RAND MINING LIMITED — Interim / Quarterly Report 2006

Jul 30, 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 61 8 9474 2113
F 61 8 9367 9386
E info@randmining.com.au
W randmining.com.au

31 July 2006

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

Quarterly Report for June 2006

Highlights

۰	Raleigh ore processed in the first treatment campaign had a 40% overcall to the ore reserve contained in the Raleigh Feasibility Study.
٠	During the quarter, the second treatment campaign of the combined share of Rand Mining NL and Tribune Resources NL (R&T) Raleigh ore was completed. A total of 19,400 tonnes grading $12.2$ g/t were processed. Rand's share is 1,788 ounces of gold.
٠	A total of 8,700 tonnes of Raleigh ore at an estimated grade of 10 $g/t$ has been hauled and stockpiled at the Greenfields Plant ahead of the third treatment campaign, scheduled to commence in August 2006 (Rand's share 25%).
۰	A further 16,000 tonnes of Raleigh ore at an estimated $19g/t$ for 10,000 ounces of gold remains on the bed blend stockpile near the Raleigh mine (Rand's share 12.5%)
	The mining project operating costs are:
		June $06Q$	March $06Q$	Project to date
	Cost per tonne ore mined	\$100	\$109.	\$104
	Cost per ounce mined	\$160	\$246	\$199
۰	The construction phase of the Raleigh Underground project was completed at a cost of \$39.9M. The operating capital year to date is \$3.6M.

GEOLOGY AND MINING

EAST KUNDANA JOINT VENTURE

Raleigh Underground Development

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

Ore development was completed on the 6152 Level and continued on 6136 Level. Ore development commenced on the 6119 and 6102 Levels. The ground conditions encountered were 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 $(m)$	Secondary (m)	Waste $(m)$	Ore(m)	Total $(m)$
April 06	120	41	88.8	236.4	486
May 06	80.3	94.4	76.3	240.5	492
June 06	59	117.3	45.8	270.1	492
June $06Q$	259.3	252.7	210.9	747	1,469
March 06 O	233.2	277.4	198	738.4	1.447
Project to date	1,485	1,427	614.9	2.904	6,431

Raleigh Underground Mine Production

Stope production continued during the Quarter from the 6185, 6168 and 6,152 Levels. The average width of stopes mined was less than the Bankable Feasibility design width of 3 metres, reducing the dilution of broken ore that will reduce haulage and processing costs.

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

RALEIGH UNDERGROUND GRADE CONTROL ESTIMATES
Month	Tonnes	Grade	Ounces
		g/t	Troy ounces
April 06	14.977	14.1	6,799
May 06	16,104	10.07	5.213
June 06	16.073	19.36	10.002
June $O(06)$	47.154	14.5	22.014
Project to date	137,157	16.2	71,346

The Raleigh underground mine straddles the lease boundary between M15/993 (100% EKJV) and M16/157 (100% Kundana Gold Pty Ltd). Of the project to date the EKJV has mined an estimated 47,467 tonnes grading $11.8g/t$ for 18,061 ounces from M16/157 for which the EKJV pays a royalty to Barrick Gold and a lease fee per ounce mined in return for the use of EKJV capital. The rent ceases when the ounces of gold mined exceeds 122,300 ounces.

A total of 47,154 tonnes of Raleigh Ore grading an estimated 14.5 $g/t$ for 22,014 ounces of gold was mined during the June 2006 Quarter of which 11,316 tonnes grading 16.6 $g/t$ for $6,050$ ounces mined from M16/157. Ore mined in June 2006 totalling 16,000 tonnes at an estimated grade of 19g/t containing 10,000 ounces of gold has been placed on a bed blend stockpile near the Raleigh mine for haulage to the processing plants in July 2006.

Processing the second campaign of R&T's share of Raleigh ore that was mined between February and April 2006 commenced on May 4 and completed on May 29, 2006. A total 7,153 ounces of fine gold and 1,153 ounces of fine silver were recovered.

TOLL PROCESSING
Ouarter	Gold	Silver	Rand's share gold
June $06Q$	7.153	.153	1.788
March 06 Q	13.351	1.827	3.338
Project Total	20,504	2.980	5.126

A total of 8.700 tonnes of Raleigh ore containing an estimated 2.600 ounces of gold, being R&T's share has been hauled in June 2006 to Greenfields Plant and stockpiled for the third processing campaign expected to commence in August 2006.

Production from the Raleigh Underground mine is ramping up to approximately 25,000 tonnes per month (Rand's share 12.5%) The increase in tonnes will enable processing campaigns of longer duration each quarter.

Raleigh Underground Resource Delineation Drilling

A nine hole diamond drilling program that commenced at the end of the March 2006 Quarter were completed in April 2006. The information demonstrated above the 6035m RL the ore boundary extended is a further 10 to 30m north of the previously known position.

Resource Development

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

A drill program consisting of 18 diamond holes commenced on April 11, 2006 to infill the top 100 metres of the fresh K2 lode structure. The drilling will upgrade the Inferred Pegasus Underground resource to an indicated category.

	RESOURCE DEVELOPMENT DRILLING
	Prospect		Air Core		Reverse Circulation		Diamond Core
		holes	metres	holes	metres	hole	metres
April 06	Pegasus			$10*$	729		477.2
May 06	Pegasus			2*	244	13	,098
June 06	Pegasus
June $06O$					-973	18	.575
				* Diamond hole precollars

PEGASUS RESOURCE DRILLING RESULTS
HOLE	COLLAR	FROM	TO	UNCUT GRADE l g/t	INTERVAL
PGRCD021	N 6247 E 20673 RL 6342 Azimuth 90 Dip 60 Depth 209.9m	122.75	123.1	1.47	0.35m downhole at 0.35m

	PEGASUS RESOURCE DRILLING RESULTS
HOLE	COLLAR	FROM	TO 1	UNCUT GRADE l g/t	INTERVAL
PGRCD022	N 6287 E 20687 RL 6342	99	100	0.79	1m downhole at 0.79g/t K2B vein?
	Azimuth 90 Dip 60 Depth 209.9m	161	162.1	5.85	1.1m downhole at 1.1g/t K2 vein
PGRCD023	N 6272 E 20758 RL 6342 Azimuth 90 Dip 60 Depth 100m	66.8	68.75	37.02	1.95m downhole at 37.02 g/t K2 vein with visible gold and galena
		68.75	71	1.23	2.25m downhole at $1.23$ g/t. Altered footwall shear zone
PGRCD024	N 6327 E 20694 RL 6342 Azimuth 90 Dip 60 Depth 207m	169.28	169.8	0.14	0.5 m downhole at K2 position with no significant grade
		170.7	173	$\overline{1.5}$	2.3m downhole. Altered footwall shear zone.
PGRCD026	N 6362 E 20775 RL 6342 Azimuth 90 Dip 60 Depth 100m	69.3	71.75	4.56	2.45m downhole at 4.56g/t. Includes 12.9 g/t from 71 to 71.5m.
PGRCD030	MGA N 6443 MGA E 20765 RL 6342 Azimuth 90 Dip 60 Depth 88m	82	85	3.68	3m downhole at 3.68g/t K2 vein
PGRCD034	MGA N 6484 MGA E 20741 RL 6342 Azimuth 59 Dip 60 Depth 116.8m	98.65	106.2	7.82	7.55m downhole at 7.82g/t. Sheared K2 vein structure
		94.6	107	5.81	12.4 m downhole at 5.81 g/t
	NB Startrek Grid

EXPLORATION

EKJV EXPLORATION

EXPLORATION DRILLING
	Prospect		Air Core		Reverse Circulation		Diamond Core
		holes	metres	holes.	metres	hole	Metres
April 06	Wards				U	o
	Wicked Witch				0	o
May 06	Wards				0		747
	Wicked Witch	- 11		н	0	0
June 06	Wards				0	0
	Kundana North	$^{\circ}$		អ	0	4	1.210
June $06O$				Ω	0	6	1,957
March 06 O				10	760	10	2.789

Wards

Drilling completed during the quarter defined an altered stockwork veined gold bearing zone of variable thickness over a 200 m length.

HOLE	COLLAR	FROM	TO.	UNCUT GRADE > Ig/t	INTERVAL
WAD05-108	MGA N 6607552 MGA E 326682 AHD 375 m Azimuth 50 $Dip - 55$ Depth 249m				Logging in progress
WAD06-109	MGA N 6607940 MGA E 327262 AHD 375 m Azimuth 50 $Dip - 55$ Depth 498m	217.5		Assays pending
WAD05-112	MGA N 6607726 MGA E327123 AHD 374.9m Azimuth 353.5 Dip -62.4 Depth 3454m	178 178 216	236 192 217	1.26 2.27 8.73	45m downhole at 1.26g/t 14 downhole at 2.27g/t 1m downhole at 8.73g/t
WAD05-113	MGA N 6607742 MGA E 327101 AHD 374.6m Azimuth 357.8 $Di\phi - 61.9$ Depth 255m	201	245	0.49	44m downhole at 0.49g/t
WAD05-114	MGA N 6607749 MGA E 327140	166	215	1.01	49m downhole at 1.01g/t

HOLE	COLLAR	FROM	TO.	UNCUT GRADE > Ig/t	INTERVAL
	AHD 375.3m Azimuth 352.2 Dip $-62.7$ Depth 243m

Kundana North

HOLE	COLLAR	FROM	TO	UNCUT GRADE 1g/t	INTERVAL
MAD06-501	MGAN 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			Assays pending	Intersected previously unidentified High-Mg basalt showing strong alteration.
FND06-402	MGA N 6608560 MGA E 326243 AHD 355m Azimuth 52 Dip collar 55 Depth 474m			Assays pending	Intersected previously unrecognized dolerite within ultramafic rocks.
UMD06-201	MGA N 6603805 MGA E 328316 AHD 355m Azimuth 55 Dip collar 55				Drilling in progress

Wicked Witch

A program of three diamond holes drilled between January and February 2006 to test for mineralization beneath a coherent tungsten-arsenic-antimony base of hole multi-element anomaly above an interpreted rotation in the dip of the stratigraphy and Strezlecki Shear did not return any significant gold mineralisation.

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.

Larkinville (Rand's Interest 100%)

The Larkinville tenements were disposed of during the period. A gross royalty is retained.

Yours faithfully

Anthony Billis Director

Notes:

The information in the tables in this report that relate to Exploration Results are based on information compiled by Robert Henderson, who is a member of the Australasian Institute of Mining and Metallurgy and a full-time employee of Barrick Gold Ltd., and has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which they are undertaking to qualify as Competent Persons as defined in the 2004 Edition Revised edition of the "Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves". This report was compiled by Dr Ian Robertson who is a Fellow of the Australasian institute of Mining and Metallurgy and AIG who is a full time employee of Tribune Resources N.L. and has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity undertaken to qualify as a Competent Person. Robert Henderson and Ian Robertson consent to the inclusion in the report of the matters based on their information in the form and context in which it appears.

Appendix 5B

$Rule 5.3$

Mining exploration entity quarterly report

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 June 2006

Consolidated statement of cash flows

	Cash flows related to operating activities	Current quarter SA'000	Year to date $(12$ months) \$A'000
$\mathbf{L}$	Receipts from product sales and related debtors	3,077	7,949
1.2	Payments for (a) exploration and
	evaluation	(120)	(397)
	(b) development	(299)	(793)
	(c) production	(722)	(3,233)
	(d) administration	(560)	(1, 144)
1.3	Dividends received
$\mathsf{L}$	Interest and other items of a similar nature received	12	69
1.5	Interest and other costs of finance paid	(97)	(356)
1.6	Income taxes paid		(218)
1.7	Other (provide details if material)
	Net Operating Cash Flows	1,291	1,877
	Cash flows related to investing activities
1.8	Payment for purchases of: (a) prospects		(292)
	(b) equity investments (c) other fixed assets	(25) (276)	(3,107)
1.9	Proceeds from sale of: (a) prospects
	(b) equity investments		43
	(c) other fixed assets		(327)
1.10	Loans to other entities	(13)
1.11	Loans repaid by other entities
1.12	Other - Loans received from Tribune Resources		1,502
	- Loans repaid to Tribune Resources		(297)
	Net investing cash flows	(314)	(2,478)
1.13	Total operating and investing cash flows (carried
	forward)	977	(601)

⁺ See chapter 19 for defined terms.

1.13	Total operating and investing cash flows	977	(601)
	(brought forward)
	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		1.694
1.17	Repayment of borrowings
1.18	Dividends paid
1.19	Other (provide details if material)
	Net financing cash flows		1.694
	Net increase (decrease) in eash held	977	1,093
1.20	Cash at beginning of quarter/year to date	1,174	1,058
1.21	Exchange rate adjustments
1.22	Cash at end of quarter	2,151	2,151

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	(67)
1.24	Aggregate amount of loans to the parties included in item 1.10	(13)

1.25 Explanation necessary for an understanding of the transactions

Directors fees and superannuation (included in administration $1.2$ (d)) (67)
The aggregate amount of loans (item $1.10$ ) made to specified parties are as follows: Oretek Limited (13)

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

Tribune Resources NL has provided the Company with a loan of 4,000 ounces of gold. At the end of the quarter the Company has 2,300 ounces of this gold 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.

$\overline{\phantom{a}}$

Financing facilities available

Add notes as necessary for an understanding of the position.

		Amount available \$A'000	Amount used SA'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

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 SA'000	Previous quarter SA'000
5.1	Cash on hand and at bank	2,054	1,077
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)	2,151	1.174

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 security (see note $3)$ (cents)	Amount paid up per 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 debt securities
7.6 7.7	(description) Changes during quarter (a) Increases through issues (b) Decreases through securities matured, converted Options			Exercise price	Expiry date
	(description and conversion factor)
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 $\text{ASK}$ (see note 4).
• $\overline{2}$ This statement does give a true and fair view of the matters disclosed.

ere:	(Director)

Sign h

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.
• The definitions in, and provisions of, AASB 1022: Accounting for Extractive Industries 4 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.