acquires tasmanian tenements

Settlement of Acquisition of Tasmanian Tenements
Resource Generation Limited (Resource Generation) has successfully settled the acquisition of its prospective coal tenements in Tasmania. The acquisition of the
two companies involved is as follows:
Energy Investments Limited (EIL)
• All of the issued capital of EIL has been acquired with the consideration being the issue of 28,500,010 fully paid ordinary shares in Resource Generation. These shares are held in escrow for 6 months.
• EIL holds two exploration licences in Tasmania:
o EL64/2007 – Latrobe (Bonneys Tier); and
o EL65/2007 – Woodbury (Turnbridge).
• The acquisition and issue of shares was approved by Resource Generation shareholders at a general meeting held on 26 May 2008 and a waiver to ASX Listing Rule 14.7
provided by Australian Stock Exchange Limited, which extended the date for settlement
to be on or before 31 October 2008.
• A further 7,500,000 fully paid ordinary shares in Resource Generation have been issued to the facilitators of the EIL transaction, which was also approved by shareholders at a general meeting held on 26 May 2008. These shares are held in escrow for 6 months.
Tiger Coal Pty Limited (Tiger Coal)
• All of the issued capital of Tiger Coal has been acquired with the consideration being the issue of 60,000,000 fully paid ordinary shares in Resource Generation. These shares are held in escrow for 6 months.
• Tiger holds two exploration licences and has made one exploration licence application in Tasmania:
o EL25/2008 – Jericho East (Melton);
o EL26/2008 – Jericho West (Tiberius); and
o ELA41/2008 – Jericho North (Oatlands).
• The acquisition and issue of shares was approved by Resource Generation shareholders
at a general meeting held on 5 September 2008.
• An additional 15,000,000 fully paid ordinary Resource Generation shares are issuable to the vendors of Tiger Coal, conditional upon the delineation, at any time within 2 years, of a JORC in situ inferred coal resource of not less than 79 million tonnes of black (bituminous) coal either within Jericho East, West or North or the three tenementscombined.
Paul Jury, Managing Director of Resource Generation, stated: “I am very pleased we have been able to settle these acquisitions following on from the award of the exploration licences by the Minister for Mineral Resources Tasmania. Coal mineralisation is present in the properties and we shall now plan an exploration drilling program to determine the extent of the mineralisation in accordance with the JORC Code. This is a positive step towards diversifying our potential resource development”