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RSG - Resgen - Resource Generation acquires additional properties and potential new coal tenements Resource Generation Limited Registration number ACN 059 950 337 (Incorporated and registered in Australia) Share code on the JSE Limited: RSG Share code on the Australian Stock Exchange: RES ISIN Code: AU000000RES1 ("Resgen" or "the Company") 27 March 2012 ASX Release Resource Generation acquires additional properties and potential new coal tenements Resource Generation Limited, which is developing one of South Africa`s largest remaining coal deposits, has signed an agreement to acquire land adjacent to the company`s Boikarabelo mine and agreed to a put option under which it can acquire further coal tenements. The properties being acquired are Swelpan and Kleinpan, highlighted in black and grey stripes on the map below. The properties cover 2,096 hectares at a cost of approximately A$4 million. Swelpan contains significant coal resources and is contiguous to Ledjadja`s Boikarabelo coal tenements. The bulk of the Kleinpan property contains no defined coal resources but it provides an ideal location for the 2x660MW power station that CESC Limited proposes to build. As previously announced, this proposed power station would enable the Boikarabelo mine to commence its stage 2 expansion earlier than originally planned. Exxaro Resources owns the coal tenements on four properties, which are highlighted in red on the map, including Swelpan and Kleinpan. Shareholders are referred to the company`s website where this announcement, containing the map, has been published. Ledjadja, Resource Generation`s BEE subsidiary, has granted a put option to Exxaro under which Exxaro can sell the prospecting rights over the four properties to Ledjadja. Any such transfer would be subject to approval by the Department of Mineral Resources (DMR) under Section 11 of the Mineral and Petroleum Resources Development Act, 2002. The coal tenements contain an indicated resource of 974.5 million tonnes*, excluding shale content. Coal qualities are consistent with the rest of the Boikarabelo tenements. Should Exxaro exercise the put option and the DMR approve the transfer, the Boikarabelo mine will have the following resources and reserves, excluding shale content; ie an increase in total resources of 31%: Measured Indicated Inferred Total Probable Resource Resource Resource Resource Reserve (Mt) (Mt) (Mt) (Mt) (Mt) 1,090.5 1,526.2 1,479.6 4,096.3 744.8 Paul Jury, managing director of Resource Generation, said: `These transactions provide two significant enhancements to shareholder value. The acquisition of the land enhances our ability to expand to stage 2, while the additional coal tenements would deliver ideal mining synergy enabling a continuation of the mine`s strike length in an easterly direction, enhancing efficient mining.` *Information in this release that relates to exploration results, mineral resources or ore reserves is based on information compiled by Mr Dawie Van Wyk who is a consultant to the Company and is a member of a Recognised Overseas Professional Organisation. Mr Van Wyk has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the `Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves`. Mr Van Wyk has given and has not withdrawn his consent to the inclusion in the release of the matters based on his information in the form and context in which it appears. 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 JSE Sponsor: Deloitte & Touche Sponsor Services (Pty) Limited Resource Generation is developing the Boikarabelo coal mine in the Waterberg region of South Africa where there are probable reserves of 744.8 million tonnes of coal on 35% of the tenements under its control. Stage 1 of the mine development targets saleable coal production of 6 million tonnes per annum. Date: 27/03/2012 10:03:01 Supplied by www.sharenet.co.za Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited (`JSE`). The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct, indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on, information disseminated through SENS.
