RAND MINING LIMITED — Interim / Quarterly Report 2014

Oct 28, 2014

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October 29, 2014

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

Quarterly Report for September 2014

Highlights

• During the quarter, 114,533 tonnes of EKJV ore were processed at the Kanowna Plant.

• 24,405.048 oz of gold and 5,399.127 oz of silver were credited to Rand and Tribune Bullion Accounts.

• (Rand’s share is 25%)

• At the end of the quarter

approximately 2,700 tonnes of Raleigh ore at an estimated grade of 20.4 g/t remain as a Bed Blend Stockpile on the ROM pad at the Raleigh Mine (Rand’s entitlement is 12.5%)

approximately 26,100 tonnes of Rubicon ore at an estimated grade of 10.9 g/t remain as a Bed Blend Stockpile on the ROM pad at the Rubicon Mine (Rand’s entitlement is 12.25%)

approximately 18,100 tonnes of Rubicon ore at an estimated grade of 9.4 g/t remain as a Bed Blend Stockpile on the ROM pad at the Kanowna Belle Plant.

(Rand’s entitlement is 12.25%)

GEOLOGY AND MINING

EAST KUNDANA JOINT VENTURE

Raleigh Underground Mine Production

Stope production from the Raleigh 5812 and 5795 levels continued during the quarter. Rehabilitation of the levels damaged in the February earthquake is proceeding.

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

Rehabilitation of the levels damaged in the February earthquake is proceeding. Contained gold in stope development and stope ore mined during the quarter, estimated grade control face chip sampling, is tabulated below:	Rehabilitation of the levels damaged in the February earthquake is proceeding. Contained gold in stope development and stope ore mined during the quarter, estimated grade control face chip sampling, is tabulated below:	Rehabilitation of the levels damaged in the February earthquake is proceeding. Contained gold in stope development and stope ore mined during the quarter, estimated grade control face chip sampling, is tabulated below:	Rehabilitation of the levels damaged in the February earthquake is proceeding. 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	3,522	15.63	1,770
August	2,965	18.03	1,719
September	2,827	19.80	1,800
September 14Q	9,314	17.6	5,288
June 14Q	139	8.7	39

Rand’s Entitlements (12.5%)

September 14Q	1,164	17.6	661
June 14Q	17	8.7	5

Approximately 2,700 tonnes remain as a Bed Blend Stockpile on the ROM pad at the Raleigh Mine and will be hauled in early October.

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 has finished.

	RALEIGH UNDERGROUND DEVELOPMENT
Month	Capital			Operating
	Decline (m)	Secondary (m)	Waste (m)	Ore (m)	Paste Fill (m)
July	0.0	0.0	0.0	0.0	6.0
August	0.0	0.0	0.0	0.0	6.0
September	0.0	0.0	0.0	0.0	18.0
September 14Q	0.0	0.0	0.0	0.0	30.0
March 14Q	0.0	0.0	0.0	0.0	0.0

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

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July 14 Green indicates new development at Raleigh
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August 14 Green indicates new development at Raleigh

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September 14 Green indicates new development at Raleigh

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Mine operating costs incurred during the September 2014 Quarter were $4.64 million compared with the June 2014 Quarter costs of $4.78 million.

Rubicon Underground Mine Production

Development progressed on the 6055 and 6035 levels at Rubicon and the 5965, 5945 and 5925 levels at Hornet. Stope production from the Rubicon 6075 level and the Hornet 6225, 6205, 6185, 6165, 6145, 6125, 6105, 6085, 6065, 6045, 6025, 6005, 5985 and 5965 levels continued during the quarter. The production schedule at Rubicon and Hornet was re‐optimized, using some of the resources from Raleigh, to minimize the production shortfall at Raleigh.

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

chip sampling, is tabulated below:	chip sampling, is tabulated below:	chip sampling, is tabulated below:	chip sampling, is tabulated below:
RUBICON UNDERGROUND GRADE CONTROL ESTIMATES
Month	Tonnes	Grade	Ounces
	t	g/t	troy oz
July	36,547	11.89	13,974
August	44,264	11.89	16,915
September	41,792	9.89	13,294
September 14Q	122,603	11.2	44,182
June 14Q	106,840	13.0	44,692
Rand’s Entitlements (12.25%)
September 14Q	15,019	11.2	5,412
June 14Q	13,088	13.0	5,475

Approximately 26,100 tonnes remain as a Bed Blend Stockpile on the ROM pad at the Rubicon Mine and will be hauled in early October.

Rubicon Underground Mine Development

During the quarter, decline development at Rubicon, Hornet and Pegasus continued. At the end of the quarter, the bottom of the Rubicon Decline is at 6009m RL, 334 m from the surface, the bottom of the Hornet Decline is at 5892 m RL, 451m from the surface, the top of the Hornet Incline is at 6244 m RL, 99 m from the surface and the bottom of the Pegasus Access is at 6124 m RL, 219 m from the surface.

	RUBICON UNDERGROUND DEVELOPMENT
Month	Capital			Operating
	Decline (m)	Secondary (m)	Waste (m)	Ore (m)	Paste Fill (m)
July	224.5	223.3	6.7	100.4	60.0
August	123.0	263.0	0.0	182.3	42.0
September	169.1	276.6	0.0	213.4	48.0
September 14Q	516.6	762.9	6.7	496.1	150.0
June 14Q	577.7	493.6	10.4	413.5	204.0

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

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July 14 Green indicates new development at Rubicon, Hornet and Pegasus
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August 14 Green indicates new development at Rubicon, Hornet and Pegasus
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September 14 Green indicates new development at Rubicon, Hornet and Pegasus
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Mine operating costs incurred during September 2014 Quarter were $90 per tonne mined or $250 per ounce mined compared with the June 2014 Quarter costs of $102 and $245 respectively.

Toll Processing

During the quarter, 7,189 tonnes (wet) of Raleigh ore and 118,975 tonnes (wet) of Rubicon ore were hauled to the Kanowna Belle Plant. During the quarter, 114,533 tonnes of EKJV ore were processed.

Bullion accredited to RAND and TRIBUNE from Kanowna Belle
Quarter	Gold(oz)	Silver(oz)	Rand’s sharegold
September 14	24,405.048	5,399.127	6,101.261
June 14	24,022.155	5,748.548	6,005.538

EKJV Exploration

The Quarterly Report of the EKJV exploration activities is expected shortly and will be released to the ASX when received.

OTHER EXPLORATION

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

All previous exploration results have been reviewed and an auger soil sampling programme is in the final stages of planning.

Tapeta Iron Ore Project, Liberia, West Africa

All operations were suspended during the quarter due to the Ebola virus.

INTERESTS IN MINING TENEMENTS

Project/Tenements	Location	Held at end of quarter	Acquired during the quarter	Disposed during the quarter
Kundana	WA,Australia
M15/1413 M15/993 M16/181 M16/182 M16/308 M16/309 M16/325 M16/326 M16/421 M16/428 M24/924		12.25% 12.25% 12.25% 12.25% 12.25% 12.25% 12.25% 12.25% 12.25% 12.25% 12.25%
Seven Mile Hill	WA,Australia
M15/1291 M15/1388 M15/1394 M15/1409 M15/1743 M26/563 P15/5182 P15/5183 P15/5184 P26/3617		50.00% 50.00% 50.00% 50.00% 50.00% 50.00% 50.00% 50.00% 50.00% 50.00%
Tapeta Iron Ore Project (currently under option to acquire issued capital of Iron Resources Ltd, the owner of the project)	Liberia, West Africa	100% (under option)

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, 01/06/10.

Name of entity

Rand Mining Ltd

Quarter ended (“current quarter”) September 2014

	ABN 41 004 669 658 Consolidated statement of cash flows		Quarter ended (“current quarter”) September 2014	Quarter ended (“current quarter”) September 2014
			September 2014
Cash flows related to operating activities 1.1 Receipts from product sales and related debtors 1.2 Payments for (a) exploration & evaluation (b) development (c) production (d) administration 1.3 Dividends received 1.4 Interest and other items of a similar nature received 1.5 Interest and other costs of finance paid 1.6 Income taxes paid 1.7 Other (provide details if material) Net Operating Cash Flows			Current quarter $A’000	Year to date (3 months) $A’000
			5,538 (927) (871) (3,037) (158) ‐ 12 ‐ (986) ‐	5,538 (927) (871) (3,037) (158) ‐ 12 ‐ (986) ‐
			(429)	(429)
Cash flows related to investing activities 1.8 Payment for purchases of: (a) prospects (b) equity investments (c) other fixed assets 1.9 Proceeds from sale of: (a) prospects (b) equity investments (c) other fixed assets 1.10 Loans to other entities 1.11 Loans repaid to other entities 1.12 Loans from other entities Net investing cash flows 1.13 Total operating and investing cash flows (carried forward)			‐ (203) (400) ‐ ‐ ‐ ‐ ‐ ‐	‐ (203) (400) ‐ ‐ ‐ ‐ ‐ ‐
			(603)	(603)
			(1,032)	(1,032)

• See chapter 19 for defined terms.

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Appendix 5B Mining exploration entity quarterly report

Appendix 5B Mining exploration entity quarterly report
1.13 Total operating and investing cash flows (brought forward)	(1,032)	(1,032)
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 to item 1.20 1.22 Cash at end ofquarter	(1,032) 2,879 ‐	(1,032) 2,879 ‐
	1,847	1,847

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 to the parties included in item 1.10	Current quarter $A'000
		(90)
		‐
1.25	Explanation necessaryfor an understandingof the transactions
	(1) Drill rig hire (included in exploration & evaluation 1.2(a)) (64) Directors fees and superannuation (included in administration 1.2(d)) (26) (2) Purchase of 70,000 shares in Tribune Resources Ltd (203) (included in equity investments 1.8(b))

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

• 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.

Financing facilities available Add notes as necessary for an understanding of the position.
3.1 Loan facilities 3.2 Credit standby arrangements	Amount available $A’000	Amount used $A’000
	‐	‐
	‐	‐

Estimated cash outflows for next quarter

4.1 Exploration and evaluation 4.2 Development 4.3 Production 4.4 Administration	$A’000
	700
	600
	1,100
	300
Total	2,700

Reconciliation of cash

Reconciliation of cash at the end of the quarter (as	Current quarter	Previous quarter
shown in the consolidated statement of cash flows) to	$A’000	$A’000
the related items in the accounts is as follows.
5.1 Cash on hand and at bank	1,662	2,694
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)	1,847	2,879

Changes in interests in mining tenements

6.1 Interests in mining tenements relinquished, reduced or lapsed	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

6.2	Interests in mining
	tenements acquired or
	increased

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	60,841,209	60,841,209
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

• See chapter 19 for defined terms.

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Appendix 5B Mining exploration entity quarterly report

7.10 Expired during quarter
7.11 Debentures (totals only)
7.12 Unsecured notes(totals only)

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.

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Sign here: ............................................................ Date: 29 October 2014 (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.

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