RESOURCE GENERATION LIMITED - Market Update- Project Funding

Market Update- Project Funding

     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”)


     1 April 2019
     ASX Announcement



                                                    Market Update- Project Funding


     Resource Generation Limited (ASX:RES) (Resgen or Company) would like to provide
     an update on funding for the development of the Boikarabelo Mine.

     On 15 March 2019, the Company advised that it had reached conditional agreement
     with Noble Group (Noble) to provide additional working capital requirements to its partly
     owned subsidiary, Ledjadja Coal (Pty) Ltd. The amendment to the Facility Agreement
     with Noble for the extension of up to a further US$2.5m in working capital funding is in
     the process of being formalised.

     The conditional agreement reached with Noble included the following terms:

            1. credit approvals from all members of the Lending Syndicate to be secured by 29
               March 2019 and, if not forthcoming, ResGen to facilitate a meeting between itself,
               Noble, the IDC and the other potential member of the Lending Syndicate to agree
               a way forward;
            2. no later than 29 March 2019, Resgen to develop a high-level plan and timetable
               on the potential feasibility of executing a small-scale mining operation at the
               Boikarabelo Mine;



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
Company secretary: Mike Meintjes
At close of business on 29 March 2019 in South Africa the status of the above conditions
was as follows:

1. the third potential member of the Lending Syndicate has not provided written Board
   credit approval and has advised that it is still finalising internal administrative
   requirements. The Company has requested an urgent meeting with all Lending
   Syndicate Members to agree a way forward;
2. a small-scale Boikarabelo Mine feasibility presentation which includes a high-level
   plan and timetable was sent to Noble on 29 March 2019. Once the plan has been
   evaluated, the Company will update the market.

The Company will keep the market informed regarding progress on securing 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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