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Release Date: 03/06/2019 08:47
Code(s): RSG     PDF:  
Wrap Text
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”)
     3 June 2019

                                                                          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).

     The second member of the proposed Lending Syndicate (last referred to in ASX
     Announcements on 15 March and 1 April 2019) has formally confirmed participation
     (credit approval) for their proposed contribution to the Company’s funding application in
     relation to the construction of the Boikarabelo mine.

     The second member to the proposed Lending Syndicate has not provided approval to
     be named at this point as their offer to participate is not binding on the parties until
     formally accepted by the Company. This acceptance by the Company can only occur in
     the form of a Board approved common term sheet agreed with all members to the
     proposed Lending Syndicate.

     This is a positive development that should now facilitate completion of the project
     finance for the construction of the mine. However, investors are cautioned that there are
     still a number of hurdles to be overcome before the overall funding (Financial Close) is
     achieved. These further activities or approvals now include:

     -       securing requisite written approvals from the third and final member of the proposed
             Lending Syndicate;
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               
Interim CEO: Leapeetswe Molotsane
Company secretary: Mike Meintjes
-   agreement on a common term sheet for all Lenders as referred to above;

-   finalisation of the rail link funding which is now at an advanced stage and will also
    be assisted by this recent development;

-   Director’s approval (after evaluation of the finalised financial model) of a common
    term sheet together with the rail link funding terms and recommendation to
    Shareholders. At this time the terms will be binding on all parties and only subject
    to certain conditions precedent that are specified by the proposed Lenders. The
    Company will then be able to disclose the key terms of the mine and rail link funding
    packages to the market;

-   under the related party approval requirements of the ASX Listing Rules the
    proposed mine funding package will need to be put to Shareholders at an EGM (this
    will be one of the conditions precedent referred to above). The Notice of Meeting for
    such an EGM will need to include an Independent Expert’s Report addressed to

-   finalisation of remaining key Project related contracts and legacy contractual

-   preparation of legal documents in relation to the proposed funding package; and

-   completion of all conditions precedent as specified by the proposed Lenders.

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

Lulamile Xate
For and on behalf of the Board

                                                                                       PAGE 2
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

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 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

                                                                                                      PAGE 3

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