RESOURCE GENERATION LIMITED - Trading Halt

Trading Halt

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) – Trading Halt

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

ASX has confirmed that the securities of Resource Generation
Limited (‘RES’) will be placed in trading halt at the request of
RES, pending it releasing an announcement. Unless ASX decides
otherwise, the securities will remain in trading halt until the
earlier of the commencement of normal trading on Monday, 26
October 2020 or when the announcement is released to the market.

Trading on the JSE Limited will therefore be in trading halt
until the earlier of the commencement of normal trading on
Monday, 26 October 2020 or when the announcement is released to
the market.

Background
In the Unaudited Financial Statements for the year ended 30 June
2020, released to the market on 30 September 2020, the Company
advised that it was reliant on formalising an extension to the
first repayment date under the Facility Agreement with Noble
Group dated 3 March 2014 (as amended) (Facility Agreement) and
securing access to additional working capital to cover the
period through to Financial Close and first drawdown of funds to
develop the Boikarabelo Coal Project.

The Company has now been advised by Noble Group that it is
willing to extend the first repayment date under the Facility
Agreement from 30 September 2020 to 28 February 2021, subject to
completion of the legal documentation. Noble Group however
advised that it is unable to provide the Company with access to
any additional working capital under the Facility Agreement.

In light of this development, the Company requires time to
develop an action plan to address the short -term funding
requirement to cover the period through to Financial Close by
the current target of 30 November 2020 and the possibility of
any uncontrollable slippage. This action plan will also involve
reconfirming with all Lenders the status of the formal extension
of the Common Terms Agreement and that satisfaction of the key
Conditions Precedent by the end of October will enable them to
seek their respective Credit Committee approvals by the end of
November 2020.

Pursuant to ASX Listing Rule 17.1, Resource Generation Ltd
(Resgen) requests a trading halt in respect of Resgen's ordinary
shares from commencement of trading on Thursday 22 October 2020.

In accordance with Listing Rule 17.1, Resgen advises:
  (a) the trading halt is requested pending an announcement on
  the Company’s plans to secure additional working capital to
  reach Financial Close for the construction of the Boikarabelo
  Coal Mine (Market Update Announcement);
  (b) Resgen wishes the trading halt to remain in place until the
  earlier of such time as it makes the Market Update
  Announcement, or the commencement of trading on Monday 26
  October 2020; and
  (c) Resgen is not aware of any reason why the trading halt
  should not be granted, or of any information necessary to
  inform the market or ASX about the trading halt.



22 October 2020

Sponsor: Deloitte & Touche Sponsor Services (Pty) Limited

Date: 22-10-2020 09:08:00
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