Ann: Market Update - 10 September 2020, page-8

Why I like PIC decision above!

I have actually jumped ship to be in the PIC camp...hope that's allowed!

Here is why!

Maybe the positive way to view is to see that maybe someone inside PIC is both thorough and cautious. They could ultimately be saving our investments with this extra careful detail. To be fair, South African companies have been know to be a little relaxed, and the end result often not yielding their potential. This situation is quite the opposite and maybe we have someone in PIC that is quite the stickler!!

Looking at the three outstanding CP's:

1. Execution of a binding Ramp-up Working Capital Facility Agreement; - We don't want to run short of cash, it has been clearly modeled we need this cash. I personally want this in place that its a certainty, rather than RES saying later, sorry, we are backed into a corner, we have to give half the mine to Noble.

2. Execution of a binding and fully funded Mining Services Contract; That's fair enough....you cannot have a mine without yellow goods. Again let's not get backed into a corner.

3. Execution of a domestic back to back Off-take Agreement with Noble Group to meet the Eskom BEE procurement conditions. This is fair enough, why does PIC want to wait for later to see our deal, lets know as a certainty is sold. All export coal is contracted, lets have the entire lot (domestic) finalised.

If RES complete these items above, in three months, they only have to focus on construction over the following two years, that is a great thing...Papi and crew can be onsite all day, every day, focusing on getting the mine built in a timely manner.

When I first read I was disappointed they weren't waived or deferred, now I have jump ship!! I'm backing PIC.

Get the CP's finalised, bring the CP's to completion to reduce investor and funding risk, and then RES can give 100% of their time to construct the mine.

Time for excuses has now passed and are costly, it would be great to see the CP's finalised in the timeline suggested...and let's put this funding to rest.. I have my construction overalls on, just waiting on the GREEN light from the last three pieces of negotiation!