RAND MINING LIMITED — Interim / Quarterly Report 2008

Oct 20, 2008

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October 21, 2008

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

Quarterly Report for September 2008

Highlights

• At September 30, 2008

approximately 22,800 tonnes of Raleigh ore at an estimated grade of 12.7 g/t remain as a Bed Blend Stockpile on the ROM pad at the Raleigh Mine (Rand’s entitlement is 12.5%)

approximately 25,000 tonnes of Raleigh ore at an estimated grade of 11.0 g/t remains on the ROM pad at the Greenfields Plant (Rand’s entitlement is 25%)

no gold was in transit between the Greenfields Plant and AGR (Rand’s entitlement is 12.5%)

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GEOLOGY AND MINING

EAST KUNDANA JOINT VENTURE

Raleigh Underground Mine Production

Stope production from the 6136, 6119, 6102, 6085, 6067, 6051, 6034, 6016 and 6000 levels continued during the quarter.

Contained gold in stope development and stope ore mined during the September 2008 Quarter, estimated by grade control face chip sampling, is tabulated below:

estimated by grade control face chip sampling, is tabulated below:	estimated by grade control face chip sampling, is tabulated below:	estimated by grade control face chip sampling, is tabulated below:	estimated by grade control face chip sampling, is tabulated below:
RALEIGH UNDERGROUND GRADE CONTROL ESTIMATES
Month	Tonnes	Grade	Ounces
	t	g/t	troy oz
July	19,048	9.6	5,858
August	20,337	12.8	8,359
September	22,787	12.7	9,273
September 08Q	62,172	11.8	23,490
June 08Q	52,339	11.0	18,430

Rand’s Entitlements (12.5%)

September 08Q	7,772	11.8	2,936
June 08Q	6,542	11.0	2,304

Approximately 22,800 tonnes of ore mined in September remains as a Bed Blend Stockpile on the ROM pad at the Raleigh Mine and will be hauled in early October.

Raleigh Underground Mine Development

The Raleigh Underground Decline was extended to the 5807 m RL, 538 m from the surface.

Development progressed on the 5949, 5932, 5915, 5898, 5881 and 5864 levels.

	RALEIGH UNDERGROUND DEVELOPMENT
Month	Capital			Operating
	Decline (m)	Secondary (m)	Waste (m)	Ore (m)	Paste Fill (m)
July	71.8	119.1	108.3	187.2	27.0
August	42.6	113.4	76.0	199.2	22.0
September	75.7	69.4	25.6	221.7	28.0
September 08Q	190.1	301.9	209.9	608.1	77.0
June 08Q	214.1	219.6	165.3	665.0	78.0

The diagrams below show the status of the mine at the end of each month of the quarter.

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July 08 Red indicates new development
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August 08 Red indicates new development

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September 08 Red indicates new development and stoping

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Mine operating costs incurred during the September 2008 Quarter were $146 per tonne mined or $387 per ounce mined compared with the June 2008 Quarter cost of $140 and $396 respectively.

Toll Processing

During the September 2008 Quarter, 25,400 tonnes (wet) of Raleigh ore were hauled to the Greenfields Plant.

There was no processing during the quarter. The ninth toll treatment campaign at the Greenfields Plant is expected to start on October 21, 2008. At the end of the quarter, approximately 25,000 tonnes of Raleigh ore remains on the ROM pad at the Greenfields Plant.

Bullion accredited to RAND and TRIBUNE
Quarter	Gold	Silver	Rand’s sharegold
September 08	0	0	0
June 08	9,371	1,200	2,343

Resource Development

An Indicative Term Sheet for the development of the Rubicon Project which includes the Rubicon, Hornet and Pegasus deposits was signed by the EKJV parties on August 14, 2008. The development is subject to revised cash flow projections for the Raleigh and Rubicon Projects, currently being prepared, as well as entry into formal agreements and board approval of each of the participants.

EKJV Exploration

There has been minimal activity as the bulk of the Exploration Budget is committed to the current Raleigh drilling program.

OTHER EXPLORATION

Seven Mile Hill Joint Venture (Tribune’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 are continuing.

Appendix 5B Mining exploration entity quarterly report

Rule 5.3

Appendix 5B

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

	Name of entity
	Rand Mining NL
	ABN 41 004 669 658 Consolidated statement of cash flows
			30 September 2008
Cash flows related to operating activities 1.1 Receipts from product sales and related debtors 1.2 Payments for (a) exploration and evaluation (b) development (c) production (d) administration 1.3 Dividends received 1.4 Interest and other items of a similar nature received 1.5 Interest and other costs of finance paid 1.6 Income taxes paid 1.7 Other (provide details if material) Net Operating Cash Flows			Current quarter $A’000	Year to date (3 months) $A’000
			2,390 (20) (707) (1,324) (195) - 47 (1) (142) -	2,390 (20) (707) (1,324) (195) - 47 (1) (142) -
			48	48
Cash flows related to investing activities 1.8 Payment for purchases of: (a) prospects (b) equity investments (c) other fixed assets 1.9 Proceeds from sale of: (a) prospects (b) equity investments (c) other fixed assets 1.10 Loans to other entities 1.11 Loans repaid by other entities 1.12 Other – Loans received from Tribune Resources - Loans repaid to Tribune Resources Net investing cash flows 1.13 Total operating and investing cash flows (carried forward)			- - (44) - - - - - -	- - (44) - - - - - -
			(44)	(44)
			4	4

• See chapter 19 for defined terms.

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Appendix 5B Mining exploration entity quarterly report

1.13 Total operating and investing cash flows (brought forward)	4	4
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 1.18 Dividends paid 1.19 Other (provide details if material) Net financing cash flows	- - - - - -	- - - - - -
	-	-
Net increase (decrease) in cash held 1.20 Cash at beginning of quarter/year to date 1.21 Exchange rate adjustments 1.22 Cash at end of quarter	4 2,712 -	4 2,712 -
	2,716	2,716

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

1.23 1.24	Aggregate amount of payments to the parties included in item 1.2 Aggregate amount of loans to the parties included in item 1.10	Current quarter $A'000
		(30)
1.25	Explanation necessaryfor an understandingof the transactions
	Directors fees and superannuation (included in administration 1.2 (d)) (30) Royalty payment(included inproduction 1.2(c)) (3)
	The aggregate amount of loans (item 1.10) made to specified parties are as follows:

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 had nil ounces of this gold bullion still on hand. 150 ounces are still available to Rand Mining NL for future drawdown.

• 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.

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Appendix 5B Mining exploration entity quarterly report

Financing facilities available

Add notes as necessary for an understanding of the position.

Amount available $A’000 3.1 Loan facilities Nil 3.2 Credit standby arrangements $A’000 Loan principle outstanding Nil Estimated cash outflows for next quarter	Amount available $A’000	Amount available $A’000	Amount used $A’000
		Nil	Nil
		$A’000
		Nil
4.1 Exploration and evaluation 4.2 Development			$A’000
			40
			600
Total			640

Reconciliation of cash

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 and at bank 5.2 Deposits at call – Performance Bonds 5.3 Bank overdraft 5.4 Other	2,592 124	2,588
		124
Total: cash at end of quarter(item 1.22)	2,716	2,712

Changes in interests in mining tenements

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

• See chapter 19 for defined terms.

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Appendix 5B Mining exploration entity quarterly report

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 7.4 Changes during quarter (a) Increases through issues (b) Decreases through returns of capital, buy- backs	40,560,813	40,560,813
7.5 +Convertible debt securities (description) 7.6 Changes during quarter (a) Increases through issues (b) Decreases through securities matured, converted
7.7 Options (description and conversion factor) 7.8 Issued during quarter 7.9 Exercised during quarter 7.10 Expired during quarter	500,000 4,000,000		Exercise price $1.00 $0.60	Expiry date 1stOctober 2010 26thOctober 2012
7.11 Debentures (totals only)
7.12 Unsecured notes(totals only)

• See chapter 19 for defined terms.

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Appendix 5B Mining exploration entity quarterly report

Compliance statement

• 1 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).

• 2 This statement does give a true and fair view of the matters disclosed.

Sign here: ............................................................ Date: 21 October 2008 (Director) Print name: Anthony Billis

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.

• 2 The “Nature of interest” (items 6.1 and 6.2) includes options in respect of interests in 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.

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• See chapter 19 for defined terms.

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