RAND MINING LIMITED — Interim / Quarterly Report 2004

Jul 29, 2004

30 July 2004

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

Quarterly Report for Period ending 30 June 2004 Geology and mining

Highlights

• Joint venture negotiations to develop the Raleigh underground mine nearing completion. ٠
• Hornet Open Cut Stage 1 feasibility study received. ۰
• Rubicon Stage 1 Underground pre-feasibility study indicates project is viable. ٠
• Oretek embarks on identifying projects to demonstrate commercial viability of its technology.

REVIEW OF OPERATIONS

Negotiations to finance the development of the Raleigh underground operation are reaching a final stage. Reaching agreement on the joint venture terms is nearing completion.

The development of the EKJV resources continues to be the main focus of the company.

EAST KUNDANA JOINT VENTURE (12.25% Interest)

Dewatering of the Raleigh and Rubicon pits is being maintained in preparation for commencement of the underground operations.

EKJV mine production for June 04 Quarter:

Month		Tonnes	Estimated	Grade $(g/t)$
			Ounces
April 04	Raleigh
	Rubicon	ß
May 04	Raleigh
	Rubicon
June 04	Raleigh	0
	Rubicon
Total for June 04 Quarter	Combined			0
Total for March 04 Quarter	Combined	18,869	17,362	28.6
Total project to date	Combined	748,705	237,192	9.8

Raleigh

Raleigh stage 3 pit mining was completed in January to its designed depth of 118 metres below ٠ surface.

The performance of mining production estimates compared to reserves is:

Raleigh Pit 100% EKJV
		Production			Reserve			% Variation
	Tonnes	Gra	Gold	Tonnes	Grade	Gold	tonne	-g/t	ounce
		de					s		s
	tonnes	g/t	ounces	tonnes	g/t	ounces	$%$	$%$	$\frac{6}{6}$
June 04 Quarter	0		0	NA	NΑ	NΑ	NΑ	NA	'NА
March 04 Quarter	0	0	0	NA	NΑ	NA	NA	NA	'NΑ
July 03 to June 04	18.869	28.6	17,362	10.412	49.7	16.649	$+81$	-42	$+4$
Project To 31 March 04	368,775	11.6	137.341	171,395	18.1	110,486	$+115$	$-36$	$+24$

Rubicon

Mining was completed in the December 2003 Quarter to its designed depth of 132 metres below ۰ surface.

The performance of mining production estimates compared to reserves is:

Rubicon Pit 100% EKJV
		Production		Reserve			Variation
	Tonnes	Grade	Gold oz	Tonnes	Grade	Gold oz	tonnes	g/t	ounces
	tonnes	g/t	Ounces	tomes	g/t	ounces	$%$	$%$	$%$
June 04 Ouarter				NA	NA	NА	NA	NА	NA
March 04 Quarter				NΑ	NΑ	NA	NA	NA	NА
July 03 to 30 June 04	106,128	11.5	39,250	61,142	14.0	27,474	$+74$	-18	$+43$
Project to 30 June 04	379,930	8.2	99.851	231,685	9.1	67,380	$+64$	-10	$+48$

MINERAL PROCESSING

• The EKJV project has recovered 247,653 ounces of gold since commencement of processing on 15th ٠ May 2002.
• The processing campaign ceased on 12 February 2004. ۰

EKJV gold bullion produced:

Period	Ore processed	Gold	Bullion	Calc Head	Total recovery
	(dry tonnes)	Recovered	outturn	grade (g/t)	(%)
		(oz)	(oz)
Apr $04$				NA	NА
May $04$				NA	NA
Jun 04				NA	NA
JUN 04 Otr				NA	NA
Fiscal YTD	298.939	112,588	118,077	12.05	97.2
PTD	886,344	247,653	246,746	8.99	96.7

NA= not applicable.

A total of 5,708 tonnes at 5 $g/t$ of mill scats containing 919 ounces of gold were sold during the Quarter. Gold bearing material recovered from the decommissioned Kundana plant is awaiting processing.

Project Development

The Raleigh underground and Hornet open cut stage 1 developments are waiting for the conclusion to the joint venture matters between the parties to be finalised.

The status of projects under study for development is:

Project	Status
Raleigh Open Cut Pit	Mining and Processing completed
Rubicon Open Cut Pit	Mining and Processing completed
Raleigh Underground	Feasibility Study
Hornet Stage 1 Open Cut Pit	Feasibility Study
Hornet Stage 2 Open Cut Pit	Pre-feasibility Study
Hornet Underground	Pre-feasibility Study
Rubicon Underground Stage 1	Pre-feasibility Study
Pegasus Open Cut Pit	Scoping Study
Pegasus Underground	Pre-feasibility Study

The Rubicon Stage 1 Pref-feasibility study demonstrated the Rubicon underground project is technically and financially viable on the current resource base. A bottom up benching with cemented paste fill mining method was selected as the most appropriate mining method. An assessment on combining the Rubicon and Hornet underground projects is being undertaken to provide synergies including reduced infrastructure capital expenditure and reduced operating costs through shared services, labour and equipment.

EXPLORATION

No resource drilling was performed during the Quarter.

Drilling statistics:

Period	Aircore			Reverse circulation		Diamond
	No. holes	Metres	No. Holes	Metres	No. Holes	Metres
April 04				782
May $04$
June 04
June 04 Q
Yr to date	20	926	99	9.257	40	7.422

Seven Mile Hill Joint Venture (50%)

Field work was performed in preparation of an exploration drilling programme.

Oretek Joint Venture (20% Interest in patents)

Work on copper cyanide developmental resins is being undertaken in conjunction with the Department of Chemical Engineering, Monash University, as part of the ARC Linkage grant.

During the quarter a series of scoping studies have been conducted to establish base line loading kinetics for a series of commercially available ion exchange resins. The resins evaluated include strong base quaternary, weak base tertiary amine, guanidine functionality, thiouronium chelating resin and a strong acid cationic resin. This data is required for comparison trials against the Oretek developmental resins. The research work being conducted as part of the ARC Linkage copper cyanide project is being expanded to enable its findings to be incorporated into a commercial copper or copper/gold treatment project. The work is being conducted under the direction of Drs. Breuer and Jeffrey, Department of Chemical Engineering, Monash University.

Yours faithfully

$\mathbf A$ Billis Director

Appendix 5B

Mining exploration entity quarterly report

Name of entity

RAND MINING NL
----------------	--

ACN or ARBN

004 669 658

Quarter ended (current quarter)

30 June 2004

Consolidated statement of cash flows

	Cash flows related to operating activities	Current quarter$$A=000$	Year to date(12 months)$$A=000$
1.1	Receipts from product sales and related debtors	(47)	8,160
1.2	Payments forexploration and evaluation(a)(b)development(c)productionadministration (note 2)(d)	(206)(223)	(970)(57)(2, 493)(930)
1.3	Dividends received
1.4	Interest and other items of a similar nature received	4	20
1.5	Interest and other costs of finance paid
1,6	Taxes paid
1,7	Re-imbursement of Exploration Costs
	Net operating cash flows	(472)	3,730
	Cash flows related to investing activities
1.81.9	Payment for purchase of:prospects(a)equity investments(b)other fixed assets(c)Proceeds from sale of:prospects(a)(b) equity investments	(1,469)(6)	(2, 297)(18)
1,10	other fixed assets(c)Loans to other entities (note 3)	109	(78)
1.11	Loans repaid by other entities
1.12	Other (provide details if material)
	Net investing cash flows	(1,366)	(2, 393)
1,13	Total operating and investing cash flows (carried forward)	(1,838)	1,337

1.13	Total operating and investing cash flows (brought forward)	(1,838)	1,337
	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		826
1.17	Repayment of borrowings
1.18	Dividends paid
1.19	Commissions on capital raising
	Net financing cash flows	$\blacksquare$	826
	Net increase (decrease) in cash held	(1,838)	2,163
1.20	Cash at beginning of quarter/year to date	6,583	2,582
1.21	Exchange rate adjustment to 19
1.22	Cash at end of quarter	4,745	4,745

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$$A=000$	Amount used$$A=000$
. 3.1	Loan facilities
13.2	Credit standby arrangements

Estimated cash outflows for next quarter

		$$A=000$
4.1	Exploration and evaluation	250
4.2	Development	1,000
	Total	1,250

Reconciliation of cash

Reconciliation of cash at the end of the quarter (as shown inthe consolidated statement of cash flows) to the related itemsin the accounts is as follows.		Current quarter$A = 000$	Previous quarter$A = 000$
5.1	Cash on hand at bank	830	125
5.2	Deposits at call	97	97
5.3	Bank overdraft
5.4	Other – gold bullion on hand	3,818	6,361
	Total: cash at end of quarter (item 1.22)	4.745	6,583

Changes in interest in mining tenements

		Tenementreference	Nature of interest(note(4))	Interest atbeginning ofquarter	Interest atend ofquarter
6.1	Interests in mining tenementsrelinquished, reduced or lapsed
6.2	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
7.3	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
7.7	Options(description)	2,300,000		Exercise Price20 cents	Expiry Date30 April 2005
7.8	Issued during quarter			$\rightarrow$
7.9	Exercised duringquarter
	7.10 Expired during quarter			L.
7.11	Debentures(totals only)
7.12	Unsecured notes(Totals only)

Compliance statement

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

Sign here: ...................................

Print name: ....................................

Notes

• 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 aggregate amount of payments to suppliers and employees (item 1.2) made to directors of the entity and its related entities, associates of directors and associates of the entities (specified parties) must be disclosed by way of note with additional explanations necessary for an understanding of the transactions.

$59,000 was paid to STT Pty Ltd for salaries and management fees for the June quarter.

3 The aggregate amount of loans (item 1.10) made to specified parties must be disclosed by way of note.

The aggregate amount of loans made to specified parties are as follows:

Oretek Limited	15,869
Rand Mining	(124, 680)
	$108,811

• 4 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.
• The definitions in, and provisions of, AASB 1022: Accounting for Extractive Industries and 5. AASB 1026: Statement of Cash Flows apply to this report.
• 6 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.