US$120 million reduction in Boikarabelo capex 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”) ASX Release US$120 million reduction in Boikarabelo capex Resgen has been able to reduce the estimated capital cost of its Boikarabelo coal mine in South Africa by US$120 million to US$630 million. This reflects the flexibility provided by Eskom’s commitment to supply sufficient power for stage 1 of the mine’s operation as early as 2014, after the first generating unit at its new Medupi power station is in commercial operation. This will meet the company’s target of beginning coal production early in 2015. The cost of Boikarabelo’s planned 45MW power station, for which tenders have been received, has been removed from the capital expenditure estimate for stage 1 of Boikarabelo’s operations. A decision on whether to proceed with this will now not take place until 2013. Paul Jury, managing director, said: ‘this development provides a positive step in simplifying the funding and construction phases of stage 1 of the Boikarabelo mine. Importantly, subject to securing debt funding, the capital saving will reduce the amount of equity funds required.’ Sydney 23 August 2012 JSE Sponsor: Macquarie First South Capital (Proprietary) Limited 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. Resource Generation Limited (ACN 059 950 337) www.resgen.com.au Level 12 Chifley Tower, 2 Chifley Square, Sydney NSW 2000 GPO Box 5490, Sydney NSW 2001. Phone +61 2 9376 9000 Fax +61 2 9376 9013 Date: 23/08/2012 09:14:00 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.