Key Achievements

Since late 2008 the Company has focused its strategy on discovering and defining a major coal deposit in the Waterberg Coalfield in South Africa, undertaken mine design and environmental impacts sufficient to lodge an application to commence mining.

Key Achievements

Secured prospecting rights
Defined 6 billion tonne resource
Probable reserve 745mt from 35% available area
Completed mine plan
Designed infrastructure

Defined transport, power & water solutions
Completed social & labour plan
Acquired surface land
Completed pre-feasibility study
Submitted mining rights application

Completed bankisle feasibility study
Received mining right
Obtained access for 36km rail link
Signed two long term export offtake contracts

Early in 2010 we lodged the mining rights application for Resource Generation’s Boikarabelo mine in the Waterberg region of South Africa. This was an important step forward in our plans to develop a large-scale coal mining operation with production starting in January 2013.

At that time it was only 16 months since we secured our first prospecting rights, and since then we have made substantial progress.

The South African Department of Mines & Energy normally takes approximately 12 months to award mining rights. Meanwhile, we will focus on securing coal offtake agreements, determining the most appropriate transport arrangements, and planning necessary infrastructure. We are also continuing our drilling program to prove even greater reserves and facilitate mine planning.

By the time we receive the mining right, which we expect to be in 2011, we hope to be well advanced in negotiating funding for the project. This would enable us to begin mine construction and order the mine fleet during 2011. The mine would then be completed and the mine fleet delivered in 2012.