CONNECTED MINERALS LIMITED — Interim / Quarterly Report 2004

Jan 29, 2004

Quarterly Report For the period to 31 December 2003

CLAUDE HILLS - South Australia

Geophysical modeling of magnetic anomalies at Claude Hills, in the far north west of South Australia, has confirmed a number of strong dipole anomalies that may indicate the presence of buried massive sulphide mineralisation. Ten of the 15 anomalies selected for modelling have been marked for immediate follow up. The depths of the anomalies range from 50 to 200 metres. On the basis of magnetic susceptibility, size, shallow model depth and geological setting, a number are considered to be particularly interesting. Exploration programmes to test these anomalies will comprise a combination of ground magnetic and electro-magnetic surveys, geochemistry and drilling.

The Company has been invited to present the drilling and exploration programme at the next meeting of the council executive in February and has engaged the services of an external consultant with experience in Aboriginal liaison to expedite the final stage of the approvals. The Chairman and the Director of the Anangu Pitiantiatiara Yankunytiatiara Land Council have given the Company an undertaking that consideration of the proposed programme will be given priority. Drilling will commence as soon as final approval is received.

WINGELLINA - Western Australia

A visit by geologists from the South Australian Geological Survey's Musgrave Mapping Team was hosted at Wingellina. The visit was part of a cooperative effort between the Geological Survey and the Company to better understand the geology of the central Musgrave Block, and relationships and settings of the layered intrusions in particular. The visit also served to familiarise the team with the geology on the Western Australian side of the border and the field observations that have assisted Acclaim with the targeting of the Claude Hills area for nickel sulphides.

CORPORATE

The Company raised \$2,515,000 before expenses of the issue via a private placement of 50,300,000 fully paid ordinary shares ("Shares") at 5 cents per Share. The raising was undertaken to strengthen the financial position of the Company and to provide funds for future exploration programmes on the Company's existing projects, in particular the proposed exploration and drilling programmes on the Company's Claude Hills tenement.

The Company also announced the appointment of Mr Donald James Head to the Board as a non-executive director. Don is a metallurgist with more than 30 years experience in the mining industry and has held several senior management positions with WMC Ltd. including a number of years as the manager of the Kwinana Nickel Refinery. He is a fellow of the Australian Institute of Mining and Metallurgy and currently runs his own metallurgical consulting business providing services to several mining and construction groups. He was a non-executive director of Tectonic Resources NL and Abelle Ltd. Don brings a substantial knowledge of metallurgy and the nickel industry to the group which should prove an invaluable asset as the continued exploration, assessment and future development of the company's nickel assets advance.

Donald Thomson Technical Director 30 January 2004

$Rule 5.3$

Appendix 5B Mining Exploration Entity Quarterly Report

Name of Entity

ACCLAIM EXPLORATION NL

ACN or ARBN

99 009 076 233

Quarter Ended ("Current Quarter") 31 DECEMBER 2003

Consolidated Statement of Cash Flows

		Current Quarter	Year to Date
	Cash Flows Related to Operating Activities		(6 months)
		\$Α	\$Α
1.1	Receipts from product sales and related debtors
1.2	Payments for (a) exploration and evaluation (b) development	(87, 642)	(274, 898)
	(c) production
	(d) administration	(200, 232)	(297, 471)
1.3	Dividends received
1.4	Interest and other items of a similar nature received	7,792	11,072
1.5	Interest and other costs of finance paid
1.6	Income taxes paid
1.7	Other (provide details if material)
	Net Operating Cash Flows	(280, 082)	(561,297)
	Cash Flows Related to Investing Activities
1.8	Payment for purchases of: (a)prospects
	(b) equity investments
	(c) other fixed assets	(1,836)	(1,836)
1.9	Proceeds from sale of: (a)prospects
	(b) equity investments		4,219
	(c) other fixed assets		10,680
1.10 1.11	Loans to other entities (note 3)
1.12	Loans repaid by other entities Other (provide details if material)
	Net Investing Cash Flows	(1,836)	13,063
1.13	Total operating and investing cash flows (carried forward)	(281, 918)	(548, 234)

Appendix 5B Page 1

1.13	Total operating and investing cash flows (brought forward)	(281, 918)	(548, 234)
	Cash Flows Related to Financing Activities
1.14	Proceeds from issues of shares, options, etc.	2,515,000	3,171,325
1.15 1.16	Proceeds from sale of forfeited shares Proceeds from borrowings
1.17	Repayment of borrowings	(1,906)	(3,720)
1.18	Dividends paid
1.19	Other (provide details if material) – Share Issue Costs	(71, 424)	(71, 424)
	Net Financing Cash Flows	2,441,670	3,096,181
	Net Increase (Decrease) in Cash Held	2,159,752	2,547,947
1.20 1.21	Cash at beginning of quarter/year to date Exchange rate adjustments to 19	414,909	26,714
1.22	Cash at End of Quarter	2,574,661	2,574,661

Payments to directors of the entity and associates of the directors Payments to related entities of the entity and associates of the related entities

• Aggregate amount of payments to the parties included in item 1.2 1.23
• 1.24 Aggregate amount of loans to the parties included in item 1.10
• 1.25 Explanation necessary for an understanding of the transactions

Non-Cash Financing and Investing Activities

$2.1$ Details of financing and investing transactions which have had a material effect on consolidated assets and liabilities but did not involve cash flows

NIL

22 Details of outlays made by other entities to establish or increase their share in projects in which the reporting entity has an interest

NIL

Current quarter \$A 36

Financing Facilities Available
Add notes as necessary for an understanding of the position.

		Amount Available \$Α	Amount Used \$Α
3.1	Loan facilities	NIL
3.2	Credit standby arrangements	ΝIL

Estimated Cash Outflows for Next Quarter

		\$Α
4.1	Exploration and evaluation	500,000
4.2	Development
	Total	500,000

Reconciliation of Cash

Reconciliation of cash at the end of the quarter (as shown in the consolidated statement of cash flows) to the related items in the accounts is as follows.		Current Quarter \$A	Previous Quarter \$Α
5.1	Cash on hand and at bank	2,574,661	414,909
5.2	Deposits at call
5.3	Bank overdraft
-5.4	Other (provide details) term deposit
	Total: Cash at End of Quarter (item 1.22)	2,574,661	414,909

Changes in Interests in Mining Tenements

		Tenement Reference	Nature Οf Interest	Interest at Beginning of Quarter	Interest at End of Quarter
6.1	Interests in mining tenements relinquished, reduced or lapsed	Nil
6.2	Interests in mining tenements acquired or increased	Nil

Issued and Quoted Securities at End of Current Quarter

Description includes rate of interest and any redemption or conversion rights together with prices and dates.

		Number Issued	Number Quoted	Issue price per security (see note 3) (cents)	Amount paid up per security (see note 3) (cents)
7.1	Preference $+$ securities
7.2	Changes during quarter
7.3	+ Ordinary Securities	385,757,699 40,000,000	385,757,699 40,000,000	10	8
7.4	Changes during quarter Increases through (a) issues Decreases through (b) returns of capital. buy-backs	50,300,000	50,300,000	5	5
7.5	+ Convertible Debt Securities
7.6	Changes during quarter
7.7	Options (description)	212,928,535 8,000,000	212,928,535	Exercise Price 20 25	Expiry Date 30/04/2004 8/10/2005
7.8	Issued during quarter
7.9	Exercised during quarter
7.10	Expired during quarter
7.11	Debentures
7.12	Unsecured Notes

Compliance Statement

• This statement has been prepared under accounting policies which comply with accounting $\mathbf{1}$ standards as defined in the Corporations Act or other standards acceptable to ASX.
• $\overline{2}$ This statement does give a true and fair view of the matters disclosed.

Sign here: ....................................... (Director/Company Secretary)

Date: 30 January 2004

Print name: N J BASSETT

$=$ = = = =