RAND MINING LIMITED — Interim / Quarterly Report 2008

Mar 13, 2008

RAND MINING NL ABN 41 004 669 658 FINANCIAL REPORT FOR THE HALF YEAR ENDED 31 DECEMBER 2007

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

Directors' Report .................................................................................................................................... 2 Auditor's Independence Declaration ....................................................................................................... 4 Consolidated Income Statement ............................................................................................................ 5 Consolidated Balance Sheet .................................................................................................................. 6 Consolidated Statement of Changes in Equity ....................................................................................... 7 Consolidated Cash Flow Statement ....................................................................................................... 8 Notes to the Financial Statements ......................................................................................................... 9 Directors’ Declaration ........................................................................................................................... 12 Independent Review Report to the Members of Rand Mining NL ......................................................... 13

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Rand Mining NL ABN 41 004 669 658 and Controlled Entities Directors’ Report

Your directors submit the financial report of the economic entity for the half-year ended 31 December 2007.

Directors

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

A Billis – Director since 2003

O Demis – Director since 1985

G Sklenka – Director since 2004

Review of Operations

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

Development and production at the Raleigh Underground Mine that commenced on 1 December 2004 continues.

Capital development for the half-year totalled 804.1 metres; 374.4 metres for decline development and 429.7 metres for secondary development. By the close of the half-year period, development had been extended to a depth of approximately 458 metres below the surface.

Operating development for the half-year totalled 2,002.9 metres; 297.8 metres in waste, 1,514.1 metres in ore and 191.0 metres through paste fill.

Mine production during the half-year totalled 128,800 tonnes grading 12.9 g/t containing 53,471 ounces of gold, based on grade control estimates. (The previous half-year 115,395 tonnes grading 17.2 g/t containing 63,906 ounces of gold were estimated to be mined.) Rand’s entitlement of the gold is 6,684 ounces.

A total of 68,314 tonnes (wet) 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 28 May 2007 to 5 August 2007 and 13 December 2007 to 20 January 2008 (estimated) processed 72,955 tonnes of Raleigh ore during the half-year. A total of 30,992 ounces of gold and 4,039 ounces of silver were credited to the Rand and Tribune Bullion Accounts (based on Lodgement Date). Rand’s share of gold bullion was 7,748 ounces.

The lower mine drilling program commenced during the half-year and is continuing.

The Feasibility Study for the Rubicon/ Hornet/ Pegasus Underground Project progressed during the halfyear. Synergies with Raleigh are being identified and analyzed.

A revised geological model of the region has been generated. A number of exploration targets have been identified and ranked in order of priority for future 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 4 for the half -year ended 31 December 2007.

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Rand Mining NL ABN 41 004 669 658 and Controlled Entities Directors’ Report

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

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A Billis

Dated this 14[th] March 2008

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AUDITOR’S INDEPENDENCE DECLARATION

TO THE DIRECTORS OF RAND MINING NL

Grant Thornton (WA) Partnership ABN: 17 735 344 518 Level 1 10 Kings Park Road West Perth WA 6005 PO BOX 570 West Perth WA 6872 T +61 8 9480 2000 F +61 8 9322 7787 E admin@gtwa.com.au W www.grantthornton.com.au

In accordance with the requirements of section 307C of the Corporations Act 2001, as lead auditor for the review of Rand Mining NL and its controlled entities for the half-year ended 31 December 2007, I declare that, to the best of my knowledge and belief, there have been:

• (a) No contraventions of the auditor independence requirements of the Corporations Act 2001 in relation to the review; and

• (b) No contraventions of any applicable code of professional conduct in relation to the review.

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GRANT THORNTON (WA) PARTNERSHIP

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P W WARR Partner Perth

Date: 14 March 2008

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Liability limited by a scheme approved under Professional Standards Legislation.

Grant Thornton (WA) Partnership is an independent business entitled to trade under the international name Grant Thornton. Grant Thornton is a trademark owned by Grant Thornton International and used under licence by independent firms and entities throughout the world.

Rand Mining NL ABN 41 004 669 658 and Controlled Entities Income Statement for the half-year ended 31 December 2007

Revenue from operating activities Share of profits of equity accounted investment 6 Change in value of inventories Reversal provision for doubtful debts Gain/(loss) on bullion loan from Tribune Resources NL Mining costs Employee benefits expense Exploration costs written off Depreciation and amortisation expense Finance costs Doubtful debts Royalty expense Administration expenses Profit/(Loss) before income tax Income tax expense Profit/(Loss) for the period Profit/(Loss) attributable to members of the parent entity Earnings per share: Basic earnings per share (cents) Diluted earnings per share (cents)	Consolidated 31.12.2007 $ 31.12.2006 $ 6,849,553 5,569,121 29,623 - (403,792) (300,896) - 11,021 (846,486) 50,578 (2,830,819) (2,289,727) (1,622,869) (205,425) (39,005) (53,593) (873,114) (851,937) (165,963) (302,821) - (24,071) (303,382) (158,835) (190,774) (254,879)
	(397,028) 1,188,536 (351,836) (366,436)
	(748,864) 822,100
	(748,864) 822,100
	(1.85) 2.03 (1.66) 2.03

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

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Rand Mining NL ABN 41 004 669 658 and Controlled Entities Balance Sheet

as at 31 December 2007

Notes ASSETS CURRENT ASSETS Cash and cash equivalents Trade and other receivables Inventories TOTAL CURRENT ASSETS NON-CURRENT ASSETS Available for sale financial assets Investment in associates 6 Property, plant and equipment Mine Development Deferred Tax Assets TOTAL NON-CURRENT ASSETS TOTAL ASSETS CURRENT LIABILITIES Trade and other payables Current tax payable Accruals Borrowings TOTAL CURRENT LIABILITIES NON-CURRENT LIABILITIES Provisions Deferred tax liability 6 Borrowings TOTAL NON-CURRENT LIABILITIES TOTAL LIABILITIES NET ASSETS EQUITY Issued capital Reserves Accumulated losses TOTAL EQUITY	Consolidated 31.12.2007 $ 30.06.2007 $ 2,204,403 1,433,884 105,041 100,320 1,872,448 2,276,239
	4,181,892 3,810,443
	1,683,192 10,712,176 7,232,103 - 2,471,889 2,500,758 2,899,862 2,900,865 327,000 564,703
	14,614,046 16,678,502
	18,795,938 20,488,945
	1,766,564 878,032 381,641 1,069,870 24,843 68,948 - 193,194
	2,173,048 2,210,044
	341,325 338,755 153,813 1,220,572 4,432,482 3,425,284
	4,927,620 4,984,611
	7,100,668 7,194,655
	11,695,270 13,294,290
	11,453,559 11,453,559 2,324,593 3,174,749 (2,082,882) (1,334,018)
	11,695,270 13,294,290

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

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Rand Mining NL ABN 41 004 669 658 and Controlled Entities Statement of Changes in Equity for the half-year ended 31 December 2007

Consolidated

Balance at 1.7.2006 Available for sale financial assets Reserves no longer required Sundry amount written off Profit/(loss) attributable to members of parent entity Balance at 31.12.2006 Balance at 1.7.2007 Available for sale financial assets Share in revaluation decrement of equity accounted investment Option valuation reserve Profit/(loss) attributable to members of parent entity Balance at 31.12.2007	Share Capital Ordinary Accumulated Losses Reserve Total 11,453,559 (4,727,631) 2,466,125 9,192,053 - - 303,747 303,747 - 1,113,759 (1,113,759) - - 182 - 182 - 822,100 - 822,100
	11,453,559 (2,791,590) 1,656,113 10,318,082
	11,453,559 (1,334,018) 3,174,749 13,294,290 - - (2,144,385) (2,144,385) (123,171) (123,171) - 1,417,400 1,417,400 - (748,864) - (748,864)
	11,453,559 (2,082,882) 2,324,593 11,695,270

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

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Rand Mining NL ABN 41 004 669 658 and Controlled Entities Cash Flow Statement for the half-year ended 31 December 2007

CASH FLOWS FROM OPERATING ACTIVITIES Receipts from customers Payments to suppliers and employees Production costs Interest received Finance costs Tax instalments paid Net cash provided by operating activities CASH FLOWS FROM INVESTING ACTIVITIES Purchase of investments Payment for plant & equipment Mining tenement expenditure Net cash used in investing activities CASH FLOWS FROM FINANCING ACTIVITIES Loans to other entities Loans repaid by other entities Repayment of borrowings Net cash used in by financing activities Net increase/(decrease) in cash held Cash at the beginning of the financial period Cash at the end of the financial period	Consolidated 31.12.2007 $ 31.12.2006 $ 6,772,176 5,500,965 (414,637) (349,109) (3,797,075) (2,422,704) 77,377 56,027 (4,486) (166,830) (883,378) -
	1,749,977 2,618,349
	(486,500) (183,156) (250,671) (130,601) (39,005) (662,763)
	(776,176) (976,520)
	(10,089) (21,460) - 22,284 (193,193) (2,193,082)
	(203,282) (2,192,258)
	770,519 (550,429) 1,433,884 2,149,377
	2,204,403 1,598,948

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

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Rand Mining NL ABN 41 004 669 658 and Controlled Entities Notes to the Financial Statements

for the half-year ended 31 December 2007

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 2007 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 2007 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 2007.

The consolidated interim financial report was approved by the Board of Directors on 14[th] March 2008.

(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 2007.

NOTE 2: SEGMENT REPORTING

During the half-year ended 31 December 2007, the consolidated entity operated within the mining production and exploration industry solely within Australia.

NOTE 3: CONTINGENT LIABILITIES

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

NOTE 4: 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 the economic entity.

NOTE 5: SHARE-BASED PAYMENTS

In a general meeting held on 29 August 2007, shareholders approved the grant of 4,000,000 options to Directors. The options are exercisable at a price of 60 cents on or before 26 October 2012. The terms and conditions of the grants made during the six months ended 31 December 2007 are as follows:

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Rand Mining NL ABN 41 004 669 658 and Controlled Entities Notes to the Financial Statements

for the half year ended 31 December 2007

NOTE 5: SHARE-BASED PAYMENTS

In a general meeting held on 29 August 2007, shareholders approved the grant of 4,000,000 options to Directors. The options are exercisable at a price of 60 cents on or before 29 August 2012. The actual options were issued 26 October 2007; however in accordance with AASB 2 Share Based Payment, the valuations have been determined using a grant date of 29 August 2007, which is the date when shareholder approval was obtained.

The terms and conditions of the grants made during the six months ended 31 December 2007 are as follows:

Vesting conditions

Grant date

Grant date Number of Vesting conditions Contractual life instruments of options Options granted at 29 August 2007 4,000,000 Options are exercisable at $0.60 and expire on 5 years 29 August 2007.

Fair value of share options and assumptions for the six months ended 31 December 2007:

	Options granted
	29 August 07
Fair value at grant date	$1,417,400
Share price	$0.56
Exercise price	$0.60
Expected volatility (expressed as weighted average volatility used in the
modelling under binomial lattice model)	90%
Option life (expressed as weighted average life used in the modelling under
binomial lattice model)	3.75 years
Expected dividends	nil
Risk-free interest rate (based on government bonds)	6.15%

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Rand Mining NL ABN 41 004 669 658 and Controlled Entities Notes to the Financial Statements for the half-year ended 31 December 2007

NOTE 6: INVESTMENT IN ASSOCIATES

At 21 December 2007 the Company acquired additional shares in Tribune Resources Ltd for $1,320,000.

From this date, the Company will no longer account for its investment in Tribune Resources Ltd as ‘available for sale shares’ but will treat the investment as an ‘investment in associate’.

The financial impact of the above is as follows:

Description	$
Available for sale shares held in Tribune Resources Ltd at fair value 30 June
2007		9,053,131
Reversal of revaluation to deemed cost		(3,047,480)
Deemed cost of Tribune Resources Ltd shares		$6,005,651
New shares acquired at 21 December 2007 – at cost		1,320,000
Total cost of Tribune shares at 21 December 2007		$7,325,651
Share of Equity Profits in Tribune Resources Ltd to 31 December 2007		29,623
Share of decrement in revaluation of assets of Tribune Resources Ltd to 31
December 2007		(123,171)
Total reported value of investment in Tribune Resources Ltd as at 31
December 2007		$7,232,103
Deferred Tax Liability as at 30 June 2007		(1,220,572)
Reversal of revaluation of Tribune Resources Ltd shares to deem cost – DTL
adjustment		914,244
Adjusted DTL balance at 21 December 2007		($306,328)

As at 31 December 2007, the market value of the investment shares in Tribune Resources Ltd is $24,436,828.

NOTE 7: RELATED PARTY TRANSACTIONS

During the half-year the Company acquired 880,000 Tribune Resources Ltd shares, from Otto Demis, father of Director Otakar Demis, for $1.50 per share.

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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’):

1. The financial statements and notes, as set out on pages 5 to 11, are in accordance with the Corporations Act 2001, including:

2. (a) giving a true and fair view of the financial position of the consolidated entity as at 31 December 2007 and on its performance, as represented by the results of its operations and cash flows for the half-year ended on that date; and

3. (b) complying with Australian Accounting Standard AASB 134 Interim Financial Reporting and the Corporations Regulations 2001; and

4. 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.

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A Billis

Dated this 14th day of March 2008

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Grant Thornton (WA) Partnership ABN: 17 735 344 518 Level 1 10 Kings Park Road West Perth WA 6005 PO BOX 570 West Perth WA 6872 T +61 8 9480 2000 F +61 8 9322 7787 E admin@gtwa.com.au W www.grantthornton.com.au

INDEPENDENT AUDITOR’S REVIEW REPORT

TO THE MEMBERS OF RAND MINING NL AND CONTROLLED ENTITIES

Report on the half-year financial report

We have reviewed the accompanying half-year financial report of Rand Mining NL (the Company) and its controlled entities (the consolidated entity), which comprises the balance sheet as at 31 December 2007, and the income statement, statement of changes in equity and cash flow statement for the half-year ended on that date, a description of accounting policies, and other selected explanatory notes. The consolidated entity comprises both Rand Mining NL and the entities it controlled during that 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 half-year financial report in accordance with Australian Accounting Standards including the Australian Accounting Interpretations and the Corporations Act 2001. This responsibility includes establishing 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 and 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 Engagement 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 2007 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.

15 Liability limited by a scheme approved under Professional Standards Legislation.

Grant Thornton (WA) Partnership is an independent business entitled to trade under the international name Grant Thornton. Grant Thornton is a trademark owned by Grant Thornton International and used under licence by independent firms and entities throughout the world.

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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.

Independence

In conducting our review, we 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 and its controlled entities 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 2007 and of its performance for the half-year ended on that date.

• (b) complying with Accounting Standard AASB 134: Interim Financial Reporting and Corporations Regulations 2001.

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GRANT THORNTON (WA) PARTNERSHIP

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P W WARR Partner

Perth Date: 14 March 2008

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