RSG - Resource Generation Limited - Update on debt funding

RSG - Resource Generation Limited - Update on debt funding                      
Resource Generation Limited                                                     
ACN 059 950 337                                                                 
(Incorporated and registered in Australia)                                      
(Registration number ACN 059 950 337)                                           
Share code on the JSE Limited: RSG ISIN: AU000000RES1                           
Share code on the Australian Stock Exchange Limited: RES ISIN: AU000000RES1     
("Resgen")                                                                      
UPDATE ON DEBT FUNDING                                                          
Resource Generation receives strong interest from debt funders                  
Resource Generation Limited has received strong interest from financiers        
following a process to secure debt funding for the construction of its          
Boikarabelo mine in the Waterberg region of South Africa. There are probable    
reserves of 744.8 million tonnes of coal on 35% of the company`s tenements, for 
which the company received a 30 year mining right in April 2011.                
Potential debt funders were asked to submit expressions of interest and         
indicative term sheets, and submissions have been received which more than cover
the company`s anticipated debt requirements.                                    
Paul Jury, managing director, said: `We are very pleased with the level of      
interest and look forward to working through the proposals with the potential   
lenders.  The offers contain a number of conditions precedent including         
satisfactory contractual arrangements with Transnet and Eskom, which we are     
working towards.  This is another positive step forward for our plans to start  
development of the Boikarabelo mine.`                                           
This announcement was released on the ASX on 18 May 2011.                       
Sydney, Australia                                                               
19 May 2011                                                                     
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                                                
Sponsor                                                                         
Deloitte & Touche Sponsor Services (Pty) Limited                                
Resource Generation has coal interests in South Africa and Tasmania.  Its       
current priority is to develop its planned Boikarabelo mine in the Waterberg    
region of South Africa where there are probable reserves of 744.8 million tonnes
of coal on 35% of the company`s tenements.                                      
Date: 19/05/2011 11:30:01 Supplied by www.sharenet.co.za                     
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