RAND MINING LIMITED — Interim / Quarterly Report 2007

Mar 15, 2007

RAND MINING NL ABN 41 004 669 658 FINANCIAL REPORT FOR THE HALF YEAR ENDED 31 DECEMBER 2006

Rand Mining NL ABN 41 004 669 658 and Controlled Entities Contents

Directors' Report
Auditor's Independence Declaration
Consolidated Income Statement
Consolidated Balance Sheet
Condensed Statement of Changes in Equity
Consolidated Cash Flow Statement
Notes to the Financial Statements
Directors' Declaration
Independent Review Report to the Members of Rand Mining NL

Your directors submit the financial report of the economic entity for the half-year ended 31 December 2006.

Directors

The names of directors who held office during or since the end of the half-year:

J Andrews - resigned 25/1/2007	A Billis - Director since 2003
W Jay – resigned $29/1/2007$	O Demis - Director since 1985
	G Sklenka – Director since 2004

Review of Operations

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

Construction of the Raleigh Underground Mine that commenced on 1 December 2004 was completed by March 06 Quarter at a total cost of $39.9M. Raleigh Underground capital development for the Half Year totalled 951.5 metres: 464.6 metres for decline development, 486.8 metres for secondary development.

Operating development for the Half Year totalled 2,202 metres; 406 metres in waste, 1,612.8 metres in ore and 183.2 metres through paste fill. By the close of the half year period development had been extended to a depth of approximately 355 metres below the surface.

Mine production during the Half Year totalled 115,395 tonnes grading 17.2 g/t containing 63,906 ounces of gold, based on grade control estimates. (The previous Half Year 79,909 tonnes grading 14.2 g/t containing 36,498 ounces of gold were estimated to be mined.) Rand's entitlement of the gold is 7,988 ounces.

A total of 61,677 tonnes of Rand and Tribune's combined entitlement to Raleigh ore was hauled from the Raleigh ROM pad to the Greenfields ROM pad.

Two processing campaigns between 26 September 06 to 19 October 2006 and 11 November 2006 to 15 December 2006 processed 62,039 tonnes of Raleigh ore at a head grade of 17.54 g/t. A total of 33,491,740 ounces of gold and 4,526,646 ounces of silver were produced. Rand's share of gold bullion was 8,485.435 ounces.

Feasibility Studies for Hornet and Rubicon Underground as well as Pegasus progressed during the Half Year.

Exploration targets in the Kundana North tenements continued to be tested by eighteen diamond cored holes for 6,364.9 metres drilled. Wards prospect continues to be of interest for further evaluation.

Seven Mile Hill (Rand's Interest 50%)

No work was performed.

Auditor's Independence Declaration

The lead auditor's independence declaration under section 307C of the Corporations Act 2001 is set out on page 7 for the half year ended 31 December 2006.

EKJV RESOURCES, RESERVES, INTEREST

EKJV RESOURCE (inclusive of Ore Reserves) REMAINING AT 31 DECEMBER 2006 (subject to rounding errors)
Project		Measured		Indicated	Inferred			Total
	tonnes	grade	tonnes	grade	tonnes	grade	tonnes	grade	ounces
Raleigh Underground (M15/993)	94,000	31.7	481,000	20.5	504,000	13.7	1,079,000	18.0	625,000
Hornet Open Pit (M16/309)	136,000	3.3	63.000	3.7	130,000	2.5	329,000	3.1	32,000
Hornet Underground (M16/309)			505,000	13.5	266,000	10.9	771,000	12.6	312,000
Rubicon Underground (M16/309)			96.000	22.5	228,000	12.4	324,000	15.4	160,000
Pegasus Open Pit (M16/309)					9,000	4.5	9,000	4.5	1,300
Pegasus Underground (M16/309)			263.000	9.9	200,000	7.0	463,000	8.6	128,000
In Situ Subtotal	230,000	15.0	1,408,000	15.4	1,337,000	10.5	2,975,000	13.2	1,258,300
Raleigh ROM Stockpile M15/993	8,394	16.8					8,394	16.8	4,540
TOTAL	238,394	15.0	1,408.000	15.4	1,337,000	10.5	2,983,394	13.3	1.262,840

R&T GROUP MINERAL RESOURCE ON STOCKPILE AT GREENFIELDS REMAINING AT 31 DECEMBER 2006
(subject to rounding errors)
Project		Measured		Indicated	Inferred		Total
Raleigh Underground	tonnes	arade	tonnes	grade	tonnes	grade	tonnes	grade	ounces
Greenfields ROM	12.01.9305.0005.00012.0

EKJV ORE RESERVE REMAINING AT 31 DECEMBER 2006 (subject to rounding errors)
Project	Proven			Probable	Total
	tonnes	grade	tonnes	grade	tonnes	grade	ounces
Raleigh Underground(M15/993)	117,500	30.0	497.000	14.9	614,700	17.8	351,800
Hornet Open Pit*	135,000	3.3	45,000	4.0	180,000	3.5	20,100
Hornet Underground*			596,000	9.6	596,000	9.6	183,900
Rubicon Underground*			138.000	11.3	138,000	11.3	50,100
In Situ Subtotal	252,500	15.7	1.276.000	11.7	1,528,700	12.3	605,900
Raleigh ROM Stockpile(M15/993)	8,394	16.8			8,394	16.8	4,540
Total Ore Reserve	260,894	15.8	1,276.000	11.7	1,537,000	12.4	610,440

R&T GROUP ORE RESERVE ON STOCKPILE AT GREENFIELDS REMAINING AT 31 DECEMBER 2006 (subject to rounding errors)
Project		Proven	TotalProbable
Raleigh Underground	tonnes	grade	tonnes	grade	tonnes	grade	ounces
12.05.0005.0001.930Creenfields ROM12.0

Note

A +10g/l grade factor has been applied to the Rafeigh Underground Probable Ore Reserve by the Barrick Competent Person. $\bullet$

Raleigh Ore mined from M15/993 & M16/157 is subject to an Ore Division Agreement where by the Raleigh Ore is divided equally between Gilt Edged Mining NL and the R&T Group. $\bullet$

$\bullet$

Note" ora reserve estimates for projects undergoing a feasibility study.A A$701 has been applied to the Raleigh Resource Estimate and A$640/oz to the Raleigh Ore Reserve. $\ddot{\bullet}$

A A$625/oz has been applied to the Hornet Mineral Resource and A$632 applied to the Rabicon Ore Reserve. $\ddot{\bullet}$

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 Ore Reserves, is based upon information complied by Jon Abbot, Mining and Metallurgy and AIG who is a full lime employee of Rand Mining NL. All of the aforementioned persons have sufficient expertise and experience to qualify as Competent Persons as defined in the 2004 Edition of the Reporting of Mineral Resources and Ore Reserves. Jon Abbot, Robert Hutchison, and Mark Kaesehagen and tan Robertson consent to the inclusions in the report of the matters based on their information in the form and context

R&T GROUP EKJV MINERAL RESOURCE INTEREST REMAINING (inclusive of Ore Reserves and Stockpiles) AT 31 DECEMBER 2006 (subject to rounding errors)
	Measured		Indicated			Inferred	Total
	tonnes	grade	tonnes	grade	gradetonnes		tonnes	grade	ounces
Tribune	91.600	14.9	517,000	15.4	491.000	10.5	1.100.000	13.2	466,000
Rand	30,500	14.9	172,000	15.4	164.000	10.5	366,500	13.2	155.000
R&T Group	122.100	14.9	689,000	15.4	655.000	10.5	1.466.500	13.2	621.000

R&T GROUP ORE RESERVE INTEREST AT 31 DECEMBER 2006 (subject to rounding errors)
Entity		Proven		Probable	Total
	gradegradegradetonnestonnestonnesounces
Tribune's Interest	99,600	15.6	469,000	11.7	568,600	12.4	225,800
Rand's Interest	33.200	15.6	156,300	11.7	189.500	12.4	75.300
R&T Group Interest	132,800	15.6	625.300	11.7	758.100	12.4	301,100
R&T Group Insitu Interest	123,700	15.7	625,300	11.7	749,000	12.3	296,900

R&T GROUP EKJV MINERAL RESOURCE ENTITLEMENTS AT 31 DECEMBER 2006 (subject to rounding errors)
	Measured			InferredIndicated			Total
Entitlement	tonnes	grade	gradegradegradetonnestonnestonnes					ounces
Tribune	117,000	15.7	584,000	15.2	514,000	10.9	1,215,000	13.4	525,000
Rand	39,000	15.7	195,000	15.2	171,000	10.9	405.000	13.4	175.000
R&T Group	156.000	15.7	778.000	15.2	686.000	10.9 1	1.610.000	13.4	700.000
R&T Group Insitu	146,000	15.9	778,000	15.2	686,000	10.9 1	620,000	13.4	695,000

R&T GROUP ORE RESERVE ENTITLEMENTS AT 31 DECEMBER 2006 (subject to rounding errors)
Project	Proven		Probable	Total
	tonnes	grade	tonnes	grade	tonnes	grade	ounces
Tribune's Entitlement	136,300	15.1	540,700	11.4	677.000	12.2	264.690
Rand's Entitlement	45.400	15.1	180,300	11.4	225,700	12.2	88,200
R&T Group Entitlement	181,700	15.1	721.000	11.4	902,700	12.2	352,900
R&T Group Insitu Entitlement	171,300	15.2	721,000	11.4	892,300	12.2	348,500

This report is signed in accordance with a resolution of the Board of Directors.

WIA-

A Billis

Dated this 16th March 2007

CHARTERED ACCOUNTANTS ADVISORS

A MEMBER OFMOORES ROWLAND INTERNATIONAL

Bentleys MRI Perth Partnership ABN 17 735 344 518

Level 1, 10 Kings Park Road West Perth WA 6005 Australia

PO Box 570 West Perth WA 6872

T 61 8 9480 2000 F 61 8 9322 7787

admin@bmrip.com.au www.bentleys.com.au

Auditor's Independence Declaration Under Section 307C of the Corporations Act 2001

To the Directors of Rand Mining NL

I declare that, to the best of my knowledge and belief during the half year ended 31 December 2006 there have been:

• no contraventions of the auditor independence requirements as set out in the $\bullet$ Corporations Act 2001 in relation to the review; and
• no contraventions of any applicable code of professional conduct in relation to the review $\bullet$

BENTLEYS MRI PERTH PARTNERSHIP

$\int_{\Lambda}\bigg|_{\langle\lambda,\lambda\lambda'\rangle}.$

P W WARR Partner

Dated at Perth this 16th day of March 2007

Chartered Accountants

Rand Mining NL ABN 41 004 669 658 and Controlled Entities Condensed Income Statement for the half year Ended 31 December 2006

	Consolidated
		31.12.2006S	31.12.2005$
			Restated**
Revenue from continuing operations	$\mathbf{z}$	5,569,121	2,448,113
Profit on investments sold			390
Change in value of inventories		(300, 896)	(982, 787)
Reversal provision for doubtful debts		11,021
Gain on bullion loan from Tribune Resources NL		50,578
Mining costs	$\overline{2}$	(2,289,727)	(705, 136)
Employee benefits expense		(205, 425)	(114, 923)
Exploration costs written off		(53, 593)	(209, 458)
Depreciation and amortisation expense	$\overline{2}$	(851, 937)	(8,757)
Finance costs		(302, 821)	(163, 473)
Doubtful debts		(24,071)	(36,998)
Royalty expense		(158, 835)	(57,021)
Impairment loss on other financial assets			(172, 500)
Administration expenses		(254, 879)	(242, 639)
Profit/(Loss) before income tax		1,188,536	(245, 189)
Income tax expense		(366, 436)
Profit/(Loss) for the period		822,100	(245, 189)
Profit/(Loss) attributable to members of the parent entity		822,100	(245, 189)
Earnings per share:
Basic earnings per share (cents)		2.03	(0.6)
Diluted earnings per share (cents)		2.03	(0.6)

The above consolidated income statement should be read in conjunction with the accompanying notes.

**See change in accounting policy note 1 (c).

Rand Mining NL ABN 41 004 669 658 and Controlled Entities Condensed Balance Sheet as at 31 December 2006

	Consolidated
	31.12.2006$	30.06.2006$
		Restated**
ASSETS
CURRENT ASSETS
Cash and cash equivalents	1,598,948	2,149,377
Receivables	626,719	631,960
Inventories	2,475,966	2,776,862
TOTAL CURRENT ASSETS	4,701,633	5,558,199
NON-CURRENT ASSETS
Available for sale financial assets	8,935,373	8,322,022
Property, plant and equipment	2,627,099	2,827,962
Mine Development	2,554,981	2,351,390
Deferred Tax Assets	297,807
TOTAL NON-CURRENT ASSETS	14,415,260	13,501,374
TOTAL ASSETS	19,116,893	19,059,573
CURRENT LIABILITIES
Trade and other payables	638,016	651,931
Current tax payable	782,044
Accruals	53,457	27,360
Borrowings	2,476,538	4,620,389
TOTAL CURRENT LIABILITIES	3,950,055	5,299,680
NON-CURRENT LIABILITIES
Provisions	338,755	273,094
Deferred tax liability	1,036,899	907,057
Borrowings	3,473,102	3,387,689
TOTAL NON-CURRENT LIABILITIES	4,848,756	4,567,840
TOTAL LIABILITIES	8,798,811	9,867,520
NET ASSETS	10,318,082	9,192,053
EQUITY
Issued capital	11,453,559	11,453,559
Reserves	1,656,113	2,466,125
Accumulated losses	(2,791,590)	(4,727,631)
TOTAL EQUITY	10,318,082	9,192,053

The above consolidated balance sheet should be read in conjunction with the accompanying notes.

**See change in accounting policy note 1 (c).

Rand Mining NL ABN 41 004 669 658 and Controlled Entities Condensed Statement of Changes in Equity for the half year ended 31 December 2006

		CONSOLIDATED
	Note	Share CapitalOrdinary	AccumLosses	EquityReserve	Reserve	Total
Balance at 1.7.2005		11,453,559	(4,693,484)		1,326,974	8.087.049
Employee share options				1,400		1,400
Available for sale financial assets					1,665,286	1,665,286
Profit/(loss) attributable to members ofparent entity			(245, 189)			(245, 189)
Balance at 31.12.2005		11,453,559	(4,938,673)	1,400	2,992,260	9,508,546
Balance at 1.7.2006		11,453,559	(4, 108, 937)	1.400	2,464,725	9.810.747
Effect of change in accounting policy	1(c)		(618, 694)			(618, 694)
Balance at 1.7.2006 restated		11,453,559	(4,727,631)	1,400	2,464,725	9,192,053
Available for sale financial assets					303,747	303,747
Reserves no longer required*			1,113,759		(1, 113, 759)	$\overline{\phantom{a}}$
Sundry amount written off			182			182
Profit/(loss) attributable to members ofparent entity			822,100			822,100
Balance at 31.12.2006		11,453,559	(2,791,590)	1.400	1,654,713	10,318,082

The above consolidated statement of changes in equity should be read in conjunction with the accompanying notes.

* The Directors of the Company concluded that the capital reserve is no longer required.

Rand Mining NL ABN 41 004 669 658 and Controlled Entities Condensed Cash Flow Statement for the half year ended 31 December 2006

	Consolidated
	31.12.2006$	31.12.2005$
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from customers	5,500,965	2,415,421
Payments to suppliers and employees	(349, 109)	(348, 863)
Production costs	(2,422,704)	(705, 136)
Interest received	56,027	29,391
Sundry income		3,301
Finance costs	(166, 830)	(163, 473)
Tax instalments paid		(78, 269)
Net cash provided by operating activities	2,618,349	1,152,372
CASH FLOWS FROM INVESTING ACTIVITIES
Proceeds from sale of investments		2,390
Purchase of investments	(183, 156)	(132,046)
Payment for plant & equipment	(130, 601)	(1,955,453)
Mining tenement expenditure	(662, 763)	(368, 506)
Net cash used in investing activities	(976, 520)	(2,453,615)
CASH FLOWS FROM FINANCING ACTIVITIES
Loans to other entities	(21, 460)	(309, 025)
Loans repaid by other entities	22,284
Proceeds from borrowings		1,990,508
Repayment of borrowings	(2, 193, 082)
Net cash provided by financing activities	(2, 192, 258)	1,681,483
Net increase in cash held	(550, 429)	380,240
Cash at the beginning of the financial period	2,149,377	1,057,984
Cash at the end of the financial period	1,598,948	1,438,224

The accompanying notes form part of these financial statements.

Rand Mining NL ABN 41 004 669 658 and Controlled Entities Notes to the Financial Statements for the half year ended 31 December 2006

NOTE 1: BASIS OF PREPARATION

(a) Reporting entity

Rand Mining NL ("the Company") is a company domiciled in Australia. The consolidated interim financial report of the Company as at and for the six months ended 31 December 2006 comprises the Company and its subsidiaries (together referred to as the "consolidated entity") and the consolidated entity's interests in associates and jointly controlled entities.

The consolidated annual financial report of the consolidated entity as at and for the year ended 30 June 2006 is available from the Company's registered office at G1 49 Melville Parade, South Perth WA 6151 or at www.randmining.com.au.

(b) Statement of Compliance

The consolidated interim financial report is a general purpose financial report which has been prepared in accordance with AASB 134: Interim Financial Reporting and the Corporations Act 2001.

The consolidated interim financial report does not include all of the information required for a full annual financial report, and should be read in conjunction with the consolidated annual financial report of the consolidated entity as at and for the year ended 30 June 2006.

The consolidated interim financial report was approved by the Board of Directors on 16th March 2007.

(c) Significant Accounting Policies

Except as described below, the accounting polices applied by the consolidated entity in this consolidated interim financial report are the same as those applied by the consolidated entity in its consolidated financial report as at and for the year ended 30 June 2006.

Change in Accounting Policies

(i) Exploration Expenditure

Up to the June 2006 period Rand Mining had capitalised the mining exploration expenditure incurred. Rand mining has now changed its accounting policy regarding the write off of exploration expenditure; as a result all exploration expenditure is expensed when incurred. The consolidated entity had an exploration balance of $618,694 in prior period which has been written off against retained earnings.

The change in accounting policy was recognized retrospectively in accordance with the transitional provisions of the amendment, and comparatives' have been restated. The change in accounting policy had the following impact on this consolidated interim financial report:

Income statement for the six months ended 31 December

	2005
		Previous Adjustment	Total
Exploration written off	198.034	11.424	209,458

Balance sheet as at

30 June 2006

Opening accumulated	Previous Adjustment	Total
losses	$(4, 108, 937)$ $(618, 694)$ $(4, 727, 631)$

The change in accounting policy had an effect of (0.13) (2005: (0.09)) on earnings per share.

Rand Mining NL ABN 41 004 669 658 and Controlled Entities Condensed Statement of Changes in Equity for the half year ended 31 December 2005

NOTE 1: BASIS OF PREPARATION

(ii) Gold on hand

At 31 December 2005, Gold on hand was held at net realisable value and has been adjusted to cost in this consolidated interim financial report. The comparative, change in value of inventory, was restated by $1,252,078 in the consolidated income statement for the period ending 31 December 2005. There is no effect on equity for 1 July 2005 as the annual accounts at 30 June 2006 have reflected this change in accounting policy in its AIFRS adoption impact. Hence the 1 July equity figure agrees to the 30 June 2006 annual amounts.

NOTE 2: REVENUE, MINING COSTS AND AMORTISATION

In 2006 revenue has increased due to the increase in sales of gold reserves as well as sales of gold produced.. By comparison, during the 2005 period the Company was not in gold production and sales were generated from gold reserves only.

Given the Company recommenced gold production in the 2006 year period the mining, depreciation and amortization costs have increased accordingly.

NOTE 3: SEGMENT REPORTING

During the half year ended 31 December 2006, the consolidated entity operated within the mining production and exploration industry solely within Australia.

NOTE 4: CONTINGENT LIABILITIES

There has been no change in contingent liabilities since the last annual reporting date.

NOTE 5: EVENTS SUBSEQUENT TO REPORTING DATE

There are no events subsequent to reporting date that have or may significantly affect the operations results, or state of affairs of he economic entity other than that listed below:

NOTE 6: EARNINGS PER SHARE

The weighted number of ordinary shares outstanding during the half-year used in the calculation of basic eamings per share is 40,560,813.

Rand Mining NL ABN 41 004 669 658 and Controlled Entities Directors' Declaration

DIRECTORS' DECLARATION

In the opinion of the directors of Rand Mining NL ('the Company'):

• $\mathbf{1}$ . The financial statements and notes, as set out on pages 9 to 14, are in accordance with the Corporations Act 2001
  • $(a)$ giving a true and fair view of the financial position of the consolidated entity as at 31 December 2006 and on its performance, as represented by the results of its operations and cash flows for the half-year ended on that date; and
  • $(b)$ complying with Australian Accounting Standard AASB 134 Interim Financial Reporting and the Corporations Act 2001; and
• $\overline{2}$ . there are reasonable grounds to believe that the company will be able to pay its debts as and when they become due and payable.

This declaration is signed in accordance with a resolution of the Board of Directors.

$\frac{1}{\sqrt{10}}$

A Billis Dated this 16th day of March 2007 A MEMBER OFMOORES ROWLAND INTERNATIONAL

Bentleys MRI Perth Partnership ABN 17 735 344 518

Level 1, 10 Kings Park Road West Perth WA 6005 Australia

PO Box 570 West Perth WA 6872

T 61 8 9480 2000 F 61 8 9322 7787

admin@bmrip.com.au www.bentleys.com.au

INDEPENDENT AUDITOR'S REVIEW REPORT

TO THE MEMBERS OF RAND MINING NL

Report on the Half-Year Financial Report

We have reviewed the accompanying half-year financial report of Rand Mining NL (the company). which comprises the condensed balance sheet as at 31 December 2006, the condensed income statement, condensed statement of changes in equity and condensed cash flow statement for the half-year ended on that date, a statement of accounting policies, other selected explanatory notes and the directors' declaration, as set out on pages 9 to 14 of the consolidated entity, comprising the company and the entities it controlled at half-year's end or time to time during the half-year.

Directors' Responsibility for the Half-year Financial Report

The directors of the company are responsible for the preparation and fair presentation of the halfyear financial report in accordance with Australian Accounting Standards (including the Australian Accounting Interpretations) and the Corporations Act 2001. This responsibility includes designing, implementing and maintaining internal control relevant to the preparation and fair presentation of the half-year financial report that is free from material misstatement, whether due to fraud or error; selecting an applying appropriate accounting policies; and making accounting estimates that are reasonable in the circumstances.

Auditor's Responsibility

Our responsibility is to express a conclusion on the half-year financial report based on our review. We conducted our review in accordance with Auditing Standard on Review Engagements ASRE 2410 Review of an Interim Financial Report Performed by the Independent Auditor of the Entity, in order to state whether, on the basis of the procedures described, we have become aware of any matter that makes us believe that the financial report is not in accordance with the Corporations Act 2001 including: giving a true and fair view of the consolidated entity's financial position as at 31 December 2006 and its performance for the half-year ended on that date; and complying with Accounting Standard AASB 134 Interim Financial Reporting and the Corporations Regulations 2001. As the auditor of Rand Mining NL, ASRE 2410 requires that we comply with the ethical requirements relevant to the audit of the annual financial report.

A review of a half-year financial report consists of making enquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with Australian Auditing Standards and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Chartered Accountants

A member of Bentleys MRI, an association of independent accounting firms throughout Australia, and a member of Moores Rowland International, an association of independent accounting firms throughout the world. The firms practising as Bentleys MRI and Moores Rowland are independent. The member firms of these essociations are effiliated only and not in partnership.

Independence

In conducting our review, we have complied with the independence requirements of the Corporations Act 2001.

Conclusion

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) giving a true and fair view of the consolidated entity's financial position as at 31 December 2006 and of its performance for the half-year ended on that date; and
• b) complying with Accounting Standard AASB 134 Interim Financial Reporting and Corporations Regulations 2001.

BENTLEYS MRI PERTH PARTNERSHIP

$\ln|\alpha_{\rm M}|$

P W WARR Partner

Dated at Perth this 16th day of March 2007

Chartered Accountants