RAND MINING LIMITED — Interim / Quarterly Report 2012

Jul 24, 2012

July 25, 2012

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

Quarterly Report for June 2012

Highlights

• During the quarter, 39,127 tonnes of EKJV ore were processed and 13,419 oz of gold and 4,926 oz of silver were credited to Rand and Tribune Bullion Accounts. (Rand's share is 25%)
• At the end of the quarter

approximately 13,700 tonnes of Raleigh ore at an estimated grade of 17.9 g/t remain as a Bed Blend Stockpile on the ROM pad at the Raleigh Mine (Rand's entitlement is 12.5%)

approximately 2,000 tonnes of Rubicon ore at an estimated grade of 14.5 g/t remain as a Bed Blend Stockpile on the ROM pad at the Rubicon Mine (Rand's entitlement is 12.25%)

approximately 22,100 tonnes of Raleigh ore at an estimated grade of 14.8 g/t remains on the ROM pad at the Greenfields Plant (Rand's share is 25%)

approximately 19,600 tonnes of Rubicon ore at an estimated grade of 9.3 g/t remains on the ROM pad at the Greenfields Plant (Rand's share is 25%)

the difference of the Gold in Circuit at the start and end of Campaign 22 has been agreed and the amount, 3,679.888 oz, will been transferred to Rand and Tribune Bullion Accounts by the end of July. (Rand's share is 25%)

GEOLOGY AND MINING

EAST KUNDANA JOINT VENTURE

Raleigh Underground Mine Production

Stope production from the 5949, 5932, 5915, 5898, 5881, 5864, 5847, 5830, 5812, 5795, 5778, 5761, 5744, 5722, 5705, 5688, 5671 and 5654 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:

RALEIGH UNDERGROUND GRADE CONTROL ESTIMATES
Month	Tonnes	Grade	Ounces
	t	g/t	troy oz
April	18,752	16.97	10,234
May	14,485	17.57	8,180
June	20,904	17.23	11,583
June 12 Q	54,141	17.2	29,997
March 12 Q	63,933	14.5	29,850

Rand's Entitlements (12.5%)

June 12 Q	6,768	17.2	3,750
March 12 Q	7,992	14.5	3,731

Approximately 13,700 tonnes remains as a Bed Blend Stockpile on the ROM pad at the Raleigh Mine and will be hauled in early July.

Raleigh Underground Mine Development

At the end of the quarter, the bottom of the Raleigh Decline is at 5618 m RL, 727 m from the surface.

Development progressed on the 5631 and 5614 levels.

RALEIGH UNDERGROUND DEVELOPMENT
Month	CapitalOperating
	Decline	Secondary	Waste	Ore	Paste Fill
	(m)	(m)	(m)	(m)	(m)
April	0.0	0.0	12.0	77.7	40.0
May	0.0	0.0	68.1	9.2	48.0
June	0.0	0.0	41.3	27.9	35.0
June 12 Q	0.0	0.0	121.4	114.8	123.0
March 12 Q	0.0	0.0	37.6	257.1	136.0

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

Mine operating costs incurred during the June 2012 Quarter were $213 per tonne mined or $384 per ounce mined compared with the March 2012 Quarter costs of $200 and $429 respectively.

Rubicon Underground Mine Production

During the quarter, development of the Rubicon ore body progressed on the 6135 and 6115 levels and the Hornet ore body on the 6165, 6145 and 6125 levels. Stope production from the Rubicon 6225 and 6195 levels continued during the quarter.

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

RUBICON UNDERGROUND GRADE CONTROL ESTIMATES
Month	Tonnes	Grade	Ounces
	t	g/t	troy oz
April	13,220	7.18	3,051
May	16,291	7.48	3,915
June	17,332	12.22	6,812
June 12 Q	46,843	9.1	13,778
March 12 Q	9,854	10.2	3,250

Rand's Entitlements (12.25%)

June 12 Q	5,738	9.1	1,688
March 12 Q	1,207	10.2	398

Approximately 2,000 tonnes remains as a Bed Blend Stockpile on the ROM pad at the Rubicon Mine and will be hauled in early July.

Rubicon Underground Mine Development

At the end of the quarter, the bottom of the Rubicon Decline is at 6067 m RL, 276 m from the surface, the bottom of the Hornet Decline is at 6076 m RL, 267 m from the surface and the top of the Hornet Incline is at 6183 m RL, 160 m from the surface.

RUBICON UNDERGROUND DEVELOPMENT
Month	Capital		Operating
	Decline	Secondary	Waste	Ore	Paste Fill
	(m)	(m)	(m)	(m)	(m)
April	168.9	176.2	31.6	177.8	10.0
May	198.3	115.0	32.6	236.9	5.0
June	182.5	161.0	24.0	248.7	0.0
June 12 Q	549.7	452.2	88.2	663.4	15.0
March 12 Q	512.6	871.2	73.2	120.7	0.0

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

May 12 Green indicates new development at Rubicon

Toll Processing

During the quarter, 31,053 tonnes (wet) of Raleigh ore and 23,469 tonnes (wet) of Rubicon ore were hauled to the Greenfields Plant. The twenty second toll treatment campaign at the Greenfields Plant, which started on May 8, 2012, finished on May 31, 2012. During the quarter, 39,127 tonnes of EKJV ore were processed. At the end of the quarter, approximately 22,100 tonnes (wet) of Raleigh ore and 19,600 (wet) tonnes of Rubicon ore remain on the ROM pad at the Greenfields Plant.

Bullion accredited to RAND and TRIBUNE
Quarter	Gold (oz)Silver (oz)Rand's share gold
June 12	13,419.595	4,926.422	3,354.897
March 12	17,311.273	6,030.152	4,327.816

EKJV Exploration

The 2102 drilling programme has commenced. Results will be announced when assays become available.

OTHER EXPLORATION

Wongan Hills (Rand's Interest 100%)

A drilling programme to test previously reported anomalies has been planned and will start when a drill rig is available.

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

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

Tapeta Iron Ore Project, Liberia, West Africa

Construction of the camp on the lease continues. Work on the access road continues.

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, 01/06/10.

	Rand Mining Ltd
--	-----------------	--

41 004 669 658 30 June 2012

ABN Quarter ended ("current quarter")

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	5,660	15,285
1.2	Payments for(a) exploration & evaluation	(329)	(1,272)
	(b) development	(1,022)	(4,526)
	(c) production	(2,160)	(8,542)
	(d) administration	(1,110)	(2,305)
1.3	Dividends received	‐	‐
1.4	Interest and other items of a similar nature
	received	19	101
1.5	Interest and other costs of finance paid	(105)	(372)
1.6	Income taxes paid	(517)	(1,456)
1.7	Other (provide details if material)	‐	‐
	Net Operating Cash Flows	436	(3,087)
	Cash flows related to investing activities
1.8	Payment for purchases of:(a) prospects	‐	‐
	(b) equity investments	(100)	(150)
	(c) other fixed assets	(339)	(1,464)
1.9	Proceeds from sale of:(a) prospects	‐	‐
	(b) equity investments	‐	‐
	(c) other fixed assets	‐	36
1.10	Loans to other entities	‐	‐
1.11	Loans repaid to other entities	‐	‐
1.12	Loans from other entities	‐	‐
	Net investing cash flows	(439)	(1,578)
1.13	Total operating and investing cash flows (carried
	forward)	(3)	(4,665)

+ See chapter 19 for defined terms.

Appendix 5B Mining exploration entity quarterly report

1.13	Total operating and investing cash flows (broughtforward)	(3)	(4,665)
	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	‐	3,725
1.17	Repayment of borrowings	‐	‐
1.18	Dividends paid	‐	‐
1.19	Other (provide details if material)	‐	‐
	Net financing cash flows	‐	3,725
	Net increase (decrease) in cash held	(3)	(940)
1.20	Cash at beginning of quarter/year to date	1,688	2,625
1.21	Exchange rate adjustments to item 1.20	‐	‐
		1,685	1,685
1.22	Cash at end of quarter

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

		Current quarter$A'000
1.23	Aggregate amount of payments to the parties included in item 1.2	(38)
1.24	Aggregate amount of loans to the parties included in item 1.10	‐

1.25 Explanation necessary for an understanding of the transactions

Directors fees and superannuation (included in administration 1.2(d)) (31) Royalty payment (included in production 1.2(c)) (7)

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

Not applicable

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

Financing facilities available

Add notes as necessary for an understanding of the position.

Amount used	Amount available
$A'000	$A'000

+ See chapter 19 for defined terms.

3.1	Loan facilities	‐	5,000
3.2	Credit standby arrangements	‐	‐

Estimated cash outflows for next quarter

		$A'000
4.1	Exploration and evaluation	100
4.2	Development	800
4.3	Production	600
4.4	Administration	100
	Total	1,600

Reconciliation of cash

	Reconciliation of cash at the end of the quarter (asshown in the consolidated statement of cash flows) tothe related items in the accounts is as follows.	Current quarter$A'000	Previous quarter$A'000
5.1	Cash on hand and at bank	1,500	1,503
5.2	Deposits at call	185	185
5.3	Bank overdraft	‐	‐
5.4	Other (provide details)	‐	‐
	Total: cash at end of quarter (item 1.22)	1,685	1,688

Changes in interests in mining tenements

		Tenementreference	Nature of interest(note (2))	Interest atbeginningof quarter	Interest atend ofquarter
6.1	Interests in miningtenements relinquished,reduced or lapsed
6.2	Interests in miningtenements acquired orincreased

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.

+ See chapter 19 for defined terms.

Appendix 5B Mining exploration entity quarterly report

		Total number	Number quoted	Issue price persecurity (see note3) (cents)	Amount paid up persecurity (see note 3)(cents)
7.1	Preference+securities(description)
7.2	Changes duringquarter(a) Increasesthrough issues(b) Decreasesthrough returnsof capital, buy‐backs,redemptions
7.3	+Ordinarysecurities	60,841,209	60,841,209
7.4	Changes duringquarter(a) Increasesthrough issues(b) Decreasesthrough returnsof capital, buy‐backs
7.5	+Convertibledebt securities(description)
7.6	Changes duringquarter(a) Increasesthrough issues(b) Decreasesthroughsecuritiesmatured,converted
7.7	Options(description andconversionfactor)	4,000,000		Exercise price$0.60	Expiry date26 October 2012
7.8	Issued duringquarter
7.9	Exercised duringquarter
7.10	Expired duringquarter			Exercise price	Expiry date
7.11	Debentures(totals only)
7.12	Unsecurednotes (totalsonly)

+ See chapter 19 for defined terms.

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: 25 July 2012 (Director/Company secretary)

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.

== == == == ==

+ See chapter 19 for defined terms.