Fossil Fuel Foundation: 3rd

Waterberg Coal Conference

October 2014Lerato Ratsoenyane

ASX: RESJSE: RSGADR: RSGNY

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This document is for information purposes only. It is not a prospectus, disclosure document or offering document under Australian law or under any other law and does not constitute an offer or invitation to apply for securities. In particular, this presentation is not an offer of securities for subscription or sale in any jurisdiction in which such an offer or solicitation is not authorised or to any other person to whom it is unlawful to make such an offer or solicitation.

The information in this presentation is an overview and does not contain all information necessary to make an investment decision. To the extent permitted by law, no representation or warranty, express or implied, is made as to the accuracy, adequacy or reliability of any statements, estimates or opinions or other information contained in this presentation, any of which may change without notice.

Neither Resource Generation nor any other person warrants the future performance of Resource Generation or any return on any investment made in Resource Generation. Some of the information contained in this presentation constitutes forward-looking statements that are subject to various risks and uncertainties, not all of which may be disclosed. These statements discuss future objectives or expectations concerning results of operations or financial condition or provide other forward looking information. Resource Generation's actual results, performance or achievements could be significantly different from the results or objectives expressed in, or implied by, those forward-looking statements.

Prospective investors should make their own independent evaluation of an investment in any securities. The material contained in this document does not take into account the investment objectives, financial situation or particular needs of any individual investor. Resource Generation does not make any recommendation to investors regarding the suitability of any securities and the recipient must make its own assessment and/or seek independent advice on financial, legal, tax and other matters, including the merits and risk involved, before making any investments.

Information in this presentation that relates to exploration results, mineral resources or ore reserves is based on information compiled by Mr Dawie Van Wyk who is a consultant to the Company and is a member of a Recognised Overseas Professional Organisation. Mr Van Wyk has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves'. Mr Van Wyk consents to the inclusion in the presentation of the matters based on his information in the form and context in which it appears.

Disclaimer

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Content of presentation

Location

Geology

Mine Design

Coal Handling and Process Plant

Infrastructure

Social and Labour

Execution

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South Africa: the Boikarabelo Coal Project

Waterberg Coalfield: 40% of South Africa’s remaining coal resource

ResGen’s Boikarabelo mine:• 6.4 billion tonne resource • 120m thick coal seam at

shallow depth of approx20m

Current probable reserve = 745 million tonnes At mine development stage

• Major resource • large low cost mine

Benchmark grade 14% ash export coal Established large scale mines nearby

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Location

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Mining Right area

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Zoetfontein fault

Mine benches

Mining based on 9 major benches with the potential of selective mining to optimise in pit yield

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Billion tonnes

Existing Additional* Total

Gross

Resource 6.400 1.447 7.847

Excl shale 3.122 0.975 4.097

Measured 1.090 - 1.090

Indicated 0.551 0.975 1.526

Inferred 1.480 - 1.480

Reserve 0.745 - 0.745 * approval pending

Resource– thick seam, low overburden

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Mining design- salient features

Design is based on terrace, low cost bulk volume mining• Truck and shovel bench mining system, in pit dumping

within 5 years• From 1st principles, conservative approach financially and

productivity wise.

Benches• Very low strip ratio <0.6, extremely quick, safe access to

coal• 9 benches (5 coal and 4 waste)• 50m wide by 100m long blocks• Low bench heights, highest bench 22m high.

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Mining design

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Geotechnical• Low risk, benign geotechnical regime• Consistent regional geology (Sasol and Grootegeluk pits)• Geotech reports to understand pit orientation, confirmed

benign regime, low benches, coal strength well understood, terrace mining

• Box cut extra drilling exploration has been conducted, confirmed the available opinions

• Pre split highwalls, safe and cost effective.Operating grade control

• Pre blasting/ geological drilling with Wireline logging• 24/7 grade controllers: safe and efficient, succession

planning.Blasting

• Low pf• Simple layout• Flexibility with drilling and face preparation• FEL establish faces.

Stage 1 Production

Excludes Stage 2 Production.

Stage 2 subject to infrastructure being in place

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Overall Yield (%

)Sa

les (

Mt)

Year

Export Primary Product - Stage 1 Middlings Product - Stage 1 Overall Yield - Combined

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Mining design- Machinery selection

Machine selection• Truck orientated, truck productivity focussed• Loading tools flexibility, FEL establish and finish faces• Conservative benchmarks wrt hours for availability and

utilisation• 8h45 min shifts• Services between shifts• Day planned to maximise truck activities from safety

meetings, to blasting times to bus schedule.• From 1st principals, allowances for all categories• Conservative on productivity ie ROP on drills.

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Infrastructure- salient features

Power• 4MvA construction power already installed and ready for

connection• 30MvA Eskom supply. Commenced construction

Water• Approved borehole farm, proven and licenced• 2 129 470m³/a

Infrastructure• Buildings • Workshops • Change houses

Logistics• 48km private rail siding heavy haul specifications• Between 800km and 1500km to port

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Bulk services• Water

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Logistics• Rail

• Port

Rail

10 Year take or pay contract with Transnet – accommodates both export and domestic coal freight

Take or pay contract at Durban. Adequate capacity for export shipments for Stage 1

Stage 2 - 26t axle upgrade study =4 stages resulting in capacity of 46mt from Waterberg

Studies undertaken assessing both rail track infrastructure and capacity as well as additional rolling stock requirements

Stage 1 port contract with Durban Stage 2 possible RBCT, TKR & Maputo

Port

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CHPP- General equipment

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Coal Handling and Process Plant- salient features

• Term sheets for EPS and EPCM services agreed to with FLSmidth

• CHPP able to process 13.6 mtpa

• Raw coal material handling section design for 3000 tph

• Process plant “CPP” design for 2100 tph

• CPP consists of 3 x 700 tph identical modules

– Each module consist of a Primary Coarse (+20mm) Larcodem, Primary

Smalls (-20x1mm) Cyclone and a Secondary Cyclones section

• The fines (-1mm) form all 3 modules are combined and treated with a

Reflux classifier

• The 0.105mm fraction is screened at 0.045mm via Stack-sizers. The

+0.045mm fraction is added to the domestic product

• Products and discard are dewatered by a combination of dewatering

screens, centrifuges and belt filter presses.

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CHPP- feed parameters

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CHPP- design parameters

Area Description Typical Maximum

Run of Mine Specification

Nominal top-size (mm)

800 1000

Feed ash (%) 53 70

CPP Specification Nominal top-size (mm)

100 120

Feed ash (%) 45 55

Export Specification

Nominal Top size

(mm) 50 50

Ash (%) 14.0 15.0

CV (MJ/kg) 25.50 NA

Domestic specification

Nominal Top size

(mm) 45 50

Ash (%) 30.0 32.0

CV (MJ/kg) 19.50 NA 19

CHPP- Materials handling equipment

ROM Stacking on 2 75000tonne independent stockpiles

3000tph portal re-claimer

Reclaims to load a 100 wagon train in 2,5 hours

2 75000 product with 2 emergency stockpiles

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CHPP-stock yards

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CHPP- water balance

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Spontaneous combustion and AMD risks

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Spontaneous combustion mitigation • Proactive management, active/inert ratio,

paddock dumping, compaction and monitoring.

AMD• Isotope studies indicate low

transitivity, confirmed by OFSU Geohydrology Department

• Updating hydrogeological numerical model annually

• The final void is not likely to fill and decant, due to high evaporation and low rainfall.

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Dip stick on local educational levels

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Stakeholder Engagements

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Contractor Monthly Audits

Safety at Boikarabelo

SAFETY STATS• To date (September 2014) Boikarabelo Mine has worked as a construction

operation. For 21 months, with over 411.000 hours.• On site we have incurred:

• 2 lost time injuries, both hand injuries. This is an LTIFR of 0.97 (injuries per 200.00 hours)

• 3 First aid cases

SAFETY INTERACTIONS• Safety Observation recorded 349 (since July)• Safety Audits 12 • Environmental Audit 4• General Manager positive intervention 6• Drugs and Alcohol tested done 19,204• Induction and Training SSOP’s 724• Cyber Car Training done 65

TRAINING INTERVENTIONS• First aid• HIRA (hazard identification risk assessment)• Legal liability and working at heights• Snake identification and handling

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Safety at Boikarabelo

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HEALTH AND SAFETY CAMPAINGS World Aids day on 01 December 2013TB awareness scheduled for 29 October 2014 – contractors on-site Last quarter safety challenge

OCCUPATIONAL HYGIENE SURVEYS HeatNoiseDust

Environmental Legal compliance

The following licenses are in place • Mining License in terms of the Minerals and Petroleum Resource Act• Environmental Authorisation for Mine and Rail in terms of the National

Environmental Management Act• Water Use License in terms of the National Water Act• Waste Management License in terms of the National Environmental Waste

Management Act• Permit to destroy archaeological sites in terms of the South African

Heritage Resource Act• Permit to destroy protected tree species in terms of the National Forest

Act• Additional Environmental Authorisations for powerlines and the

Marapong-Boikarabelo Effluent Transfer Project

Ledjadja Coal completes Environmental Compliance Reporting Monthly for the submission to Provincial Government and Independent Compliance Audits are undertaken Annually against all Environmental Licenses.

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Boikarabelo and the Environment

Biodiversity• We will be developing a coal mine in a diverse environment• Our objective is to develop a leading coal mine which co-exists

with the surrounding natural environment• A buffer area around the mine has been purchased, these

areas which will not be disturbed will be utilised for biodiversity offset areas

• A biodiversity land management plan has been developed to assist in the management of this are and to improve the condition of the natural veld and sustain it over time.

• This plan includes the main key components• Rehabilitation and conservation goals• Identification of Biodiversity Land Management Units • Condition of the veld in each area• An Action Plan• Interactive GIS tool

• The Golden Baboon Spider is protected under provincial law and there relocation work is currently underway. 150 spiders have been moved to date

• Research into trapdoor spider diversity is also underway on site 3030

Boikarabelo and the Environment

Monitoring

Our current monitoring programme includes the following• Biomonitoring of the Limpopo River (High and low flows)• Water quality monitoring (Quarterly) of 50 monitoring site surface and

groundwater• Water level monitoring (Monthly)• Water use monitoring• Dust fall out monitoring (monthly)• Noise Monitoring (Quarterly)• Ground water numerical model is updated annual

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Boikarabelo and the Environment

Environmental Management System• The IsoMetrix solution is designed according to the ISO14001 standard and

accommodates all areas of environmental management, from Risk Assessment and Incident Management through to Audits, Inspections and Monitoring.

• In addition, Metrix is an Organisational Stakeholder of the Global Reporting Initiative (GRI) and customises the EMS monitoring results to meet the environmental indicator reporting standards set out in the GRI G4 Mining and Metals (MM) sectorial guidelines.

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Boikarabelo and the Environment

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Environmental Management Solution

Data Capture and Maintenance modules Materiality modules

Energy Management

Energy Use

Energy efficiency

Energy use Scope 1 and Scope 2 Greenhouse Gas (GHG) emissions

Compliance Management

Air Quality

o Dust fallout

Water Use License

o Volumetric compliance performance

o Water quality compliance performance

Noise Monitoring tolerances

Water Management

Water withdrawal at source

Water levels

Water discharges

Water storage

Water reuse and recycling

Water Use License Compliance management

o Volumetric compliance performance

o Water quality compliance performance

Environmental Strategy

Environmental strategy, targets, strategic initiatives for:

o Energy

o Water

o Air quality

o Waste management

o Biodiversity

o Rehabilitation

Air Quality Management

Dust fallout monitoring

Environmental Incident Management

Incident register

Incident investigation

Incident sign off

Incident action management

Material Flow Management

Material inflows

Waste management

Material outflows

Biodiversity Management

Baseline biodiversity register

biodiversity assessment

Permitted biodiversity disturbance

Performance against the biodiversity baseline

Land Use Management

Baseline land use register

Land use performance management

Noise Monitoring

Noise Monitoring location maintenance

Noise monitoring

Boikarabelo and the Environment

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Projects which are being initiated• On site waste management set-up with separation at source to ensure recycling.• Mine Rehabilitation Plan• Nursery set up for the replacement of protected trees destroyed

Project Execution

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Roadmap to first production

Jan ‘14July ‘14

24 months construction

Coal production commences Q4 CY2015

Jan ‘15

Jul ‘15

Construction camp earthworks

Site power/water

Rail Link clearing and civil engineering

Road works for access and provincial by-pass

CHPP designs completed commence construction

Feb ‘16

Civil works for CHPP commences

Export production

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Thank you

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ASX: RESJSE: RSGADR: RSGNY