GENESIS RESOURCES LIMITED — Capital/Financing Update 2013

Oct 29, 2013

==> picture [306 x 82] intentionally omitted <==

ASX Release GENESIS RESOURCES LIMITED (ASX:GES)

30 October 2013

Genesis obtains $2M loan

Genesis Resources Limited ( Genesis or the Company ) is pleased to advise that it has entered into a loan agreement entered into with an unrelated third party lender ( Lender ), under which the Lender has agreed to provide an immediate loan of $2 million to Genesis ( Agreement ).

Genesis will use the loan funds of $2 million to facilitate its cash flow requirements and in particular to progress its drilling program at its Plavica Project.

The key terms of the Agreement are summarised as follows:

1. Interest and security – The loan is unsecured and the principal amount of $2 million will bear interest at a rate of 10% per annum; interest will accrue daily from the date the loan funds are received by Genesis, and is payable in arrears on the loan repayment date.

2. Pre-payment – Genesis may, at its election, pre-pay amounts owing under the loan at any time without incurring pre-payment penalties.

3. Repayment date – the final repayment date of the principal amount and all accrued interest will be the date that is 1 year from the date that Genesis receives the loan funds ( Repayment Date ).

4. Repayment and discretionary conversion – The principal amount is payable by Genesis on the Repayment Date, but only to the extent that the Company has sufficient funds in excess of its working capital requirements, as determined by Genesis’ Board in its reasonable discretion. In the event that the Board determines that Genesis does not have funds in excess of its working capital requirements on the Repayment Date, the parties are obliged to negotiate in good faith to extend this date. Alternatively, the parties may agree that the loan amounts outstanding will convert into Genesis shares, and that interest accrued will be similarly capitalised and paid out in Genesis shares. In this event the conversion price will be agreed upon at the time of conversion, subject to a floor price of the 30 day VWAP of Genesis shares traded on ASX immediately prior to conversion. Any conversion will be subject to the Corporations Act and the ASX Listing Rules.

The Board is pleased at having secured further funding for the benefit of its operations on terms which it considers to be favourable, and is optimistic that Genesis’ improved cash flow will enable the Company to support and bolster its ongoing drilling program at its Plavica Project in Macedonia.

-Ends

For further information, please contact: Sophie Karzis Company Secretary Genesis Resources Limited T: +61 3 9286 7501 M: 0409 540 827 E: sk@ccounsel.com.au

GENESIS RESOURCES LIMITED ACN 114 787 469 Level 1, 61 Spring Street, Melbourne, Victoria 3000, Australia T + 61 3 9286 7500 | F + 61 3 9662 1472 | www.genesisresourcesltd.com.au