RAND MINING NL

ABN 41 004 669 658

FINANCIAL REPORT

FOR THE HALF YEAR ENDED 31 DECEMBER 2004

Page

Directors' report	3
Consolidated statement of financial performance	7
Consolidated statement of financial position	8
Consolidated statement of cash flows	9
Notes to the half-year financial statements	10
Directors' declaration	13
Independent review report to the members	14
Auditors' Independence Declaration	16

RAND MINING NL DIRECTORS' REPORT FOR THE HALF YEAR ENDED 31 DECEMBER 2004

Your Directors submit their Report for the half-year ended 31 December 2004.

DIRECTORS

The following persons were directors of Rand Mining NL during the whole of the half-year and up to the date of this report:

Mr O Demis Mr A Billis Dr W Jay Mr F Bozic Dr J Andrews (appointed 16 August 2004) Mr G Sklenka (appointed 16 August 2004) (resigned 28 July 2004) Mr F O'Kane

REVIEW OF OPERATIONS

East Kundana Joint Venture (Rand's Interest 12.25%)

The East Kundana Joint Venture has combined resources of 1.423 million ounces inclusive of an estimated 0.623 million ounces in reserves remaining as at 31 December 2004 (refer attached tables). Construction of the Raleigh Underground project commenced in the later part of the half year, scheduled for completion by the end of April 2005. The first cut in the main decline was fired at 1.35pm on the twenty first of December 2004. Fifteen metres of decline development had been completed by the end of the half year. A total of 17,017m of development of which 63% is on ore is scheduled over the next 6.3 years, the current reserve life for an estimated capital budget of \$45M. Rand Mining and Tribune Resources NL are jointly funding their portion of the Raleigh Underground development by a \$19M limited recourse loan facility with ANZ Bank. The first repayment of the loan facility commences in June 06 Quarter. The final loan facility repayment is to be made at the latest. September 2009 Quarter.

No production occurred on the East Kundana Joint Venture tenements.

A programme of 9 reverse circulation pre-collars totalling 1059m and 11 DDH 1398m diamond core drilling were completed as part of the ongoing drilling programme designed to upgrade resources to reserves for the Rubicon deposit.

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

RESOURCES and RESERVES

EKJV Resource inclusive of reserves remaining as at 31 December 2004

OREBODY	MEASURED RESOURCE		INDICATED RESOURCE		INFERRED RESOURCE			TOTAL RESOURCE
	(tonnes)	(g/t)	(tonnes)	(g/t)	(tonnes)	(g/t)	(tonnes)	(g/t)	(ounces)
RALEIGH SURFACE	$\theta$	$\theta$	$\Omega$	0	$\Omega$	€	$\Omega$	0	0
RALEIGH UNDERGROUND MAIN VEIN	$\theta$	$\theta$	487,000	26.8	445,000	17.4	932,000	22.3	668,562
RALEIGH UNDERGROUND HANGINGWALL VEIN	$\theta$	$\theta$	0	$\theta$	6,000	26.0	6,000	26.0	5,016
HORNET SURFACE (2) HORNET UNDERGROUND (2)	137.000 0	3.3 0	76,000 363,000	3.3 14.7	157,000 806,000	2.2 8.9	370,000 1,169,000	2.8 10.7	33,704 402,190
IRUBICON SURFACE	$\theta$	$\theta$	$\Omega$	0.0 ₁	$^{\circ}$	0	0	0.0	0
RUBICON UNDERGROUND (2)	$\theta$	$\theta$	177,000	13.3	582,000	5.7	759,000	7.5	182,343
PEGASUS SURFACE (2)	0	$\theta$	0	0	9,000	4.4	9,000	4.4	1,273
PEGASUS UNDERGROUND (2)	$\theta$	$\theta$	0	0.0	488,000	8.3	488,000	8.3	130,223
TOTAL	137.000	3.3	1,103,000	19.0	2,493,000	9.2	3,733,000	11.9	1,423,311

Competent Persons: R. Cooper a Senior Resource Geologist Project Development Kalgoorlie West

EK.IV Reserves remaining at 31 December 2004

OREBODY	PROVED RESERVE		PROBABLE RESERVE		TOTAL RESERVE		TOTAL RESERVE AT 30 JUN 04
	(tonnes)	(g/t)	(tonnes)	(g/t)	(tonnes)	(g/t)	(ounces)	(tonnes)	(g/t)	(ounces)
RALEIGH SURFACE RALEIGH UNDERGROUND MAIN VEIN(3)	$\bf{0}$ 0	$\theta$ $\theta$	0 965,000	$\theta$ 12.1	$\theta$ 965,000	0 12.1	$\theta$ 375,408	€ 965,000	0 12.1	$\theta$ 375,408
RALEIGH UNDERGROUND HANGINGWALL VEIN	$\theta$	$\theta$	$\theta$	0.0	$\theta$	0.0	0	$\theta$	0	$\theta$
HORNET SURFACE (4) HORNET UNDERGROUND (4)	118,000 0	$3.4^{\circ}$ $\theta$	44,000 494,000	4.0 10.5	162,000 494,000	3.6 10.5	18,557 166,766	136,000 550,000	3.6 7.9	15,741 139,695
RUBICON SURFACE RUBICON UNDERGROUND (4)	$\theta$ $\theta$	$\theta$ $\theta$	0 177,000	0.0 11.1	$\theta$ 177,000	0.0 11.1	$\theta$ 63,167	$\theta$ 177,000	0 11.1	$\theta$ 63,167
TOTAL	118,000	3.4	1,680,000	11.3	1,798,000	10.8	623,898	1,828,000	10.1	594,011

Competent Persons: M Kaesehagen Business Development - Project Development Kalgoorlie West Kalgoorlie West Operations.

Note 1:

In accordance with Listing Rule 5.10 of the Australian Stock Exchange Limited, the information in the tables to which this statement is attached that relates to Mineral Resources or Ore Reserves is based on information compiled by R. Cooper, J Abbott. M. Kaesehagen, who are Members of the Australasian Institute of Mining and Metallurgy and full-time employees of Placer Dome Asia Pacific Limited All of the aforementioned persons have sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration to undertake the activity to qualify as Competent Persons as defined in the 2004 Edition of the "Australasian Code for Reporting of Mineral Resources and Ore Reserves", R. Cooper, J Abbott, M. Kaesehagen consent to the inclusion in the report of the matters based on their information in the form and context in which it appears.

Note 2:

Mineral Resource calculated at a US \$425/oz and US/Aus exchange rate 0.65 in compliance with Placer Dome Incorporated reporting obligations to the USA Security Exchange.

Note 3:

Ore Reserve at a bankable feasibility standard calculated at an A\$542/oz gold price.

Note 4:

Ore Reserve at a pre-feasibility standard calculated at a US\$350/oz and US/Aus exchange rate of 0.65 in compliance with Placer Dome Incorporated reporting obligations to the USA Security Exchange.

Seven Mile Hill Joint Venture (Rand's Interest 50%)

Mineralisation previously defined at the Binduli project was evaluated by 7 RC holes totalling 798m was completed during the Half Year. The holes, angled 60 towards grid east tested the target to depths varying up to 150 metres deep. The results are being evaluated to determine the next phase of exploration. The following table tabulates 1 metre mineralized down hole intercepts grading greater than 1 g/t for gold determined by FA50 assays with no top cut applied.

Hole	Northin	Eastin	Fro	Ŧо	М	g/t
	Я.	g	m			Au
BRC01 0	6582300	349275	57	58	1	2.77
			90	91	1	3.48
BRC01 1	6582300	349225	33	34	1	1.48
			60	61	1	3.46
			65	66	1	1.15
			67	68	1	1.69
BRC01 3	6583100	348615	44	45	1	1.13
			54	55	1	2.61
BRC01 4	6582900	348715	36	37	1	2.16
			56	57	1	1.00
BRC01 5	6582900	348665	55	56	1	4.54

Notes: In accordance with Listing Rule 5.10 of the Australian Stock Exchange Limited, the information provided to which this statement is attached that relates to Mineral Resources or Ore Reserves is based on information compiled by Dr I Robertson, a full time employee of Rand Mining NL who is a Fellow of the Australasian Institute of Mining and Metallurgy and Australian Institute of Geoscientists and has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration to undertake the activity to qualify as Competent Persons as defined in the 2004 Edition of the "Australasian Code for Reporting of Mineral Resources and Ore Reserves" I. Robertson consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

OPERATING RESULTS

The loss of the consolidated entity for the half-year after income tax of NIL was \$1.025,077.

RESULTS BY SEGMENT

The consolidated entity operates in the mineral exploration industry in Australia.

AUDITORS' INDEPENDENCE DECLARATION

A copy of the auditors' independence declaration as required by Section 307C of the Corporations Act 2001 is included in this report.

This report is made in accordance with a resolution of the directors.

A Billis Director $15^th$ March 2005 Dated

RAND MINING NL CONSOLIDATED STATEMENT OF FINANCIAL PERFORMANCE FOR THE HALF YEAR ENDED 31 DECEMBER 2004

		Half-year
	Note	31 December 2004 \$	31 December 2003 \$
Revenue from the sale of goods			5,883,477
Cost of sales		(326, 547)	(2, 286, 806)
Gross Profit
Other revenue from ordinary activities	2	(326, 547) 216,871	3,596,671 11,713
Borrowing costs		(19, 798)	(1, 448)
Depreciation and amortisation expenses		(8,652)	(1,724,100)
Doubtful debts		(4, 643)	(64,083)
Carrying value of investments sold		(81,360)
Employee benefits expense		(76,090)
Exploration costs written off		(260, 705)
Royalty expense Write back of provision for investment write-down		(16, 667) 51,074	(87, 806)
Administration expenses from ordinary activities		(498, 560)	(375, 820)
Profit / (Loss) from ordinary activities before
income tax expense		(1,025,077)	1,355,127
Income tax benefit/(expense)
Profit / (Loss) from ordinary activities after income tax expense		(1,025,077)	1,355,127

Net Profit/ (Loss) attributable to the members of Rand Mining NL		(1,025,077)	1,355,127

Total changes in equity attributable to members of Rand Mining NL other than those resulting from
transactions with owners as owners		(1,025,077)	1,355,127
		Cents	Cents
Basic earnings per share Diluted earnings per share	3 3	(2.68) (2.60)	3.54 3.41

The above consolidated statement of financial performance should be read with the accompanying notes

RAND MINING NL CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER 2004

Note	31	30
	December	June
	2004	2004
	\$	\$
Current Assets
Cash assets	3,403,257	4,744,755
Receivables	71,080	67,439
Investments	6,117,823	5,238,267
Total current assets	9,592,160	10,050,461
Non-current assets
Property, plant and equipment	299,428	299,379
Exploration, evaluation and development costs carried
forward	717,391	604,459
Investments	202,512	162,512
Total non-current assets	1,219,331	1,066,350
Total assets	10,811,491	11,116,811
Current liabilities
Payables	301,298	112,438
Interest-bearing liabilities	12,580	12,638
Total current liabilities	313,878	125,076
Non-current liabilities
Payables		339,848
Interest-bearing liabilities	16,645	20,842
Borrowings	875,000
Provision - rehabilitation	73,094	73,094
Total non-current liabilities	964,739	433,784
Total liabilities	1,278,617	558,860
Net assets	9,532,874	10,557,951
Equity
Contributed equity 4	10,993,558	10,993,558
Reserves	1,326,974	1,326,974
Accumulated losses	(2,787,658)	(1,762,581)
Total equity	9,532,874	10,557,951

The above consolidated statement of financial position should be read with the accompanying notes

RAND MINING NL CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE HALF YEAR ENDED 31 DECEMBER 2004

December	December

2004	2003
S	\$
Cash flows from operating activities
Receipts from gold production 11,463	6,070,451
Interest received 15,141	11,713
(579, 397) Payments to suppliers	(2,763,681)
Borrowing costs (19,798)	(1,448)
Withholding tax paid (443)
Net cash outflow from/(used in) operating
activities (573, 034)	3,317,035
Cash flows from investing activities
Payments for investments (1,005,108)	(291, 579)
Proceeds from sale of investments 201,730
Loans to other entities (22, 733)	(161, 410)
Loans repaid to other entities (339, 848)
Payments for plant & equipment (9, 445)	(2,557)
Exploration and development expenditure (417, 672)
Net cash outflow from/(used in) investing
activities (1, 593, 076)	(455, 546)
Cash flows from financing activities
Proceeds from borrowings 875,000	412,500
875,000 Net cash inflow from financing activities	412,500
(1,291,110) Net increase/(decrease) in cash held	3,273,989

Cash at the beginning of the financial period 4,744,754	2,582,400
Exchange rate adjustment (50, 387)
Cash at the end of the financial period 3,403,257	5,856,389

The above consolidated statement of cash flows should be read with the accompanying notes

RAND MINING NL NOTES TO THE FINANCIAL STATEMENTS FOR THE HALF YEAR ENDED 31 DECEMBER 2004

NOTE₁. BASIS OF PREPARATION OF HALF-YEAR FINANCIAL REPORT

This half-year consolidated financial report does not include all the notes of the type normally included in an annual financial report and therefore cannot be expected to provide as full an understanding of the financial performance, financial position and financing and investing activities of the consolidated entity as the full financial report.

This half-year consolidated financial report should be read in conjunction with the annual financial report for the year ended 30 June 2004 and any public announcements made by Rand Mining NL during the interim reporting period in accordance with the continuous disclosure requirements of the Corporations Act 2001.

This half-year consolidated financial report is a general purpose financial report which has been prepared in accordance with Accounting Standard AASB 1029 Interim Financial Reporting, other mandatory professional reporting requirements (Urgent Issues Group Consensus Views) and the Corporations Act 2001.

The accounting policies have been consistently applied by the consolidated entity and are consistent with those of the previous financial year.

For the purpose of preparing the half-year consolidated accounts, the half-year has been treated as a discrete reporting period.

NOTE 2: LOSS FROM ORDINARY ACTIVITIES

The following revenue items are relevant in explaining the financial performance for the interim period:

		Half-year
	31 December 2004	31 December 2003
Other Revenue	\$	S
Interest	15,141	11,713
Royalties	$\pmb{\ast}$
Gross proceeds from sale of investments	201,730	$\overline{\phantom{a}}$
Total other revenue from ordinary activities	216.871	11.713

NOTE₃ EARNINGS PER SHARE

	31 December
	2004
	Cents
Basic earnings per share	(2.68)
Diluted earnings per share	(2.60)
	Number
Weighted average number of ordinary shares outstanding during the half-
year used in the calculation of basic earnings per share	38.260.813
Weighted average number of ordinary shares outstanding during the half-
year used in the calculation of diluted earnings per share	39.491.046

NOTE₄ EQUITY SECURITIES ISSUED

	31 Dec 2004 Shares	30 June 2004 Shares	31 Dec 2004	30 June 2004
				S
Share capital
Fully paid ordinary shares	38.260,813	38,260,813	10,993,558	10,993.558

There were no movements in ordinary share capital over the half-year.

NOTE 5. SEGMENT INFORMATION

The consolidated entity operates in the mineral exploration industry in Australia.

NOTE 6. SUBSEQUENT EVENTS

There are no other matters or circumstances that have arisen since 31 December 2004 that have or may significantly affect the operations, results, or state of affairs of the consolidated entity.

NOTE₇ INTERNATIONAL FINANCIAL REPORTING STANDARDS

The Australian Accounting Standards Board (AASB) is adopting the International Financial Reporting Standards (IFRS) for application to reporting periods beginning on or after 1 January 2005.

This financial report has been prepared in accordance with Australian accounting standards and other financial reporting requirements (Australian GAAP). The differences between Australian GAAP and IFRS identified to date as potentially having a significant effect on the Company's financial performance and financial position are summarised below. The summary should not be taken as an exhaustive list of all the differences between Australian GAAP and IFRS. No attempt has been made to identify all disclosure, presentation or classification differences that would affect the manner in which transactions or events are presented.

The company's management are assessing the significance of these changes and preparing for their implementation.

The Company has not quantified the effects of the differences discussed below. Accordingly, there can be no assurances that the financial performance and financial position as disclosed in this financial report would not be significantly different if determined in accordance with IFRS.

The directors of the company are of the opinion that the key difference in the entity's accounting policies that will arise from the adoption of IFRS are:

$a)$ Income Tax

Income tax will be calculated on the "balance sheet" approach, which will result in more deferred tax assets and liabilities, as tax effects follow the underlying transaction, some tax effects will be recognised in equity.

b) Equity-based compensation benefits

Equity-based compensation in the form of shares and options will be recognised as expenses in the periods during which the employee provides related services.

Comparatives $c$

Changes in accounting policies will be recognised by restating comparatives rather than making current year adjustments with note disclosure of prior year effects.

$d$ Deferred Exploration Expenditure

Under the AASB 6: Exploration for and evaluation of mineral resources, it is expected that the Company's existing policy for accounting for exploration and evaluation activity will comply with IFRS requirements and therefore no difference is expected to result from the treatment of costs or from impairment testing.

The above should not be regarded as a complete list of changes in accounting policies that will result from the transition to IFRS, as not all standards have yet been analysed and some decisions have not yet been made where choices of accounting policies are available. For these reasons it is not yet possible to quantify the impact of the transition to IFRS on the Company's financial position and reported results.

RAND MINING NL DIRECTORS' DECLARATION FOR THE HALF YEAR ENDED 31 DECEMBER 2004

In the opinion of the directors:

(a) the financial statements and notes of the consolidated entity:
give a true and fair view of the consolidated entity's financial position as at 31 December 2004 and $\left( i\right)$ its performance as represented by the results of its operations and its cash flows, for the half-year ended on that date; and
$(ii)$ comply with Accounting Standards, Corporations Regulations 2001 and other mandatory professional reporting requirements; and
(b) there are reasonable grounds to believe that Rand Mining NL will be able to pay its debts as and when they become due and payable.

This declaration is made in accordance with a resolution of the Board of Directors and is signed for and on behalf of the Directors by:

A Billis Director

Dated 15^th March 2005

INDEPENDENT REVIEW REPORT TO THE MEMBERS OF RAND MINING NL

Scope

The financial report and directors' responsibility

The financial report comprises the statement of financial position, statement of financial performance, statement of cash flows, accompanying notes to the financial statements, and the directors' declaration for Rand Mining NL (the company) and the consolidated entity, for the half-year ended 31 December 2004. The consolidated entity comprises both the company and the entities it controlled during that half-year.

The directors of the company are responsible for preparing a financial report that gives a true and fair view of the financial position and performance of the company and the consolidated entity, and that complies with Accounting Standard AASB 1029 "Interim Financial Reporting", in accordance with the Corporations Act 2001. This includes responsibility for the maintenance of adequate accounting records and internal controls that are designed to prevent and detect fraud and error, and for the accounting policies and accounting estimates inherent in the financial report.

Review approach

We conducted an independent review of the financial report in order to make a statement about it to the members of the company, and in order for the company to lodge the financial report with the Australian Stock Exchange and the Australian Securities and Investments Commission.

Our review was conducted in accordance with Australian Auditing Standards applicable to review engagements, 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 the Corporations Act 2001, Accounting Standard AASB 1029 "Interim Financial Reporting" and other mandatory professional reporting requirements in Australia, so as to present a view which is consistent with our understanding of the company's and the consolidated entity's financial position, and of their performance as represented by the results of their operations and cash flows.

A review is limited primarily to inquiries of company personnel and analytical procedures applied to the financial data. These procedures do not provide all the evidence that would be required in an audit, thus the level of assurance is less than given in an audit. We have not performed an audit and, accordingly, we do not express an audit opinion.

Independence

We are independent of the company, and have met the independence requirements of Australian professional ethical pronouncements and the Corporations Act 2001.

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Statement

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

(a) the Corporations Act 2001, including:
giving a true and fair view of the financial position of Rand Mining NL and the $(i)$ consolidated entity at 31 December 2004 and of their performance for the halfyear ended on that date; and
$(ii)$ complying with Accounting Standard AASB 1029 "Interim Financial Reporting" and the Corporations Regulations 2001; and

(b) other mandatory financial reporting requirements in Australia.

Chus Chadide

DATED at PERTH this 16 day of March 2005

HALL CHADWICK Chartered Accountants

MAURICE L ANGHIE Partner

K Hall Chadwick Chartered Accountants & Business Advisers

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16 March 2005

The Board of Directors Rand Mining NL Unit G1 49 Melville Parade SOUTH PERTH WA 6151

Dear Board Members,

RAND MINING NL

In accordance with section 307C of the Corporations Act 2001, I am pleased to provide the following declaration of independence to the directors of Rand Mining NL.

As lead audit partner for the review of the financial statements of Rand Mining NL for the half-year ended 31 December 2004, I declare that to the best of my knowledge and belief, there have been no contraventions of:

the auditor independence requirements of the Corporations Act $(i)$ 2001 in relation to the review; and
any applicable code of professional conduct in relation to the $(ii)$ review.

Yours sincerely,

aaaaaaan

EM.

Thus Chadrile

HALL CHADWICK CHARTERED ACCOUNTANTS

MAURICE L ANGHIE PARTNER