RAND MINING LIMITED — Interim / Quarterly Report 2009

Mar 11, 2009

RAND MINING NL ABN 41 004 669 658 FINANCIAL REPORT FOR THE HALF-YEAR ENDED 31 DECEMBER 2008

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 to the Members of Rand Mining NL	13

1

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 2008.

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 913.9 metres; 373.6 metres for decline development and 540.3 metres for secondary development. By the close of the half year, development had been extended to a depth of approximately 563.5 metres below the surface.

Operating development for the half year totalled 1,910.5 metres; 398.7 metres in waste, 1,329.8 metres in ore and 182.0 metres through paste fill.

Mine production during the half year totalled 140,842 tonnes grading 11.6 g/t containing 52,549 ounces of gold, based on grade control estimates. (The previous half year 128,800 tonnes grading 12.9 g/t containing 53,471 ounces of gold were estimated to be mined.) Rand’s entitlement of the gold is 6,569 ounces.

A total of 72,272 tonnes (wet) of Rand and Tribune’s combined entitlement to Raleigh ore was hauled from the Bed Blend Stockpiles on the ROM pad at the Raleigh Mine to the ROM pad at the Greenfields Plant.

One toll treatment campaign at the Greenfields Plant between 23 October 2008 to 18 November 2008 processed 36,725 tonnes of Raleigh ore during the half-year. A total of 12,266 ounces of gold and 1,649 ounces of silver were credited to the Rand and Tribune Bullion Accounts. Rand’s share of gold bullion was 3,066 ounces.

The Raleigh lower mine drilling program was completed during the half-year.

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 of the Rubicon Project is progressing through the steps of the procedures for a New Development required by the EKJV agreements and subject to the conditions in the Indicative Term Sheet.

There has been minimal exploration activity as the bulk of the Exploration Budget was committed to the Raleigh lower mine drilling program.

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 2008.

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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

Director Perth

Dated this 12[th] March 2009

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10 Kings Park Road West Perth WA 6005 PO BOX 570 West Perth WA 6872

AUDITOR’S INDEPENDENCE DECLARATION TO THE DIRECTORS OF RAND MINING NL

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 for the half-year ended 31 December 2008, 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 Chartered Accountants

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P W WARR Partner

Perth, 12 March 2009

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Grant Thornton (WA) Partnership ABN 17 735 344 518, a subsidiary or related entity of Grant Thornton Australia Limited ABN 41 127 556 389. Grant Thornton Australia Limited is a member firm within Grant Thornton International Ltd. Grant Thornton International Ltd and the member firms are not a worldwide partnership. Grant Thornton Australia Limited, together with its subsidiaries and related entities, delivers its services independently in Australia.

Rand Mining NL ABN 41 004 669 658 and Controlled Entities Income Statement for the half-year ended 31 December 2008

Revenue from operating activities Share of profits of equity accounted investment 5 Change in value of inventories Gain/(loss) on bullion loan from Tribune Resources NL Impairment on available for sale financial asset Mining costs Employee benefits expense Exploration costs written off Depreciation and amortisation expense Finance costs 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 loss per share (cents)	Consolidated 31.12.2008 $ 31.12.2007 $ 4,956,043 6,849,553 946,639 29,623 1,360,954 (403,792) (1,465,732) (846,486) (999,877) - (2,896,490) (2,830,819) (225,291) (1,622,869) (43,769) (39,005) (1,255,693) (873,114) (226,535) (165,963) (229,795) (303,382) (154,006) (190,774)
	(233,552) (397,028) (473,706) (770,598)
	(707,258) (1,167,626)
	(707,258) (1,167,626)
	(1.74) (2.88)

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

5

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

as at 31 December 2008

Notes ASSETS CURRENT ASSETS Cash and cash equivalents Trade and other receivables Inventories TOTAL CURRENT ASSETS NON-CURRENT ASSETS Available for sale financial assets 7 Investment in associates 5 Property, plant and equipment Mine Development Deferred Tax Assets TOTAL NON-CURRENT ASSETS TOTAL ASSETS CURRENT LIABILITIES Trade and other payables Current tax payable Provisions Borrowings 6 TOTAL CURRENT LIABILITIES NON-CURRENT LIABILITIES Provisions Deferred tax liability TOTAL NON-CURRENT LIABILITIES TOTAL LIABILITIES NET ASSETS EQUITY Issued capital Reserves Accumulated losses TOTAL EQUITY	Consolidated 31.12.2008 $ 30.06.2008 $ 2,187,705 2,711,945 107,206 94,225 2,790,454 1,429,500
	5,085,365 4,235,670
	507,701 895,949 9,178,950 8,214,382 2,920,523 2,750,279 4,681,003 4,326,450 159,345 652,314
	17,447,522 16,839,374
	22,532,887 21,075,044
	1,490,253 993,618 524,201 703,238 11,698 39,746 6,358,619 4,673,423
	8,384,771 6,410,025
	319,111 341,325 571,718 959,061
	890,829 1,300,386
	9,275,600 7,710,411
	13,257,287 13,364,633
	11,453,559 11,453,559 2,380,591 1,780,679 (576,863) 130,395
	13,257,287 13,364,633

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

6

Rand Mining NL ABN 41 004 669 658 and Controlled Entities Statement of Changes in Equity for the half-year ended 31 December 2008

Consolidated

Balance at 1.7.2007 Adjustment for an error in the prior period Adjusted Equity at 1.7.2007 Share in revaluation decrement of equity accounted investment Available for sale financial assets Option valuation reserve Loss attributable to members of parent entity Adjustment for an error in the prior period Balance at 31.12.2007 Adjusted Balance at 1.7.2008 Adjustment for an error in the prior period Adjusted Equity at 1.7.2008 Available for sale financial assets (note 8) Share of associates revaluation increments Building revaluation (net of deferred tax liability) Loss attributable to members of parent entity Balance at 31.12.2008	Share Capital Ordinary Accumulated Losses Reserve Total 11,453,559 (1,334,018) 3,174,749 13,294,290 - (151,877) - (151,877) 11,453,559 (1,485,895) 3,174,749 13,142,413 - - (123,171) (123,171) - - (2,144,385) (2,144,385) - - 1,417,400 1,417,400 - (748,864) - (748,864)
	- (418,762) - (418,762)
	11,453,559 (2,653,521) 2,324,593 11,124,631
	11,453,559 249,997 1,780,679 13,484,235 - (119,602) - (119,602) 11,453,559 130,395 1,780,679 13,364,633 - - 546,984 546,984 17,928 17,928 - - 35,000 35,000 - (707,258) - (707,258)
	11,453,559 (576,863) 2,380,592 13,257,287

Note: Adjustments have been made to prior periods arising from incorrect tax treatment in the 2007 and 2008 financial years.

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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 2008

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 (used in) 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 Proceeds of borrowings 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 31.12.2008 $ 31.12.2007 $ 4,875,178 6,772,176 (474,673) (414,637) (4,244,170) (3,797,075) 84,813 77,377 (7,072) (4,486) (305,360) (883,378)
	(71,284) 1,749,977
	(15,301) (486,500) (393,917) (250,671) (43,313) (39,005)
	(452,531) (776,176)
	(425) (10,089) - - 450,000 - (450,000) (193,193)
	(425) (203,282)
	(524,240) 770,519 2,711,945 1,433,884
	2,187,705 2,204,403

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

8

Rand Mining NL ABN 41 004 669 658 and Controlled Entities Notes to the Financial Statements for the half year ended 31 December 2008

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 2008 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 2008 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, Australian Accounting Interpretations and other authoritative pronouncements of the Australian Accounting Standards Board.

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 2008.

The consolidated interim financial report was approved by the Board of Directors on 12[th] March 2009.

(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 2008.

The half-year report has been prepared on an accrual basis and is based on historical costs modified by the revaluation of selected non-current assets, financial assets and financial liabilities for which the fair value basis of accounting has been applied.

The following application standards have been issued but have not been early adopted:

• AASB 101 Presentation of Financial Statements (Revised 2007)

• AASB 8 Operating Segments

AASB 101 (Revised 2007) makes certain changes to the format and titles of the primary financial statements and to the presentation of some items within these statements. It also gives rise to additional disclosures. The measurement and recognition of the Group’s assets, liabilities, income and expenses is unchanged. AASB 101 affects the presentation of owner changes in equity and introduces a ‘Statement of comprehensive income’. Further, a ‘Statement of changes in equality’ is now presented as a primary statement.

AASB 8 now reports segment results based on internal management reporting information that is regularly reviewed by the chief operation decision maker. In the previous annual and interim financial statements, segments were identified by reference to the dominant source and nature of the Group’s risks and returns.

NOTE 2: SEGMENT REPORTING

During the half-year ended 31 December 2008, the consolidated entity operated within the mining production and exploration industry solely within Australia.

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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 2008

NOTE 3: CONTINGENT LIABILITIES

Native title claims have been made with respect to areas which include tenements in which the consolidated entity has interests. The consolidated entity is unable to determine the prospects for success or otherwise of the claims and, in any event, whether or not and to what extent the claims may significantly affect the consolidated entity or its projects.

The consolidated entity has the following performance guarantees with the Minister for State Development:

ML15/993 $55,370.00

ML16/309 $77,297.50

The total limit of the performance guarantee is $132,668 of which $nil is unused.

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: INVESTMENT IN ASSOCIATES

During the half-year the Company retained its 23.70% interest in Tribune Resources NL. This investment is accounted for in the consolidated financial statements using the equity method of accounting and is carried at cost by the parent entity.

Movement in carrying amount:

Carrying amount at the beginning of year Acquired during the year Share of profit/(loss) after tax Share of increment on revaluation of investments Carrying amount at the end of financial period	31 December 08 30 June 08 8,214,382 7,331,951 - 946,639 1,034,299 17,929 (151,868)
	9,178,950 8,214,382

NOTE 6: RELATED PARTY TRANSACTIONS

On 20 October 2008 the Company received a cash loan of $450,000 from Tribune Resources NL. The loan was subject to an interest rate of 7.85% pa and was repaid in full on 3 December 2008.

During the half-year the joint venture paid $70,769 in royalties to Lake Grace Exploration NL, of which $8,669 relates to Rand Mining NL. Lake Grace Exploration is a company related to Mr Billis.

During January 2006, Tribune Resources NL loaned the consolidated entity 4,000 ounces of gold bullion. Interest is payable in gold bullion and is calculated on the principle at the interest rate of 8% per annum. The interest is calculated on the daily balance of the principle sum on the basis of a 365 day year and compounding on the last day of each month.

The gold bullion loan at 31 December is as follows:

Gold loan-principle Value of imbedded derivative recognised in profit and loss Balance at the end of the year	31 December 2008 $ 30 June 2008 $ 2,834,600 2,834,600 3,524,019 1,838,823
	6,358,619 4,673,423

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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 2008

NOTE 7: AVAILABLE FOR SALE FINANCIAL ASSETS

Non-Current Balance 1 July Additions Disposals Transfer to investment accounted for using equity method Impairment of available for sale financial asset to profit and loss Revaluation to reserve Balance at end of period	Consolidated 31 December 08 30 June 08 895,949 10,712,176 15,301 1,414,950 (1,850) (1,100) - (10,379,444) (280,667) - (121,032) (850,633)
	507,701 895,949

NOTE 8: AVAILABLE FOR SALE FINANCIAL ASSETS RESERVE

Balance 1 July Transfer to investment accounted for using equity method Share of revaluation movement for investment in associate – Tribune Resources NL Revaluation to reserve Impairment of available for sale financial assets Reversal of Deferred tax asset/liabilities recognised in prior periods Balance at end of period	Consolidated 31 December 08 30 June 08 170,597 3,001,083 - (3,047,480) - (151,867) (121,032) 368,861 719,210 - (55,400) -
	717,581 170,597

11

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’):

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

• (i) complying with Australian Accounting Standard AASB 134 Interim Financial Reporting and the Corporations Regulations; and

• (ii) giving a fair and true view of the consolidated entity’s financial position as at 31 December 2008 and of its performance for the half-year ended on that date; and

• (b) there are reasonable grounds to believe that Rand Mining NL 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 12th day of March 2009

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10 Kings Park Road West Perth WA 6005 PO BOX 570 West Perth WA 6872

INDEPENDENT AUDITOR’S REVIEW REPORT TO THE MEMBERS OF RAND MINING NL

T +61 8 9480 2000 F +61 8 9322 7787 E admin@gtwa.com.au W www.grantthornton.com.au

Report on the half-year financial report

We have reviewed the half-year financial report of Rand Mining NL, which comprises the consolidated interim balance sheet as at 31 December 2008, and the income statement, statement of changes in equity and cash flow statement for the half-year ended on that date, a statement of accounting policies, other selected explanatory notes and the directors’ declaration of the consolidated entity comprising the company and the entities it controlled at the half-year’s end or from time to time 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 consolidated 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 and Other Financial Reports 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 2008 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

Grant Thornton (WA) Partnership ABN 17 735 344 518, a subsidiary or related entity of Grant Thornton Australia Limited ABN 41 127 556 389.

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Grant Thornton Australia Limited is a member firm within Grant Thornton International Ltd. Grant Thornton International Ltd and the member firms are not a worldwide partnership. Grant Thornton Australia Limited, together with its subsidiaries and related entities, delivers its services independently in Australia.

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 is not in accordance with the Corporations Act 2001, including:

• 1 giving a true and fair view of the consolidated entity’s financial position as at 31 December 2008 and of its performance for the half-year ended on that date; and

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

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GRANT THORNTON (WA) PARTNERSHIP Chartered Accountants

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P W WARR Partner

Perth, 12 March 2009

14

Grant Thornton (WA) Partnership ABN 17 735 344 518, a subsidiary or related entity of Grant Thornton Australia Limited ABN 41 127 556 389. Grant Thornton Australia Limited is a member firm within Grant Thornton International Ltd. Grant Thornton International Ltd and the member firms are not a worldwide partnership. Grant Thornton Australia Limited, together with its subsidiaries and related entities, delivers its services independently in Australia.