Boikarabelo’s substantial value expected to be confirmed by project financiers’ due diligence 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 ("Resgen" or the “Company”) 31 July 2012 ASX/media release Boikarabelo’s substantial value expected to be confirmed by project financiers’ due diligence Resource Generation Limited, which has secured its major regulatory approvals and transport contracts for development of its Boikarabelo mine on one of South Africa’s largest remaining coal deposits, today released its quarterly report for the three months to 30 June 2012. This confirms that banks are undertaking due diligence before offering terms for project finance for the mine’s stage 1 development. ‘Offers of project finance would confirm banks’ confidence in Boikarabelo’s cash flow and, assuming completion, would support a substantial increase in Resource Generation’s enterprise value. This value would then determine the price at which equity is raised for the balance of the stage 1 capital development cost and working capital,’ said Paul Jury, managing director of Resource Generation. ‘We estimate that construction of stage 2 of the project will be financed from cash flow and it is not expected to require a further equity raising,’ said Mr Jury. Confirming management’s confidence that project finance and equity capital can be secured, the quarterly report also announces that the company has started to expand its South African management team to enable construction to begin early in 2013. 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 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. 1 Date: 31/07/2012 08:23:00 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.