RAND MINING LIMITED — Interim / Quarterly Report 2009

Oct 27, 2009

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October 28, 2009

The Listing Manager Australian Securities Exchange Level 4 20 Bridge Street SYDNEY NSW 2000

Quarterly Report for September 2009

Highlights

• During the quarter, 45,399 tonnes of Raleigh ore were processed and 22,207 oz of gold and 3,429 oz of silver were credited to Rand and Tribune Bullion Accounts. (Rand’s share is 25%)

• At the end of the quarter

approximately 27,800 tonnes of Raleigh ore at an estimated grade of 15.4 g/t remain as a Bed Blend Stockpile on the ROM pad at the Raleigh Mine (Rand’s entitlement is 12.5%)

approximately 8,500 tonnes of Raleigh ore at an estimated grade of 12.1 g/t remains on the ROM pad at the Rubicon Mine (Rand’s share is 25%)

approximately 41,100 tonnes of Raleigh ore at an estimated grade of 12.3 g/t remains on the ROM pad at the Greenfields Plant (Rand’s share is 25%)

no gold was in transit between the Greenfields Plant and AGR (Rand’s share is 25%)

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GEOLOGY AND MINING

EAST KUNDANA JOINT VENTURE

Raleigh Underground Mine Production

Stope production from the 6202, 6136, 6119, 6102, 6085, 6067, 6051, 6034, 6017, 6000, 5983, 5966, 5949, 5932, 5915, 5881 and 5864 levels continued during the quarter.

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

5966, 5949, 5932, 5915, 5881 and 5864 levels continued during the quarter. Contained gold in stope development and stope ore mined during the quarter, estimated grade control face chip sampling, is tabulated below:	5966, 5949, 5932, 5915, 5881 and 5864 levels continued during the quarter. Contained gold in stope development and stope ore mined during the quarter, estimated grade control face chip sampling, is tabulated below:	5966, 5949, 5932, 5915, 5881 and 5864 levels continued during the quarter. Contained gold in stope development and stope ore mined during the quarter, estimated grade control face chip sampling, is tabulated below:	5966, 5949, 5932, 5915, 5881 and 5864 levels continued during the quarter. Contained gold in stope development and stope ore mined during the quarter, estimated grade control face chip sampling, is tabulated below:
RALEIGH UNDERGROUND GRADE CONTROL ESTIMATES
Month	Tonnes	Grade	Ounces
	t	g/t	troy oz
July	33,970	12.0	13,062
August	33,656	12.1	13,128
September	27,859	15.4	13,860
September 09Q	95,486	13.0	40,051
June 09Q	91,126	14.3	41,808

Rand’s Entitlements (12.5%)

September 09Q	11,936	13.0	5,006
June 09Q	11,391	14.3	5,226

The ore mined in September, approximately 27,800 tonnes, 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 5702 m RL, 643 m from the surface.

Development progressed on the 5847, 5830, 5812, 5795, 5778 and 5761 levels.

	RALEIGH UNDERGROUND DEVELOPMENT
Month	Capital			Operating
	Decline (m)	Secondary (m)	Waste (m)	Ore (m)	Paste Fill (m)
July	67.9	96.5	100.0	269.9	48.0
August	73.1	95.8	90.6	253.0	48.0
September	73.9	53.8	100.5	246.6	48.0
September 09Q	214.9	246.1	291.1	769.5	144.0
June 09Q	140.5	267.1	368.9	776.3	140.0

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

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July 09 Red indicates new development
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August 09 Red indicates new development
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September 09 Red indicates new development

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Mine operating costs incurred during the September 2009 Quarter were $164 per tonne mined or $390 per ounce mined compared with the June 2009 Quarter cost of $137 and $299 respectively.

Toll Processing

During the quarter, 45,000 tonnes (wet) of Raleigh ore were hauled to the Greenfields Plant. Because of a build‐up of ore on the Greenfields ROM pad, 8,500 tonnes (wet) of Raleigh ore have been stored on the Rubicon ROM pad.

The eleventh toll treatment campaign at the Greenfields Plant, which started on June 22, 2009, finish on August 3, 2009. During the quarter, 45,399 tonnes of Raleigh ore were processed. At the end of the quarter, approximately 41,100 tonnes of Raleigh ore remains on the ROM pad at the Greenfields Plant.

The twelfth toll treatment campaign at the Greenfields Plant is expected to start on October 20, 2009.

2009.	2009.	2009.	2009.
Bullion accredited to RAND and TRIBUNE
Quarter	Gold(oz)	Silver(oz)	Rand’s sharegold
September 09	22,207.364	3,429.328	5,551.838
June 09	2,813.132	610.573	703.282

Resource Development

Rand and Tribune are discussing commercial terms with a financial institution for the financing of the Rubicon Project.

EKJV Exploration

The bulk of the Exploration Budget in the 09/10 Financial Year is committed to the Raleigh Deeps drilling program which started during the quarter.

OTHER EXPLORATION

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

Discussions to farm out the Seven Mile Hill tenements are continuing.

CORPORATE

On or about 10 December 2006 a shareholder of the Company, Tribune Resources NL ( Tribune ), extended a loan facility to the Company in the form of a 4,000 ounce gold bullion loan. Interest on the loan accrues daily on an adjusted fair value of the gold bullion at 8% per annum.

At 31 July 2009, the principle of the loan and its interest was $5,990,432.32 ( Tribune Debt ).

The Board considers that it is in the best interests of the Company that the Tribune Debt be repaid in full and the funds required to repay the Tribune Debt be raised through the Rights Issue.

A Shareholders meeting has been called for 30 November 2009 to address this and other issues. The agenda items are:

Resolution 1 Adoption of Remuneration Report Resolution 2 Re‐election of Mr Gordon Sklenka as a Director Resolution 3 Approval of Appointment of Auditor Resolution 4 Approval of Rights Issue Resolution 5 Section 195 Approval

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

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Rand Mining NL
ABN Quarter ended (“current quarter”)
41 004 669 658 30 [th] September 2009
Consolidated statement of cash flows
Current quarter Year to date
Cash flows related to operating activities $A’000 (12 months)
$A’000
1.1 Receipts from product sales and related debtors 3,810 3,810
1.2 Payments for (a) exploration and
evaluation (65) (65)
(b) development (436) (436)
(c) production (2,444) (2,444)
(d) administration (231) (231)
1.3 Dividends received - -
1.4 Interest and other items of a similar nature received 14 14
1.5 Interest and other costs of finance paid (1) (1)
1.6 Income taxes paid (323) (323)
1.7 Other (provide details if material) - -
Net Operating Cash Flows 324 324
Cash flows related to investing activities
1.8 Payment for purchases of: (a) prospects - -
(b) equity investments - -
(c) other fixed assets (36) (36)
1.9 Proceeds from sale of: (a) prospects - -
(b) equity investments - -
(c) other fixed assets - -
1.10 Loans from other entities - -
1.11 Loans repaid to other entities - -
1.12 Other
Net investing cash flows (36) (36)
1.13 Total operating and investing cash flows (carried
forward) 288 288
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• 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)	288	288
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	288 2,358 -	288 2,358 -
	2,646	2,646

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 received from parties included in item 1.10	Current quarter $A'000
		(43)
		-
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)) (13)
	The aggregate amount of loans (item 1.10) received from 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. Repayment of this loan is subject to shareholders’ approval.

• 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.

3.1 Loan facilities 3.2 Credit standby arrangements Loan principle outstanding	Amount available $A’000	Amount used $A’000
	Nil	Nil
	$A’000
	Nil

Estimated cash outflows for next quarter

4.1 Exploration and evaluation 4.2 Development	$A’000
	40
	650
Total	690

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	2,513 133	2,225
		133
Total: cash at end of quarter(item 1.22)	2,646	2,358

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: 28 October 2009 (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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