RESOURCE GENERATION LIMITED - Market Update- Working Capital Funding

Market Update- Working Capital Funding

     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”)


     8 October 2019
     JSE Announcement

                                         Market Update- Working Capital Funding

     Resource Generation Limited (ASX:RES) (Resgen or Company) advises that it has
     received conditional approval from the Board of the Noble Group (Noble) to provide
     additional working capital to its partly owned subsidiary, Ledjadja Coal (Pty) Ltd
     (Ledjadja Coal), to cover the projected needs through to 28 February 2020. This
     agreement includes the following terms and conditions:

            .      extending the facility agreement dated 3 March 2014, as amended from time to
                   time, including most recently on 21 May 2019 (Facility Agreement) by up to an
                   additional US$2.5m;
            .      amending the first date for repayment of the Facility Agreement from 30
                   September 2019 to 28 February 2020;
            .      executing full form documents effecting the necessary amendment to the Facility
                   Agreement;
            .      Resgen and Ledjadja Coal obtaining all necessary internal and regulatory
                   approvals or waivers in respect of all documents being entered into; and
            .      All costs associated with negotiation and documentation to be borne by Resgen
                   and Ledjadja Coal.



Resource Generation Australia (ACN 059 950 337)
c/o Level 1, 17 Station Road, Indooroopilly, QLD, 4068
GPO Box 126, Albion QLD 4010. Phone +27 (011) 010 6310 Fax +27 (086) 539 3792
Directors: Lulamile Xate (Chairman), Robert Croll, Dr. Konji Sebati,
Colin Gilligan, Leapeetswe Molotsane, Manish Dahiya, Michael Gray                      www.resgen.com.au
Interim CEO: Leapeetswe Molotsane
Company secretary: Mike Meintjes
The working capital component of the Facility Agreement (which includes this additional
extension of funds) must be repaid from the proceeds of a project financing facility upon
Financial Close.

The Company is appreciative of the continued financial support from Noble.

The Company continues to progress negotiations with the proposed Lending Syndicate
on finalising common terms for funding the construction of the Boikarabelo Mine. The
Company will keep the market informed in accordance with its continuous disclosure
obligations.

The Company also advises that it is planning to schedule the Annual General Meeting
for Wednesday 27 November 2019.

Lulamile Xate
Chairman
For and on behalf of the Board

About Resgen:

Resource Generation Limited (Resgen) is an emerging ASX and JSE-listed energy company, currently
developing the Boikarabelo Coal Mine in South Africa’s Waterberg region. The Waterberg accounts for
around 40% of the country’s currently known coal resources. The Coal Resources and Coal Reserves for the
Boikarabelo Coal Mine, held through the operating subsidiary Ledjadja Coal, were recently updated based
upon a new mine plan and execution strategy. The Boikarabelo Coal Resources total 995Mt and the Coal
Reserves total 267Mt applying the JORC Code 2012 (ASX Announcement :23 January 2017- In accordance
with Listing Rule 5.23.2 the Company confirms that it is not aware of any new information that would impact
on the Reported Coal Resources and Coal Reserves). Stage 1 of the mine development targets saleable coal
production of 6 million tonnes per annum. Ledjadja Coal is a Black Economic Empowerment subsidiary (BEE)
operating under South Africa’s Broad-based Black Economic Empowerment Act, Section 9(5): Codes of Good
Practice

ResGen’s primary shareholders are the Public Investment Corporation of South Africa (PIC), Noble Group
and Altius Investment Holdings.



For further information please contact:

Mike Meintjes, Company Secretary on mmeintjes@resgen.com.au or +61 413 706 143

Media enquiries:

South Africa: Marion Brower/ Charmane Russell on +27 11 880 3924

JSE Sponsor:

Deloitte & Touche Sponsor Services (Pty) Limited


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Date: 08/10/2019 07:05:00
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