RAND MINING LIMITED — Interim / Quarterly Report 2005

Jan 30, 2005

31st January 2005

The Listing Manager Australian Stock Exchange Level 10 20 Bond Street SYDNEY NSW 2000

Quarterly Report for period ending 31 December 2004 Geology and Mining

REVIEW OF OPERATIONS

East Kundana Joint Venture

The East Kundana Joint Venture has combined resources of 1.382 million ounces inclusive of an estimated 0.594 million ounces in reserves remaining as at 31 December 2004.

The construction phase of the Raleigh Underground project commenced during the quarter. 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 quarter.

No production occurred on the East Kundana Joint Venture tenements.

A programme of 9 reverse circulation pre-collars totaling 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.

Rand Mining NL ACN 004 669 658 Suite G1/2, 49 Melville Parade, South Perth. WA 6151 Australia Correspondence: PO Box 307, West Perth. WA 6872 Australia Telephone (08) 9474 2113. Fax (08) 9367 9386

Seven Mile Hill Joint Venture

Mineralisation previously defined at the Binduli project was evaluated by 7 RC holes totaling 798m was completed during the Quarter. 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.

Hole	Northing	Easting	From	T 0	M	$g/t$ Au
BRC010	6582300	349275	57	58		2.77
			90	91		3.48
BRC011	6582300	349225	33	34		1.48
			60	61	1	3.46
			65	66	1	1.15
			67	68	1	1.69
BRC013	6583100	348615	44	45		1.13
			54	55	1	2.61
BRC014	6582900	348715	36	37		2.16
			56	57		1.00
BRC015	6582900	348665	55	56		4.54

Yours faithfully

A Billis Director

Rand Mining NL ACN 004 669 658 Suite G1/2, 49 Melville Parade, South Perth. WA 6151 Australia Correspondence: PO Box 307, West Perth. WA 6872 Australia Telephone (08) 9474 2113. Fax (08) 9367 9386

Appendix 5B

Mining exploration entity quarterly report

Name of entity

RAND MINING NL

ACN or ARBN

004 669 658

Quarter ended (current quarter)

31 December 2004

Consolidated statement of cash flows

		Current quarter	Year to date
	Cash flows related to operating activities	$$A=000$	(6 months)
			$$A=000$
1.1	Receipts from product sales and related debtors	(97)	(26)
1.2	Payments for exploration and evaluation (a) (b) development (c) production administration (note 2) (d)	(27) (355) (289)	(59) (402) (3) (540)
1.3	Dividends received
1.4	Interest and other items of a similar nature received	14	15
1.5	Interest and other costs of finance paid	(20)	(20)
1,6	Taxes paid	17	(7)
1,7	Re-imbursement of Exploration Costs
	Net operating cash flows	(757)	(1, 042)
	Cash flows related to investing activities
1.8	Payment for purchase of: (a) prospects (b) equity investments other fixed assets (c)	(610) (9)	(974) (9)
1.9	Proceeds from sale of: (a) prospects (b) equity investments other fixed assets (c)	171	171
1,10	Loans to other entities (note 3)	(354)	(363)
1.11	Loans repaid by other entities
1.12	Other (provide details if material)
	Net investing cash flows	(802)	(1, 175)
1,13	Total operating and investing cash flows (carried forward)	(1,559)	(2, 217)

1.13	Total operating and investing cash flows (brought forward)	(1,559)	(2,217)
	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	875	875
1.17	Repayment of borrowings
1.18	Dividends paid
1.19	Commissions on capital raising
	Net financing cash flows	875	875
	Net increase (decrease) in cash held	(684)	(1, 342)
1.20	Cash at beginning of quarter/year to date	4,087	4,745
1.21	Exchange rate adjustment to 19
1.22	Cash at end of quarter	3,403	3,403

Non-cash financing and investing activities

• Details of financing and investing transactions which have had a material effect on consolidated assets $2.1$ 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 available

Add notes as necessary for an understanding of the position.

The joint limited recourse loan facilities are provided to Rand Mining NL and Tribune Resources NL by ANZ Investment Bank. The funds are to cover the companies' share of construction, development and operating costs at Raleigh underground, as well as discretionary exploration and capital expenditure for the rapid development of other projects within the joint venture.

		Amount available $$A=000$	Amount used $$A=000$
3.1	Loan facilities	4.750	875
3.2	Credit standby arrangements	-	$\sim$

Estimated cash outflows for next quarter

		\$A=000
4.1	Exploration and evaluation	900
4.2	Development	200
	Total	1,100

Reconciliation of cash

Reconciliation of cash at the end of the quarter (as shown in the consolidated statement of cash flows) to the related items in the accounts is as follows.		Current quarter $A = 000$	Previous quarter $A = 000$
5.1	Cash on hand at bank	1.092	1.266
5.2	Deposits at call (performance bonds)	97	97
5.3	Bank overdraft
5.4	Other – gold bullion on hand	2.214	2.724
Total: cash at end of quarter (item 1.22)		3,403	4.087

Changes in interest in mining tenements

		Tenement reference	Nature of interest (note(4))	Interest at beginning of quarter	Interest at end of quarter
6.1	Interests in mining tenements relinquished, reduced or lapsed	26/2992		80%
6.2	Interest in mining tenements acquired or increased

Issued and quoted securities at end of current quarter
Description 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 debt securities (description)
7.6	Issued during quarter
7.7	Options (description)	2,300,000		Exercise Price 20 cents	Expiry Date 30 April 2005
7.8	Issued during quarter
7.9	Exercised during quarter
	7.10 Expired during quarter
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.

\$59,091 was paid to STT Ptv Ltd for salaries and management fees for the December 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	6.861
STT Pty Ltd	(2,378)
Mt Dimer Gold Mines	10.000
Loan from Tribune Resources	339.847
	\$354.330

• The Nature of interest (items 6.1 and 6.2) includes options in respect of interests in mining 4 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.
• 1. The definitions in, and provisions of, AASB 1022: Accounting for Extractive Industries and 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.