RAND MINING LIMITED — Interim / Quarterly Report 2010

Mar 14, 2010

RAND MINING NL ABN 41 004 669 658 FINANCIAL REPORT FOR THE HALF-YEAR ENDED 31 DECEMBER 2009

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

Directors’ Report	2
Auditor’s Independence Declaration	4
Consolidated Statement of Comprehensive Income	5
Consolidated Statement of Financial Position	6
Consolidated Statement of Changes in Equity	7
Consolidated Statement of Cash Flows	9
Notes to the Financial Statements	10
Directors’ Declaration	17
Independent Auditor’s Review Report to the Members of Rand Mining NL	18

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 2009.

Directors and Officers

The names of directors and officers 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

R Berzins – Joint Company Secretary since 2009

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 847.4 metres; 385.0 metres for decline development and 462.4 metres for secondary development. By the close of the half-year period, development had been extended to a depth of approximately 667 metres below the surface.

Operating development for the half-year totalled 2,262.3 metres; 696.9 metres in waste, 1,301.4 metres in ore and 264.0 metres through paste fill.

Mine production during the half-year totalled 172,135 tonnes grading 13.5 g/t containing 74,806 ounces of gold, based on grade control estimates. (The previous half-year 140,842 tonnes grading 11.6 g/t containing 52,549 ounces of gold were estimated to be mined.) Rand’s entitlement of the gold is 9,351 ounces.

A total of 102,787 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 (79,505 tonnes) and the Rubicon ROM pad (23,282 tonnes).

Two toll treatment campaigns at the Greenfields Plant, from 1 July 2009 (started 22 June 2009) to 3 August 2009 and 1 November 2009 to 28 November 2009, processed 73,181 tonnes of Raleigh ore during the half-year. A total of 33,038 ounces of gold and 5,693 ounces of silver were credited to the Rand and Tribune Bullion Accounts. Rand’s share of gold bullion was 8,259 ounces.

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

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

Seven Mile Hill (Rand’s Interest 50%)

No work was performed.

Events Subsequent to Reporting Date

On 27[th] January 2010, the Rand Rights Issue of 20,280,396 fully paid shares at a placement price of $0.32 was completed. In accordance with the prescribed purpose of the Rights Issue, the gold bullion loan that was extended to the Company by Tribune Resources NL was repaid and settled in full.

As a result of the payout of the gold bullion loan, Tribune Resources NL now holds 43.85% of the share capital in Rand Mining NL. From 27[th] January 2010, Rand Mining NL will be considered a subsidiary of Tribune Resources NL for accounting purposes.

Auditors’ Independence Declaration

The lead auditors’ independence declaration under section 307C of the Corporations Act 2001 is set out on page 4 for the half-year ended 31 December 2009.

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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 15[th] March 2010

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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

Auditor’s Independence Declaration To The Directors of Rand Mining NL

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 2009, 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.

GRANT THORNTON AUDIT PTY LTD Chartered Accountants

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P W Warr

Director - Audit & Assurance Services

Perth, 15 March 2010

Grant Thornton Audit Pty Ltd ACN 130 913 594, 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.

Liability limited by a scheme approved under Professional Standards Legislation.

4

Rand Mining NL ABN 41 004 669 658 and Controlled Entities Consolidated Statement of Comprehensive Income for the half-year ended 31 December 2009

Revenue from operating activities Share of profits of equity accounted investment 6 Change in value of inventories Gain/(loss) on bullion loan from Tribune Resources NL Impairment on available for sale financial asset Impairment of mine development costs Impairment of equity accounted investment 6 Loss on acquisition 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 Other comprehensive income Revaluation of land and buildings Available-for-sale financial assets - current year gains (losses) - reclassification to profit or loss Share of other comprehensive income of equity accounted investments Income tax relating to components of other comprehensive income Other comprehensive income for the period, net of tax Total comprehensive income for the period attributable to the members of the parent entity Earnings per share: Basic earnings/(loss) per share (cents) Diluted earnings/(loss) per share (cents)	Consolidated 31.12.2009 $ 31.12.2008 $ 8,008,495 4,956,043 1,227,269 946,639 1,636,897 1,328,981 (229,922) (1,465,732) (3,212) (999,877) (10,812) - (1,754,240) - (12,302) - (4,136,860) (3,060,640) (233,980) (225,291) (225,588) (43,769) (1,415,054) (1,196,599) (196,111) (226,535) (276,419) (229,795) (490,802) (154,006)
	1,887,359 (370,581) (957,451) (473,706)
	929,908 (844,287)
	929,908 (844,287)
	- 50,000 96,863 (401,699) 3,213 1,001,979 50,015 17,928 (6,601) (68,297)
	143,490 599,911
	1,073,398 (244,376)
	2.29 (2.08) 2.06 (1.87)

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

5

Rand Mining NL ABN 41 004 669 658 and Controlled Entities Consolidated Statement of Financial Position for the half-year ended 31 December 2009

Notes ASSETS CURRENT ASSETS Cash and cash equivalents Trade and other receivables Inventories TOTAL CURRENT ASSETS NON-CURRENT ASSETS Available for sale financial assets 8 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 Provisions Borrowings 7 TOTAL CURRENT LIABILITIES NON-CURRENT LIABILITIES Provisions Deferred tax liability TOTAL NON-CURRENT LIABILITIES TOTAL LIABILITIES NET ASSETS EQUITY Issued capital Reserves Retained earnings TOTAL EQUITY	Consolidated 31.12.2009 $ 30.06.2009 $ 3,633,982 2,357,643 212,972 155,432 5,041,170 3,404,273
	8,888,124 5,917,348
	623,395 526,532 8,465,972 8,942,928 3,049,053 2,659,710 5,294,143 5,201,296 141,512 133,173
	17,574,075 17,463,639
	26,462,199 23,380,987
	2,789,028 1,682,885 243,591 (23,863) 81,423 81,392 6,040,645 5,418,534
	9,154,687 7,158,948
	326,573 319,111 274,773 245,712
	601,346 564,823
	9,756,033 7,723,771
	16,706,166 15,657,216
	11,429,111 11,453,559 2,407,813 2,264,323 2,869,242 1,939,334
	16,706,166 15,657,216

The above consolidated statement of financial position should be read in conjunction with the accompanying notes.

6

Rand Mining NL ABN 41 004 669 658 and Controlled Entities Consolidated Statement of Changes in Equity for the half-year ended 31 December 2009

Consolidated

	Share Capital		Retained	Revaluation	Available-for-	Shareholder	Total
	Ordinary		Earnings	Reserve	sale financial	Payment
					assets	Reserve
Adjusted Balance at 1.7.2008	11,453,559		249,997	191,282	170,597	1,418,800	13,484,235
Adjustment for an error in the prior period		-	(119,602)	-	-	-	(119,602)
Adjusted Equity at 1.7.2008	11,453,559		130,395	191,282	170,597	1,418,800	13,364,633
Profit/(loss) for the period		-	(844,287)	-	-	-	(844,287)
Other comprehensive income:
Available-for-sale financial assets
- current year gains (losses)		-	-	-	(401,699)	-	(401,699)
- reclassification to profit or loss		-	-	-	1,001,979	-	1,001,979
Equity accounted investments		-	-	-	17,928	-	17,928
Revaluation of land		-	-	50,000	-	-	50,000
Income tax relating to comprehensive income
for the period		-	-	(15,000)	(53,296)	-	(68,296)
Total comprehensive income for the
period		-	(844,287)	35,000	564,912	-	(244,375)
Balance at 31.12.2008	11,453,559		(713,892)	226,282	735,509	1,418,800	13,120,258

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 Consolidated Statement of Changes in Equity for the half-year ended 31 December 2009

Consolidated

Adjusted Balance at 1.7.2009 Adjustment for an error in the prior period Adjusted Equity at 1.7.2009 Profit for the period Other comprehensive income: Available-for-sale financial assets - current year gains (losses) - reclassification to profit or loss Equity accounted investments Income tax relating to comprehensive income for the period Total comprehensive income for the period Transaction with owners in their capacity as owners: Transaction costs on share issue Balance at 31.12.2009	Share Capital Ordinary Retained Earnings Revaluation Reserve Available-for- sale financial assets Shareholder Payment Reserve Total 11,453,559 1,920,599 226,282 619,241 1,418,800 15,638,481 - 18,735 - - - 18,735 11,453,559 1,939,334 226,282 619,241 1,418,800 15,657,216 - 929,908 - - - 929,908 - - - 96,863 - 96,863 - - - 3,213 - 3,213 - - - 50,015 - 50,015 - - - (6,601) - (6,601)
	- 929,908 - 143,490 - 1,073,398 (24,448) - - - - (24,448)
	11,429,111 2,869,242 226,282 762,731 1,418,800 16,706,166

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

8

Rand Mining NL ABN 41 004 669 658 and Controlled Entities Consolidated Statement of Cash Flows for the half-year ended 31 December 2009

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 Proceeds/ (cost) from issue of share capital Proceeds of borrowings Repayment of borrowings Net cash (used in)/provided 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 31.12.2009 $ 31.12.2008 $ 7,975,305 4,875,178 (547,231) (474,673) (4,667,222) (4,244,170) 33,188 84,813 (3,922) (7,072) (831,859) (305,360)
	1,958,259 (71,284)
	(1) (15,301) (699,441) (393,917) (157,530) (43,313)
	(856,972) (452,531)
	(500) (425) (24,448) - 200,000 450,000 - (450,000)
	175,052 (425)
	1,276,339 (524,240) 2,357,643 2,711,945
	3,633,982 2,187,705

The above consolidated statement of cash flows 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 2009

NOTE 1: BASIS OF PREPARATION OF HALF-YEAR FINANCIAL STATEMENTS

These general purpose financial statements for the half-year reporting period ended 31 December 2009 have been prepared in accordance with Australian Accounting Standard 134 Interim Financial Reporting and the Corporations Act 2001. The consolidated financial statements of the Group have been prepared in accordance with International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board (IASB),

The historical cost basis has been used, except for investment properties, land and buildings, derivatives and available-for-sale financial assets which have been measured at fair value.

These half-year financial statements do not include all the notes of the type normally included in annual financial statements and therefore cannot be expected to provide as full an understanding of the financial performance, financial position and financial and investing activities of the consolidated entity as the full financial statements. Accordingly, these half-year financial statements are to be read in conjunction with the annual financial statements for the year ended 30 June 2009 and any public announcements made by Rand Mining NL during the half-year reporting period in accordance with the continuous disclosure requirements of the Corporations Act 2001.

The same policies and methods of computation have generally been followed in these half-year financial statements as compared with the most recent financial statements, except as follows:

Accounting Standards not previously applied

The Group has adopted the following new and revised Australian Accounting Standards issued by the AASB which are mandatory to apply to the current interim period. Disclosures required by these Standards that are deemed material have been included in this financial report on the basis that they represent a significant change in information from that previously made available.

Presentation of Financial Statements

AASB 101 prescribes the contents and structure of the financial statements. Changes reflected in this financial report include:

• the replacement of income statement with statement of comprehensive income. Items of income and expense not recognised in profit or loss are now disclosed as components of ‘other comprehensive income’. In this regard, such items are no longer reflected as equity movements in the statement of changes in equity;

• the adoption of the separate income statement/single statement approach to the presentation of the statement of comprehensive income;

• other financial statements are renamed in accordance with the Standard; and

• presentation of a third statement of financial position as at the beginning of a comparative financial year where relevant amounts have been affected by a retrospective change in accounting policy or material reclassification of items.

Operating Segments

From 1 July 2009, operating segments are identified and segment information disclosed on the basis of internal reports that are regularly provided to, or reviewed by, the Group’s chief operating decision maker which, for the Company, is the Board of Directors. In this regard, such information is provided using different measures to those used in preparing the statement of comprehensive income and statement of financial position. Reconciliations of such management information to the statutory information contained in the interim financial report have been included.

As a result of the adoption of the revised AASB 8, certain cash-generating units have been redefined having regard to the requirements in AASB 136: Impairment of Assets.

Business Combinations and Consolidation Procedures

Revised AASB 3 is applicable prospectively from 1 July 2009. Changes introduced by this Standard, or as a consequence of amendments to other Standards relating to business combinations which are expected to affect the Company, include the following:

• All business combinations, including those involving entities under common control, are

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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 2009

accounted for by applying the acquisition method which prohibits the recognition of contingent liabilities of the acquiree at acquisition date that do not meet the definition of a liability. Costs incurred that relate to the business combination are expensed instead of comprising part of the goodwill acquired on consolidation. Changes in the fair value of contingent consideration payable are not regarded as measurement period adjustments and are recognised through profit or loss unless the change relates to circumstances which existed at acquisition date.

• Unrecognised deferred tax assets of the acquiree may be subsequently realised within 12 months of acquisition date on the basis of facts and circumstances existing at acquisition date with a consequential reduction in goodwill. All other deferred tax assets subsequently recognised are accounted for through profit or loss.

• The proportionate interest in losses attributable to non-controlling interests is assigned to noncontrolling interests irrespective of whether this results in a deficit balance. Previously, losses causing a deficit to non-controlling interests were allocated to the parent entity.

• If the Company holds less than 100% of the equity interests in an acquiree and the business combination results in goodwill being recognised, the Company can elect to measure the noncontrolling interest in the acquiree either at fair value (‘full goodwill method’) or at the noncontrolling interest’s proportionate share of the subsidiary’s identifiable net assets (‘proportionate interest method’). The Company elects which method to adopt for each acquisition.

• Where control of a subsidiary is lost, the balance of the remaining investment account shall be remeasured to fair value at the date that control is lost.

Revenue Recognition

Dividends received from a subsidiary, joint venture or associate shall be recognised as dividend revenue in the profit or loss irrespective of whether such dividends may have been paid out of pre-acquisition profits. Previously, such dividends were treated as a return of capital invested. Such dividends may be an indicator of impairment where the carrying amount of the investment exceeds the consolidated net assets relating to that investment or where the dividend exceeds the total comprehensive income of the respective investee in the period the dividend is declared.

NOTE 2: BUSINESS COMBINATIONS

On 2 December 2009, the Company acquired 100% of the issued capital of Onslow Resources Ltd, for purchase consideration of $1.00.

The acquisition is part of the Company’s overall strategy to expand its mineral exploration operations.

The purchase was satisfied by the payment of $1.00 to the original shareholder. The price was based on negotiated arrangements on the date of purchase.

Trade and other receivables (i) Exploration Total current assets Provisions and contingent liabilities Total current liabilities Net identifiable assets and liabilities Cost of acquisition Loss on acquisition to profit and loss Cash	Acquiree’s carrying amount $ Fair value $ Recognised at acquisition date $ 4,389 4,389 4,389 46,156 46,156 46,156 50,545 50,545 50,545 62,847 62,847 62,847 62,847 62,847 62,847 (12,302) (12,302) (12,302) (12,302) (12,302) (12,302) 12,302 1.00

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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 2009

i) The directors believe the receivables are fully recoverable and no provision for impairment is required. ii) There was no goodwill associated with the acquisition.

A loss for the period of the Company’s ownership of Onslow Resources Ltd amounting to $91,087 is included in the consolidated statement of comprehensive income for the half-year ended 31 December 2010.

Had the results relating to Onslow Resources Ltd been consolidated from 1 July 2009, the consolidated loss of the consolidated Company would have been $103,389.

Included with administration expenses in the statement of comprehensive income are acquisition-related consulting costs totaling $41,000.

NOTE 3: SEGMENT REPORTING

The Company has adopted AASB 8 Operating Segments and AASB 2007-3 Amendments to Australian Accounting Standards arising from AASB with effect from 1 January 2009. AASB 8 requires operating segments to be identified on the basis of internal reports about components of the Company that are regularly reviewed by the chief operating decision maker in order to allocate resources to the segment and to assess its performance.

Description of segments

In order to determine the operating segments, the chief operating decision maker (that being the entire Board of Directors in this instance) have based their strategic decision on reports. The Board has identified two reportable segments.

Rand Mining NL

This segment includes Rand Mining NL, its wholly owned subsidiary Rand Exploration NL which includes investments in associates and the East Kundana Joint Venture operations and gold exploration.

Onslow Resources Ltd

This segment is involved in Western Australian mineral exploration other than gold.

Segment Information

Segment information provided to the Board of Directors for the half-year ended 31 December 2009 is as follows:

Half-year ended 31 December 2009 Total segment revenue Intersegment revenue Revenue from external customers EBITDA Half-year ended 31 December 2008 Total segment revenue Intersegment revenue Revenue from external customers EBITDA	Rand Mining NL $ Onslow Resources Ltd $ 8,008,495 - - -
	8,008,495 -
	2,315,696 91,087
	Rand Mining NL $ Onslow Resources Ltd $ 4,956,043 - - -
	4,956,043 -
	274,571 -

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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 2009

The Board of Directors monitors segment performance based on EBITDA. This measure excludes nonrecurring expenditure such as restructuring costs and goodwill impairments and also excludes sharebased payment expenses.

Reconciliation of EBITDA to profit before income tax is as follows:

	Consolidated
	2009	2008
	$	$
EBITDA	2,315,696	274,571
Intersegment eliminations	-	-
Interest revenue	33,188	84,813
Finance costs	(3,922)	(7,072)
Depreciation and
amortisation	(1,415,054)	(1,196,599)
Profit before income tax
from continuing operations	929,908	(844,287)

Finance costs exclude the non-cash interest paid on the gold bullion loan.

Total asset amounts provided to the executive management committee are measured in the same way that they are measured in the financial statements. Segment assets are allocated based on the operations of the segment and physical location of the assets.

NOTE 4: 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 $133,000 of which $332.50 is unused.

NOTE 5: EVENTS SUBSEQUENT TO REPORTING DATE

On 27[th] January 2010, the Rand Rights Issue of 20,280,396 fully paid shares at a placement price of $0.32 was completed. In accordance with the prescribed purpose of the Rights Issue, the gold bullion loan that was extended to the Company by Tribune Resources NL was repaid and settled in full.

As a result of the payout of the gold bullion loan, Tribune Resources NL now holds 43.85% of the share capital in Rand Mining NL.

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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 2009

NOTE 6: 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 Share of profit/(loss) after tax Share of increment on revaluation of investments Impairment of investment in associate Carrying amount at the end of financial period	31 December 09 30 June 09 8,942,928 7,918,698 1,227,269 1,483,462 50,015 62,868 (1,754,240) (522,100) 8,465,972 8,942,928

NOTE 7: RELATED PARTY TRANSACTIONS

During the half-year the joint venture paid $184,525 in royalties to a director related entity, Lake Grace Exploration NL, of which $22,604 relates to Rand Mining NL. Rand Mining NL paid a further $41,000 to Lake Grace Exploration NL for consulting services in relation to the acquisition of Onslow Resources Ltd.

Onslow Resources Ltd paid $3,000 in administration expenses to Lake Grace Exploration NL.

During December 2009, Tribune Resources loaned Onslow Resources Ltd, a subsidiary of Rand Mining NL, $200,000 in cash. The loan was subject to an interest rate of 10.00% pa and there is no repayment date specified.

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 2009 $ 30 June 2009 $ 2,834,600 2,834,600 3,206,045 2,583,934
	6,040,645 5,418,534

Refer Note 5 – Events subsequent to reporting date for explanation regarding loan repayment.

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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 2009

NOTE 8: AVAILABLE FOR SALE FINANCIAL ASSETS

Non-Current Balance 1 July Additions Disposals Impairment of available for sale financial asset to profit and loss Revaluation to reserve Balance at end of period	Consolidated 31 December 09 30 June 09 526,532 895,949 - 15,302 - (1,850) (3,213) (298,342) 100,076 (84,527)
	623,395 526,532

NOTE 9: AVAILABLE FOR SALE FINANCIAL ASSETS RESERVE

Balance 1 July Share of revaluation movement for investment in associate – Tribune Resources NL Revaluation to reserve Impairment of available to profit and loss Balance at end of period	Consolidated 31 December 09 30 June 09 619,241 71,741 50,015 62,868 90,262 (234,578) 3,213 719,210
	762,731 619,241

NOTE 10: ACCOUNTING ERROR

During the 30 June 2009 audit of the East Kundana Joint Venture it was identified that the incorrect tonnage inputs had been used within the fiscal year 2009 and 2008 underground mine development capitalisation model.

The error resulted in underground mine development being overstated by approximately $1,209,000, $1,340,000 and $(957,000) for the periods ended 30 June 2008, 31 December 2008 and 30 June 2009, respectively. The Company’s share was 12.25% of the above amounts.

It was determined by the Joint Venture Manager that the amount of the errors was immaterial and the total error of approximately $1,592,000, of which the Company’s share was $195,020 was corrected in the 30 June 2009 fiscal year.

It has been determined by the Company that the error is material to their accounts and prior year adjustments have been made.

The accounting error had the following impact in these half-year financial statements and for each prior period presented:

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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 2009

Consolidated Comprehensive Income Statement for the period ended 30 June 2008:

	Previous	Consolidated	Total
	$	adjustment	$
		$
Change in value of inventories	846,739	8,132	854,871
Mining costs	4,033,150	148,103	4,181,253
Depreciation and amortisation	467,297	(42,950)	424,347

Consolidated Comprehensive Income Statement for the period ended 31 December 2008:

	Previous	Consolidated	Total
	$	adjustment	$
		$
Change in value of inventories	1,360,954	(31,973)	1,328,981
Mining costs	2,896,490	164,150	3,060,640
Depreciation and amortisation	1,255,693	(59,094)	1,196,599

Consolidated Comprehensive Income Statement for the period ended 30 June 2009:

	Previous	Consolidated	Total
	$	adjustment	$
		$
Change in value of inventories	1,956,037	26,867	1,982,904
Mining costs	5,692,725	(148,102)	5,544,623
Depreciation and amortisation	1,819,545	42,950	1,862,495

Statement of Financial Position for the period ended 30 June 2008:

	Previous	Consolidated	Total
	$	adjustment	$
		$
Inventories	1,429,500	(8,132)	1,421,368
Mine development	4,326,450	(105,153)	4,221,297
Retained earnings	331,033	(113,285)	217,748

Statement of Financial Position for the period ended 30 June 2009:

	Previous	Consolidated	Total
	$	adjustment	$
		$
Inventories	3,385,539	18,735	3,404,274
Retained earnings	1,920,599	18,735	1,939,334

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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’):

• (a) The financial statements and notes, as set out on pages 5 to 16, are in accordance with the Corporations Act 2001 , including:

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

• (ii) giving a fair and true view of the consolidated entity’s financial position as at 31 December 2009 and of its performance for the half-year ended on that date;

• (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 15th day of March 2010

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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

We have reviewed the accompanying half-year financial report of Rand Mining NL (the Company) which comprises the consolidated financial statements being the statement of financial position as at 31 December 2009, and the statement of comprehensive income, statement of changes in equity and statement of cash flows 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 both the Company and the entities it controlled at the half-year’s end or from 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 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 controls 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 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 2009 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.

Grant Thornton Audit Pty Ltd ACN 130 913 594, 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.

Liability limited by a scheme approved under Professional Standards Legislation.

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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 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 2009 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 AUDIT PTY LTD

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P W Warr

Director – Audit and Assurance Services

Perth, 15 March 2010

Grant Thornton Audit Pty Ltd ABN 94 269 609 023, 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. Liability limited by a scheme approved under Professional Standards Legislation.

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