Ann: Managing Director's Presentation to Shar, page-13

re: Ann: Managing Director's Presentation...
Not really too much that we didn’t know already.

Over the past 12 months have seen shareholder register mature from 5.2% insto backing to 51.3% insto backing. This is very significant for sourcing the funds required for project development. 3 as yet unnamed, but prominent South African institutions have been approached to provide project debt funding. A further equity portion will need to be obtained in due course.

The recent section 11 approval announcement was a very significant landmark and mitigates a large portion of the sovereign risk of the project.

The mining right is still to be secured, however with the social/labour plan, and bankable reserve items complete this should see RES be able to deliver an economic mine plan and receive this approval.

The current plan is to be in production in 2013. Land acquisition is going well and has thus far been cheaper than expected.

Production for the first 5 years will be capped at 7mtpa, with 5mtpa saleable, with an eventual aim of producing up to 40mtpa. Limited production for the first 5 years will reduce the amount of capital expenditure required initially, further development can then be funded partly by cash flow. (I believe that full production will be achieved, once the Witbank coal field is fully exhausted in the later part of the decade. No need to over produce in the early part of the mine life.) They will be looking to export a thermal product with 14% ash content, initially 2mtpa. Markets have been identified and initial contacts established in China, Korea, Japan, Thailand, Vietnam, India.