Update on placement to Blumont 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”) Update on placement to Blumont Further to the previous announcement on 5 December 2013, Resource Generation has been in discussions with Blumont Group Ltd (Blumont) regarding its commitment to the placement of 102,596,530 shares at 22 cents per share, for which payment of $22,571,236.60 was due on 4 December 2013. Agreement has been reached for Blumont to deposit $2.5 million by 31 December 2013 and settlement of the balance, including a commercial rate of interest, to occur on 26 February 2014. If Blumont does not settle on 26 February 2014, the deposit of $2.5 million will be forfeited with no issue of shares in relation thereto. Should Blumont not pay the deposit of $2.5 million by 31 December 2013, the agreed settlement terms will cease to apply and the company will consider alternative actions. Resource Generation reiterates that the proposed placement to Blumont is in addition to the proceeds of $62.6 million from the recent entitlement offer, which was successfully completed in October 2013. The company has launched a regular newsletter containing information on activities at Boikarabelo on the company’s website under the “Newsletters” tab. Sydney 18 December 2013 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, which accounts for 40% of the country’s remaining coal resources. There are probable reserves of 744.8 million tonnes of coal on 35% of the tenements under the company’s control. Stage 1 of the mine development targets saleable coal production of 6 million tonnes per annum. Date: 18/12/2013 09:15:00 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.