Ann: Execution of non-binding Term Sheets for Project funding, page-27

There is much to consider ...

We relinquish 23% ownership of Ledjadja to get Boikarabelo into production. But as you say, it's better to have 51% of something than 100% of nothing!

We still own 74% of Waterberg One which contains approximately half our coal reserves. Profits generated from Ledjadja can be used to bring Waterberg#1 into production. At that point ResGen becomes a genuine cash-cow for those holding longer term!!!

Confirmation that rail-link and ramp-up working capital both via debt funding.

IDC & PIC want their hands on domestic offtake so our profitability is tied to export prices (API4). There's very little margin in domestic offtake (look at UNV as an example). UNV sell approx 90% of their 6mtpa to Eskom, have a similar capital structure to RES, similar % ownership, multiple operating mines with shorter life spans and a MC of $120m. By comparison, RES is in a much stronger position (albeit not yet in production) and a MC of approx $50m.

Will PIC continue selling shares considering their 10% equity in Ledjadja? Who knows, but personally I doubt it. Their fire-sale of 30+ million shares starts to make sense in this context. An even 83m shares looks clean.

... Terms now binding should make some happy!

Not many sellers around so we should see a move towards the high teens before long and a retest of the 52 week high by financial close.