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Resource Generation Limited - Media Release

Release Date: 30/09/2015 11:21:00      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

                                     Media Release

The media release published by Resource Generation today is reproduced below.

       Resource Generation funding to construct Boikarabelo mine
               ?   Signed MOU and Project Funding Solution Agreement received
               ?   Funding dependent on shareholders defeating move to replace board

Resource Generation Limited, which is developing one of South Africa?s largest
remaining coal deposits, has received a signed Memorandum of Understanding from HAB
& JPR Privee, a Swiss private company, to provide in principle funding of EUR480
million to enable construction of Resource Generation?s Boikarabelo mine.

HAB & JPR Privee has indicated that if there is a change of directors it reserves the right
to cancel the loan facility. This follows the decision by Altius Investment Holdings (Pty)
Limited, an associate of Noble Group Limited, to requisition a general meeting to replace
Resource Generation?s board with its own nominees.

Altius has been working with Noble Group to structure debt funding, as part of a club of
South African financiers, that would result in a substantial transfer of value from the
company?s shareholders and its BEE partner to the financiers.

Paul Jury, managing director of Resource Generation, said: ?We are pleased, after 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.

?The cost of HAB & JPR Privee?s funding is 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 and Altius.

?This is a great step forward for Resource Generation, our BEE partner and all our
shareholders, and we look forward to shareholders rejecting Altius? attempt to change the
board for the benefit of the debt club members.?

HAB & JPR Privee?s decision to fund construction of the Boikarabelo mine 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 and sensitive to
the local community, as well as observing the highest health and safety standards to
protect its workers and the general population.
The funding will be provided in two tranches: EUR175 million on or before 31 January
2016, and EUR305 million in June 2016. The two tranches will be deposited into an
account controlled by Resource Generation and drawn down in nine quarterly instalments
as required for the mine?s construction. The key 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.

Paul Jury, Managing Director on (02) 9376 9000 or
Steve Matthews, Executive Director on (02) 9376 9000

Media enquiries
Anthony Tregoning (02) 8264 1000

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

 Resource Generation is developing its 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

 development targets saleable coal production of 6 million tonnes per annum.company?s control
(refer ASX announcement dated 16 December 2010). Stage 1 of the mine

* 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

Date: 30/09/2015 11:21:00 Supplied by www.sharenet.co.za                     
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