RAND MINING LIMITED — Board/Management Information 2004

Jul 27, 2004

28 July 2004

Australian Stock Exchange Limited Level 8, Exchange Plaza 2 The Esplanade Perth WA 6000

Dear Sirs

DEVELOPMENT OF THE RICH RALEIGH UNDERGROUND MINE APPROVED

It is with pleasure the Board of Rand Mining NL announces the development of the Raleigh underground mine. Favourable negotiations have been concluded with joint venture partner Placer Dome Asia Pacific. Funding of the project is by ANZ Investment Bank.

Production from the Raleigh underground is expected to produce 487,000 ounces over a seven year mine life from a current reserve of 1.4 million tonnes grading $10.7g/t$ . The project economics indicated by a feasibility at an A$542/oz gold price are very robust. Substantial exploration potential remains at depth below the reserve. The Hornet, Rubicon and Pegasus projects are undergoing scoping to pre-feasibility evaluations for development in the near future. Rand has a 12.25% interest in the project.

An innovative financing structure – developed by ANZ Investment Bank – will provide funds, on a limited recourse basis, to cover the company's share of construction, development and operating costs at Raleigh as well as discretionary exploration and capital expenditure for the rapid development of other projects within the joint venture. The financing structure enables the development of the project with an unrivalled Maximum exposure to gold price is achieved as no non operational flexibility. discretionary gold hedging is required as a condition of this funding structure.

Ore extraction from the narrow vein is by mechanised retreat up-hole benching with paste filling stope voids. Maximum ore extraction with minimum dilution is safely achieved by scheduling the mining sequence to minimise geotechnical risk.

Processing at Placer's Paddington plant has been negotiated on commercially favourable terms.

Director Resignation

It is with regret that the company advises that Frank O'Kane has resigned from the board due to declining health. Frank was instrumental in negotiating the original East Kundana joint venture with Gilt-Edged Mining N.L. in 1997. Frank leaves the company in the strongest financial position in its history. The company thanks Frank and wishes him all the best in the future.

A. Billis Director Rand Mining NL