RAND MINING LIMITED — Interim / Quarterly Report 2003

Jan 22, 2003

23 January 2003

The Listing Manager Australian Stock Exchange Level 10 20 Bond Street SYDNEY

Quarterly Report for Period ending 31 December 2002 Geology and mining

Highlights

• Rand and Tribune joint loan facility of $8.75M has been repaid in full and ahead $\bullet$ of schedule leaving the company debt free.
• The company is unhedged and can benefit from the higher gold spot price.
• EKJV has produced 65,000 ounces to date.

EAST KUNDANA JOINT VENTURE

Raleigh

• Mining of the open pit continued throughout the quarter.
• Production for the quarter totalled 95,657t at 9.71g/t compared to 104,321t at $\bullet$ 8.74g/t Au for the previous quarter.
• In light of the high gold price the EKJV partners are reviewing the option to mine $\bullet$ the Raleigh deposit by a third open pit cutback or committing to an underground operation.

Rubicon

• Stage 2 mining progressed ahead of schedule.
• Production for the quarter totalled 54,947 dry tonnes at 6.9g/t compared to 39,047 dry tonnes at 4.8g/t Au for the previous quarter.
• Underground scoping studies have enabled access portal sites to be selected ahead $\bullet$ of pit development.

Rand Mining N.L. ACN 004 669 658 Suite G 1/2, 49 Melville Parade, South Perth. WA 6151 Australia Correspondence: PO Box 507, West Perth. WA 6872 Australia Telephone (08) 9474 2115. Fax (08) 9567 9586

Processing

• 132.486 dry tonnes of ore at 7.3g/t was processed for the EKJV at the Kundana Mill during the quarter compared to 85,370 dry tonnes at 6.8g/t the previous quarter. A total of 315,881 dry tonnes at 6.6g/t has been processed project to date at an overall 95% recovery and 96% mill availability.
• Gold recovered for the quarter was 30,282 ounces at a 95% recovery compared to 19,034 ounces at a 95% recovery for the previous quarter.
• The processing campaign is expected to continue until the end of March and maybe extended to the end of the financial year if the Raleigh stage 3 cut back option is pursued.

OPERATIONS

Mining operations continued throughout the quarter at the Ralcigh and Rubicon open pits (Table 1).

Month		Tonnes	Estimated Ounces	Grade $(g/t)$
October	Raleigh	45,050	15,639	10.80
	Rubicon	17,732	2,441	4.28
November	Raleigh	43,054	11,087	8.01
	Rubicon	20,210	4,450	6.99
December	Raleigh	7,553	3,139	12.93
	Rubicon	17,005	5,187	9.48
Total for quarter		150,604	41,943	8.7

Table 1 EKJV gold production for December quarter

Ralcigh

At Raleigh mining progressed throughout the quarter with production tonnes and recovered ounces exceeding the predicted values. The grade of the mined ore has increased although the grade is below the estimated reserve figures. Mining at the end of the quarter was 64m below the surface level.

Rubicon

Mining at Rubicon has exceeded the predicted tonnes, grade and recovered ounces due in part to the occurrence of bonanza gold.

Mining at the end of the quarter progressed to 60m below ground level ahead of schedule.

MINERAL PROCESSING

Ore from the Raleigh and Rubicon pits continued to be processed through the Kundana mill. Bullion produced for the quarter is given in Table 2. The quantity of gravity recoverable gold is around 30% as predicted in the feasibility studies and is expected to increase as fresher rock is mined from the pits. Total processing costs for the first campaign averaged $15.00 per dry tonne milled.

Period	Ore:	Gold	Bullion	Calc Head	Total
	processed	Recovered	outturn	$grade$ ( $g/t$ )	recovery
	(dry tonnes)	(OZ)	(oz)		(%)
October	55,223	12,380	14,913	7.35	94.82
November	25,068	6.681	4.488	8.63	96.08
December	52,195	11,221	12,192	7.00	95.53
Totals/Ave	132,486	30,282	31,594	7.45	95.48
YTD	217,856	49,316	48,149	7.11	95.28
PTD	315,881	65,434	60,756	6.59	95.29

Table 2 EKJV gold bullion produced

Ore on stockpile ahead of processing at the end of the quarter is estimated to be 100,000 tonnes at a grade of 8g/t for 27,000 ounces of contained gold.

EXPLORATION

Exploration within the EKJV during the quarter was focussed on resource drilling at Pegasus North and Pegasus K2B as part of resource definition. Resource studies were completed at Hornet and Pegasus pit area. Infill drilling was completed at Bumblebee-Artemis.

Pegasus

Drilling was completed at Pegasus K2B with a total of 15 RC holes and 3 diamond pre-collars completed for a total of 1,080m and 3 diamond tails for 173m. The best results at Pegasus included 2m at 14.45g/t in hole PGRD081, 0.81m at 38.85g/t in PGRD019 and 1m at 10.84g/t in PGR087.

Bumblebee-Artemis

Commencement of RC and diamond drilling with a proposed program of 22 RC and 6 diamond holes. Mineralisation intersected to date in fresh rock is encouraging with some significant intercepts recorded to date are: HRD079 (in the precollar), 39m at 2.54 $g/t$ from 53m; HR081, 20m at 2.18 $g/t$ from 18m and HR072, 4m at 6.05 $g/t$ from 55m.

New Appointments

Dr I Robertson was appointed General Manager Corporate Business Development, Mr I Singh the Financial Controller, Dr W Jay appointed a Director to the company and Mr A Billis Director of Exploration.

Yours faithfully

William

Dr W Jav Director

Appendix 5B

Mining exploration entity quarterly report

Name of entity

RAND MINING NL

ACN or ARBN

004 669 658

$\mathcal{L}_{\mathcal{A}}$

Quarter ended (current quarter)

31 December 2002

Consolidated statement of cash flows

Cash flows related to operating activities			Current quarter$A=000	Year to date(6 months)$A=000
1.1	Receipts from product sales and related debtors		2.470	3,593
1.2	Payments for(c) production	(a) exploration and evaluation(b) development(d) administration (note 2)	(93)(28)(729)(188)	(413)(45)(1,587)(347)
1.3	Dividends received
1.4	Interest and other items of a similar nature received		7	11
1.5	Interest and other costs of finance paid		(53)	(100)
1.6	Taxes paid		(15)	(41)
1.7	Reimbursement of Exploration Costs
	Net Operating Cash flows		1,371	1,071
	Cash flows related to investing activities
18	payment for purchase of:	(a) prospects(b) equity investments(c) other fixed assets		(2)
19	Proceeds from sale of:	(a) prospects(b) equity investments(c) other fixed assets
	1.10 Loans to other entities (note 3)			(8)
	1.11 Loans repaid by other entities
		1.12 Other (provide details if material) Loans from other entities
	Net investing cash flows			(10)

	1.13 Total operating and investing cash flows (brought forward)	1,371	1,061
	Cash flows related to financing activities1.14 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	(1,599)	(1,599)
	1.18 Dividends paid
	1.19 Commissions on capital raising
	Net financing cash flows	(1,599)	(1,699)
	Net increase (decrease) in cash held	(228)	(538)
	1.20 Cash at beginning of quarter/year to date	1.079	1,389
	1.21 Exchange rate adjustment to 19
	1.22 Cash at end of quarter	851	851

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

N/A

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

N/A

Financing facilities availableAdd notes as necessary for an understanding of the position.

	Amount available$A=000-----	Amount used$3A - 000$
-31Loan facilities	$\blacksquare$---
-32Credit standby arrangements	$\sim$	$\overline{\phantom{a}}$

Estimated cash outflows for next quarter

		$A=000
4.1	Exploration and evaluation		194
4.2	Development		1 1 3 9
	Total.	.	1.333

Reconciliation of cash

	Reconciliation of cash at the end of the quarter (as shown inthe consolidated statement of cash flows) to the relateditems in the accounts is as follows.	Current quarter$SA = 000$	Previous quarter$A = 000$
51	Cash on hand at bank	851	1.079
5.2	Deposits at call
5.3	Bank overdraft
5.4	Other (provide details)	п.
	Total: cash at end of quarter (item 1.22)	861	1.079

Changes in interest in mining tenements [10] [10] [10] [10] [10] [10] [10] [10]

		Tenementreference	Nature of interest$ note (4)\rangle$	Interest atbeginning ofquarter	Interest atend ofquarter
61	Interests in mining tenementsrelinguished, reduced or lapsed
62	Interest in mining tenementsacquired or increased				-

issued and quoted securities at end of current quarterDescription includes rate of interest and any redemption or conversion rights together with process and dates

		Number issued	Number quoted	Par value (cents)	paid-up value (cents)
7.1	Preference securities(description)
7.2	Issued during quarter
73	Ordinary Securities	38.260.813	38,260,813	20 cents	20 cents
7.4	Issued during quarter
7.5	Convertible debtsecurities(description)
7.6	Issued during quarter		$\blacksquare$
7.7	Options(description)	400,0002,300,000		Exercise Price$1.20 cents20 cents	Expiry Date30 June 200330 April 2005

7.3	Issued during quarter	٠
7.9	Exercised duringquarter
	7.10 Expired during quarter
7.11	Debentures(totals only)	w
	7.12 Unsecured notes(Totals only)

$\hat{\mathcal{A}}$

$\alpha$ . 3119

$\sim$

$\bar{\beta}$

Compliance statement

• This statement has been prepared under accounting policies which comply with 1 accounting standards as defined in the Corporations Law or other standards acceptable to ASX (see note 6).
• This statement does give a true and fair view of the matters disclosed. $\overline{2}$

Notes

• The quarterly report provides a basis for informing the market how the entity=s $\overline{1}$ 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.
• The aggregate amount of payments to suppliers and employees (item 1.2) made to $\overline{2}$ directors of the entity and its related entities, associates of directors and associates of the entities (Aspecified partiese) must be disclosed by way of note with additional explanations necessary for an understanding of the transactions.
• The aggregate amount of loans (item 1.10) made to specified parties must be 3 disclosed by way of note.
• The ANature of interest $\leq$ (items 6.1 and 6.2) includes options in respect of interests 4 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.
• The definitions in, and provisions of, AASB 1022: Accounting for Extractive 5 Industries and AASB 1026: Statement of Cash Flows apply to this report.
• Accounting Standards ASX will accept, for example, the use of International 6. 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.