IGO LIMITED — Interim / Quarterly Report 2003

Jul 29, 2003

Appendix 5B

$Rule 5.3$

Mining exploration entity quarterly report

Introduced 1/7/96. Origin: Appendix 8. Amended 1/7/97, 1/7/98, 30/9/2001.

	Name of entity
--	----------------	--	--

Independence Gold NL

ABN

46 092 786 304

Quarter ended ("current quarter")
30 June 2003

Year to date

(12 months)

Current quarter

\$A'000

Consolidated statement of cash flows

Cash flows related to operating activities

			\$A'000
1.1	Receipts from product sales and related debtors (excludes receivables)	9,553	19,184
1.2	Payments for (a) exploration and evaluation	(285)	(1,322)
	(b) development	(1,991)	(3, 556)
	(c) production	(4, 332)	(6,639)
	(d) administration	(284)	(1, 114)
1.3	Dividends received
1.4	Interest and other items of a similar nature
	received	26.	94
1.5	Interest and other costs of finance paid	(334)	(1,043)
1.6	Income taxes paid
1.7	Other
	Net Operating Cash Flows	2,353	5,604
	Cash flows related to investing activities
1.8	Payment for purchases of:
	(a) prospects		(10, 850)
	(b) equity investments	(5)	(5)
	(c) HP/leased fixed assets		(5,363)
	(d) other fixed assets	(222)	(6,491)
	(e) exploration& evaluation	(392)	(504)
	(f) development	(166)	(580)
1.9	Proceeds from sale of: (a)prospects
	(b) equity investments
	(c)other fixed assets
1.10	Other - Pre-production costs		(1, 284)
1.11	Loans repaid by other entities		7
1.12	Other – Costs relating to $1.8(a)$	(230)	(1,692)
	Net investing cash flows	(1,015)	(26,762)
1.13	Total operating and investing cash flows
	(carried forward)	1,338	(21, 158)

⁺ See chapter 19 for defined terms.

1.13	Total operating and investing cash flows (brought forward)	1,338	(21, 158)
	Cash flows related to financing activities
1.14	Proceeds from issues of shares, options, etc.	9	7.018
1.15	Proceeds from HP/lease borrowings		5,363
1.16	Proceeds from borrowings		13,000
1.17	Repayment of borrowings	(1, 338)	(1,338)
1.18	Dividends paid
1.19	Other – Costs relating to $1.14$		(274)
1.19	Other - Cash Deposit - Bond		(980)
	Net financing cash flows	(1, 329)	22,789
	Net increase (decrease) in cash held	9	1,631
1.20 1.21	Cash at beginning of quarter/year to date Exchange rate adjustments to item 1.20	4,032	2,410
1.22	Cash at end of quarter	4,041	4,041

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

		Current quarter \$A'000
1.23	Aggregate amount of payments to the parties included in item 1.2	175
1.24	Aggregate amount of loans to the parties included in item 1.10	$\mathbf{r}$

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

$2.2$ Details of outlays made by other entities to establish or increase their share in projects in which the reporting entity has an interest

Financing facilities available

Add notes as necessary for an understanding of the position.

⁺ See chapter 19 for defined terms.

-3.1	Loan facilities (a) Cash Advance Facility (b) Working Capital Facility (c) Bond Facility	Amount available SA'000 10,000 3,000 2.000	Amount used SA'000 10,000 3,000 1,389
3.2	Credit standby arrangements

Estimated cash outflows for next quarter

		\$A'000
4.1	Exploration and evaluation	700
4.2	Development	400
	Total	1,100

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 SA'000	Previous quarter SA'000
5.1	Cash on hand and at bank	56	79.
5.2	Deposits at call	3,985	3.953
5.3	Bank overdraft
5.4	Other (provide details)
	Total: cash at end of quarter (item 1.22)	4.041	4.032

Changes in interests in mining tenements

		Tenement reference	Nature of interest (note(2))	Interest at beginning of quarter	Interest at end of quarter
6.1	Interests in mining tenements relinquished, reduced or lapsed
6.2	Interests in mining tenements acquired or increased	ELA39/1008-10 ELA39/1012-13, 1016 P39/4286-99 ELA52/1696 ELA70/2581-84 ELA77/1108	$New - Southern$ $New - AngloGold$ earning $51\%$ New application $New - Southern$ New application Granted	$0\%$ $0\%$ $0\%$ $0\%$ $0\%$ $0\%$ 75%	75% 100% $100\%$ 100% 75% 100% 75%

⁺ See chapter 19 for defined terms.

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.

		Total number	Number quoted	Issue price per security (see note $3)$ (cents)	Amount paid up per security (see note 3) (cents)
7.1	Preference
	*securities
	(description)
7.2	Changes during
	quarter
	(a) Increases
	through issues
	(b) Decreases
7.3	+Ordinary	9,955,000		10	0.1
	securities	68,155,750	50,465,750
7.4	Changes during
	quarter
	(a) Increases
	through issues
	- contrib.shares
	converted
	(b) Decreases
	through returns
	of capital, buy-
	backs
7.5	+ Convertible
	debt securities
	(description)
7.6	Changes during
	quarter
	(a) Increases
	through issues
	(b) Decreases
7.7	Options	Ordinary options		Exercise price	Expiry date
	(description and	to subscribe for 1
	conversion	ordinary share
	factor)
		28,739,250	28,739,250	20	31 January 2005
		300,000		34	10 September 2005
		2,000,000		45	30 June 2007
		1,200,000		35	31 July 2007
7.8	Issued during
	quarter
7.9	Exercised during
	quarter
7.10	Expired during
	quarter
7.11	Debentures
	(totals only)
7.12	Unsecured
	notes (totals
	$\omega$ dv

$+$ See chapter 19 for defined terms.

Compliance statement

• $\mathbf{I}$ This statement has been prepared under accounting policies which comply with accounting standards as defined in the Corporations Act or other standards acceptable to ASX (see note 4).
• This statement does give a true and fair view of the matters disclosed. $\overline{2}$

Sign here:

...................................... (Director)

Print name:

.Christopher Bonwick...................

Notes

• $\mathbf{1}$ The quarterly report provides a basis for informing the market how the entity's activities have been financed for the past quarter and the effect on its cash position. An entity wanting to disclose additional information is encouraged to do so, in a note or notes attached to this report.
• $\overline{2}$ The "Nature of interest" (items 6.1 and 6.2) includes options in respect of interests in mining tenements acquired, exercised or lapsed during the reporting period. If the entity is involved in a joint venture agreement and there are conditions precedent which will change its percentage interest in a mining tenement, it should disclose the change of percentage interest and conditions precedent in the list required for items 6.1 and 6.2.
• 3 Issued and quoted securities The issue price and amount paid up is not required in items 7.1 and 7.3 for fully paid securities.
• $\overline{4}$ The definitions in, and provisions of, AASB 1022: Accounting for Extractive Industries and AASB 1026: Statement of Cash Flows apply to this report.
• 5 Accounting Standards ASX will accept, for example, the use of International Accounting Standards for foreign entities. If the standards used do not address a topic, the Australian standard on that topic (if any) must be complied with.

= == == == == ==

⁺ See chapter 19 for defined terms.