funding approved

Xceed Resources Limited (‘Xceed’ or ‘Company’) is pleased to announce that it has received, and accepted, a fully approved offer of project development finance from Standard Bank in respect of its Moabsvelden thermal coal project.
The facilities provided by Standard Bank are based in South African Rand. All project development and operating costs are Rand based as are the expected project revenues. The current exchange rate is approximately R9.2 to $1.

The estimated project development cost for the Moabsvelden project is R268 million / A$ 29.1 million, inclusive of contingencies and EPCM costs. Accordingly, the Standard Bank project development facility of R179 million represents 67% of the estimated development cost. ASX Code: XCD Ord Shares on Issue: 115,500,436 Chairman: Patrick O’Connor Managing Director: Ian Culbert Finance Director: Stephen Belben Company Secretary: Fiona Muir Registered Office Level 9, 105 St Georges Terrace Perth WA 6000 Postal: GPO Box 2575 Perth WA 6001 T: +61 (8) 9226 0329 F +61 (8) 9226 0327 South Africa 4/B Midland Office Park Middelburg, Mpumalanga 1050 T: +27 (13) 243 7032 F: +27 (13) 243 7031 ABN: 79 009 181 006 www.xceedresources.com.au Xceed Resources Limited is an Australian based public company engaged in the acquisition of mineral projects in Southern Africa. The Company’s primary focus is the development of coal projects located within South Africa’s premier coal fields, which are supported by established infrastructure and are readily capable of reaching their markets. The Company’s first project is the Moabsvelden thermal coal project situated in the Witbank coal field. Subject to regulatory approval, Moabsvelden is expected to have a mine life in excess of 14 years with the potential to produce export quality as well as domestic quality thermal coal from an open-cast, low strip mine.
Receipt of this credit committee approved offer of project development finance satisfies one of three conditions precedent covering the investment into the Moabsvelden project company of R 65 million / A$ 7 million by Thebe Mining Resources (‘Thebe’). The remaining two conditions precedent are the granting of a mining right by the Minister of Mines and the approval of the Thebe investment by the Minister in terms of Section 11 of the Mineral and Petroleum Resources Development Act (2002). The Company has been advised that its application for a mining right has progressed from the regional office to the national office of the Department of Mineral Resources in Pretoria, where it is now awaiting the consent of the Minister.
The Thebe investment funds, which are being held in an escrow account pending the satisfaction of the above conditions, will, together with Standard Bank’s project development facility, provide for R244 million (91%) of the estimated Moabsvelden development costs leaving the balance of R24 million / A$ 2.6 million plus working capital to be secured from other sources.
Ian Culbert, Managing Director of Xceed, commented ‘It is gratifying that two highly regarded institutions like Standard Bank and Thebe, following their own exhaustive due diligence processes, have decided to fund the development of Moabsvelden. It is a testament to the quality and simplicity of the project and affirms the Directors view that Moabsvelden is an excellent platform from which to grow the Company.”
For further information