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Resource Generation Limited - Debt Funding Progress

Release Date: 30/09/2015 11:04:00      Code(s): RSG     
Resource Generation Limited
Registration number ACN 059 950 337
(Incorporated and registered in Australia)
ISIN: AU000000RES1
Share Code on the ASX: RES
Share Code on the JSE: RSG
(?Resgen? or the ?Company?)

30 September 2015

ASX Release

                               Debt Funding Progress

As previously announced, Resource Generation (the Company) has been pursuing
alternative funding options to the Debt Club funding. One of those options has now
materialised. The Company received a signed Memorandum of Understanding (MoU) for
the in principle provision of funding to enable construction of its Boikarabelo thermal
coal mine in the Waterberg region of South Africa overnight on 28 September 2015. The
funding is in two stages: Stage 1 for EUR175 million targeted to be received on or before
31 January 2016, and a further EUR305 million receivable in June 2016. A signed
Project Finance Solution Agreement for stage 1 has also been received by the Company
and was to be considered for approval and signing by the Board. Unfortunately, the
timing and nature of the actions undertaken by Shinto Torii Inc as announced on 29
September 2015 have meant that the Company has had to delay the finalisation of this
Project Finance Solution Agreement, while the composition of the Board is resolved.

The MoU and the Project Finance Solution Agreement have been signed by a private
entity, HAB & JPR Privee, from Switzerland. The two tranches above will be deposited
into an account controlled by the Company and drawn down in 9 quarterly instalments as
required for mine construction. The major terms are:

   ?   Term ? 20 years.
   ?   Cost of funding ? equivalent to approximately 4.5% per annum including upfront
       fees and costs.
   ?   Principal and interest payments commence three years after the first drawdown.
   ?   First ranking security over the project and corporate guarantees from all Resource
       Generation group companies.

HAB & JPR Privee?s funding has been driven by its desire to work with Resource
Generation which it sees as a company that is socially responsible, attentive to the
environmental impact of its projects, sensitive to the local community, as well as
observing the highest health and safety standards to protect its workers and the general
population.

Correspondence last night has indicated that, if a change of directors occurs, HAB & JPR
Privee reserves its rights to cancel the loan facility.

Paul Jury, managing director, said: ?we are pleased, after such a protracted process of
seeking funding in a difficult market for coal projects, to have achieved in principle
agreement for funding to enable all the remaining phases of the mine construction and its
social labour programs to be completed. We need to address the issues raised by Shinto
Torii Inc and its actions have not been conducive to progressing this funding option,
which is clearly in the best interests of all shareholders. The costs of the funding are the

most attractive of the various sources that we have considered and materially more
favourable than the incomplete proposals of the Debt Club involving Noble Group, which
was being facilitated by Shinto Torii?s holding company, Altius Investment Holdings
(Pty) 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

JSE Sponsor: Deloitte & Touche Sponsor Services (Pty) Limited



 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 (refer ASX announcement dated 16
December 2010). Stage 1 of the mine development targets saleable coal production
of 6 million tonnes per annum.
 *This information was prepared and first disclosed under the JORC Code 2004. It has not been updated since
to comply with the JORC Code 2012 on the basis that the information has not materially changed since it was
last reported.




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
                                                                                                              2

Date: 30/09/2015 11:04:00 Supplied by www.sharenet.co.za                     
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