RAIDEN RESOURCES LIMITED — Interim / Quarterly Report 2004

Oct 28, 2004

Notes for the Quarterly Report to 30 September 2004

MEDICAL MONITORS LIMITED (the "Company")

The Appendix 4C to 30 September 2004, should be considered in conjunction with financial details as outlined in the reply and in the budget projection given to the ASX dated 7 October 2004.

As announced, except for some timing differences for revenue cash inflow from the USA the expenses and revenue have been as anticipated. This included the need to set up new infrastructure in the overseas venture. These set-up and travel expenses will be reimbursed in the very near term, by agreement with the recently announced Primedical International venture, and have been reflected in that budget projection.

Importantly, in September, the Company extinguished a less favourable line of credit with a more favourable line of funding, with the first phase of cash inflow available as at the time of this report. The Primedical venture will also assist in providing for increased sales revenue. The agreement with Primedical includes similar terms and conditions for the minimum purchase of 3,000 blood pressure monitors and 5,000 ECG recorders, as outlined in the Gallery Investment's agreement announced previously. The Primedical agreement supersedes this earlier and more limited opportunity.

During the coming quarter, the Company also expects to receive cash credits for eligible R&D expenses in the order of \$260,000. This is in addition to the Export Market Development Grant and other Australian and State government grants initiatives that are available to the Company in our sector. This will reduce the quarterly expense funding of the Company.

Finally, the Directors to the Company have indicated that they will be willing to forego directors' remuneration, in exchange for equity, to reduce direct cash expenditure. This has been listed in the Notice of Meeting, and will be subject to shareholder approval at the forthcoming Annual General Meeting, $29^th$ November, 2004.

As previously stated, the combination of monies available through a new line of funding, the anticipated sales revenue over the coming months and a royalty stream provides for a sound financial base for the Company to continue with its current programs in Australia and overseas.

The Directors are confident of the continuing success for the Company's products and services, and confirm their continuing compliance with the ASX Listing Rules and, in particular, Listing Rule 3.1.

Dr Allan Shell Managing Director

Medical Monitors Limited Suite 407 Office Tower Westfield Eastgardens Eastgardens NSW 2036 Australia Tel 02 9344 8100 Fax 02 9344 8200

$Rule 4.7B$

Appendix 4C

Quarterly report for entities admitted on the basis of commitments

Introduced 31/3/2000. Amended 30/9/2001

Name of entity

Medical Monitors Limited

ABN

68 009 161 522

Quarter ended ("current quarter") 30 SEPTEMBER 2004

Consolidated statement of cash flows

Cash flows related to operating activities		Current quarter SA'000	Year to date $\left( \frac{1}{2} \right)$ months) SA'000
1.1	Receipts from customers	338	338
$1.2\phantom{0}$	Payments for (a) staff costs (b) advertising and marketing (c) research and development (d) leased assets (e) other working capital	(128) (147) (123) (156)	(128) (147) (123) (156)
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	(26)	(26)
1.6	Income taxes paid
1.7	Other (Govt Grants)
	Net operating cash flows	(240)	(240)

⁺ See chapter 19 for defined terms.

		Current quarter \$A'000	Year to date $\left( \frac{1}{2} \right)$ months) \$A'000
1.8	Net operating cash flows (carried forward)	(240)	(240)
	Cash flows related to investing activities
1.9	Payment for acquisition of: (a) businesses (item 5)
	(b) equity investments	(135)	(135)
	(c) intellectual property (d) physical non-
	current assets (e) other non-current
	assets
1.10	Proceeds from disposal of: (a) businesses $($ item 5 $)$
	(b)equity investments	-63	63
	(c) intellectual property
	(d) physical non-		9
	current assets (e) other non-current	9
	assets	150	150
1.11	Loans to other entities
1.12	Loans repaid by other entities
1.13	Other (provide details if material)
	Net investing cash flows	87	87
1.14	Total operating and investing cash flows	(153)	(153)
	Cash flows related to financing activities
1.15 1.16	Proceeds from issues of shares, options, etc. Proceeds from sale of forfeited shares
1.17	Proceeds from borrowings	234	234
1.18	Repayment of borrowings	(367)	(367)
1.19	Dividends paid
1.20	Other (Security Deposit)
	Net financing cash flows	(133)	(133)
	Net increase (decrease) in cash held	(286)	(286)
1.21	Cash at beginning of quarter/year to date	342	342
1.22	Exchange rate adjustments to item 1.20
1.23	Cash at end of quarter	56	56

⁺ See chapter 19 for defined terms.

$C$ urrent ouarter

٦

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

		\$A'000
1.24	Aggregate amount of payments to the parties included in item 1.2	39
1.25	Aggregate amount of loans to the parties included in item 1.11

1.26 Explanation necessary for an understanding of the transactions Consultancy fees paid to research entities controlled by directors.

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

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

Financing facilities available

Add notes as necessary for an understanding of the position. (See AASB 1026 paragraph 12.2).

		Amount available \$A'000	Amount used \$A'000
-3.1	Loan facilities
3.2	Credit standby arrangements

$\overline{ }$

⁺ See chapter 19 for defined terms.

Reconciliation of cash

Reconciliation of eash 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
4.1	Cash on hand and at bank	56	342
4.2	Deposits at call
4.3	Bank overdraft.
4.4	Other (provide details)
	Total: cash at end of quarter (item 1.22)	56	342

Acquisitions and disposals of business entities

		Acquisitions (Item $1.9(a)$ )	Disposals (Item $1.10(a)$ )
5.1	Name of entity
5.2	Place of incorporation or registration
5.3	Consideration for acquisition or disposal
5.4	Total net assets
5.5	Nature of business

Compliance statement

• $\mathbf{1}$ This statement has been prepared under accounting policies which comply with accounting standards as defined in the Corporations Act (except to the extent that information is not required because of note 2) or other standards acceptable to ASX.
• This statement does give a true and fair view of the matters disclosed. $\overline{2}$

Date: 29 October 2004

(Director)

Print name: Dr Allan Shell

Sign here:

⁺ See chapter 19 for defined terms.

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 definitions in, and provisions of, AASB 1026: Statement of Cash Flows apply to this report except for the paragraphs of the Standard set out below.
• reconciliation of cash flows arising from operating activities to 6.2 $\bullet$ operating profit or loss
• $9.2$ - itemised disclosure relating to acquisitions
• itemised disclosure relating to disposals 9.4
• $12.1(a)$ policy for classification of cash items $\bullet$
• disclosure of restrictions on use of cash $12.3$ $\bullet$
• $13.1$ - comparative information $\bullet$
• $3.$ 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.