ORA BANDA MINING LTD — Interim / Quarterly Report 2004

Oct 26, 2004

QUARTERLY ACTIVITIES REPORT FOR THE OUARTER ENDED 30 SEPTEMBER 2004

Summary of the quarter

The following is a summary of the exploration and corporate activities of Monarch Resources Limited for the quarter ended 30 September 2004.

• Planned follow-up RC drilling at the Mt Day project, where there is some encouragement of nickel mineralisation, continued to be frustrated by poor weather conditions. Three drill sites were constructed in preparation for the planned programme.
• Substantial additional historical infill soil geochemical data for the Mt Gordon area was located in the archives during the quarter. Reinterpretation of the more detailed data resulted in the generation of 5 additional RAB drill targets, four of which will be drilled once CALM and DoIA approval is received.
• Follow-up RAB (aircore) drilling at Londonderry East did not extend the gold anomaly located by the previous programme. No work is planned for the next quarter.
• A four hole RC drilling programme was completed at Yerilla. The mineralisation intersected was insufficient to justify the exercise of the option on the tenements.
• Monarch continues to investigate other resources based opportunities. One possibility was extensively assessed during the quarter, however, acceptable terms could not be agreed with the vendor.
• It remains exceedingly difficult in Western Australia to source drill rigs for small drilling programmes.
• Monarch raised \$409,800 through a share purchase plan offer to shareholders and a shortfall placement. A total of 2,561,250 shares were issued at an issue price of 16 cents each.

In September, shareholders approved the issue of options to those shareholders and investors who subscribed for shares under the share purchase plan and shortfall placement, on the basis of one option for every two shares subscribed for.

EXPLORATION ACTIVITIES

Monarch holds interests in a portfolio of mining tenements located within Western Australia. The Lake Johnston project is located approximately 540 kms east of Perth and is situated in the geologically prospective Lake Johnston Greenstone Belt. The Project consists of five geologically distinct prospect areas - Mt Day, Mt Gordon, Plover Rock, Round Top Hill and Lake Hope.

Monarch also holds interests in project areas projects located in the Eastern Goldfields, near historical gold and nickel mining centres.

Monarch's primary exploration targets are gold and nickel.

Following a review of the Lake Johnston project in the previous quarter, Monarch rationalised its tenement holdings by surrendering tenements considered to have little prospectivity for Monarch's primary exploration targets.

Lake Johnston project

Mt Day prospect

The Mt Day prospect area is located at the northern end of the Lake Johnston Greenstone Belt, approximately 6 kms north of the Emily Ann Nickel Mine. The tenements cover mafic and ultramafic rocks that are locally covered by transported overburden and soil.

Previous exploration at Mt Day including TEM surveys and RC and diamond drilling, has defined two anomalies at T-1 and T-1 North. At T-1 North, narrow nickel sulphide bearing ultramafic rocks have been identified in a dominantly mafic sequence. Anomalous nickel and gold values were intersected in previous diamond drill holes MDRD 001 and MDRD 002 at the T-1 anomaly.

Three deep RC holes are planned to test for extensions of this mineralisation. During the quarter, drill sites were constructed but drilling was delayed by consistent poor weather conditions that prevented drill rig access to the sites.

Drilling is planned to resume next quarter.

Mt Gordon prospect

The Mt Gordon prospect area is located around 50 kms southeast of Mt. Day. The tenements cover a broad belt of mafic and ultramafic rocks that are intruded by small irregular granite stocks and the ultramafic Metcalf Sill. Alluvial sediments and aeolian sand extensively cover the sequence.

A major review of all previous exploration data was undertaken during the quarter. During the review, a large block of infill soil sampling data was located that covered most of the anomalies previously defined at Mt. Gordon. This new data has enabled a reinterpretation of the anomalous areas and clearer definition of a number of additional targets, four of which have been selected for RAB drilling.

A botanical survey was subsequently completed over all proposed targets to facilitate permitting by the Department of Conservation and Land Management and the Department of Industry and Resources. The four anomalies will be RAB drilled once all permits have been obtained and access has been established

Londonderry project

The Londonderry project area is located 10 kms south of Coolgardie. The tenements cover 5 kms of prospective ground along the eastern margin of the Coolgardie-Nepean Greenstone Belt.

An aircore drilling programme comprising 20 vertical holes for 1,336 metres was completed during the quarter. The programme targeted anomalous gold in bottom-of-hole samples in drill holes LEB043, LEB044 and LEB045 that were drilled during April 2004.

Hole	From	To	Interval	Au
number	(m)	(m)	(m)	(g/t)	Comment
LEB116	26	30	4.0	0.151	insitu clay
LEB117	36	38	2.0	0.123	insitu clay
LEB122	36	38	2.0	3.297	insitu clay
LEB122	38	46	8.0	0.134	insitu clay
LEB123	32	38	6.0	0.370	insitu clay
LEB124	38	40	2.0	0.119	transported clay
LEB125	38	40	2.0	1.274	transported clay
LEB125	68	70	2.0	0.649	dark blue basalt
LEB126	48	52	4.0	0.681	insitu clay

Anomalous gold intersections $(+0.1g/t \text{ Au})$ from the follow-up drilling are tabulated below.

Most anomalous results were from alluvial overburden or insitu clay zones close to the base of alluvial cover. LEB 125 intersected 2.0 metres $(a)$ 0.649 g/t Au from 68 metres in an unaltered basalt. Repeat sampling of anomalous gold intersections from the previous drilling programme gave good repeatability for gold associated with both the alluvial overburden with fresh rock.

No work is planned for the December quarter.

Yerilla project

Monarch holds an option to acquire 11 prospecting licences totalling 18.5 square kms, located east of the old Yerilla mining centre, some 150 kms north-northeast of Kalgoorlie. The option period expires on 31 October 2004.

A four hole RC drilling programme totalling 498 metres was completed during the quarter. Three holes (MYRC 001-MYRC 003) for 378 metres were drilled along the southern boundary of Anomaly B and one hole (MYRC 004) was drilled to confirm a previous high-grade intersection obtained from KSC 1034 (10 metres @ 9.29 $g/t$ Au) at Anomaly C

Assay results $(+0.1 \text{ g/t}$ Au) from the drilling are tabulated below.

Hole number	From (m)	Ŧо (m)	Interval (m)	Au (g/t)	Comment
MYRC001	14	20	6	0.73	saprolitic clay with 5% qtz
	18	20	$\overline{2}$	1.62	schistose saprock
	36	46	10	0.33	clay and saprolite minor qtz
	70	72	2	0.11	clay and schistose saprock
MYRC002	28	30	$\overline{2}$	0.61	clayey metased $+10\%$ qtz
	56	62	6	0.16	cherty metased +Minor qtz
MYRC003	48	50	$\overline{2}$	0.092	clay +minor cubic limonite
	100	102	$\overline{2}$	0.11	green clay mafic schist
	106	108	$\overline{2}$	0.11	green clay $\&$ fg schist
MYRC 004	38	40	2	0.189	qtz vein in clayey ?granite
	82	90	8	0.59	qtz stockwork in clay
including	82	84	2	1.34	$clay + 80\%$ milky qtz

The drilling has downgraded Anomaly C and failed to enhance previous results from Anomaly B.

As a result, Monarch's option to purchase the Yerilla tenements will not be exercised.

Republican nickel project

Monarch and Bullion Minerals Limited jointly hold an option over the Republican project, that is located 45 kms southeast of Kalgoorlie. Bullion is operator of the project and is responsible for gold exploration.

Under a farm-in agreement, Equinox Resources Limited has the right to explore for nickel on the Republican tenement area. Equinox has completed a Mobile Metal Ion (MMI-M) soil sampling programme over the interpreted position of the Democrat Thrust. Samples were taken on a 100 metre x 100 metre grid across the thrust over a length of approximately 6 kms. Results are awaited.

CORPORATE ACTIVITIES

Monarch undertook technical evaluation and due diligence of a group of tenements considered prospective for gold, however, acceptable terms with the vendor could not be reached. Monarch will continue to evaluate other prospective mining projects, with primarily gold potential.

During the quarter, Monarch raised \$409,800 through a share purchase plan offer to shareholders and a shortfall placement. Under the terms of the offer, shareholders had the opportunity to subscribe for up to \$5,000 worth of shares in Monarch, at an issue price of 16 cents per share and a free attaching option for every two shares subscribed for. A total of 2,561,250 shares were issued as a result of the share purchase plan and the shortfall placement.

On 10 September 2004 shareholders approved the issue of options to those shareholders and investors who subscribed for shares under the share purchase plan and shortfall placement. A total of 1,280,625 options will be issued upon lodgement of a prospectus for the options.

Additional funding initiatives to provide ongoing working capital are under consideration.

The issued share capital of Monarch at the end of the quarter comprised 45,432,252 shares and 20,965,250 options.

Michael Kiernan Director

So far as it relates to ore and mineralisation, this report is based on information compiled by Mr John Mill, who is a Member of the Australian Institute of Geoscientists and who has had more than five years relevant experience in the field of activity being
reported on. This report accurately reflects the information compiled by Mr Mill. Mr Mill ha information in the form and context in which it appears in this report.

Contact details for Monarch Resources Limited
Postal address:	PO Box 870
	West Perth Western Australia 6872
Telephone:	$(+618)$ 9481 6422
Facsimile:	$(+618)$ 9481 6433
E-mail:	admin@mrl.net.au
Web-site:	www.mrl.net.au

Appendix 5B

Mining exploration entity quarterly report

Name of entity

Monarch Resources Limited

ACN or ARBN

100 038 266

Quarter ended ("current quarter")

30 September 2004

Г

Consolidated statement of cash flows

				Year to date
			Current quarter \$A'000	(3 months)
	Cash flows related to operating activities			\$A'000
1.1	Receipts from product sales and related debtors
1.2	Payments for:	(a) exploration and evaluation	(180)	(180)
		(b) development
		(c) production
		(d) administration	(46)	(46)
1.3	Dividends received
1.4	Interest and other items of a similar nature received		2	$\overline{2}$
1.5	Interest and other costs of finance paid
1.6	Income taxes paid
1.7	Other: net cash flow from goods and services tax		1	1
	Net operating cash flows		(223)	(223)
	Cash flows related to investing activities
1.8	Payment for purchases of:	(a) prospects	(1)	(1)
		(b) equity investments
		(c) other fixed assets
1.9	Proceeds from sale of:	(a) prospects
		(b) equity investments
		(c) other fixed assets
1.10	Loans to other entities
1.11 1.12	Loans repaid by other entities Other
	Net investing cash flows		(1)	(1)
1.13	Total operating and investing cash flows (carried forward)		(224)	(224)

1.13	Total operating and investing cash flows (brought forward)	(224)	(224)
	Cash flows related to financing activities
1.14	Proceeds from issues of shares, options, etc.	410	410
1.15	Proceeds from sale of forfeited shares	$\tilde{\phantom{a}}$
1.16	Proceeds from borrowings	a.
1.17	Repayment of borrowings
1.18	Dividends paid	$\overline{\phantom{a}}$
1.19	Other
	Net financing cash flows	410	410
Net increase/(decrease) in cash held		186	186
1.20	Cash at beginning of quarter/year to date	150	150
1.21	Exchange rate adjustments to item 1.20
1.22	Cash at end of quarter (Note 1)	336	336

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	14
1.24	Aggregate amount of loans to the parties included in item 1.10

1.25 Explanation necessary for an understanding of the transactions

Payments to directors and director-related entities for directors fees and the provision of technical advisory and management services to the consolidated entity.

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

Not applicable.

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

Not applicable.

Financing facilities available

Add notes as necessary for an understanding of the position.

		Amount available	Amount used
		\$A'000	\$A'000
3.1	Loan facilities
3.2	Credit standby arrangements	$\overline{\phantom{a}}$	- 14

Estimated cash outflows for next quarter

		\$A'000
4.1	Exploration and evaluation	100
4.2	Development
	Total	100

Reconciliation of cash

	Current quarter 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. \$A'000
5.1	Cash on hand and at bank	8	33
5.2	Deposits at call		117
5.3	Bank overdraft	$\blacksquare$
5.4	Other	$\blacksquare$
	Total: cash at end of quarter (item 1.22)	336	150

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 relinguished, reduced or lapsed	E63/568 (Round Top Hill) MLA63/554 (Round Top Hill) P63/1188 (Round Top Hill) E63/740 (Lake Hope)	Direct Direct Direct Direct	100% 100% 100% 100%	Nil Nil Nil Ni
6.2	Interests in mining tenements acquired or increased

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.

				Issue price	Amount paid up
				per security	per security
		Total number	Number quoted	(see note 3) (cents)	(see note 3)
					(cents)
7.1	Preference +securities (description) Redeemable convertible preference shares
7.2	Changes during quarter (a) Increases through issues (b) Decreases through returns of capital, buy-backs, redemptions
7.3	+Ordinary securities Fully paid shares	45,432,252	25,432,252
7.4	Changes during quarter (a) Increases through issues (b) Decreases through returns of capital, buy-backs	2,561,250	2,561,250	16 cents	16 cents
7.5	+Convertible debt securities (description)
7.6	Changes during quarter (a) Increases through issues (b) Decreases through securities matured, converted
7.7	Options (description and conversion factor)			Exercise price	Expiry date
	Options over fully paid shares	20,965,250	20,965,250	20 cents	31.07.06
7.8	Issued during quarter
	Options over fully paid shares
7.9	Exercised during quarter
7.10	Expired during quarter
	Options over fully paid shares
7.11	Debentures (totals only)
7.12	Unsecured notes (totals only)

Compliance statement

• $\mathbf{1}$ . This statement has been prepared under accounting policies which comply with accounting standards as defined in the Corporations Law or other standards acceptable to ASX (see note 4).
• $\overline{2}$ . This statement does Hoes not^* (delete one) give a true and fair view of the matters disclosed.

Frank Campagna Sign here: (Director/Company Secretary)

Date: 27 October 2004

Print name: FRANK CAMPAGNA

Notes

• The quarterly report provides a basis for informing the market how the entity's activities have been $\mathbf{1}$ . 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 mining tenements $2.$ 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.
• The definitions in, and provisions of, AASB 1022: Accounting for Extractive Industries and AASB 1026: $4¹$ Statement of Cash Flows apply to this report.
• Accounting Standards. ASX will accept, for example, the use of International Accounting Standards 5. 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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