GENESIS RESOURCES LIMITED — Capital/Financing Update 2014

Dec 11, 2014

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GENESIS RESOURCES LIMITED

(ASX: GES)

ASX and Media Release

12 December 2014

SHARE PLACEMENT AGREEMENT

Genesis Resources Limited ( Genesis or the Company ) has executed a Placement Agreement with Blumont Group Ltd under which Genesis will issue 15 million shares to Blumont at a current value of approximately 8.3 cents per share. The new shares will equate to 7.87 % of Genesis’ current shares on issue.

Genesis has been seeking to raise further equity for a few months to assist with financing its Plavica Project in Macedonia. A placement to Blumont on the terms agreed is the best placement that Genesis could achieve, and the parties have structured the transaction in a manner that is neither prejudicial nor coercive to the interests of Genesis shareholders who face a choice of whether or not to accept Blumont’s current takeover offer (which remains conditional).

The agreement provides that Blumont will pay for the placement shares by the issue to Genesis of 75 million fully paid Blumont shares. Blumont shares are quoted on the SGX (SGX: A33, Bloomberg: BLUM:SP), and Genesis will be able to sell those shares on-market and apply the proceeds to its project funding requirements. The agreement is conditional on (a) Blumont receiving approval from the SGX for the listing and quotation of the 75 million shares it will issue to Genesis as consideration; and (b) Blumont not exceeding a 19.9% relevant interest in Genesis shares if the transaction occurs. A further announcement will follow at the time of the actual placement.

The price of Blumont shares and the $A:$S exchange rate will continue to fluctuate until the share placement occurs, and beyond, and Genesis will carefully select the timing of the sale or sales of the Blumont shares which it receives.

Genesis will shortly prepare and release a Supplementary Target’s Statement in relation to the conditional takeover bid by Blumont. Genesis shareholders should read that statement once it is released.

Genesis is being advised by leading independent national Australian law firm HWL Ebsworth.

-Ends-

For further information, please contact: Sophie Karzis Company Secretary 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