RAND MINING LIMITED — Interim / Quarterly Report 2006

Oct 29, 2006

ABN 41 004 669 658

Suite G1/2 49 Melville Parade South Perth WA 6151 Australia

PO Box 307 West Perth WA 6872 Australia

T 61894742113 F 61 8 9367 9386 E info@randmining.com.au W randmining.com.au

30 October 2006

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

Quarterly Report for September 2006

Highlights

• 33,011 tonnes of Raleigh Ore at an estimated grade of 15.3 g/t had been hauled and $\bullet$ stockpiled at the Greenfields Plant ahead of the third treatment campaign (Rand's share $25%$
• The third treatment campaign of the combined Rand Mining NL and Tribune $\bullet$ Resources NL (R&T Group) Raleigh ore commenced on September 26, 2006.
• At the close of the September Quarter 5,489 tonnes were milled, with an estimated $\bullet$ grade of 16.4 g/t. (Rand's share $25\%$ ).
• A total of 755 ounces of gold was poured by the close of the September Quarter. $\bullet$ (Rand's share 188.75 oz)
• A further 22,341 tonnes of Raleigh ore at an estimated grade of 19.9 g/t remain on the $\bullet$ bed blend stockpile near the Raleigh mine (R&T Group's share 50%, Rand's share $12.5\%$ .)
• The mining project operating costs are: $\bullet$

	Sept 06 Q	June $06O$	Project to date
Cost per tonne - ore mined	\$104	-\$100	\$104
Cost per ounce - mined	\$178	\$215	\$193

• The total construction cost expenditure on the Raleigh Underground to date is \$40.28 $\bullet$ million.
• The EKJV employs 92 staff. $\bullet$

GEOLOGY AND MINING

EAST KUNDANA JOINT VENTURE

Raleigh Underground Development

The Raleigh Underground decline was extended to the 6067 Level access. Capital development commenced on the 6085 and 6067 Level accesses.

Ore development continued on the 6136, 6119, 6102, 6085 and 6067 Levels. The ground conditions encountered are within the expected geotechnical design parameters. The stopes are located in the low stress area of the mine.

	Raleigh Underground Development
Month		Capital Development		Operating Development
	Decline	Secondary		Ore	Total
	(m)	(m)	(m)	(m)	(m)
July 06	57	103	46	343	549.
August 06	144	9	0	323	476
September 06	120	44	45	293	502
September 06 Q	321	156	91	959	1,527
June $06Q$	259.3	252.7	210.9	747	1,469
Project to date	1.806	1,583	706	3,863	7,958

Raleigh Underground Mine Production

Stope production continued during the Quarter from the 6185, 6168 and 6,152 Levels.

Stope development and stope ore mined estimated by face chip sampling during the September 06 Quarter is tabulated as follows:

Raleigh Underground Grade Control Estimates
Month	Tonnes	Grade	Ounces
		g/t	troy ounces
July 06	13,051	16.36	6,864
August 06	19.448	16.57	10,359
September 06	21,236	20.90	14,270
September 06 O	53,735	18.23	31,493
June $06Q$	47,154	14.52	22,014
Project to date	190,894	16.76	102,840
Rand's Interest Sep Q	6,583	18.23	3,858
Rand's Entitlement Sep Q	6,717	18.23	3.937

A total of 53,738 tonnes of Raleigh Ore grading an estimated 18.23 $g/t$ for 31,493 ounces of gold was mined during the September 2006 Quarter of which 7,834 tonnes grading 12.24 g/t for 7,019 ounces was mined from M16/157.

Processing of the third campaign of $R\&T$ 's share of Raleigh ore that was mined between May 2006 and August 2006 commenced on September 26, 2006 Processing continued until October 20, 2006.

Bullion
Quarter	Gold	Silver	Rand's share gold
September 06 Q	$\blacksquare$	$\overline{\phantom{a}}$	14
June $06Q$	7,153	1.153	1,788
March $06Q$	13,351	1.827	3,338
Project Total	20.504	2.980	5.126

A total of 24,517 tonnes of Raleigh ore containing an estimated 13,613 ounces of gold, being R&T's share has been hauled in the September 2006 Quarter to Greenfields Plant. A total of 26,000 tonnes of Raleigh Ore remain on the stockpile at Greenfields at the September 30, 2006.

Resource Development

A feasibility study for the development of the Hornet and Rubicon Underground mines continued during the period. Production schedules and operating cost estimates were completed. Surface infrastructure layout and estimate calculations commenced for a dedicated change house, office facility and day maintenance to be established at the Rubicon mine site.

A new Pegasus Mineral Resource model (PUG1006) has been generated incorporating drilling results reported in the June 06 Ouarter. Rand has a 12.25% Interest in the Pegasus mineral resource.

Pegasus Mineral Resource Estimate
		PUG1104 (old)		PUG1006 (new)
	Tonnes	Au g/t	Au oz	Tonnes	Au g/t	Au oz
Indicated			$\,$	263,478	9.86	83,524
Inferred	663,408	7.23	154,125	199.751	7.01	45,019
663,408 7.23 154,125 463,229 8.63 Ind+Inf

EXPLORATION

Exploration Drilling
	Prospect	Air Core		Reverse Circulation		Diamond Core
		holes	metres	holes	metres	hole	metres
July 06	Kundana North	$\overline{\phantom{0}}$					900
August 06	Kundana North						1,149
September 06	Kundana North						1,104
September 06 Q						10	3,153

Kundana North

Diamond core drilling of targets in the Kundana North area continued to be tested during the quarter. A total of sixteen diamond holes have been completed for 4,533m. The Kundana North area is being re-mapped to refine the information to aid in target selection.

HOLE	COLLAR	FROM	TO 1	UNCUT GRADE 1g/t	INTERVAL
WAD05-108	MGA N 6607552 MGA E 326682 AHD 375 m Azimuth 50 Dip -55 Depth 249m			No significant assays
WAD06-109	MGA N 6607940 MGA E 327262 AHD 375 m Azimuth 50 Dip -55 Depth 498m	216	219	1.08	New mineralized zone at an ultramafic basalt contact
WAD05-112	MGA N 6607726	178	236	1.26	45m downhole at 1.26g/t
	MGA E 327123	178	192	2.27	14m downhole at 2.27g/t
	AHD 374.9m Azimuth 353.5 Dip -62.4 Depth 3454m	216	217	8.73	Im downhole at 8.73g/t
WAD05-113	MGA N 6607742 MGA E 327101 AHD 374.6m Azimuth 357.8 Dip -61.9 Depth 255m	201	245	0.49	44m downhole at 0.49g/t
WAD05-114	MGA N 6607749 MGA E 327140 AHD 375.3m Azimuth 352.2 Dip -62.7 Depth 243m	166	215	1.01	49m downhole at 1.01g/t
MAD06-501	MGA N 6608552 MGA E 325446 AHD 355m Azimuth 52 Dip collar 55 Depth 189m			Assays pending	Intersected previously unrecognized altered polymictic conglomerate.
FND06-401	MGA N 6608250 MGA E 3256423 AHD 355m Azimuth 17 Dip collar 55 Depth 348m	188 235	210 242	0.67 1.54	Intersected quartz veining with pyrite, pyrrhotite and arsenopyrite in altered High-Mg basalt.
FND06-402	MGA N 6608560 MGA E 326243 AHD 355m Azimuth 52 Dip collar 55 Depth 474m	115	117	3.1	Shear zone+Q/Cb veining on Sediment/High Mg Basalt contact
		443	444	7.03	Shear zone+Q/Cb veining on High Mg basalt/dolerite

HOLE	COLLAR	FROM	TO	UNCUT GRADE 1g/t	INTERVAL
FND06-403	MGA N 6608968			Assays	Intersected previously
	MGA E 326254			pending	unknown dolerite,
	AHD 360m				porphyry dykes & quartz
	Azimuth 52				veining at high - Mg
	Dip collar 55				basalt sediment contact
	Depth 409.5m
FND06-404	MGA N 6608989			Assays	Intersected previously
	MGA E 326045			pending	unknown dolerite,
	AHD 360m				porphyry dykes & quartz
	Azimuth 52
					veining at high - Mg
	Dip collar 55				basalt sediment contact;
	Depth 428.8m				strong veining, brecciation,
					pyrrhotite & arsenopyrite
UMD06-201	MGA N 6603805	243	262	0.64	on basalt/komatite contact Quartz veining & pyrite,
	MGA E 328316	297	305	0.32	pyrrhotite & arsenopyrite
	AHD 355m				in dolerite.
	Azimuth 55
	Dip collar 55
	Depth 504m
UMD06-202	MGA N 6603500				Veining & pyrite,
	MGA E 328486				pyrrhotite, arsenopyrite in
	AHD 355m				dolerite & agglomerate
	Azimuth 250				porphyry
	Dip collar 50
	Depth260m
UMD06-203	MGA N 6603146				Veining & pyrite,
	MGA E 328332				pyrrhotite, arsenopyrite in
	AHD 355m				dolerite basalt &
	Azimuth 50				agglomerate
	Dip collar 50
	Depth400m
UMD06-204	MGA N 6604389			Assays	Veining & pyrite,
	MGA E 327843			pending	pyrrhotite, arsenopyrite in
	AHD 355m				dolerite basalt &
	Azimuth 230				agglomerate
	Dip collar 50
	Depth531m
COD06-301	MGA N 6604809			Assays	Several anomalous zones
	MGA E 328389			pending	$0.1$ to $0.6$ g/t within a
	ADH 365m				strongly altered gabbro
	Azimuth 290
	Dip collar 55
	Depth 384m
COD 06-302	MGA N 6604900			Assays
	MGA E 328401 ADH 365m			pending
	Azimuth 290
	Dip collar 55
	Depth In progress

Example of the Histography and Society and Netscharge Limited, the geological information in this report which relates to Mineral
In accordance with Listing Rule 5.10 of the Australian Stock Exchange Limited, the geologica based on their information in the form and context in which it appears.

OTHER EXPLORATION

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

The potential for further exploration targets for drill testing within the Seven Mile Hill tenements are limited and discussions to farm out the tenements is continuing.

Appendix 5B

$Rule 5.3$

Mining exploration entity quarterly report

г

Introduced 1/7/96. Origin: Appendix 8. Amended 1/7/97, 1/7/98, 30/9/2001.

Name of entity

Rand Mining NL

ABN

41 004 669 658

Quarter ended ("current quarter")

30 September 2006

Consolidated statement of cash flows

			Current quarter	Year to date
	Cash flows related to operating activities		SA'000	$(3$ months)
				\$A'000
$\mathbf{L}$	Receipts from product sales and related debtors		2,420	2,420
1.2	Payments for	(a) exploration and	(363)	(363)
		evaluation
		(b) development
		(c) production	(656)	(656)
		(d) administration	(283)	(283)
$\mathsf{L}3$	Dividends received
$\mathsf{L}4$	Interest and other items of a similar nature received		30	30
L5	Interest and other costs of finance paid		(370)	(370)
1.6	Income taxes paid
1.7	Other (provide details if material)
	Net Operating Cash Flows		778	778
	Cash flows related to investing activities
1.8	Payment for purchases of: (a) prospects
		(b) equity investments	(45)	(45)
		(c) other fixed assets	(8)	(8)
1.9	Proceeds from sale of:	(a) prospects
		(b) equity investments
		(c) other fixed assets
1.10	Loans to other entities		(12)	(12)
1.11	Loans repaid by other entities		$\blacksquare$	11
1.12	Other - Loans received from Tribune Resources
	- Loans repaid to Tribune Resources
	Net investing cash flows		(52)	(52)
1.13	Total operating and investing cash flows (carried
	forward)		726	726

⁺ See chapter 19 for defined terms.

1.13	Total operating and investing cash flows (brought forward)	726	726
	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
1.17	Repayment of borrowings	(961)	(961)
1.18	Dividends paid
1.19	Other (provide details if material)
	Net financing cash flows	(961)	(961)
	Net increase (decrease) in eash held	(235)	(235)
1.20	Cash at beginning of quarter/year to date	2,149	2,149
1.21	Exchange rate adjustments
1.22	Cash at end of quarter	1,914	1,914

Payments to directors of the entity and associates of the directors Payments to related entities of the entity and associates of the related entities

		Current quarter \$A'000
1.23	Aggregate amount of payments to the parties included in item 1.2	(51)
1.24	Aggregate amount of loans to the parties included in item 1.10	(11)

1.25 Explanation necessary for an understanding of the transactions

The aggregate amount of loans (item 1.10) made to specified parties are as follows: Oretek International Limited (12)

Directors fees and superannuation (included in administration 1.2 (d)) $(51)$

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

In January 2006, Tribune Resources NL loaned the Company 4,000 ounces of gold bullion. At the end of the quarter the Company has 600 ounces of this gold bullion still on hand.

$2.2$ Details of outlays made by other entities to establish or increase their share in projects in which the reporting entity has an interest

Not applicable

$+$ See chapter 19 for defined terms.

Financing facilities available

Add notes as necessary for an understanding of the position.

		Amount available \$A'000	Amount used \$A'000
3.1	Loan facilities	4,750	4.719.
3.2	Credit standby arrangements

Estimated cash outflows for next quarter

	Total	350
4.2	Development	200
4.1	Exploration and evaluation	150
		\$A'000

Reconciliation of cash

$\overline{\phantom{0}}$

	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 and at bank	1.817	2,052
5.2	Deposits at call - Performance Bonds	97	97
5.3	Bank overdraft
5.4	Other
	Total: cash at end of quarter (item 1.22)	1.914

Changes in interests in mining tenements

		Tenement reference	Nature of interest (note (2))	Interest at beginning of quarter	Interest at end of quarter
6.1	Interests in mining tenements relinquished, reduced or lapsed
6.2	Interests in mining tenements acquired or increased

⁺ See chapter 19 for defined terms.

Issued and quoted securities at end of current quarter
Description includes rate of interest and any redemption or conversion rights together with prices and dates.

		Total number	Number quoted	Issue price per	Amount paid up per
				security (see note $3)$ (cents)	security (see note 3) (cents)
7.1	Preference *securities (description)
7.2	Changes during quarter (a) Increases through issues (b) Decreases through returns of capital, buy- backs, redemptions
7.3	*Ordinary securities	40,560,813	40,560,813
7.4	Changes during quarter (a) Increases through issues (b) Decreases through returns of capital, buy- backs
7.5	*Convertible
7.6	debt securities (description) Changes during quarter (a) Increases through issues (b) Decreases through securities matured, converted
$7.7\,$	Options (description and conversion factor)			Exercise price	Expiry date
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)

$+$ See chapter 19 for defined terms.

Compliance statement

• $\mathbf{I}$ This statement has been prepared under accounting policies which comply with accounting standards as defined in the Corporations Act or other standards acceptable to ASX (see note 4).
• $\overline{2}$ This statement does give a true and fair view of the matters disclosed.

re:		Date: 30 October 2006
	(Director)

Sign he

Print name: Anthony Billis

Notes

• $\mathbf{I}$ 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.
• The "Nature of interest" (items 6.1 and 6.2) includes options in respect of interests in $\overline{2}$ 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.
• 3 Issued and quoted securities The issue price and amount paid up is not required in items 7.1 and 7.3 for fully paid securities.
• 4 The definitions in, and provisions of, AASB 1022: Accounting for Extractive Industries and AASB 1026: Statement of Cash Flows apply to this report.
• 5 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.

---

⁺ See chapter 19 for defined terms.