IRON BEAR RESOURCES LTD — Interim / Quarterly Report 2003

Jul 30, 2003

INTERNATIONAL GOLDFIELDS LIMITED International Goldfields Limited ABN 71-095-847-920 Ground Piper 18 Oxford Close Leederville Penth Western Australia 6007 Telephone +618 9388 0744 Faquimile +618 9382 1411 PO Box 144 West Penth Western Australia 6872 www.internationalgoidfields.com

REPORT FOR THE QUARTER ENDING 30^th JUNE 2003

HIGHLIGHTS

• Successful completion of merger by way of Scheme of Arrangement;
• Capital raising at a premium to market with significant European investors brokered by Cannacord Capital (Europe) Ltd;
• Outstanding drill results from the Evanston Project including; 22m @ 8.64g/t Au and 34m @ 3.07g/t Au;
• Feasibility Study progressed on the Baldock resource which stands at 60,300T @ 32.9g/t Au;
• Drilling planned at both the Mount Ida and Evanston projects. ٠

QUARTERLY REPORT FOR THE PERIOD ENDING 30^th JUNE 2003

MOUNT IDA PROJECT

During the quarter work has been focussed on advancing the feasibility study on the Baldock resource. Resource modelling and estimates were prepared by independent consulting group Golder Associates in accordance with the Australasian Code for Reporting of Identified Mineral Resources and Ore Reserves (JORC 1999).

The estimated resource has been substantially upgraded from that previously announced and totals:

60,300 Tonnes @ 32.9 g/t gold $(63,800 \text{ ozs. } Au)$

The resource is largely classed as a Measured Resource by Golders and refers only to the high

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PROJECT $\Omega$ METZKE'S FIND MTHDA 6 700 000 mN TRUCTURAL
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20 6 600 000 mN ЮC Australian Cainozoic
sediment Felsic volcanics Gneiss $\overline{C}$ $F$ H. Mafic /
Ultramafic Project
boundary Sediments Dotente /
Gabbro XK. Granitoid Maior fault MT IDA PROJECT REGIONAL STRUCTURAL SETTING

grade W2 shoot at Baldock. This compares to the previously announced resource of 48,000 Tonnes @ 23.6g/t gold (36,420 ozs. Au).

The latest Resource was estimated from within a $6.0g/t$ Au mineralised envelope and a geostatistically derived top cut of 150 $g/t$ Au. A specific gravity of 3.06 $t/m³$ was used as determined from numerous bulk density measurements. The model was developed using the Inverse Distance squared method and tonnages reported from blocks at or above $6.0g/t$ Au.

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. As recently announced 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 from 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.

The high grade shoot at Baldock is a "virgin" discovery by the Company and there are no indications of any historical mining activity in the vicinity of the high grade shoot.

The Company has employed a professional Mining Engineer to manage the feasibility study and 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.

Permitting and the approval process are well advanced and all stakeholders are being informed of the developments.

Further work within the Timoni area has resulted in the implementation of a 3,000m deep reverse circulation and a 5,000m RAB drilling programme which will commence in the forthcoming week. A host of regional targets will also be tested by a programme of RAB drilling.

Whinnen Mining Operation The second parcel of high grade gold ore has been trucked from the Whinnen gold mine to the Sons of Gwalia mill at Leonora where it has been processed. The mine is being developed by private mining company, Whinnen Gold Pty. Ltd.. The company has a tribute style arrangement with Whinnen Gold whereby Hamill will earn a gross 15% of all gold produced from the mine up to the first 19,000 ounces of gold produced and 20% thereafter.

The second ore parcel totalled 869 tonnes at an average grade of 20.58 g/t Au. This resulted in the Company's proceeds exceeding \$60,000. There has been a restructure of Whinnen Gold Pty. Ltd. and the Company considers that the cashflow should continue.

EVANSTON PROJECT

The Company has maintained its active exploration programme focussing on the Evanston project whilst the Baldock feasibility is being conducted. Reverse circulation drilling programmes were conducted at the King Brown, Python and Golden Orb prospects and all three prospects returned economic gold intersections.

The Evanston project covers over approximately 900 square kilometres of the Marda-Diemals greenstone belt situated north of Southern Cross in the central Yilgarn Craton of Western Australia. The Directors consider that the Evanston project is a unique opportunity for a junior explorer as covers the vast majority of an underexplored greenstone belt with existing resources.

The King Brown prospect occurs in the south western portion of the Evanston project close to the Marda group of gold deposits which are controlled by the company. A global resource base of 2.02Mt at 2.6 g/t gold exists at Marda.

Excellent results were returned from a short programme of Reverse Circulation (RC) drilling conducted at King Brown, including;

$22m$ (a) 8.64 g/t; 17m @ 3.56 g/t; 11m @ 4.25 $g/t$ ; and $4m \omega 10.9 g/t$ gold.

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 @ 8.29 g/t and 17m @ 6.70 g/t gold.Results were particularly encouraging with 10 of the 13 holes drilled returning economic intersections as seen in Table 1.

HOLE ID	Local N	Local E	Interval (m)	Metres $\mathcal{D}$	$g/t$ Au
KBC002	2,275	4,519	$25 - 29$	4 m(a)	10.90
KBC003	2,272	4,532	$42 - 59$	17 m $\omega$	3.56
KBC004	2,275	4,544	$77 - 81$	$4 \text{ m}/a$	2.22
$11 - 11$			$92 - 93$	$1 \text{ m}(\hat{a})$	1.13
KBC005	2,250	4,525	$16 - 67$ eoh	51 m $\omega$	1.20
$11 - 11$		including	$44 - 55$	11 m $\omega$	4.25
$+1$ $+1$		and	$49 - 51$	$2 \text{ m}/a$	17.20
KBC006	2,226	4,511	$15 - 19$	$4 \text{ m}/a$	3.53
KBC007	2,225	4,523	$27 - 49$	$22 \text{ m}$ a	8.64
		including	$38 - 41$	$3 \text{ m}\omega$	31.00
KBC008	2,175	4,510	$40 - 41$	$1 \text{ m}/a$	6.68
KBC009	2,225	4,532	$50 - 52$	$2 \text{ m}(\hat{a})$	2.33
KBC011	2,400	4,570	$112 - 113$	1 m $\widehat{a}$	28.30
KBC013	2,250	4,595	$160 - 161$	1 m $\omega$	4.28
ihole.			Nb; All samples analysed by Fire Assay with an AAS finish, eoh: end of

Table 1: RC Drilling Results - King Brown Prospect

Mineralisation occurs over a 350 metre strike length within a steeply east dipping shear and essentially begins from surface. Within the shear low grade mineralisation occurs over very large widths $(20 \text{ to } 50)$ + metres) with higher grade zones plunging gently to the north. Additionally a secondary high grade shoot plunges more steeply to the south (see attached long section). Further over the known mineralisation in order to facilitate an estimation of gold resources.

HAHAMILLAQuarterly Reports\0023 - Quarterly Report JUNE03.doc

A short programme of Reverse Circulation (RC) drilling conducted at the Python and Golden Orb prospects located within the company's Evanston gold project. Excellent results were returned, including;

30m @ 2.27 g/t 34m @ 3.07 $g/t$ and 24m @ 1.46 g/t.

A programme of 7 shallow holes was also conducted at the Golden Orb prospect and five of these holes intersected primary mineralization.

Results of the entire drilling programme at both Python and Golden Orb were particularly encouraging with as seen in Table 1.

HOLE	Local				Interval
$\mathbf{ID}$	N	Local E	Dip-	Azimuth	(m)	Metres		$g/t$ Au
PYR001	29,960	10,887.5	$-60$	180	$0 - 30$	30	m(a)	2.27
PYR002	29,940	10,862.5	-60	180	$13 - 47$	34	m(a)	3.07
PYR003	29,980	10,862.5	$-60$	180	$14 - 38$	24	m(a)	1.46
$11 - 11$	$H - H$	11 11	11 H	and	$55 - 60$	5	m(a)	1.78
$11 - 11$	11 ff	11 11	11 H	and	$68 - 72$	4	m(a)	2.40
GOC42	10.015	9,720	-60	180	$12 - 18$	6	m(a)	1.26
GOC43	10,035	9,720	$-60$	180	$36 - 37$		m(a)	1.87
GOC44	10,055	9,720	-60	180	$-68$ 61	7	m(a)	1.83
GOC46	10,020	9,740	-60	180	$39 - 44$	5	m(a)	2.59
GOC48	9,980	10,040	-60	360	$44 - 52$	8	m(a)	1.73

The Golden Orb prospect is approximately 15 kilometres south west from Python. Further drilling is required to test the extensions of the mineralisation and this will be undertaken following a thorough review of the results.

The recent drilling, along with previously announced excellent results at the King Brown prospect, confirms the Company's view that the Evanston project has the potential for a cluster of economic gold resources.

Within the Evanston project a systematic programme of target generation is underway with several other highly promising undrilled targets being generated.

The Company has commenced preliminary metallurgical testwork on both the King Brown and Python resources.

CORPORATE

The Directors of International Goldfields Limited are pleased to announce that the Company has agreed to a private share placement of up to 8,333,333 new ordinary fully paid shares at 30 cents per share to selected European investors. This placement has been brokered by Canaccord Capital (Europe) Limited.

The institutional support for this issue has been exceptional and participants included:

• * Rothschild; and
• * J P Morgan Fleming; and
• * First Equity.

Furthermore, the placement at a premium to the market reaffirms the Boards commitment to existing shareholders and the value placed on our assets by the international investment community. Every capital raising undertaken by the Company has been at a premium to market and is testament to the intrinsic value of the assets of the Company.

SUMMARY

The Company continues it's solid growth strategy through:

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

The Board believes that this placement has affirmed the view that the recent merger between Hamill Resources Ltd and International Goldfields Ltd would result in the merged entity being more attractive to the international investment community.

The Company is uniquely positioned for future growth as it is well funded, controls two major mineralised belts, has a proven technical team and is concluding a feasibility study on a high grade resource.

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 $pathan@international goldfields.com$ .

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.I.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.