RAND MINING LIMITED — Interim / Quarterly Report 2004

Mar 11, 2004

RAND MINING NL

ABN: 41004669658 Financial Report For the Half-Year ended 31 December 2003

Rand Mining NL Directors' Report

The Directors of Rand Mining NL submit herewith the financial report for the half-year ended 31 December 2003. 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 Jav Mr A Billis

The above named directors held office during and since the end of the half-year.

OPERATING RESULT

The operating profit after tax for the half-year was \$1,355,127.

REVIEW OF OPERATIONS

The East Kundana Joint Venture has combined resources of 1.402 million ounces inclusive of an estimated 0.614 million ounces in reserves remaining as at the 31 December 2003.

During the half-year to 31 December 2003 the EKJV recovered an estimated 87,614 troy ounces of gold, 85,889 ounces were poured and 85,479 ounces of gold and 13,416 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 for the Hornet and Rubicon deposits.

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

OPEN PIT OPERATIONS

48.863

349,906

Raleigh Pit

Dec 03 Half Year

Project To 31 Dec 03

Mining continued in the Raleigh Stage 3 pit advancing from 92m to 112m with a designed depth of 118m below ground level for a total of 725,337 bank cubic metres of material mined during the half vear.

Raleigh Pit 100% EKJV Production Reserve Variation Tonnes Grade Gold Tonnes Grade Gold tonnes g/t ounces $%$ % % Tonnes g/t ounces tonnes q/t ounces

$31,821$

119,979

The performance of mining production estimates compared to reserves is:

$20.26$

$10.7$

Inferred material defined in the resource but not included in the reserve has contributed to the additional tonnes and ounces mined in the pit.

33.667

160,983

$32.46$

1R 1

35.139

93,837

$+45$

$+117$

$-38$

-41

-9

$+28$

Rubicon

Mining of Rubicon Stage 2 pit advanced from a depth of 60m to 124m depth below ground level
completing mining to the designed depth by 23^rd December 2003 for a total of 216,909 bank cubic metres of material mined during the half year.

Rubicon Pit 100% EKJV
	Production			Reserve			Variation
	Tonnes	Grade	Gold oz	Tonnes	Grade	Gold oz	tonnes	.g/t	ounces
	Tonnes	g/t	ounces	tonnes	.g/t	ounces	%	%	%
Dec 03 Half Year	106.128	11.5	39.250	61.142	14.0	27.474	$+74$	$-18$	$+43$
Project To 31 Dec 03	379,930	8.2	99,851	231,685	9.0	67,380	$+64$	$-10$	$+48$

Mining fresher ore has reconciled positively. Inferred material defined in the resource but not included in the reserve has contributed to the additional tonnes and ounces mined in the pit.

RESOURCES and RESERVES

EKJV Resource inclusive of reserves remaining as at 31 December 2003

OREBODY	MEASURED RESOURCE		INDICATED RESOURCE		INFERRED RESOURCE		TOTAL RESOURCE
	(tonnes)	(g/t)	(tonnes)	(g/t)	(tonnes)	(g/t)	(tonnes)	(g/t)	(ounces)
POPE JOHN	0	0.0	$\mathbf 0$	0.0	0	0.0	0	0.0	0
RALEIGH SURFACE	0	0.0	10,000	54.4	$\Omega$	0.0	10,000	54.4	17,490
RALEIGH UNDERGROUND MAIN VEIN	$\theta$	0.0	487,000	26.8	445,000	17.4	932,000	22.3	668,562
IRALEIGH UNDERGROUND HANGINGWALL VEIN	0	0.0	$\mathbf 0$	0.0	6,000	35.4	6,000	35.4	6,829
HORNET SURFACE	$\mathbf 0$	0.0	294,000	2.9	277,000	1.7	571,000	2.3	42,552
HORNET UNDERGROUND	0	0.0	682,000	8.0	370,000	5.3	1,052,000	7.1	238,462
RUBICON SURFACE RUBICON UNDERGROUND	0 0	0.0 0.0	$\Omega$ 213,000	0.0 11.6	$\Omega$ 752,000	$\Omega$ 5.2	$\Omega$ 965,000	0.0 6.6	$\Omega$ 205,160
IPEGASUS SURFACE	0	0.0	191,000	3.6	381,000	3.2	572,000	3.3	61,305
PEGASUS UNDERGROUND	$\theta$	0.0	0	0.0	719,000	6.6	719,000	6.6	152,726
DRAKE	0	0.0	$\mathbf 0$	0.0	100,000	2.0	100,000	2.0	6,430
STOCKPILE -ORE	3,000	7.7	3,000	19.4	0	0.0	6,000	13.6	2,614
STOCKPILE - SUBGRADE	18,000	0.6	0	0.0	Ω	0.0	18,000	0.6	347
TOTAL	21,000	4.5	1,880,000	12.3	3,050,000	6.7	4,951,000	8.8	1,402,477

Competent Persons: R. Cooper and J Abbott; Senior Resource Geologist Project Development Kalgoorlie West

EKJV RESERVES REMAINING AT 31 DECEMBER 2003

OREBODY	PROVED RESERVE		PROBABLE RESERVE		TOTAL RESERVE			TOTAL RESERVE AT 30 JUN 03
	(tonnes)	(g/t)	(tonnes)	(g/t)	(tonnes)	(g/t)	(ounces)	(tonnes)	(g/t)	(ounces)
POPE JOHN	0	0.0	0	0.0	0	0.0	$\theta$	0	0.0	0
IRALEIGH SURFACE RALEIGH UNDERGROUND MAIN VEIN	0 0	0.0 0.0	10.000 965,000	54.4 12.1	10,000 965,000	54.4 12.1	17,490 375,408	32,000 965,000	50.7 12.1	52,161 375,408
RALEIGH UNDERGROUND IHANGINGWALL VEIN	$\Omega$	0.0	0	0.0	0	0.0	0	0	0.0	0
HORNET SURFACE IHORNET UNDERGROUND*	0 $\mathbf 0$	0.0 0.0	136,000 550,000	3.6 7.9	136,000 550,000	3.6 7.9	15,741 139,695	223,000 940,000	3.9 6.3	27,962 190,397
IRUBICON SURFACE RUBICON UNDERGROUND*	0 $\theta$	0.0 0.0	0 177,000	0.0 11.1	0. 177,000	0.0 11.1	$\Omega$ 63,167	58,000 168.000	14.5 8.5	27,039 45,911
IPEGASUS SURFACE PEGASUS UNDERGROUND	0 $\theta$	0.0 0.0	0 0	0 0.0	0 0	0.0 0.0	0 0	0 119,000	0.0 7.0	0 26,782
DRAKE	$\Omega$	0.0	0	0.0	0	0.0	$\Omega$
ISTOCKPILES -ORE	3,000	7.7	3,000	19.4	6,000	13.6	2,614	50,000	7.3	11,697
TOTAL	3,000	7.7	1,841,000	10.4	1,844,000	10.4	614,115	2,555,000	9.2	757,357

Competent Persons: M Kaesehagen Business Development - Project Development Kalgoorlie West & A Law Manager Mining Open Pits Kalgoorlie West Operations.

* Preliminary reserve estimates for projects currently undergoing a pre-feasibility study.

Notes:

$\bullet$

Raleigh Underground adjusted for finalisation of stage 3 pit.
In accordance with Listing Rule 5.10 of the Australian Stock Exchange Limited, the geological information in this report which relates to mineral resources and $\bullet$

RESOURCE DEVELOPMENT

The company has entered into a memorandum of understanding with Placer Dome Asia Pacific Limited to process the Raleigh underground ore on a co-mingling toll processing arrangement. The technical aspects of co-mingling ores are currently being addressed to conform with the company's rights under the current joint venture documentation.

The development of the Hornet open cut is awaiting resolution of the processing arrangement.

An integrated underground mining study on the combined Hornet and Rubicon and Pegasus resources is in progress. Development drilling focused on the development of the Rubicon-Hornet resources. The Pegasus resource requires extensive drilling before a pre-feasibility study can commence.

SEVEN MILE HILL JOINT VENTURE (50% Interest)

Anomalous zones defined in previous drilling programmes remain to be evaluated when ground access becomes available. 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

No events required disclosure or adjustments to the financial statements subsequent to the half year ended 31 December 2003.

Signed in accordance with a resolution of the Directors.

On behalf of the Directors

A Billis Director PERTH, 12 March 2004

for the half-year ended 31 December 2003
		Economic Entity
		Half-Year Ended 31 Dec 2003 \$	Half-Year Ended 31 Dec 2002 \$
	Note
Revenue from ordinary activities Expenses from ordinary activities	3 3	5,895,190 (4,540,063)	3,480,971 (2,096,049)
Profit from ordinary activities before income tax	3	1,355,127	1,384,922
Income tax expenses relating to ordinary activities
Profit from ordinary activities after related income tax expense		1,355,127	1,384,922
Total changes in equity other than those resulting from transactions with owners as owners		1,355,127 =======	1,384,922
Earnings per share - basic (cents per share) Earnings per share - diluted (cents per share)		3.54 3.41	3.12 2.98

$\overline{\phantom{0}}$

Rand Mining NL
Consolidated Statement of Financial Performance

Rand Mining NL
Consolidated Statement of Financial Position as at 31 December 2003

		Economic Entity
		Half-Year	Year
		Ended	Ended
		31 Dec 2003	30 Jun 2003
		\$	\$
	Notes
Current Assets Cash Assets
Receivables		5,856,389 1,297,262	2,582,400 908,194
Inventories		235,183	412,014
Other - Deferred Waste		178,355	373,592
Investments		3,297,333	3,047,948
Total Current Assets		10,864,522	7,324,148
Non Current Assets
Receivables
Investments		62,523	62,523
Property, Plant & Equipment Exploration Tenements		293,921 684,576	298,960 1,963,255
Total Non Current Assets		1,041,020	2,324,738
Total Assets		11,905,542	9,648,886
Current Liabilities
Payables		1,681,499	803,810
Provision
Interest Bearing Liabilities	4	12,638	12,238
Total Current Liabilities		1,694,137	816,048
Non Current Liabilities
Payables		153,933	153,933
Provision	4	93,469	64,787
Interest Bearing Liabilities		20,841	26,083
		268,243	244,803
Total Liabilities		1,962,380	1,060,851
Net Assets		9,943,162	8,588,035
		$=$ = = = = = = = =	$=$ $=$ $=$ $=$ $=$ $=$ $=$ $=$
Equity
Contributed Equity		10,993,558	10,993,558
Reserves		1,326,974	1,326,974
Accumulated Losses		(2,377,370)	(3,732,497)
Total Equity		9,943,162	8,588,035
		=========	========

Rand Mining NL
Consolidated Statements of Cash Flows for the half-year ended 31 December 2003

	Economic Entity Half-Year Ended 31 Dec 2003 \$	Half-Year Ended 31 Dec 2002 \$
Cash Flows from Operating Activities Receipts from customers Borrowing Costs Expenditure on Mining Activities Payments to Suppliers & Employees Interest Received	6,070,451 (1,448) (2,293,606) (470, 075) 11,713	3,552,089 (99, 816) (2,044,891) (272, 905) 10,771
Net Cash Provided by/(Used for) Operating Activities	3,317,035	1,145,248
Cash Flows from Investing Activities Payments for investments Loans to other entities Payments for Plant & Equipment	(291, 579) (161, 410) (2,557)	(8,000) (5,905)
Net Cash Used for Investing Purposes	(455, 546)	(13,905)
Cash Flow from Financing Activities Proceeds from Borrowings Repayment of Borrowings Costs of issuing shares	412,500	(1,598,693) (25,018)
Net Cash (Used for)/Provided by Financing Activities	412,500	(1,623,711)
Net Increase (Decrease) in Cash Held	3,273,989	(492, 368)
Cash at beginning of the Half-Year	2,582,400	1,388,974
Cash at the end of the Half-Year	5,856,389 $=$ $=$ $=$ $=$ $=$ $=$ $=$ $=$	896,606 $=$ $=$ $=$ $=$ $=$ $=$ $=$ $=$

Rand Mining NL Notes to the Financial Statements for the half-year ended 31 December 2003

$1¹$ Basis of Preparation

4.

The half-year financial report is a general purpose report prepared in accordance with the Corporations Act 2001 and ASSB 1029 "Interim Financial Reporting." The half-year financial report does not include notes of the type normally included in an annual financial report and should be read in conjunction with the 2003 annual financial report.

$2.$ Significant Accounting Policies

The accounting policies adopted in the preparation of the half-year financial report are consistent with those adopted and disclosed in the 2003 annual financial report.

3. Operating Profit/(Loss) from Ordinary Activities

	Economic Entity
	Half-Year	Half-Year
	Ended	Ended
	31 Dec 03	31 Dec 02
	\$	\$
Revenue from Ordinary Activities
Gold revenue	5,872,429	3,417,995
Silver revenue	11,048
Interest received	11,713	12,334
Other income		50,642
	5,895,190	3,480,971
	------------	----------
Expenses from Ordinary Activities
Borrowing costs	1,448	61,535
Depreciation and amortisation expense	1,724,100	225,206
Royalty payments	87,806	35,266
EKJV Mining costs	2,286,806	1,446,905
Other expenses from Ordinary Activities	439,903	327,137
	4,540,063	2,096,049
	========	========
Interest Bearing Liabilities Current-Unsecured
Lease Liability	12,638	12,238
	12,638 -------------------	12,238
Non-Current-Unsecured
Lease Liability	20,841	26,083
	20,841	26,083

5. Subsequent Events

No events required disclosure or adjustments to the financial statements subsequent to the half year ended 31 December 2003.

6. Segment Reporting

During the half-year ended 31 December 2003, the company operated in the mineral exploration industry in Australia.

7. Contingent Liabilities

The company has not entered into any agreement with directors of the company for the granting of termination benefits under a service agreement.

The company is currently defending an action pursuant to a Writ of Summons lodged with the district court. The plaintiff claims an oral contract was in place with regard to the provision for \$24,550. The company denies any such contract and has lodged a counter claim. No provision for loss has been recorded in the financial statements in relation to this action.

The directors declare that:

• a) The attached financial statements and notes thereto comply with Accounting Standards;
• i) the attached financial statements and notes thereto give a true and fair view of the financial position and performance of the consolidated entity;
• in the directors' opinion, the attached financial statements and notes thereto are in $\mathsf{ii}$ accordance with the Corporations Act 2001; and
• b) in the director's opinion, there are reasonable grounds to believe that the company will be 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

A Billis Director PERTH, 12 March 2004

INDEPENDENT REVIEW REPORT TO THE MEMBERS OF RAND MINING NL

SCOPE

We have reviewed the financial report of Rand Mining NL for the half-year ended 31 December 2003, set out on pages 7 to 12, 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: $(a)$
• $(i)$ giving a true and fair view of the economic entity's financial position as at 31 December 2003 and of its performance for the half-year ended on that date: and
• $(ii)$ complying with Accounting Standard AASB 1029: Interim Financial Reporting and the Corporations Regulations 2001; and
• $(b)$ other mandatory professional reporting requirements in Australia.

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HALL CHADWICK Chartered Accountants

Mul

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DATED at PERTH this 12^th day of March 2004