RESOURCE GENERATION LIMITED - Financing Syndicate mandated for funding the Boikarabelo mine

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


Financing Syndicate mandated for funding the Boikarabelo mine

Resource Generation's BEE subsidiary, Ledjadja Coal, has awarded a mandate to six
South African and global banks and other financiers (the Financing Syndicate) to
provide project debt finance for the construction of the Boikarabelo mine. The financiers
are:


      - Absa Capital, a division of Absa Limited, a member of the Barclays Bank Group;
      - Caterpillar Financial SARL;

      - FirstRand Bank Limited, acting through its Rand Merchant Bank division;
      - Hong Kong & Shanghai Banking Corporation (HSBC);

      - Nedbank Capital, a division of Nedbank Limited; and
      - Standard Chartered Bank.


The award of the mandate to the Financing Syndicate followed an extensive tender
process (including other global banks) and negotiation of key commercial terms. Subject
to obtaining final credit approval and execution of finance and security documents, the
Financing Syndicate will provide approximately 60% of the total funds required for mine
construction.


Due diligence reports have been prepared by independent experts engaged on behalf of
the financiers. The experts are Bowman Gilfillan, Coffey Mining, Jardine Lloyd
Thompson, KPMG and Wood McKenzie. Their reports are under review by the
financiers.


The financiers are now progressing towards formal credit approvals for the facility and
these are targeted for receipt in early November. Financial close and first funding are
expected to be subject to conditions precedent typical of project finance facilities,
including raising sufficient equity capital to fully fund the balance of the expected capital
expenditure for mine development.

The proposed terms of the facility include:

       - A term of 9 years, including the construction period.

       - A senior debt facility of around USD400 million plus associated facilities
         (including a working capital facility).

       - The senior debt facility will be provided via a mix of USD and ZAR loans and is
         on normal commercial terms.




Sydney
9 October 2012

JSE Sponsor:

Macquarie First South Capital (Proprietary) Limited




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
                                                                                            
ASX: RES



Based on the current timetable, once formal credit approval is obtained, Resource
Generation will proceed with an equity capital raising. It is hoped that it can be
completed by mid-December 2012, which would enable development of the Boikarabelo
mine to proceed in January 2013.


Paul Jury, managing director, said: 'We are pleased to have appointed such an
experienced and capable Financing Syndicate. The strong response from the bank market
generally, and the mandated group of banks and financiers in particular, provides a
tangible demonstration of the Boikarabelo mine's value and cash flow potential.
Assuming credit approval for the debt funding, supported by the results of the due
diligence, we are confident that the mine's projected cash flow potential and value will be
recognised in the price of the proposed equity raising. However, the terms of the equity
raising and participants in the raising are still to be determined.'


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: 09/10/2012 08:36:00 Supplied by www.sharenet.co.za                     
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