RAND MINING LIMITED — Interim / Quarterly Report 2003

Mar 13, 2003

RAND MINING NL Financial Report For the Half-Year ended 31 December 2002

مارستانمواضع المعروفي

$\mathcal{A}$

The Directors of Rand Mining NL submit herewith the financial report for the half-year ended 31 December 2002. In order to comply with the provisions of the Corporations Act 2001 the Directors Report as follows:

The names of Directors of the company during or since the end of the half-year are:

Mr F Bozic Mr O Demis Mr F O'Kane Dr W Jay (appointed 22 January 2003) Mr A Billis (appointed 22 January 2003)

The above named directors held office during and since the end of the half-year with the exception of Dr W Jay and Mr A Billis who were appointed on 22 January 2003.

OPERATING RESULT

The operating profit after tax for the half-year was $1,384,922.

REVIEW OF OPERATIONS

The East Kundana Joint Venture has combined resources of 1.658 million ounces inclusive of an estimated 0.827 million ounces in reserves remaining as at the 31 December 2002.

During the half-year to 31 December 02 the EKJV recovered an estimated 49.316 trov ounces of gold, 49.622 ounces were poured and 48,149.247 ounces of gold and 4,814,827 ounces of silver outturns were received. Rand has a 12.25% interest in the East Kundana Joint Venture.

A program of diamond and reverse circulation drilling is ongoing to upgrade resources to reserves category and to test additional exploration targets.

The joint venture project continues to be the main focus of the company.

OPEN PIT OPERATIONS

Raleigh Pit

Mining continued in the Raleigh Stage 2 pit advancing from 44m to 64m with a designed depth of 88m below ground level for a total of 930,215 BCMs of material mined during the half year.

The performance of mining production estimates compared to reserves is:

Raleigh Pit 100% EKJV
	Production			Reserve			Variation
	Tonnes	Grade	Gold	Tonnes	Grade	Gold	tonnes	q/t	ounces
	Tones	o/t	ounces	tonnes	qΛ	ounces	℅	℅	₩
Dec 02 Half Year	199.977	8.58	55 193	76.390	13.11	32,203	261	65	171
Project To 31 Dec 02	228.783	8.52	62.694	81.125	13.88	36.201	282	61	173

Additional ore to the reserve was revealed by close spaced grade control drilling that identified hangingwall and footwall mineralisation, increasing the mining width from 2.5m estimated in the reserve to 6m mining width. The spur vein modeled as inferred material in the resource but not included in the reserve was found to be more continuous than expected and this has contributed to the additional ore mined.

Rand Mining NL ACN 004 669 658 Directors Report

Rubicon

Mining continue in the Rubicon Stage 1 pit to a depth of 34m below ground level. Stage 2 mining commenced in August 02, advancing to 60m below ground level by 31 December 02. The planned pit depth to be mined is 88m below ground level.

		10121-002
Rubicon Pit 100% EKJV-----
	Production			Reserve			Variation
.	connes	Grade	Gold oz	Tonnes	Grade	Gold oz	tonnes	αł	ounces
	Tones	яA	ounces	tonnes	.g/t	QUACES	-%	%	%
Dec 02 Half Year	93.994	6.02	18.179	64.618	4.25	9,824	145	142	206.
Project To 31 Dec 02	182,200	5.08	29.733	128.457	5.31	21.925	142	96	136---

Mining fresher ore has reconciled positively unlike that experienced in mining the near surface depletedsupergene ore which is difficult to model in reserve estimations. Inferred material defined in the resource but not included in the reserve has contributed to the additional tonnes and ounces mined in the pit.

Pope John

Pope John deposit, straddling the Kundana Gold operations and EKJV lease boundary was mined during the December 02 half year is subject to royalty payments from Kundana Gold Pty Ltd to the EKJV.

Pope John 100% EKJV
	Production			Reserve			Variation
	Tonnes	Grade	Gold oz	Tonnes	Grade	Gold oz	Tonnes	Grade	Ounces
----	Tonnes	g/t	ounces	tonnes	р/ 1	ounces	%	%	-%
Dec 02 Half Year	8.903	2.35	673	8055	2.30	596	110	102	113
Project To 31 Dec 02	63728	2.81	5.755	37,525	3.18	3,837	170	88	150

Significantly more ore tonnes were mined from the supergene zone surrounding the main shale hosted mineralisation.

Rand Mining NL ACN 004 669 658Directors Report

$\mathbb{R}^2$

RESOURCES and RESERVES

EKJV Resource inclusive of reserves remaining as at 31 Decemeber 2002

OREBODY	MEASUREDRESOURCE		RESOURCEINDICATED		RESOURCEINFERRED			TOTAL RESOURCE
	(tonnes)	$\widehat{\mathbf{S}}$	(tonnes)	$\vec{e}$	(tonnes)	$\tilde{e}$	(tonnes)	$\widehat{\mathbf{S}}$	(ounces)
POPE JOHN	o	င္ပ	13,000	$\frac{5}{1}$	o	ွ	13,000	بہ	527
RALEIGH UNDERGROUNDRALEIGH SURFACENEW NEWS	oc	$\overline{0}$္တ	24,000516,000	38.1	445,00041,000	$\frac{1}{2}$ $\frac{1}{2}$	961,00065,000	ი15ร	715,11633,324
RALEIGH UNDERGROUNDHANGINGWALL VEIN	o	ဒ္ဓ	o	$\frac{0}{0}$	6,000	35.4	6,000	35.4	6,829
HORNET UNDERGROUNDHORNET SURFACE	o	ဒ္ဓ$\overline{0}$	1,017,000581,000	5 021 7	706,0001,000	თ დ—	723,000582.000	toN$\mathbf{S}^2$	342.37346,757
RUBICON UNDERGROUNDRUBICON SURFACE	o	္ထွိ	117,000390,000	13.3တ္ပ	507,0001,000	ි5	118,000897,000	13.2$\mathbf{r}$	214,28850,052
PEGASUS UNDERGROUNDPEGASUS SURFACE		ဒ္ဓ8	191,000219,000	လ6.6	381,000500,000	္က္တိ	572,000719,000	66က္ပ	152,72661,305
DRAKE	o	$\frac{0}{1}$		ဒ္ဓ	100,000	្ល	100,000	្ដ	6,430
STOCKPILE -- ROM PAD	73,00034,000	ထိ		oooo		ဒိ		88	20,184
PITSSTOCKPILE - SUBGRADESTOCKPILE-ADJACENT	41,000	8°$\overline{6}$		$\frac{0}{2}$		$\mathbf{S}$S	73,00034,00041,100	ဝဝ0.6	7,543ষ্ট্র
TOTAL	148.000	္ပ	3,068,000	$\frac{2}{5}$	2,688,000	ှိ	5,904,000	tတ	1,658,345
(Prepared by M.Bampton Placer Dome Asia		Pacific Ltd)

$\boldsymbol{\sigma}$

4

Rand Mining NL ACN 004 669 658 Directors Report

$\Box$

698,610 58,08755,315 433,418 23,309 12,159 26,782 (ounces) 23,631 62,501 3,408 $\ddot{\bullet}$ $\circ$ At 31 DECEMBER 2001 $\frac{1}{11}$ TOTAL RESERVE 27.0 $16.4$ $\overline{r}$ .0 $\frac{0}{0}$ $\frac{0}{0}$ 3.55.0 $\widehat{\mathbb{S}}$ လလ $\overline{c}$ တက $\overline{\circ}$ ထံ တံ 1.854.000 185,000 62,000 119,000 922,000 210,000 145,000 203,000 72,000 (tonnes) 36,000 $\ddot{\circ}$ $\circ$ 826,760 433,418 20,18437,543 (punces) 26,782 27,962 190,397 29,283 45,127 45,911 $154$ $\bullet$ $\bullet$ TOTAL RESERVE 10.2 39.6 $16.4$ $\frac{1}{9}$ $\frac{1}{2}$ $0.0000$ 9999 ေတစတ $\frac{6}{1}$ $\frac{0}{2}$ 2,521,000 (tonnes) 822,000 223,000 940,000 116,000 168,000 119,000 73,00034,000 23,000 3,000 $\circ$ $\bullet$ $10.3$ $16.4$ 39 6 $\frac{1}{2}$ $\mathbb{S}$ $\frac{1}{1}$ 5.B $\overline{r}$ $\infty$ $\mathbf{C}$ $\frac{0}{2}$ $\bullet$ $\circ$ PROBABLE ന് ത് RESERVE 2,414,000 (tonnes) 822,000 223,000 940,000 116,000 168,000 119,000 23,000 3,000 $\circ$ $\bullet$ $\circ$ $\overline{\mathbf{5}}$ $\frac{0}{0}$ $\frac{1}{5}$ (tonnes) (g/t) $\frac{1}{2}$ $\overline{0}$ $\frac{0}{5}$ oO $\overline{0}$ $\circ$ $\circ$ $\bullet$ RESERVE PROVED o ထဲ ထဲ $107,000$ 73,000 34,000 $\circ$ $\ddot{\circ}$ $\circ$ $\mathbf{\Omega}$ $\circ$ $\circ$ RALEIGH UNDERGROUND MAIN PITS At 31 DECEMBER 2002 (EKJV) PEGASUS UNDERGROUND* RUBICON SURFACE*RUBICON UNDERGROUND* RALEIGH UNDERGROUND HORNET UNDERGROUND* STOCKPILES - ADJACENT STOCKPILES - ROM PAD HANGINGWALL VEIN PEGASUS SURFACE* HORNET SURFACE* RALEIGH SURFACE RESERVES POPE JOHN OREBODY TOTAL NIBY

Prepared by M.Bampton (Placer Dome Asia Pacific Ltd)Note* Preliminary reserve estimates for projects currently undergoing a scoping or pre-teasibility study.

in accordance with Listing Rule 5,10 of the Australian Stock School and the special interval and according the School of the School and David Princep with a temporal of the Australian Stock Exchange English, the Australian

Rand Mining NL ACN 004 669 658 Directors Report

RESOURCE DEVELOPMENT

An integrated underground mining study on the combined Hornet, Rubicon and Pegasus resources is in progress.

An evaluation of a third cutback in the Raleigh pit is being undertaken and its impact on the proposed development of the deposit from underground is under study.

SEVEN MILE HILL

A number of anomalies identified during an earlier aeromagnetic survey were tested by an RC drill program of 260 holes totalling 15,051m.

A small number of anomalous gold assays were returned which will require follow-up drilling. The relatively low gold values are considered of interest given the close proximity to the Kundana and Frogs Legs gold deposits along strike to the north. Anomalous results encountered from the western area occur in a linear pattern parallel to the interpreted position of the Zuleika Shear Zone along which deposits are known to be localised in the region.

SUBSEQUENT EVENTS

On 31 January 2003, the parties to the East Kundana Joint Venture reached a decision to carry out the third cutback at the Raleigh pit. Mining continues at the Raleigh pit after the third cutback was carried out. Processing of the ore is being carried out on a continual basis.

Signed in accordance with a resolution of the Directors.

On behalf of the Directors

atecia

Dr W Jav Director PERTH, 14 March 2003

Rand Mining NL ACN 004 669 658

$\label{eq:2.1} \mathcal{L}(\mathcal{L}^{\text{max}}{\text{max}}(\mathcal{L}^{\text{max}}{\text{max}})) \leq \mathcal{L}(\mathcal{L}^{\text{max}}{\text{max}}(\mathcal{L}^{\text{max}}{\text{max}}))$

$\sim 10^{-1}$

$\frac{1}{\sqrt{2}}\left(1-\frac{1}{2}\right)^{\frac{1}{2}}$

$\mathcal{L}(\mathcal{A})$ and $\mathcal{L}(\mathcal{A})$ .

$\sim$ $\sim$

Rand Mining NL ACN 004 669 656
Consolidated Statements of Financial Performance for half-year ended 31 December 2002

		Economic Entity
		Half-YearEnded31 Dec 2002$	Half-YearEnded31 Dec 2001S
	Notes
Revenue from ordinary activitiesExpenses from ordinary activities	2$\overline{2}$	3480,971(2,096,049)	5,492(272,424 )
Profit/(Loss) from ordinary activitiesbefore income tax	2	1,384,922	(266, 932)
Income tax attributable to ordinary activities
Profit/(Loss) from ordinary activitiesafter income tax		1.384,922	(266,932)
Total changes in equity other resulting than theseFrom transaction with owners as owners		1.384,922=======	(266,932)
Earnings per share - basicEarnings per share - diluted		0,0310,030	(0.008)(0.008)

Rand Mining NL ACN 004 669 658Consolidated Statements of Financial Position for half-year ended 31 December 2002

$\bar{t}$

$\label{eq:2.1} \frac{1}{2} \int_{\mathbb{R}^3} \left| \frac{d\mathbf{y}}{d\mathbf{y}} \right|^2 , d\mathbf{y} , d\mathbf{y} , d\mathbf{y} , d\mathbf{y} , d\mathbf{y} , d\mathbf{y} , d\mathbf{y} , d\mathbf{y} , d\mathbf{y} , d\mathbf{y} , d\mathbf{y} , d\mathbf{y} , d\mathbf{y} , d\mathbf{y} , d\mathbf{y} , d\mathbf{y} , d\mathbf{y} , d\mathbf{y} , d\math$

$\sim 10^7$

	Economic Entity
	Half-Year	Year
	Ended	Ended
	31 Dec 2002	30 Jun 2002
	$	$
	Notes
Current Assets
Cash Assets	896,606	1,388,974
Receivables	990,019	859,727
Inventories	667,183	113,047
Other - Deferred Waste	264,102	449,456
Investments	2,908,526	2,908,526
Total Current Assets	5,726,436	5,719,730
Non Current Assets
Receivables	187,023	186,823
Investments	50,023	50,023
Property, Plant & Equipment	294,883	295,832
Exploration Tenements	3.644,645	3,522,878
Total Non Current Assets	4.176,574	4,055,556
Total Assets	9,903,010	9,775,286
Current Liabilities
Payables	1,092,739	732,745
Interest Bearing Liabilities	3 11,837	1,610,129
Total Current Liabilities	1.104,576	2,342,874
Non Current Liabilities
Provision	14,245	3,283
Interest Bearing Liabilities	31,124	35,967
	45,369	39,250
Total Liabilities	1.149,945	2,382,124
Net Assets	8,753,065	7,393,162
	========	22233233
Equity
Contributed Equity	10,993,558	11,018,577
Reserves	1,326,974	1,326,974
Accumulated Losses	(3,567,467)	(4,952,389)
Total Equity	8,753,065	7,393,162
	========	========

Rand Mining NL ACN 004 669 658Consolidated Statement of Cash Flow for half-year ended 31 December 2002

$\frac{1}{\sqrt{2}}$

	Economic Entity
	Half-YearEnded31 Dec 2002$	Half-YearEnded31 Dec 2001$
Cash Flows from Operating ActivitiesReceipts from customersBorrowing CostsExpenditure on Mining ActivitiesPayments to Suppliers & EmployeesGST PaidInterest ReceivedOther	3,931,735(99, 816)(2,044,891)(272, 905)(379, 646)10,771	(120,000)(417, 485)(487, 928)5,492
Net Cash Provided by/(Used for) OperatingActivities	1,145,248	(1,019,921)
Cash Flows from Investing ActivitiesPayments for investmentsLoans to other entitiesPayments for Plant & Equipment	(8,000)(5,905)	(225,012)
Net Cash Used for Investing Purposes	(13,905)	(225, 012)
Cash Flow from Financing ActivitiesProceeds from BorrowingsRepayment of BorrowingsCosts of issuing sharesProceeds from Options Conversions	(1,598,693)(25,018)	410,565338,931
Net Cash (Used for)/Provided by FinancingActivities	(1,623,711)	749,496
Net Increase (Decrease) in Cash Held	(492, 368)	(495, 437)
Cash at beginning of the Half-Year	1,388,974	527,695
Cash at the end of the Half-Year	896,606=========	32,258#======

$\cdot$

1. Basis of Preparation

The half-year financial report is a general purpose report prepared in accordance with the Corporations Act 2001 and ASSB 1029 "Interim Financial Reporting" and other mandatory professional reporting requirements. The half-year financial report does not include notes of the type normally included in the annual financial report and should be read in conjunction with the 2002 annual financial report.

The accounting policies adopted in the preparation of the half-year financial report are consistent with those adopted and disclosed in the 2002 annual financial report.

$\mathbf{z}$ Operating Profit/(Loss) from Ordinary Activities

	Economic Entity
	Half-Year	Half-Year
	Ended	Ended
	31 Dec 02	31 Dec 01
	S	$
Revenue from Ordinary Activities
Receipts from gold sales	3,417,995
Interest received	12,334	5,492
Other income	50,642
	3,480,971	5,492
		.
Expenses from Ordinary Activities
Borrowing costs	61,535	120,000
Depreciation and amortisation expense	225,206	4,472
Royalty payments	35,266
EKJV Mining costs	1,446,905
Other expenses from Ordinary Activities	327,137	147,952
	2,096,049	272,424
	;=========	=========
Interest Bearing Liabilities
BankWest Drawdown Facility		1,598,693
Lease Liability	11,837	11,436
	11,837	1,610,129
	==========	:========

During the half-year ended 31 December 2002, the company repaid its drawdown facility with BankWest in full.

$\overline{\mathbf{A}}$ . Subsequent Events

On 31 January 2003, the parties to the East Kundana Joint Venture reached a decision to carry out the third cutback at the Raleigh pit. Mining continues at the Raleigh pit after the third cutback was carried out. Processing of the ore is being carried out on a continual basis.

5. Segment Reporting

During the half-year ended 31 December 2002, the company operated in the mineral exploration industry in Australia.

INDEPENDENT REVIEW REPORT TO THE MEMBERS OF RAND MINING NL

SCOPE

$\sim$ $\mathbb{R}^2$

We have reviewed the financial report of Rand Mining NL for the half-year ended 31 December 2002, set out on pages 6 to 10, and including the Directors' Declaration. The financial report includes the consolidated financial statements of the economic entity comprising Rand Mining NL and the entities it controlled at the end of the half-year or from time to time during the half-year. The company's directors are responsible for the financial report. We have conducted an independent review of the financial report in order to state whether, on the basis of the procedures described, anything has come to our attention that would indicate that the financial report is not presented fairly in accordance with Accounting Standard AASB 1029: Interim Financial Reporting and other mandatory professional reporting requirements and statutory requirements, so as to present a view which is consistent with our understanding of the economic entity's financial position, and performance as represented by the results of its operations and its cashflows, and in order for the company to lodge the financial report with the Australian Securities and Investment Commission/Australian Stock Exchange Limited.

Our review has been conducted in accordance with Australian Auditing Standards applicable to review engagements. Our review was limited primarily to inquiries of the economic entity's personnel and analytical review procedures applied to financial data. These procedures do not provide all the evidence that would be required in an audit, thus the level of assurance provided is less than that given in an audit. We have not performed an audit and, accordingly, we do not express an audit opinion.

REVIEW STATEMENT

Based on our review, which is not an audit, we have not become aware of any matter that makes us believe that the half-year financial report of Rand Mining NL is not in accordance with:

• the Corporations Act 2001, including: $(a)$
  • giving a true and fair view of the economic entity's financial position as $(i)$ at 31 December 2002 and of its performance for the half-year ended on that date; and
  • complying with Accounting Standard AASB 1029: Interim Financial $(ii)$ Reporting and the Corporations Regulations 2001; and

other mandatory professional reporting requirements. $(b)$

nthChadrile

HALL CHADWICK Chartered Accountants

MAURICE L. ANGHIE Partner

DATED at PERTH this 14th day of March 2003

Level 40BonkWest Tower 108 St George's Tenace Perth 6000 Western Australia

GPO Box W2106PERTH WA 6846

Telephone:(08) 9320 2888 Facsimile: (08) 9320 2999 Email: hoperinfo@holt diadwick.com.ou

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Rand Mining NL ACN 004 669 658 Director's Declaration

The directors declare that:

• The attached financial statements and notes thereto comply with Accounting Standard AASB $a)$ 1029 Interim Financial Reporting and the Corporations Act 2001.
• The attached financial statements and notes thereto give a true and fair view of the $b)$ consolidated entity's financial position as at 31 December 2002 and its performance for the half year ended on that date.
• In the director's opinion, there are reasonable grounds to believe that the company will be $\mathbf{C}$ able to pay its debts as and when they become due and payable.

Signed in accordance with a resolution of the directors made pursuant to s.303(5) of the Corporations Act 2001.

On behalf of the Directors

$\mathbf{r}$

Willis Dr W Jay

$\mathcal{A}$

Director

PERTH, 14 March 2003