IRON BEAR RESOURCES LTD — Interim / Quarterly Report 2003

Oct 30, 2003

INTERNATIONAL GOLDFIELDS LIMITED

International Goldfields Limited: ABN 71-095-047-920 Ground Floor 18 Oxford Clase Leederville Penth Western Australia 6007 Telephone +618 9388 0744 Escsimile +618 9382 141 PO Box 144 West Perth Western Australia 6872 www.internationalgoldfields.com

REPORT FOR THE QUARTER ENDING 30^th SEPTEMBER 2003

HIGHLIGHTS

• Notice of Intent to mine the BALDOCK deposit submitted. Probable $\bullet$ Reserve of 106,000T at 16.5 g/t Au;
• Dave Lode traced for a further 1.6km south in the Timoni mine area;
• Further excellent drilling results from King Brown at the Evanston $\bullet$ Project including; 16m @ 15.0 g/t Au, 27m @ 4.76 g/t Au & 16m @ 3.44 $g/t$ Au;
• Several new gold targets generated in the Marda region, Evanston $\bullet$ Project
• Major geophysical (IP) survey commenced at the Gladna prospect, Sacu $\bullet$ project, Romania.
• Capital raising at a premium to market with significant European $\bullet$ investors.

QUARTERLY REPORT FOR THE PERIOD ENDING 30^th JUNE 2003

MOUNT IDA PROJECT

During the quarter work continued to focus on advancing the feasibility study on the Baldock resource. The Company has recently appointed a Mining Engineer to manage the feasibility study, to oversee the submission of the Notice of Intent (NOI) to mine to the relevant government departments and to assist in the development of the mining operation. The newly appointed "Manager-Mining" has specific expertise in the exploitation of high grade underground gold resource with out 20 years experience in the mining industry.

The NOI was formally lodged with the Department of Industry and Resources on the 29th of October. The NOI was prepared by independent consultants Outback Ecology in conjunction with the company. The review by the various government departments is expected to be completed by mid November.

The Company, after consultation with all of the key stakeholders, believes that there are no major issues of concern which could delay the start of works.

A major review on the mining plan for the development is currently being undertaken by independent consultancy group Golder Associates. The current mine plan has estimated a Probable Reserve of 106,000 Tonnes at 16.5 g/t gold from the previously announced geological (Measured) Resource of 60,300T @ 32.9 g/t Au. The mining plan calls for the deposit to be mined in two phases. Phase one will see the refurbishment of the nearby Timoni shaft and the extraction

of a 3,000 tonne bulk sample of development and stoping ore from Baldock. Phase two will include the installation of a 10,000 tonne per month haulage system and the commencement of mining of the lode. Full results of the feasibilty will be announced following the review by Golder Associates.

The Reserve was based upon a Resource model previously prepared by Golder Associates in accordance with the Australasian Code for Reporting of Identified Mineral Resources and Ore Reserves (JORC 1999).

The resource encompasses only that portion of the W2 lode at Baldock containing the High grade shoot which exists between the Northern Crosscourse fault, in the north, and the 'A' fault, in the south, a zone extending for some 160 metres. A single deep diamond core drillhole drilled some 75 metres to the south of the 'A' fault intersected the continuation of the shoot returning an intercept of 1.16m $\omega$ 59.60 g/t Au (hole TID014).

This clearly indicates that the shoot continues at depth to the south and that great potential exists to further expand the existing resources at Baldock in the future.

Further work within the project during the quarter included RAB and RC drilling. RAB drilling within the Timoni mine area has traced the southern extensions of the Dave Lode, host to the Baldock mineralisation, for a further 1.6 kilometres south of its previously known extent. Drilling was conducted along 6 lines and only tested the oxide portion of the lode. This oxide zone typically displays gold depletion elsewhere in the area, for example the Baldock mineralisation was discovered after following up a RAB intersection of 2m $\omega$ 1.8 g/t Au. Results from the drilling are deemed as significant and are as follows;

Hole	Northing	Easting	From	Тo	Intersection
					g/t Au ◉ m
TIB0177	108,900	10,400	21	23	2 @ m	0.59
TIB0191	108,700	10,340	40	43 eoh	3 @ m	1.56
TIB0201	108,500	10,340	6	7	1 @ m	0.34
TIB0216	108,300	10,220	40	41	1 @ m	0.27
TIB0225	107,600	10,300	53	55 eoh	2 @ m	0.59
TIB0232	107,300	10,440	34	35	1 @ m	0.78
TIB0232	107,300	10,440	36	39	3 @ m	0.81
TIB0232	107,300	10,440	51	52	1 @ m	0.59
TIB0234	107,300	10,360	44	40 Eoh	3 @ m	0.65
				Nh: All samples analysed by Fire Assay with an AAS finish	eoh: end of hole

Table 1: RAB Drilling Results - Dave South Lode

A short programme of RC drilling over several targets elsewhere in the mine area resulted in the delineation of potentially a new high grade gold shoot situated 500 metres south of Baldock within the Dave Lode. A single RC hole returned $2m$ (a) 9.44 g/t Au from 100 metres (TIC195; 109,400N 10,255E) drilled in the predicted down plunge extension of some previously reported high grade RAB results including; $2m$ @ 83.6 g/t Au and $7m$ @ 7.01g/t Au.

EVANSTON PROJECT

The Company has continued its active exploration programme at the Evanston project. Due to the large holdings at Evanston (approximately 900 square kilometres) the Company has decided to focus its efforts in the Marda area of the project. The Marda area contains existing resources of

2.02Mt $\omega$ 2.6 g/t gold occuring in several small, shallow resources typically associated with BIF units. The Company believes that, given the existing resource base and geological setting, there is excellent potential in the region to delineate further resources here. Recent work in the area has included regional geological mapping and a study into the controls on gold mineralisation. This work has resulted in a greater understanding of the area and has defined several target areas which the Company has recently begun testing by RAB drilling. Results from this drilling is still pending.

Regional rock chip sampling has recorded several significant gold values from areas not previously tested. Sampling was not systematic however indications are that a previously unexplored shear zone, situated to the west of the Marda resources may be mineralised over a significant length. Samples collected along this trend included results of; 111.0 g/t Au, 11.5 g/t Au, 2.60 g/t Au and 1.18 g/t Au. A second target (called Quail), situated approximatley 2 km south of Marda, returned rock chip results of; 31.4 g/t Au, 21.0 g/t Au and 16.6 g/t Au from silicified and sulphidic BIF lithologies.

During the quarter further reverse circulation drilling programmes were conducted at the King Brown prospect. Results were as follows:

HOLE ID	Local N	Local E	Dip	Azimuth	Interval (m)	Metres		g/t Au
KBC014	2,179	4,520	$-60$	270	$23 - 27$	4	m@	2.50
KBC015	2,350	4,540	-60	270	$57 - 61$	4	m@	2.00
KBC017	2,225	4,517	-60	270	$21 - 37$	16	m@	15.00
KBC018	2,225	4,529	$-60$	270	$38 - 54$	16	m@	3.44
KBC020	2,125	4,497	$-60$	270	$11 - 25$	14	m@	2.51
KBC021	2,125	4,503	-60	270	$11 - 38$	27	m@	4.76
$\mathbf{B} = \mathbf{B}$				Including	$22 - 32$	10	m@	10.50
KBC022	2,125	4,509	-60	270	$0 - 5$	5	m@	2.24
$\mathbf{H} = \mathbf{H}$					$12 - 16$	4	m@	1.21
$\blacksquare$ 13					$28 - 38$	10	m@	2.44
19 $\blacksquare$				Including	$34 - 37$	3	m@	6.84
KBC024	2,100	4,505	-60	270	$11 - 17$	6	m@	2.98
19 $\blacksquare$					$24 - 32$	8	m@	2.41
KBC028	2,300	4,520	-60	270	$25 - 30$	5	m@	7.21
					$47 - 53$	6	m@	2.92
KBC029	2,300	4,540	-60	270	$76 - 83$	7	m@	3.76
KBC034	2,179	4,494	-60	270	$14 - 19$	5	m@	3.49
					Nb; All samples analysed by Fire Assay with an AAS finish, eoh: end of hole.

The King Brown prospect occurs within a major north-south regional trend of mineralisation, the Jackson trend, which can be traced for over 35 kilometres. A number of old gold workings exist along this trend with mineralisation usually associated with quartz veining in shear zones. At King Brown higher grade gold mineralisation is thought to occur at the intersection of the main shear with a secondary shear zone. The recent drilling was aimed at testing the extensions and to infill previous drilling, which included results of 22m $\omega$ 8.29 g/t and 17m $\omega$ 6.70 g/t gold.

The recent drilling and regional mapping confirms the Company's view that the Evanston project has the potential to host significant economic gold resources.

SACU PROJECT

During the quarter the Company instigated a large 'IP' (Induced Potential) geophysical survey at the Gladna prospect within the Sacu copper-gold project in Romania.

The survey covers a large, 3km by 1.5km, strongly magnetic anomaly thought to represent a porphyry intrusive body capable of hosting significant copper-gold mineralisation. The anomaly sits below approximately 50 to 80 metres of cover and has yet to be drill tested. The survey will cover the entire extent of the magnetic anomaly and will potentially highlight chargeable zones which may represent sulphide hosted Cu-Au mineralisation.

The Sacu project is situated approximately 30 km to the Southwest of the famous 'Golden Quadrilateral' region of Romania. The project was originally generated by BHP in the 1990's as part of their world wide search for large porphyry hosted copper-gold deposits.

CORPORATE

The Directors of International Goldfields Limited are pleased to announce that the Company has issued and allotted to European institutional investors 7,797,405 new ordinary fully paid shares at 37 cents per share as part of the placement announced 3 October 2003.

The Directors are pleased to welcome prominent international investors Gold 2000 Ltd, Credit Agricole, and Global Gestion to the Company's register.

The placement has so far raised the company AUD\$2,885,040 of the total placement of AUD\$3,500,000. The Balance of the placement is expected to be completed shortly.

The funds raised through the placement will be utilised for the continued exploration and development of the Company's Mt Ida Project as well as increased exploration on the Evanston and Sacu projects.

SUMMARY

The Company continues it's solid growth strategy through:

• Continued exploration success; $\bullet$
• Consolidation of ownership of mineral provinces; $\bullet$
• Cashflow through development and operation of high margin gold projects; and $\bullet$
• Alliances with key long term quality investors, both European and Australian. $\bullet$

The Company is uniquely positioned for future growth as it is well funded, controls three large projects situared in well mineralised belts, has a proven technical team and is due to commence mining in the near term.

A comprehensive website, www.internationalgoldfields.com.au is maintained providing all current information relating to the Company. Furthermore, should you wish to be placed on the electronic mailing list for all announcements please contact $n$ athan@internationalgoldfields.com.

Tony Sage

Executive Chairman

Information in this report pertaining to mineral resources and exploration results was compiled by Mr. C.B Jones who is a Member of the Aus.l.M.M with not less than 5 years experience in the relevant fields, and who consents to the report appearing in the form and context in which it appears.

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

INTERNATIONAL GOLDFIELDS LIMITED (formerly Hamill Resources Limited)

ABN

71 095 047 920

Quarter ended ("current quarter") 30 September 2003

Year to date

Current quarter

Consolidated statement of cash flows

Cash flows related to operating activities

Cash flows related to operating activities			\$A'000	$\binom{3}{1}$ months) \$A'000
1.1	Receipts from product sales and related debtors
1.2	Payments for (a) evaluation	exploration and (b) development (c) production	(642)	(642)
		(d) administration	(246)	(246)
1.3 1.4	Dividends received Interest and other items of a similar nature received		19	19
1.5	Interest and other costs of finance paid
1.6	Income taxes paid
1.7	Other - Option Fees
	Net Operating Cash Flows		(869)	(869)
	Cash flows related to investing activities
1.8	Payment for purchases of: (a)prospects		(25)	(25)
		(b)equity
		investments fixed $(c)$ other	(18) (6)	(18) (6)
		assets
1.9	Proceeds from sale of:	(a)prospects
		(b)equity investments
		fixed (c)other
		assets
1.10	Loans to other entities
1.11	Loans repaid by other entities
1.12	Other (provide details if material)
	Net investing cash flows		(49)	(49)
1.13	Total operating and investing cash flows
	(carried forward)		(918)	(918)

$\div$ See chapter 19 for defined terms.

1.13	Total operating and investing cash flows (brought forward)	(918)	(918)
1.14 1.15 1.16 1.17 1.18 1.19	Cash flows related to financing activities Proceeds from issues of shares, options, etc. Proceeds from sale of forfeited shares Proceeds from borrowings Repayment of borrowings Dividends paid - repayment of issue proceeds Other costs of share issues	1,521 (76)	1,521 (76)
	cash acquired from merger	1,204	1.204
	Net financing cash flows	2,649	2,649
	Net increase (decrease) in cash held	1,731	1,731
1.20 1.21	Cash at beginning of quarter/year to date Exchange rate adjustments to item 1.20	288	288
1.22	Cash at end of quarter	2,019	2,019

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	119
1.24	Aggregate amount of loans to the parties included in item 1.10

Explanation necessary for an understanding of the transactions 1.25

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

During the quarter, the Company issued 58,392,222 ordinary fully paid shares as consideration for the acquisition of all the issued capital of International Goldfields Limited pursuant to a Scheme of Arrangement.

$2.2$ 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.

$3.1$ Loan facilities

Amount available	Amount used
SA'000	\$A'000

⁺ See chapter 19 for defined terms.

3.2	Credit standby arrangements
	Estimated cash outflows for next quarter

	Total	350
4.2	Development	$\blacksquare$
4.1	Exploration and evaluation	350
		\$A'000

Reconciliation of cash

$\overline{a}$

$\overline{a}$

	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'000	Previous quarter \$A'000
5.1	Cash on hand and at bank		44
5.2	Deposits at call	2,012	244
5.3	Bank overdraft
5.4	Other (provide details)
	Total: cash at end of quarter (item 1.22)	2.019	288

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

⁺ 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	Amount paid up per
				security (see note $3)$ (cents)	security (see note 3) (cents)
7.1	Preference
	i securities
7.2	(description) Changes during
	quarter
	(a) Increases
	through issues
	(b) Decreases through returns of
	capital, buy-
	backs,
	redemptions
7.3	+ Ordinary securities	103,597,224	91,391,508
7.4	Changes during
	quarter (a) Increases
	through issues
	(b) Decreases
	through returns of
7.5	capital, buy-backs + Convertible
	debt securities
	(description)
7.6	Changes during quarter
	(a) Increases
	through issues
	(b) Decreases
	through securities matured,
	converted
7.7	Options			Exercise price	Expiry date
	(description and conversion factor)	17,450,005 6,500,000	17,450,005	20 cents 35 cents	31 December 2003 30 June 2005
		3,100,000		40 cents	31 August 2005
		8,571,429		25 cents	30 June2004
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 only)

$\div$ See chapter 19 for defined terms.

Compliance statement

• $\mathbf{1}$ 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).
• $\overline{2}$ This statement does give a true and fair view of the matters disclosed.

Sign here:	,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,	Date: .31 October 2003
	(Director/Company secretary)

Print name: ............ Kent Hunter....................................

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.
• The "Nature of interest" (items 6.1 and 6.2) includes options in respect of interests in $\overline{\mathcal{L}}$ 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.
• Accounting Standards ASX will accept, for example, the use of International 5 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.

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⁺ See chapter 19 for defined terms.