Resource Generation Limited (‘RES’) – Appendix 5B Query 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”) 21 May 2019 Ms Melissa Lim Adviser, Listings Compliance ASX Compliance Pty Ltd 20 Bridge Street Sydney NSW 2000 By email: ListingsComplianceSydney@asx.com.au Dear Ms Lim Resource Generation Limited (‘RES’) – Appendix 5B Query We refer to your letter dated 16 May 2019 titled “Appendix 5B Query” which refers to the RES Appendix 5B for the period ended 31 March 2019 released to the market on 30 April 2019. This letter requested a separate response to five questions. In this letter the ASX notes that RES has reported: . Negative net operating cash flows for the quarter of $2,549,000; . Cash at the end of the quarter of $1,427,000; and . Estimated cash outflows for the next quarter of $3,596,000. Resource Generation Limited (ACN 059 950 337) c/o Level 1, 17 Station Road, Indooroopilly, QLD, 4068 GPO Box 126, Albion QLD 4010. Phone +27 (0) 11 010 6310 Fax +27 (0) 86 539 3792 www.resgen.com.au In this regard, we set out each question below together with our response: 1. Does RES expect that it will continue to have negative operating cash flows for the time being and, if not, why not? RES Board and Management presently expects to continue to have negative operating cash flows whilst finalising the funding through to completion of the development of the Boikarabelo Coal Mine Project in Limpopo Province, South Africa (Project) and into ramp-up to full production. RES presently expects the development process to be completed approximately 24 months after finalising of the funding for the Project (being the development timeframe assumed in our Base Case Financial Model and first announced in our ASX release dated 14 October 2016). 2. Has RES taken steps, or does it propose to take steps, to raise further cash to fund its operations and, if so, what are these steps and how likely does it believe that they will be successful? Yes, RES is taking steps to raise further cash in the form of working capital to fund its operations. The legal documentation underpinning the conditional agreement with Noble Group (Noble) to advance up to a further US$2.5m (announced to the ASX releases dated 15 March 2019) in working capital is in the process of being finalised. The latest position was set out in the release to the ASX on 17 May 2019 under the heading ‘ASX Listing Rule 10.1 Waiver - Additional US$2.5m working capital funding announced in March 2019’. 3. Does RES expect to be able to continue its operations and to meet its business objectives and, if so, on what basis? On the basis of the arrangements referred to in the response to Question 2 being completed shortly, RES presently expects to be able to continue its operations and to meet its business objective of achieving financial close for funding of the Boikarabelo coal mine in late August or September 2019. This timing being the latest target for financial close as advised to the market in our ASX release dated 17 May 2019. The Company is also taking additional steps to reduce overheads due to the minor slippage to the target timeline for financial close of the Project development funding (the revised timeline was advised to the market in the 31 March 2019 Quarterly Activities Report). 4. Please confirm that RES is complying with Listing Rule 3.1 and that there is no information about its financial condition that should be given to the ASX in accordance with that rule that has not already been released to the market? RES confirms compliance with Listing Rule 3.1 and that there is no further information about its financial condition that should be given to the ASX in accordance with that rule that has not already been released to the market. 5. Please confirm that RES’s responses to questions above have been authorised and approved under its published continuous disclosure policy or otherwise by its board or an officer of RES with delegated authority from the board to respond to the ASX on disclosure matters? Confirmed PAGE 2 If you have any queries or concerns, please contact RES' Company Secretary, Mike Meintjes. On behalf of the Board Lulamile Xate Chairman JSE Sponsor: Deloitte & Touche Sponsor Services (Pty) Ltd PAGE 3 Date: 21/05/2019 11:45:00 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.