RESOURCE GENERATION LIMITED - Voluntary Suspension from Quotation

Voluntary Suspension from Quotation

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
(“Resource Generation” or the “Company”)

Resource Generation Limited (ASX: RES) – Voluntary Suspension
from Quotation

Shareholders are advised that Resgen has requested a halt in
quotation of their securities in Australia and South Africa.

ASX has confirmed that the securities of Resource Generation
Limited (‘RES’) will be suspended from quotation at the request
of RES, pending it releasing an announcement. Unless ASX decides
otherwise, the securities will remain under voluntary suspension
until the current target of commencement of normal trading on
Monday, 9 November 2020 or when the announcement is released to
the market.

Trading on the JSE Limited will therefore be suspended until the
current target of commencement of normal trading on Monday, 9
November 2020 or when the announcement is released to the
market.

Background

A Trading Halt request was made to the ASX and JSE on 22 October
2020 to allow the Company to develop a plan to secure additional
working capital to reach Financial Close for development of the
Boikarabelo Mine. Since requesting the trading halt the Company
has been assessing both debt and equity funding solutions.

It has become apparent that as part of a short-term funding plan
the Company needs to:

•   Secure formal sign off on the extension of the Common Terms
    Agreement (first announced on 5 December 2019) for the Mine
    Funding Package. The Company has received in-principle
    agreement from Lenders and will pursue formal execution by
    all parties as soon as possible; and
•   Satisfy the three key Conditions Precedent (see ASX
    Announcement: 10 September 2020) to the Mine Funding Package
   as soon as possible with a view to enable Lenders to go to
   their Credit Committees during the month of November 2020.

The Company adopted an austerity budget effective 1 September
2020 which includes Management and the Board accepting a
temporary reduction in remuneration of 30% through to Financial
Close and first drawdown of project funding. Notwithstanding the
adopted austerity measures, the short-term funding requirement
that has been identified to reach Financial Close by the end of
November 2020 is estimated to be up to US$1m. These funds are
required to cover the ongoing day to day requirements as well as
transaction completion related costs. Separately, as a risk
mitigation strategy, the Company has considered the situation
where factors beyond the control of the Company result in a
further delay in Financial Close through to end February 2021.
In this instance access to additional funding of up to a further
US$2m will be required.

The abovementioned considerations have left the Board with no
option but to request voluntary suspension of trading in the
Company’s shares to allow further time to address the additional
working capital requirement.

Pursuant to ASX Listing Rule 17.2, Resource Generation Ltd
(Resgen) requests voluntary suspension in respect of Resgen's
ordinary shares from commencement of trading on Monday 26
October 2020.

In accordance with ASX Listing Rule 17.2, Resgen advises:

(a) a voluntary suspension in the trading of Resgen ordinary
    shares is requested for the reasons set out above;
(b) Resgen wishes the voluntary suspension to remain in place
    until an announcement on the solution to the additional
    working capital requirement is made and anticipates that this
    could be achieved on or before Monday 9 November 2020;
(c) Resgen expects to request the ASX to lift the voluntary
    suspension on the Company being able to announce that it has
    secured access to sufficient additional working capital to
    achieve Financial Close for funding of the Boikarabelo Mine;
(d) Resgen is not aware of any reason why voluntary suspension
    should not be granted, or of any information necessary to
    inform the market or ASX about the voluntary suspension.

26 October 2020
Sponsor: Deloitte & Touche Sponsor Services (Pty) Limited

Date: 26-10-2020 09:09:00
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