Project Update 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") Project Update One of the contractors at the Boikarabelo mine, Protech Kuthele (Pty) Limited (PK), has notified Resource Generation that it has applied to court to terminate its business rescue proceedings and be placed in liquidation. PK was undertaking the earthworks for the rail link, the site infrastructure and the roads. It has removed all staff from the mine site and terminated all activities. Addressing this unforeseen development is expected to delay the completion of the project by three to six months, with first coal production now estimated for the first half of 2016. Based on the previous competitive tender process, Resource Generation does not expect any difficulty in appointing an alternative earthworks contractor for a similar cost. Funding negotiations still continue with proposed debt financiers of the mobile equipment, the coal handling and preparation plant and the rest of the site infrastructure. 2 July 2014 Sydney 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 (refer ASX announcement dated 16 December 2010). Stage 1 of the mine development targets saleable coal production of 6 million tonnes per annum. Date: 02/07/2014 09:52:00 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.