sheet for a US$65 million loan facility,
with Noble Resources International Pte Ltd, a wholly owned subsidiary of the Noble
Group (Noble), which together with existing cash resources will be used for construction
of the mine buildings and infrastructure at the Boikarabelo mine.

The loan is on normal commercial terms and is able to be drawn down from 1 January
2014 until 31 December 2015. It is secured over the site infrastructure and is repayable
in full by 31 March 2016, by which time the Boikarabelo mine is expected to be in
production. The loan is expected to be refinanced at that time when the completion risk
is expected to have been eliminated.

The US$65 million loan is in addition to the previously announced US$55.3 million loan
for the construction of the rail link from the Boikarabelo mine to the existing Transnet
Freight Rail network. The previously announced US$123 million loan facility dated 28
March 2013, which was subsequently reduced to US$67.7 million due to the rail link
loan, expired on 31 December 2013 without any drawdowns having occurred. This
change enables greater flexibility in finalising remaining funding discussions.

Paul Jury, managing director, said: ?Completing these loan arrangements removes the
remaining major gap in our funding plans. Funding discussions for the purchase or lease
of mobile equipment are at an advanced stage with three parties. Our discussions are also
continuing for obtaining project finance for the coal handling and preparation plant.
Once these remaining discussions are complete, the main funding for the construction of
Boikarabelo will be in place.?

Noble is a global supply chain manager of agricultural and energy products and metals,
minerals and ores. Noble is listed in Singapore (SGX: N21) and operates from over 140

2 January 2014

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 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: 02/01/2014 07:06:00 Supplied by www.sharenet.co.za                     
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