RESOURCE GENERATION LIMITED - Market Update

Market 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
     (“Resource Generation” or the “Company”)


     5 December 2018
     ASX Announcement

                                                                          Market Update
     Resource Generation Limited (ASX:RES) (Resgen or Company) would like to provide
     an update on the funding status of its Boikarabelo Coal Mine in the Waterberg, South
     Africa (Project).

     In the last market update covering the status of Boikarabelo Project funding (12
     November 2018) the Company advised that discussions with the Lender’s Deal Team
     (a member of the proposed Lending Syndicate) had confirmed that this Lender remained
     committed to the Project from a technical, commercial and strategic perspective,
     however a short delay had arisen in scheduling a Credit Committee meeting.

     Since providing the abovementioned update, Management has been in regular contact
     with the Lender’s Deal Team in anticipation that Credit Committee and subsequent
     Board approval could be finalised before the Christmas break in South Africa. It is now
     apparent that this timeline will not be met. This further delay highlights the imperative of
     progressing (in tandem) an alternative funding option with a party or parties as a
     substitute in the current proposed Lending Syndicate (first reported in ASX
     Announcement: 20 August 2018).

     This further delay will have an impact on the targeted date for financial close and the
     Board and Management will therefore be focusing on strategies to conserve cash and/or
     secure any required additional financial support.


Resource Generation Australia (ACN 059 950 337)
c/o Level 1, 17 Station Road, Indooroopilly, QLD, 4068
GPO Box 126, Albion QLD 4010. Phone +27 (011) 010 6310 Fax +27 (086) 539 3792
Directors: Lulamile Xate (Chairman), Robert Croll, Dr. Konji Sebati,
Colin Gilligan, Leapeetswe Molotsane, Manish Dahiya, Michael Gray                         www.resgen.com.au
Interim CEO: Leapeetswe Molotsane
Joint Company secretaries: Mike Meintjes, Brendan O’Regan

The Chief Financial Officer and Joint Company Secretary, Brendan O’Regan, has
tendered his resignation effective 31 January 2019. The Board would like to thank
Brendan for his committed and tireless efforts in managing the finance function since its
transfer from Sydney in early 2016.

The Company will keep the market informed regarding further progress on project
funding in accordance with its continuous disclosure obligations.

Lulamile Xate
Chairman
For and on behalf of the Board

About Resgen:

Resource Generation Limited (Resgen) is an emerging ASX and JSE-listed energy company, currently
developing the Boikarabelo Coal Mine in South Africa’s Waterberg region. The Waterberg accounts for
around 40% of the country’s currently known coal resources. The Coal Resources and Coal Reserves for the
Boikarabelo Coal Mine, held through the operating subsidiary Ledjadja Coal, were recently updated based
upon a new mine plan and execution strategy. The Boikarabelo Coal Resources total 995Mt and the Coal
Reserves total 267Mt applying the JORC Code 2012 (ASX Announcement :23 January 2017- In accordance
with Listing Rule 5.23.2 the Company confirms that it is not aware of any new information that would impact
on the Reported Coal Resources and Coal Reserves). Stage 1 of the mine development targets saleable coal
production of 6 million tonnes per annum. Ledjadja Coal is a Black Economic Empowerment subsidiary (BEE)
operating under South Africa’s Broad-based Black Economic Empowerment Act, Section 9(5): Codes of Good
Practice

ResGen’s primary shareholders are the Public Investment Corporation of South Africa (PIC), Noble Group
and Altius Investment Holdings.



For further information please contact:

Mike Meintjes, Company Secretary on mmeintjes@resgen.com.au or +61 413 706 143

Media enquiries:

South Africa: Marion Brower/ Charmane Russell on +27 11 880 3924

JSE Sponsor: Deloitte & Touche Sponsor Services (Pty) Ltd




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