RAMELIUS RESOURCES LIMITED — Interim / Quarterly Report 2003

Jan 29, 2004

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 5917 Email: info@rameliusresources.com.au

30 January 2004

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 31 DECEMBER 2003

OUARTERLY HIGHLIGHTS

1. CORPORATE

On 24 December 2003 the Company announced a 1 for 1 Rights Issue to raise up to approximately $4 million through the issue of up to approximately 36.3 million new fully paid ordinary shares.

2. EXPLORATION

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

A SmarTEM geophysical survey commenced on the project area during December was completed early January 2004 with preliminary results indicating conductors associated with the contact of a magnetic ultramafic, below alluvium, in the south western portion of the tenement area. Hilditch is located north, along the regional strike from the 1A Nickel Deposit that is located on a nearby, excised, tenement.

Blue Hills – Gold: $(80%)$ - An emerging gold project in the Proterozoic Earaheedy basin. $\bullet$

The Company completed a geochemical stream sediment sampling program over the Blue Hills exploration licence that returned anomalous gold values up to 17 and 30 ppb gold over a strike length of 5 kilometres and enhanced gold values to 4.5 ppb gold over a further 5 kilometres to the north west.

OPERATIONS REVIEW

EARAHEADY BASIN Gold and Copper/Lead/Zinc

Blue Hills: (80% E69/1657.) - Gold

A stream sediment and rock chip gold and base metals sampling program consisting of 113 and 24 samples respectively has been completed over the Blue Hills exploration licence. This licence is situated approximately 180 kilometres north east of Wiluna near the northern margin of Earaheedy Basin.

A five kilometre long zone of anomalous gold has been defined by the stream sediment sampling in the south eastern sector of the licence. This zone, which is outlined by 2.5 ppb gold, with peak values of 30 and 17.5 ppb gold, lies within ironstones and iron rich sediments of the Frere Formation. Gold in stream sediment enhancements with values 1.5 to 3.0 ppb gold with a peak value of 4.3 ppb gold, continue for an additional 5 kilometres to the north-west along strike of the Frere Formation. The background value for the gold in stream sediments is in the order of 0.8 to 1 ppb gold. These zones are coincident with refolding interpreted from the aeromagnetic data.

A program of soil sampling, geological mapping and rock chip sampling will be undertaken over the zone of anomalous gold at the commencement of the 2004 field season.

Geological Model

The geological model for gold mineralisation within the sedimentary Frere Formation of the Earaheady Basin is that of "Sediment Hosted Gold Deposits". This class of deposits includes the giant deposits of the Carlin Trend in Nevada, USA and Telfer in Western Australia, while more modest deposits such as Mt Olympus are known in the Proterozoic Ashburton Province of Western Australia. Most of these deposits contain evidence that the gold has been introduced during or after the deformation of the sedimentary sequences.

The Blue Hills exploration Licence, E69/1657 is located near the northern margin of the Proterozoic Earaheedy basin, which is a zone of dynamic metamorphism termed the Stanley Fold Belt that contains a number of thrusts and faults. Within the exploration licence the sedimentary sequence includes peloidal ironstones, hematite shale, chert and shale of the Frere Formation faulted against dynamically metamorphosed siltstones and sandstones of the Yelma Formation to the north. The Blue Hills area has been subject to strike parallel high angle reverse faulting. Refolding of part of the Frere Formation about east-west axis has been interpreted from aeromagnetic data.

Troy Creek (100% E 69/1921) - Gold

Application has been made for an Exploration Licence adjacent and contiguous to the Blue Hills Licence, covering the Eastern extension of the Frere Formation over the Troy Ceek area. This covers several possible target zones where the geophysical interpretation indicates similar refolding and cross cutting structures within the Frere Formation as observed in the geochemically anomalous gold zone in the Blue Hills licence.

West Rhodes (80% E 69/1924) - Gold and Base Metals

Subsequent to the end of the quarter and acting on information supplied by the local pastoralist, a joint application for a 32 block exploration licence was lodged with the Western Australian Department of Industry and Resources to cover land known to the pastoralist to contain gold. This application abuts the Company's Rhodes and Ingebong exploration licences.

Gold: Nickel and Base Metals. SPARGOVILLE AREA:

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

Nickel

In December, the Company commenced nickel exploration on these tenements in its own right by way of a SmarTEM (Moving Loop EM) geophysical survey to detect conductors that may be due to accumulations of nickel bearing sulphides.

The survey, undertaken during December 2003 and January 2004 comprised 14 lines for a total survey length of 22.5 kilometres with station readings at 100m and selected 50m infill. It identified a number of strong mid to late time anomalies that form part of a 1.2 kilometre semi-continuous conductive zone lying approximately 200m west of the main ultramafic as interpreted from the aeromagnetic data. The northern-most portion of the TEM anomaly is in tremolite ultramafic rocks and is adjacent to and along strike from the Hilditch gold workings. The bedrock geology of the remainder of the conductor is concealed by alluvial terraces and alluvium from the current drainage and is only known from a few RAB drill holes shown on geological maps that relate to work undertaken in the early 1980s. A full report and geophysical assessment of these EM results and the aeromagnetic data coupled with the geology recorded from the area is currently being prepared.

Modelling of the data was achieved with three sub-vertical and horizontally offset conductors. The depth of the modelled conductors varies from 35m, possibly the depth of oxidation, to about 170m. This is substantially greater than the expected depth of oxidation indicating that the conductor may be blind. The modelled conductances are also quite variable which could indicate compositional or thickness variations along strike. A discrete magnetic high lies in juxtaposition with the modelled location of the south western conductor.

A weak TEM feature has been identified 200m to the east of the above conductive zone along the contact of the main ultramafic as interpreted from the aeromagnetic data.

This is a most encouraging result for nickel exploration in that a genuine bedrock conductor has been identified near the contact of an ultramafic rock suite within a belt known for its nickel deposits. Alternatively, the conductive zone may be due to sulphide rich shears, which, lying along strike from a known gold deposit, is an attractive gold target.

The Company's Consulting Geophysicist has been commissioned to undertake a full interpretation of the SmarTEM results along with the aeromagnetic data prior to undertaking a follow up EM survey, presumably a fixed loop survey, ahead of drill testing the conductors.

Gold

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

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 Only

Mining Lease Applications 15/1101; 15/1263 and 15/1264;

Native Title Negotiations were successfully concluded in respect of the above mining lease applications. The State Deeds were lodged with the Western Australian Department of Industry and Resources during December and granting is imminent. These mining leases host the Wattle Dam Inferred Resource of 150,000 tonnes @ 7.2g/t Au. $(4.6g/t \text{ Au Cut})$ . A program of Resource Definition drilling will be implemented on granting.

EL15/718

The Western Australian Department of Industry and Resources granted EL15/718 following a recently negotiated agreement between the Company and the Widji People. This Wattle Dam tenement, comprising 18 Graticular Blocks in area (approximately 56 sq. kms), forms the core of the Company's regional Spargoville Gold Project.

Prospecting Licences (100% PL's 15/4651; 4652; 4653.) - Nickel and Gold

With the recent granting of EL15/718, three small but highly prospective sections of ground within the Wattle Dam tenement holding became available and have been marked out by the Company as the above prospecting licences.

These applications have been lodged under the provisions of the new Standard Heritage Agreement with the relevant Native Title Parties and are expected to be granted in the near future.

The ground the subject of the applications is prospective for both gold and nickel. It hosts identified gold in soil geochemical anomalies and in the case of P15/4653, nickel in soil anomalies along an ultramafic unit extends north from the Spargoville nickel deposits.

North Wigdiemooltha (Titan Gold Rights): (100% ML's 15/97; 99; 100; 101; 102; 653 and PL15/3666)

Ramelius has further consolidated its strong position in the Spargoville Region, with the acquisition of the "North Widgiemooltha Gold Rights" from Gold Fields Australasia Pty Ltd. This acquisition delivers to Ramelius all of the Gold Rights on a group of granted mining leases totalling in area 5,513ha. (approximately $55 \text{km}^2$ ) to the south of and adjacent to Ramelius' Wattle Dam Project. The consideration for this purchase was $250,000. The base metal rights to this ground remain with the tenement holder, Titan Resources Ltd.

The underlying geology of this area is similar to that of the Spargoville area to the north and consists of komatiite ultramafic and basaltic units overlain by volcaniclastic and sedimentary rocks with minor dolerite, felsic and pegmatite intrusives. The Spargos Reward Shear, a reidel fault between the regional Kunanalling and Zuleika shear zones extends south from the Wattle Dam area through the North Widgiemooltha project area. Within this project area, a number of gold deposits, workings and occurrences are located along or in proximity to this shear and are defined by anomalous gold in soils. Drilling (mainly RAB drilling) along this trend has returned numerous bedrock gold intersections containing potentially economic gold grades and widths.

The Company now holds the Gold Rights to contiguous tenements in this region focusing on over 30 km of prospective ground along the Spargos Reward and Kunanalling Shear Zones, north of the Widgiemooltha Dome. This region has yielded numerous gold and nickel deposits and mines.

Spargoville Regional

During the quarter Ramelius acquired Multi Client Aeromagnetic Data for the whole of the Spargoville Region which was merged with the detailed Aeromagnetic Data acquired from Goldfields as part of the purchase of the North Widgiemooltha gold rights.

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

Geological Interpretation

An interpretation of the geology of the Black Cat area using the drilling undertaken by Ramelius and previous workers and assembled onto a common data base has been completed. The primary gold mineralisation appears to be related to shear zones mainly within and adjacent to the footwall of a $30^{\circ}$ south dipping granodiorite unit that strikes $310^{\circ}$ through the property. Secondary gold mineralisation is present at various horizons within the weathered profile. The Black Cat South deposit is associated mainly with the primary gold mineralisation setting and contains gold that, although it is within weathered rocks, by and large, has remained within its primary setting with some supergene enrichment. The Black Cat deposit appears to be based on secondary gold that has been enriched in the weathering profile in weathered mafic rocks above the granodiorite.

An air core drilling program has been prepared to test the strike continuation of the granodiorite unit to the grid west of Black Cat and grid east of Black Cat South to a depth of 50m. Additional drilling is also planned in the area between the two deposits to follow up encouraging mineralisation identified in earlier drilling and to test the extent of gold mineralisation known in the northern wall of the Black Cat open cut.

Pre Feasibility Study

A Consultant to the company completed three Whittle 4D open cut optimisation runs on the Black Cat deposit. While the parameters supplied were probably conservative and not all factors were considered, such as of the encroaching Black Cat North Pit and remnant high grade ore in the pit walls, the study indicated a marginal return.

It is proposed to rerun the optimisation study after additional drilling to the east of Black Cat South and between the Black Cat South and Black Cat open pit, updating some of the parameters and using a revised gold price and exchange rate.

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

During the quarter the Western Australian Department of Industry and Resources granted Exploration Licence 15/762 and Prospecting Licences 15/4507 and 4508 at the Gnarlbine Gold Project located south east of Coolgardie in W.A.

EL15/762, comprising 32 Graticular Blocks (approximately 100 sq, kms), forms the core of the Gnaribine project while PL's 15/4507 and 4508 cover the northern extension of the Triton Anomaly.

Ramelius is farming in to earn a 75% interest in EL15/762 and has scheduled work to commence on the project in the March 2004 quarter.

TUCKABIANNA : (ML 20/245) - Gold.

Westcoast Mining Limited have exercised an Option to Purchase a 100% interest in Mining Lease 20/245 near Tuckabianna in the Murchison Mineral Field of Western Australia by paying Ramelius $40,000 cash and issuing it with 300,000 Westcoast shares.

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

No field work was undertaken during the quarter.

A modest RAB drilling program has been proposed to test the extent and potential of a zone of supergene mineralisation.

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

No field work undertaken during the quarter.

ROYALTIES

There have been no significant activities during the quarter that impact on the Company's Royalty interests. However, subsequent to the end of the quarter an announcement by Minara Resources Limited of their intention to purchase the nickel laterite company Niwest Limited, subject to the pre-emptive rights of GME Resources Limited, may impact on the company's Eucalyptus Nickel Production Royalty. Ramelius holds a royalty set at $0.10 per tonne of proven ore at feasibility over the nickel laterite production from Eucalyptus where Niwest hold the nickel rights. The Company will monitor this purchase for developments that may impact on the royalty.

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

$(6$ 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")

31 December 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	(82)	(290)
	(b) development
	(c) production
	(d) administration	(108)	(186)
1.3	Dividends received
1.4	Interest and other items of a similar nature	12	29
	received
1.5	Interest and other costs of finance paid
1.6	Income taxes paid
1.7	Other (provide details if material))
	GST	(19)	33
	Option fee received		10
	Prepaid insurance, capital raising costs etc	(13)	(21)
	Listing fee	(2)	(10)
	Other	(17)	(20)
	Net Operating Cash Flows	(229)	(455)
	Cash flows related to investing activities
1.8	Payment for purchases of:
	(a) prospects	(575)	(575)
	(b) equity investments
	(c) other fixed assets	(1)	(1)
1.9
	Proceeds from sale of:
	(a) prospects	40	40
	(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)
1.13	Net investing cash flowsTotal operating and investing cash flows	(536)	(536)

+ See chapter 19 for defined terms.

1.13	Total operating and investing cash flows(brought forward)	(765)	(991)
	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)
	Net financing cash flows		(63)
	Net increase (decrease) in cash held	(764)	(1,054)
1.20	Cash at beginning of quarter/year to date	1,268	1,558
1.21	Exchange rate adjustments to item 1.20
1.22	Cash at end of quarter	504	504

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	45
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 any 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, occupancy and IT maintenance fees paid to entities 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

300,000 shares in Westcoast Mining Limited representing non cash component of consideration received for sale of mining tenement ML20/245.

$2.2$ 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$A'000	Amount used 1$A'000
3.1	Loan facilities	Nil	Nil
3.2	Credit standby arrangements	Nil	Nil

Note: On 24/12/2003 Ramelius announced a 1 for 1 Rights Issue to raise up to approximately $4 million.

+ See chapter 19 for defined terms.

Estimated cash outflows for next quarter

4.1	Exploration and evaluation	$A'000152
4.2	Development
	Total	152

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 quarterSA'000
5.1	Cash on hand and at bank	21	17
5.2	Deposits at call	483	1,251
5.3	Bank overdraft
5.4	Other (provide details)
	Total: cash at end of quarter (item 1.22)	504	1.268

Changes in interests in mining tenements

		Tenementreference	Nature of interest(note(2))	Interest atbeginningof quarter	Interestat end ofquarter
6.1	Interests in miningtenementsrelinquished, reducedor lapsed	ML20/245	The Option to Purchase thistenement was exercised byWestcoast Mining Limited on4/1103.	100%	$0%$
6.2	Interests in miningtenements acquired orincreased	PL 15/4651PL 15/4652PL 15/4653	Tenement applied for 3/11/03Tenement applied for 3/11/03Tenement applied for 3/11/03	$0%$$0%$$0%$	100%100%100%
		ML 15/100ML 15/101ML 15/102ML 15/653ML 15/97ML 15/99PL 15/3666	The Gold Rights to thesetenements were purchased fromSt. Ives Gold Mining CompanyPty Ltd and Agnew GoldMining Company Pty Ltd on18/12/03	$0%$$0%$$0%$$0%$$0%$$0%$$0%$	100%GoldRights$0%$NickelRights
		E 69/1921	Tenement applied for 15/12/03	$0%$	100%

+ 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
	*securities
	(description)
7.2	Changes during
	quarter
	(a) Increases
	through issues
	(b) Decreases
	through returns
	of capital, buy-
	backs,
	redemptions
7.3	+ Ordinary
	securities	36,289,002	18,761,850
7.4	Changes during
	quarter
	(a) Increases
	through issues	5,000	5,000	$0.20	$0.20
	(b) Decreases
	through returns
	of capital, buy-
	backs
$7.5,$	+ 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)	23,185,750	10,272,175	$0.20	31/12/2007
7.8	Issued during
	quarter	300,000	300,000	$0.20	31/12/2007
7.9	Exercised during
	quarter	5,000	5,000	$0.20	31/12/2007
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).
• $\overline{2}$ This statement does /does not* (delete one) give a true and fair view of the matters disclosed.

Print name:	Dom Francese	Date: 30/1/2004
	(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.