finance options, page-16

Biggest risk for banks here is completion of the project within the capital budget and within the timeframe.

Banks would want to know that RES had sufficient contingency funding available to cover a major cost blowout, a major delay, a much slower ramp up in the production of the project and even production of the right quality coal.

Banks would likely want to see RES have raised enough equity to not only cover its share of the capital budget, 30 or 40% of the total, but also to have standby funding in place upmfront and on depositnwith the banks to also cover a 10-20% blowout in costs, a 6 month period of working capital, a 6 month delay in the project development or a failure to produce at the required rates for the first 6 months.

And of course for a project with this big a capital budget, raising these amounts on top of RES share of the capital budget would be huge and would mean huge dilution to shareholders at the current share price, if it is at all achievable.

The production risk is also probably a concern for banks. Yes coal mining is easy, but RES are doing a greenfield project, a billion dollar project, that does not have the infrastructure already in place. They want to produce big tonnes, they are junior company with no track record of coal production, no track record of mine development so a big risk. The only other company doing coal in same area is Exarro and they have major track record and experience.

Just speculation, nothing more, but there is a lot of risk still there, no "countdown to millions" just yet.