RAMELIUS RESOURCES LIMITED — Interim / Quarterly Report 2004

Oct 30, 2003

Ramelius Resources Limited

ACN 001 717 540

140 Greenhill Road, Unlev SA 5061 GPO Box 1373, Adelaide SA 5001 DX 52003, Unley Telephone (08) 8373 5588 Facsimile (08) 8373 5933 Email: info@rameliusresources.com.au

31 October 2003

General Manager The Company Announcements Office Australian Stock Exchange Limited PO Box H224 Australia Square Sydney NSW 1215

Dear Sir/Madam.

RAMELIUS RESOURCES LIMITED OUARTERLY REPORT ENDING 30 SEPTEMBER 2003

OUARTERLY HIGHLIGHTS

• Black Cat Project – Gold: $(90%)$

The Company completed a third RC drilling programme during the quarter on its Black Cat Project which is located north of Coolgardie, W.A. Following this additional drilling, a resource totalling 250,000 tonnes at 2.7 g/t gold (approximately $21,700$ oz of gold) has been estimated of which 200,000 tonnes at 2.7 g/t gold have been assigned an indicated resource category and 50,000 tonnes at 2.6 g/t gold an inferred resource category.

The Option to acquire the Black Cat Development Area has been exercised and the area applicable increased four fold to encompass all of the underlying tenements.

• Hilditch Project - Gold and Nickel: $(90%)$

A nickel, copper soil anomaly identified from the Pedogenic Carbonate Sampling completed last quarter, has been recognised. It is located on the contact of an ultramafic unit along strike from the 1A Nickel Deposit that is located on a nearby, excised, tenement.

Ingebong/Rhodes - Copper/Lead/Zinc: $\bullet$ $(80%)$

The Company completed a geochemical soil sampling programme at Ingebong that returned elevated copper and zinc values over a strike length of 10 kilometres within which, six individual anomalous zones were delineated.

• Morning Star - Gold: $(80%)$

The Company undertook an RC drilling programme at the Morning Star Project at Cuddingwarra to follow up high grade gold intercepts obtained from earlier RC drilling. Gold values to 3m at 5.7 $g/t$ gold and 4m at 4.3g/t gold were returned.

OPERATIONS REVIEW

BLACK CAT PROJECT: (90% M16/34; M16/115.) Gold

The Company completed a third phase of reverse circulation drilling at its Black Cat Project comprising a total of 25 holes (RAM51 to RAM 75) for 1949 metres. This drilling was to infill the drilling density to a line spacing of 20m within the area containing the previously reported resource and to extend the drilling 100m to grid east on 40m spaced drill lines. Significant mineralisation has been identified in the extensional drilling east of the previously reported resource estimate and in the infill drilling, with some of the better intercepts including $3m$ at 19.2 g/t Au. from 34m in hole RAM 63 and 3m at 8.4 g/t Au. from 44m in hole RAM 72. The results are presented below in more detail.

Black Cat South RC Drilling Results:

The gold assay results presented in the table below are based generally on 4 gram metre gold cut off (e.g. 4m $\omega$ +1g/t Au, or 1m $\omega$ +4 g/t Au).

The drilling program was undertaken using the Reverse Circulation drilling method utilising a face sampling hammer. The samples were collected via a cyclone and were riffle split to extract a sample of approximately 2 kilograms for submission to Genalysis Laboratory Services Pty Ltd. The entire sample was dried, pulverised and a 200 gram sub sample taken for leachwell digestion. The gold content was determined using solvent extraction and flame AAS.

Hole No	Northing	Easting	Az	Dip	Depth	Length	Grade
					from m	m	$g/t$ Au
RAM 51	2110	4980	360	$-60$	52	$\overline{4}$	3.92
					75	$\overline{2}$	2.73
RAM 52	2080	4980	360	$-60$	50	$\overline{2}$	2.10
RAM 53	2110	5020	360	$-60$	38	$\overline{c}$	3.52
					63	4	2.00
RAM 57	2140	5100	360	$-60$	42	8	1.25
RAM 58	2110	5100	360	$-60$	13	1	4.20
RAM 59	2080	5100	360	$-60$	33	$\overline{3}$	2.08
RAM 62	2090	5120	360	$-60$	95	1	25.45
RAM 63	2170	5160	360	$-60$	34	3	19.17
				Including	34	1	42.53
RAM 64	2130	5160	360	-60	50	3	1.78
					60	$\overline{2}$	2.92
RAM 65	2090	5160	360	$-60$	84	3	1.65
RAM 70	2141	4980	360	$-60$	46	$\overline{2}$	3.45
RAM 71	2170	5020	360	$-60$	23	$\overline{2}$	4.60
RAM 72	2140	5020	360	$-60$	34	4	2.34
					44	3	8.42
RAM 73	2165	5062.5	360	$-60$	20	1	3.76
					26	ĺ	4.78
					29	ĺ	2.89
					35	$\overline{2}$	2.00
RAM 74	2140	5060	360	$-60$	40	7	2.55
RAM 75	2110	5060	360	$-60$	61	$\overline{3}$	2.13

The primary gold mineralisation is related to shear zones within and adjacent to the footwall of a moderately dipping granodiorite unit. The mineralisation is open down dip and has not been closed off to the east.

Black Cat South Resource Estimate

A resource estimate of the Black Cat South gold deposit was undertaken using the results of drilling programmes undertaken by Ramelius, the most recent being conducted in August 2003, and released to the ASX on 26 September 2003. The resource has been assigned, for the most part, an indicated category mainly because density measurements from the deposit have not yet been made and a density of 2gm/cc on which the tonnes are estimated, has been assumed. An inferred category has been assigned to mineralised intersections above the cut off that do not appear to correlate with other intersections and the extent of that mineralisation can not be determined from the current drilling data.

A total resource of $250,000$ tonnes at 2.7 g/t gold (approximately 21,700 oz of gold) has been estimated of which 200,000 tonnes at 2.7 $g/t$ gold have been assigned an indicated resource category and 50,000 tonnes at 2.6 $g/t$ gold an inferred resource category. Within this total resource approximately 140,000 tonnes at 3 $g/t$ gold is estimated to occur within a depth of 50m of the surface. Of this resource approximately $115,000$ tonnes at $3.2g/t$ gold has been assigned indicated resource status and the balance, $25,000$ tonnes at 2.0 g/t gold, assigned an inferred resource status.

Increase in Tenement Holdings

Kinver Mining NL has agreed to increase the ground to be acquired by the Company pursuant to the Exploration and Option Agreement from the previously determined "Development Area" to the whole of the tenements $M16/34$ and $M16/115$ . The consideration to be paid under the Exploration and Option Agreement Amending Deed for this extra ground is 300,000 options in Ramelius.

Exercise of Option

The Company has exercised its option to acquire Kinver Mining NL's 90% interest in the whole of the mining tenements M16/34 and M16/115 (including the extra ground referred to above) adjacent to the Jaurdi Mining Centre, north of Coolgardie, W.A.

The total consideration to be paid is $300,000 with a royalty of $1/dry tonne of ore mined and 300,000 options in Ramelius.

BONNIEVALE PROJECT: (100% M15/70; 85% M15/220.) Gold

No field work was undertaken during the quarter.

Geological interpretation of the previous drilling results has indicated that a supergene gold zone overlies the primary mineralisation. A modest RAB drilling programme has been proposed to test the extent and potential of this supergene mineralisation.

SPARGOVILLE AREA: Gold: Nickel and Base Metals.

Hilditch Project: (90% P15/4127 - 4130.) Gold, Nickel and Base Metals

A program of mapping and sampling has been formulated, to take place prior to a proposed RAB drilling program over the defined gold anomalies.

The nickel and copper results of the pedogenic soil sampling undertaken in the previous quarter have been assessed and a discrete nickel, copper anomaly identified on the margin of an ultramafic unit along strike from the nearby, excised, 1A Nickel Deposit. Field inspection of this location has shown the area to have been costeaned, presumably in the 1960 / 1970 era.

Options are still being assessed in respect of the Nickel anomaly. While several parties have expressed an interest in acquiring the Nickel Rights over Hilditch, the Company is considering Nickel Exploration on these tenements in its own right. All historical exploration data is, in the meantime, being retrieved from the GSWA.

Wattle Dam Project: (100% PL's 15/3767; 3873; 4479; 3632; 3637; 3638; EL 15/718) (ML's 15/1263; 1264; 1323; 1338; 1101.) Gold

The Company is receiving mediation assistance from the Native Title Tribunal in negotiations with two Native Title Claimant Groups in respect of Mining Lease Applications M15/1101: 1263, 1264 and E15/718.

INGEBONG/RHODES: (80% E69/1549; E69/1653.) Copper/Lead/Zinc

The Ingebong Hills Licence is the Company's key project in the Earaheedy Basin, located approximately 180 kilometres north east of Wiluna in Western Australia. The Company also holds the adiacent Blue Hills and Rhodes Projects which are associated with GSWA regional base metal geochemical anomalies.

At Ingebong a soil sampling programme of approximately 60 line kilometres with sample intervals at 50 metres on line spacings of 400 metres was completed. Elevated copper values, being approximately twice those of the background, were returned over a strike length of 10 kilometres within which, six individual anomalous zones, with peak copper values three times background were delineated. The zinc values show a similar distribution. Lead values are elevated broadly in line with the elevated copper and zinc values while an anomalous lead value of 20ppm lead is also co-incident with the peak copper and zinc values.

At Rhodes, a Lag Sampling Programme of 56 samples collected at intervals of $500 \times 1000$ metres over an area of approximately 35 square kilometres was completed. Elevated copper and zinc values were returned from the southern portion of the area in an area of bedrock outcrop. Lead and iron appear to be spacially related and are "low" in the area of elevated copper and zinc.

MORNING STAR PROJECT: (80% M20/79) Gold

The Company undertook a drilling programme on the Morning Star Project at Cuddingwarra near Cue in Western Australia.

The 11 hole reverse circulation drilling programme, totalling 690m, was conducted adjacent to previous drilling from which previous parties had reported high grade gold values (13m $\omega$ 13.7 g/t) and 8m $\omega$ 34g/t.).

While the tenor of the gold analytical results returned from this follow up drilling was lower than the earlier work, it nevertheless returned ore grade intercepts confirming the mineralised "footwall shear" at this prospect.

Tabulated below is a summary of the analytical results based on a 2 gram metre gold cut off.

Hole No	Northing	Easting	Az	Dip	Depth	Length	Grade $g/t$
					from m	m	Au
MSRC
19	6978102	579506	270	60	22	1	3.3
					26	2	4.0
MSRC
21	6978102	579556	270	60	23	1	2.0
					48	$\overline{2}$	1.6
MSRC
23	6978112	579526	270	60	48	2	3.9
MSRC
24	6978112	579536	270	60	62	4	4.3
				including	62	2	6.4
MSRC
26	6978222	579510	270	60	31	1	2.0
MSRC
28	6978092	579526	270	60	41	1	2.0
					50	3	5.7
MSRC
29	6978092	579536	270	60	60	2	1.7

The drilling programme was undertaken using the Reverse Circulation drilling method utilising a through the face drill bit and hammer. The samples were collected on a one metre sample interval. via a cyclone and were riffle split to extract a sub-sample of approximately 2 kilograms for submission to the laboratory. The entire sub-sample was dried and pulverised in the laboratory and a 50 gram charge taken for Fire Assay digestion and flame AAS analysis. The sample preparation and analysis was undertaken by Genalysis Laboratory Services Pty Ltd.

TUCKABIANNA: (100% ML 20/245) Gold.

Ramelius has granted Westcoast Mining Limited an Option to Purchase a 100% interest in Mining Lease 20/245 near Tuckabianna in the Murchison Mineral Field of Western Australia. Westcoast, who have issued a Prospectus in anticipation of listing on the ASX, have paid a $10,000 Option Fee and have until $1st$ December 2003 in which to exercise the Option. The exercise Price is $100,000 comprised of $40,000 cash and $60,000 worth of Westcoast shares or $100,000 cash.

GNARLBINE PROJECT: (100%PL's 15/4507 and 4508: Earning 75% EL 15/762.)

The Company has applied to expedite the granting of the abovementioned licences.

Joe Houldsworth

Managing Director

The information in this report that relates to Mineral resources or Ore Reserves is based on information compiled by G.J.Dunbar of Dunbar Resource Management, who is a Fellow of the Australasian Institute of Mining and Metallurgy and who has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent person as defined in the 1999 Edition of the "Australasian Code for Reporting of Mineral Resources and Ore Reserves". G.J.Dunbar consents to the inclusion in the report of the matters based on their information in the form and context in which it appears.

Appendix 5B

$Rule 5.3$

Year to date

$(3$ months)

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

Ramelius Resources Limited

ABN

51 001 717 540

Quarter ended ("current quarter")

30 September 2003

$S$ A'000

Current quarter

Consolidated statement of cash flows

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	(208)	(208)
	(b) development
	(c) production
	(d) administration	(78)	(78)
1.3	Dividends received
1.4	Interest and other items of a similar nature	17	17
	received
1.5	Interest and other costs of finance paid
1.6	Income taxes paid
1.7	Other (provide details if material))
	GST	52	52.
	Option fee received	10	10 °
	Prepaid insurance	(8)	(8)
	Listing fee	(8)	(8)
	Other	(3)	(3)
	Net Operating Cash Flows	(226)	(226)
	Cash flows related to investing activities
1.8
	Payment for purchases of:
	(a) prospects
	(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	Loans repaid by other entities
1.12	Other (provide details if material)
	Net investing cash flows
1.13	Total operating and investing cash flows(carried forward)	(226)	(226)

+ See chapter 19 for defined terms.

1.13	Total operating and investing cash flows(brought forward)	(226)	(226)
	Cash flows related to financing activities
1.14	Proceeds from issues of shares, options, etc.
1.15	Proceeds from sale of forfeited shares
1.16	Proceeds from borrowings
1.17	Repayment of borrowings
1.18	Dividends paid
1.19	Other (provide details if material)
	- Payments relating to IPO capital raising	(64)	(64)
	Net financing cash flows	(64)	(64)
	Net increase (decrease) in cash held	(290)	(290)
1.20	Cash at beginning of quarter/year to date	1,558	1,558
1.21	Exchange rate adjustments to item 1.20
1.22	Cash at end of quarter	1,268	1,268

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	64
1.24	Aggregate amount of loans to the parties included in item 1.10

$1.25$ Explanation necessary for an understanding of the transactions

The amount at 1.23 above represents non executive directors' fees and executive director's salary (including SGC superannuation), casual labour hire paid to an entity of which a director is a director and professional fees paid to an accounting firm of which a director is a partner.

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

Nil

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

Nil

Financing facilities available

Add notes as necessary for an understanding of the position.

		Amount available 1	Amount used
		$A'000	SA'000
3.1	Loan facilities	Nil	Nil
3.2	Credit standby arrangements	Nil	Nil

+ See chapter 19 for defined terms.

Estimated cash outflows for next quarter

4.1	Exploration and evaluation	$A'00078
4.2	Development
	Total	78

Reconciliation of cash

	Reconciliation of cash at the end of the quarter (asshown in the consolidated statement of cash flows) tothe related items in the accounts is as follows.	Current quarter$A'000	Previous quarter$A'000
5.1	Cash on hand and at bank	17	24
5.2	Deposits at call	1,251	1,534
53	Bank overdraft
5.4	Other (provide details)
	Total: cash at end of quarter (item 1.22)	1,268	1,558

Changes in interests in mining tenements

		Tenementreference	Nature of interest(note (2))	Interest atbeginningof quarter	Interest atend ofquarter
-6.1	Interests in miningtenements relinquished,reduced or lapsed	ML20/245	Option to purchase thistenement granted toWestcoast Mining Limitedduring the quarter whichmay be exercised at any timeuntil $1/12/2003$ . The optionhad not been exercised as at30/9/2003.	$100%$	100%
6.2	Interests in miningtenements acquired orincreased	ML16/34ML16/115	Option exercised during thequarter to acquire a 90%beneficial interest in thesetenements.	$0%$	90%

+ See chapter 19 for defined terms.

Issued and quoted securities at end of current quarterDescription 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	security (see note 3)
				$3)$ (cents)	(cents)
$7.1,$
	Preference
	i securities
	(description)
7.2	Changes during
	quarter
	(a) Increases
	through issues
	(b) Decreases
	through returns
	of capital, buy-
	backs,
	redemptions
7.3	+ Ordinary
	securities	36,284,002	18,334,000
7.4	Changes during			Issued as	Fully paid shares
	quarter			consideration for	issued as
	(a) Increases			acquisition of	consideration for
	through issues	1,500,000	1,500,000	80% beneficial	acquisition of 80%
	(b) Decreases			interest in	beneficial interest in
	through returns			M20/79 & 100%	M20/79 & 100%
	of capital, buy-			beneficial interest	beneficial interest in
	backs			in M20/245	M20/245
7.5	+ 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)	22,890,750	9,140,750	20	31/12/2007
7.8	Issued during
	quarter	750,000	750,000	20	31/12/2007
7.9	Exercised during
	quarter
7.10	Expired during
	quarter
7.11	Debentures
	(totals only)
7.12	Unsecured
	notes (totals
	only)

+ 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).
• $\overline{\mathcal{L}}$ This statement does /does not* (delete one) give a true and fair view of the matters disclosed.

Dom Francese...................................
Print name:
              (Director/Company secretary)

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.