RAND MINING LIMITED — Interim / Quarterly Report 2015

Mar 12, 2015

Rand Mining Limited

ABN 41 004 669 658

Interim Report - 31 December 2014

Rand Mining Limited Directors' report 31 December 2014

The directors present their report, together with the financial statements, on the consolidated entity (referred to hereafter as the 'consolidated entity') consisting of Rand Mining Limited (referred to hereafter as the 'company' or 'parent entity') and the entities it controlled at the end of, or during, the half-year ended 31 December 2014.

Directors

The following persons were directors of Rand Mining Limited during the whole of the financial half-year and up to the date of this report, unless otherwise stated:

Otakar Demis - Chairman Anthony Billis Gordon Sklenka

Principal activities

The principal activities of the consolidated entity during the financial half-year were exploration, development and production activities at the consolidated entity's East Kundana Joint Venture ('EKJV') tenements.

The EKJV is located 25km west north west of Kalgoorlie and 47km north east of Coolgardie and is between Rand Mining Limited. (12.25%), Tribune Resources Limited. (36.75%) and Gilt-Edged Mining NL (51%).

Review of operations

The profit for the consolidated entity after providing for income tax amounted to $1,868,757 (31 December 2013: $3,030,004).

East Kundana Joint Venture (Rand's Interest 12.25%)

Raleigh - Rand's entitlement is 12.50%

Production at the Raleigh Underground Mine that commenced in December 2004 continues. The production rate is still restricted due to the effects of the earthquake in February 2014.

Capital development ceased in the September Quarter 2011. The depth of the decline is approximately 727 m below the surface. Operating development in waste and ore ceased in the September Quarter 2012. Rehabilitation of the damaged levels is proceeding.

Operating development for the half-year to 31 December 2014 was 47 m mainly through paste fill.

Mine production during the half-year to 31 December 2014 totalled 23,483 t grading 12.9 g/t containing 9,766 oz of gold, based on grade control estimates. (31 December 2013: 66,660 t grading 16.2 g/t containing 34,810 oz of gold were estimated to be mined).

Rubicon - Rand's entitlement is 12.25%

Production at the Rubicon Underground Mine that commenced in August 2011 continues.

Rubicon and Hornet Ore Bodies

Capital development for the half-year to 31 December 2014 totalled 1,075 m; 488 m for decline development and 588 m for secondary development. At the close of the half year period, the bottom of the Rubicon Decline is 344 m below the surface and the bottom of the Hornet Decline is 467 m below the surface.

Operating development for the half-year to 31 December 2014 totalled 1,645 m; 27 m in waste, 1,325 m in ore and 294 m through paste fill.

Mine production during the half-year to 31 December 2014 totalled 255,660 t grading 11.0 g/t containing 89,951 oz of gold, based on grade control estimates. (31 December 2013: 140,175 t grading 9.2 g/t containing 41,570 oz of gold were estimated to be mine).

Pegasus Ore Body

The Access Decline to the Pegasus ore body from the Rubicon Decline commenced in April 2014 and was completed in early November 2014 when the Pegasus Incline and Decline commenced.

Rand Mining Limited Directors' report 31 December 2014

Capital development for the half-year to 31 December 2014 totalled 1,561 m; 561 m for decline development and 1,000 m for secondary development. At the close of the half-year period, the top of the Pegasus Incline is 207 m below the surface and the bottom of the Pegasus Decline is 242 m below the surface.

Operating development for the half-year to 31 December 2014 was 185 m in ore.

Mine production during the half-year to 31 December 2014 totalled 21,094 t grading 5.0 g/t containing 3,403 oz of gold, based on grade control estimates.

In February 2015, the first stope at Pegasus was fired. Significant stope production is expected by June 2015.

Processing

Treatment campaigns at the Kanowna Belle Plant processed 279,924 t of EKJV ore from the Raleigh and Rubicon mines during the half-year to 31 December 2014. A total of 52,691 oz of gold and 12,391 oz of silver were credited to the Rand and Tribune Bullion Accounts. Rand's share of gold bullion was 13,172 oz.

The first parcel of Pegasus ore was processed at the Kanowna Belle Plant in early February 2015.

Exploration

Currently, the main drilling programmes are reserve development at Pegasus, resource targeting at Pegasus, Rubicon and Hornet and drill targeting between Drake and Pegasus and between Rubicon and Hornet and at Ambition.

A resource upgrade for Pegasus was released to the ASX on 16 February 2015 and 11 March 2015. A resource upgrade for Rubicon and Hornet and the Half Yearly Report of all EKJV exploration activities are expected shortly and will be released to ASX when received.

Other projects

Seven Mile Hill (Rand's Interest 50%)

All previous exploration results have been reviewed. An auger soil sampling programme has been planned.

Tapeta Iron Ore Project, Liberia, West Africa

All operations were suspended due to the Ebola virus. The company is monitoring the situation and will inform the market when it is considered appropriate to re-commence operations.

Share buy-back

On 12 December 2014, the Directors of Rand Mining Limited announced the company would undertake an on-market buyback of its issued capital.

The Directors noted that the timing and actual number of shares to be purchased will depend on market conditions. The maximum number of shares that may be bought back under the terms of the buy-back is 6,084,120 shares, but the Board advises shareholders there can be no certainty that the company will acquire (or seek to acquire) any shares under this buy-back arrangement.

The Board considers that this buy-back will not impact the currently planned work program for 2014 and 2015.

At 31 December 2014, no shares were subject of this buy-back program.

Significant changes in the state of affairs

There were no significant changes in the state of affairs of the consolidated entity during the financial half-year.

Rand Mining Limited Directors' report 31 December 2014

Auditor's independence declaration

________________________________

A copy of the auditor's independence declaration as required under section 307C of the Corporations Act 2001 is set out on the following page.

This report is made in accordance with a resolution of directors, pursuant to section 306(3)(a) of the Corporations Act 2001.

On behalf of the directors

Anthony Billis Director

13 March 2015 Perth

Level 1 10 Kings Park Road West Perth WA 6005

Correspondence to: PO Box 570 West Perth WA 6872

T +61 8 9480 2000 F +61 8 9322 7787 E info.wa@au.gt.com W www.grantthornton.com.au

Auditor's Independence Declaration To the Directors of Rand Mining Limited

In accordance with the requirements of section 307C of the Corporations Act 2001, as lead auditor for the review of Rand Mining Limited for the half-year ended 31 December 2014, 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

C A Becker Partner - Audit & Assurance

Perth, 13 March 2015

Grant Thornton Audit Pty Ltd ACN 130 913 594 a subsidiary or related entity of Grant Thornton Australia Ltd ABN 41 127 556 389

Liability limited by a scheme approved under Professional Standards Legislation. Liability is limited in those States where a current scheme applies.

'Grant Thornton' refers to the brand under which the Grant Thornton member firms provide assurance, tax and advisory services to their clients and/or refers to one or more member firms, as the context requires. Grant Thornton Australia Ltd is a member firm of Grant Thornton International Ltd (GTIL). GTIL and the member firms are not a worldwide partnership. GTIL and each member firm is a separate legal entity. Services are delivered by the member firms. GTIL does not provide services to clients. GTIL and its member firms are not agents of, and do not obligate one another and are not liable for one another's acts or omissions. In the Australian context only, the use of the term 'Grant Thornton' may refer to Grant Thornton Australia Limited ABN 41 127 556 389 and its Australian subsidiaries and related entities. GTIL is not an Australian related entity to Grant Thornton Australia Limited.

Contents

Statement of profit or loss and other comprehensive income	6
Statement of financial position	7
Statement of changes in equity	8
Statement of cash flows	9
Notes to the financial statements	10
Directors' declaration	16
Independent auditor's review report to the members of Rand Mining Limited	17

General information

The financial statements cover Rand Mining Limited as a consolidated entity consisting of Rand Mining Limited and the entities it controlled at the end of, or during, the half-year. The financial statements are presented in Australian dollars, which is Rand Mining Limited's functional and presentation currency.

Rand Mining Limited is a listed public company limited by shares, incorporated and domiciled in Australia. Its registered office and principal place of business is:

Suite G1, 49 Melville Parade South Perth WA 6151

A description of the nature of the consolidated entity's operations and its principal activities are included in the directors' report, which is not part of the financial statements.

The financial statements were authorised for issue, in accordance with a resolution of directors, on 13 March 2015. The directors have the power to amend and reissue the financial statements.

Rand Mining Limited Statement of profit or loss and other comprehensive income For the half-year ended 31 December 2014

	Consolidated
	Note	31 Dec 2014$	31 Dec 2013$
Revenue	3	11,217,573	15,226,780
Share of profits of associates accounted for using the equity method	4	1,200,964	1,365,560
Other income	5	2,608	37,230
ExpensesChanges in inventoriesEmployee benefits expenseManagement feesDepreciation and amortisation expenseImpairment of available-for-sale assetsImpairment of exploration and evaluation	6	1,825,400(289,239)(154,978)(2,976,923)(15,281)(1,283,203)	(2,202,730)(267,085)(150,063)(1,418,843)(9,364)(534,357)
Administration expensesMining expensesProcessing expensesRoyalty expensesFinance costs	6	(417,735)(4,176,321)(1,458,910)(451,213)(1,829)	(1,340,631)(4,313,544)(1,163,669)(340,443)(46,212)
Profit before income tax expense		3,020,913	4,842,629
Income tax expense		(1,152,156)	(1,812,625)
Profit after income tax expense for the half-year attributable to the owners ofRand Mining Limited		1,868,757	3,030,004
Other comprehensive income
Items that may be reclassified subsequently to profit or lossAvailable-for-sale financial assets - current half-year revaluation gain/(loss)Available-for-sale financial assets - reclassification to profit or lossTax on revaluation adjustment		(84,975)--	111,98642,903(10,061)
Other comprehensive income for the half-year, net of tax		(84,975)	144,828
Total comprehensive income for the half-year attributable to the owners ofRand Mining Limited		1,783,782	3,174,832
		Cents	Cents
Basic earnings per shareDiluted earnings per share	1717	3.073.07	4.984.98

Rand Mining Limited Statement of financial position As at 31 December 2014

		Consolidated
Note	31 Dec 2014	30 Jun 2014
	$	$

Assets

Current assets
Cash and cash equivalents		1,714,756	2,879,428
Trade and other receivables		499,670	149,022
Inventories	7	22,484,573	20,606,504
Income tax refund due		1,133,367	1,608,999
Total current assets		25,832,366	25,243,953
Non-current assets
Investments accounted for using the equity method	8	20,208,584	18,824,031
Available-for-sale financial assets		83,802	164,647
Property, plant and equipment		2,106,325	2,259,061
Mine development		4,928,947	5,269,299
Deferred tax		1,208,994	661,074
Total non-current assets		28,536,652	27,178,112
Total assets		54,369,018	52,422,065
Liabilities
Current liabilities
Trade and other payables		2,938,739	3,155,964
Provisions		20,787	-
Total current liabilities		2,959,526	3,155,964
Non-current liabilities
Deferred tax		3,402,127	3,042,518
Provisions		519,851	519,851
Total non-current liabilities		3,921,978	3,562,369
Total liabilities		6,881,504	6,718,333
Net assets		47,487,514	45,703,732
Equity
Issued capital		17,573,427	17,573,427
Reserves	9	758,179	2,260,554
Retained profits		29,155,908	25,869,751
Total equity		47,487,514	45,703,732

7

Rand Mining Limited Statement of changes in equity For the half-year ended 31 December 2014

Consolidated	Issuedcapital$	Reserves$	Retainedprofits$	Totalequity$
Balance at 1 July 2013	17,573,427	2,152,075	22,929,527	42,655,029
Profit after income tax expense for the half-yearOther comprehensive income for the half-year, net of tax	--	-144,828	3,030,004-	3,030,004144,828
Total comprehensive income for the half-year	-	144,828	3,030,004	3,174,832
Balance at 31 December 2013	17,573,427	2,296,903	25,959,531	45,829,861
Consolidated	Issuedcapital$	Reserves$	Retainedprofits$	Totalequity$
Balance at 1 July 2014	17,573,427	2,260,554	25,869,751	45,703,732
Profit after income tax expense for the half-yearOther comprehensive income for the half-year, net of tax	--	-(84,975)	1,868,757-	1,868,757(84,975)
Total comprehensive income for the half-year	-	(84,975)	1,868,757	1,783,782
Transactions with owners in their capacity as owners:Transfers to retained earnings	-	(1,417,400)	1,417,400	-
Balance at 31 December 2014	17,573,427	758,179	29,155,908	47,487,514

Rand Mining Limited Statement of cash flows For the half-year ended 31 December 2014

	Consolidated
	Note	31 Dec 2014$	31 Dec 2013$
Cash flows from operating activities
Receipts from customers (inclusive of GST)		11,198,450	15,203,100
Payments to suppliers and employees (inclusive of GST)		(6,103,410)	(7,264,486)
Interest received		19,116	23,681
Interest and other finance costs paid		(1,829)	(46,212)
Income taxes paid		(1,850,942)	(2,489,296)
Net cash from operating activities		3,261,385	5,426,787
Cash flows from investing activities
Payments for property, plant and equipment		(875,448)	(65,275)
Payments for exploration and evaluation		(1,362,736)	(1,865,463)
Payments for mine development		(1,734,874)	(465,350)
Proceeds from sale of property, plant and equipment		-	7,648
Net cash used in investing activities		(3,973,058)	(2,388,440)
Cash flows from financing activities
Repayment of borrowings		-	(1,750,000)
Advance to related parties	14	(250,000)	-
Purchase of investments		(202,999)	-
Net cash used in financing activities		(452,999)	(1,750,000)
Net increase/(decrease) in cash and cash equivalents		(1,164,672)	1,288,347
Cash and cash equivalents at the beginning of the financial half-year		2,879,428	2,054,590
Cash and cash equivalents at the end of the financial half-year		1,714,756	3,342,937

Rand Mining Limited Notes to the financial statements 31 December 2014

Note 1. Significant accounting policies

These general purpose financial statements for the interim half-year reporting period ended 31 December 2014 have been prepared in accordance with Australian Accounting Standard AASB 134 'Interim Financial Reporting' and the Corporations Act 2001, as appropriate for for-profit oriented entities. Compliance with AASB 134 ensures compliance with International Financial Reporting Standard IAS 34 'Interim Financial Reporting'.

These general purpose financial statements do not include all the notes of the type normally included in annual financial statements. Accordingly, these financial statements are to be read in conjunction with the annual report for the year ended 30 June 2014 and any public announcements made by the company during the interim reporting period in accordance with the continuous disclosure requirements of the Corporations Act 2001.

The principal accounting policies adopted are consistent with those of the previous financial year and corresponding interim reporting period, unless otherwise stated.

New, revised or amending Accounting Standards and Interpretations adopted

The consolidated entity has adopted all of the new, revised or amending Accounting Standards and Interpretations issued by the Australian Accounting Standards Board ('AASB') that are mandatory for the current reporting period.

The adoption of these Accounting Standards and Interpretations did not have any significant impact on the financial performance or position of the consolidated entity during the financial half-year ended 31 December 2014 and are not expected to have any significant impact for the full financial year ending 30 June 2015. Any new, revised or amending Accounting Standards or Interpretations that are not yet mandatory have not been early adopted.

Note 2. Operating segments

Identification of reportable operating segments

The consolidated entity has one operating segment, based on the internal reports that are reviewed and used by the Board of Directors (who are identified as the Chief Operating Decision Makers ('CODM')) in assessing performance and in determining the allocation of resources.

Operating segment

As the consolidated entity only has one segment, being the production of gold, the information relating to this segment is detailed throughout the financial statements.

Note 3. Revenue

		Consolidated
	31 Dec 2014$	31 Dec 2013$
Sales revenue
Sales of gold	11,198,457	15,203,099
Other revenue
Interest	19,116	23,681
Revenue	11,217,573	15,226,780

Note 4. Share of profits of associates accounted for using the equity method

	Consolidated
	31 Dec 2014$	31 Dec 2013$
Share of profit - associates	1,200,964	1,365,560

Rand Mining Limited Notes to the financial statements 31 December 2014

Note 5. Other income

	Consolidated
	31 Dec 2014$	31 Dec 2013$
Other income	2,608	37,230
Note 6. Expenses
		Consolidated
	31 Dec 2014$	31 Dec 2013$
Profit before income tax includes the following specific expenses:
Depreciation
Plant and equipmentMining plant and equipment	1,371405,914	715309,644
Total depreciation	407,285	310,359
Amortisation
Mine development	2,569,638	1,108,484
Total depreciation and amortisation	2,976,923	1,418,843
Finance costs
Interest and finance charges paid/payable	1,829	46,212
Rental expense relating to operating leases
Minimum lease payments	4,481	4,397
Superannuation expense
Defined contribution superannuation expense	20,894	18,408

Note 7. Current assets - inventories

		Consolidated
	31 Dec 2014$	30 Jun 2014$
Ore stockpiles - at cost	283,853	431,799
Gold in transit - at cost	132,367	278,502
Gold on hand - at cost	21,741,388	19,621,907
Consumables - at cost	326,965	274,296
	22,484,573	20,606,504

Gold on hand at 31 December 2014 has a net realisable value of $49,406,707 (30 June 2014: $37,432,313) measured at spot rate of $1,541.91 (30 June 2014: $1,393.11). Gold in transit had a net realisable value of $293,151 (30 June 2014: $581,852) measured at spot rate of $1,541.91 (30 June 2014: $1,393.11). No write-down of inventories has occurred during the period.

Note 8. Non-current assets - investments accounted for using the equity method

		Consolidated
	31 Dec 2014$	30 Jun 2014$
Investment in associate - Tribune Resources LimitedLess: impairment	29,752,458(9,543,874)	28,367,905(9,543,874)
	20,208,584	18,824,031

Refer to note 15 for further information on interests in associates.

Note 9. Equity - reserves

	Consolidated
	31 Dec 2014$	30 Jun 2014$
Revaluation surplus reserve	285,998	296,059
Available-for-sale reserve	470,781	545,695
Share-based payments reserve	1,400	1,418,800
	758,179	2,260,554

Revaluation surplus reserve

The reserve is used to recognise increments and decrements in the fair value of land and buildings, excluding investment properties.

Available-for-sale reserve

The reserve is used to recognise increments and decrements in the fair value of available-for-sale financial assets.

Share-based payments reserve

The reserve is used to recognise the value of equity benefits provided to employees and directors as part of their remuneration, and other parties as part of their compensation for services.

Movements in reserves

Movements in each class of reserve during the current financial half-year are set out below:

Consolidated	Revaluationsurplus$	Available-for-sale$	Share-basedpayments$	Total$
Balance at 1 July 2014Revaluation - net of taxTransferred to retained earnings	296,059--	545,695(84,975)-	1,418,800-(1,417,400)	2,260,554(84,975)(1,417,400)
Transfers	(10,061)	10,061	-	-
Balance at 31 December 2014	285,998	470,781	1,400	758,179

Note 10. Equity - dividends

There were no dividends paid, recommended or declared during the current or previous financial half-year.

Note 11. Fair value measurement

Fair value hierarchy

The following tables detail the consolidated entity's assets and liabilities, measured or disclosed at fair value, using a three level hierarchy, based on the lowest level of input that is significant to the entire fair value measurement, being:

Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access at the measurement date

Level 2: Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly

Level 3: Unobservable inputs for the asset or liability

Consolidated - 31 Dec 2014	Level 1$	Level 2$	Level 3$	Total$
AssetsListed securities - equity	83,802	-	-	83,802
Total assets	83,802	-	-	83,802
	Level 1	Level 2	Level 3	Total
Consolidated - 30 Jun 2014	$	$	$	$
Assets
Listed securities - equity	164,647	-	-	164,647
Total assets	164,647	-	-	164,647

There were no transfers between levels during the financial half-year.

Note 12. 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:

		Consolidated
	31 Dec 2014$	30 Jun 2014$
Performance guarantees:
ML15/993	-	132,668
ML16/309	-	52,552
	-	185,220

Note 13. Commitments

	Consolidated
	31 Dec 2014$	30 Jun 2014$
Capital commitmentsCommitted at the reporting date but not recognised as liabilities, payable:
Property, plant and equipment	4,119,882	8,439,000
Lease commitments - operatingCommitted at the reporting date but not recognised as liabilities, payable:
Within one year	391,176	84,421
One to five years	1,545,141	318,117
	1,936,317	402,538

Note 14. Related party transactions

Parent entity

Rand Mining Limited is the parent entity.

Associates

Interests in associates are set out in note 15.

Transactions with related parties

The following transactions occurred with related parties:

	Consolidated
	31 Dec 2014$	31 Dec 2013$
Payment for other expenses:
Payment of royalties to Lake Grace Exploration Pty Ltd, a company related to the director
Anthony Billis.	1,763	6,790
Payment for executive accommodation fees to Lake Grace Exploration Pty Ltd, a company
related to the director Anthony Billis.	13,500	13,500
Payment for consulting fees to Lake Grace Exploration Pty Ltd, a company related to the
director Anthony Billis.	27,500	-
Option fees paid to Resource Capital Limited, a director related entity	56,542	57,065

At 31 December 2014, the consolidated entity held 4,130,916 (30 June 2014: 28,916,412) ordinary shares in Mount Ridley Mines Limited (ASX: MRD) (formerly AXG Mining Ltd (ASX: AXC)). Gordon Sklenka and Roland Berzins were directors of Mount Ridley Mines Limited until 8 September 2014, the date they resigned as directors of Mount Ridley Mines Limited.

Receivable from and payable to related parties

There were no trade receivables from or trade payables to related parties at the current and previous reporting date.

Loans to/from related parties

The following balances are outstanding at the reporting date in relation to loans with related parties:

	Consolidated31 Dec 2014	30 Jun 2014
Current receivables:Advance to Tribune Resources Limited	$250,000	$-
Terms and conditions

All transactions were made on normal commercial terms and conditions.

Rand Mining Limited Notes to the financial statements 31 December 2014

Interests in associates are accounted for using the equity method of accounting. Information relating to associates that are material to the consolidated entity are set out below:

		Ownership interest
	Principal place of business /	31 Dec 2014	30 Jun 2014
Name	Country of incorporation	%	%
Tribune Resources Limited	Australia	26.26%	26.01%

On 30 September 2014, Rand Mining Limited purchased 70,000 ordinary shares of Tribune Resources Limited at $2.90 per share. This changed the percentage ownership from 26.01% to 26.10%. The Tribune share buy-back during the halfyear ended 31 December 2014 further changed the percentage ownership to 26.26%.

Note 16. Events after the reporting period

On 9 January 2015, the company purchased and cancelled 320,234 shares. Refer to ASX announcement on this date for further details.

On 16 February 2015, the company announced an upgrade to the Pegasus Resource. Refer to ASX announcement on this date for further details.

No other matter or circumstance has arisen since 31 December 2014 that has significantly affected, or may significantly affect the consolidated entity's operations, the results of those operations, or the consolidated entity's state of affairs in future financial years.

Note 17. Earnings per share

	31 Dec 2014$	Consolidated31 Dec 2013$
Profit after income tax attributable to the owners of Rand Mining Limited	1,868,757	3,030,004
	Number	Number
Weighted average number of ordinary shares used in calculating basic earnings per share	60,841,209	60,841,209
Weighted average number of ordinary shares used in calculating diluted earnings per share	60,841,209	60,841,209
	Cents	Cents
Basic earnings per shareDiluted earnings per share	3.073.07	4.984.98

Rand Mining Limited Directors' declaration 31 December 2014

In the directors' opinion:

• the attached financial statements and notes thereto comply with the Corporations Act 2001, Australian Accounting Standard AASB 134 'Interim Financial Reporting', the Corporations Regulations 2001 and other mandatory professional reporting requirements;
• the attached financial statements and notes thereto give a true and fair view of the consolidated entity's financial position as at 31 December 2014 and of its performance for the financial half-year ended on that date; and
• there are reasonable grounds to believe that the company will be able to pay its debts as and when they become due and payable.

Signed in accordance with a resolution of directors made pursuant to section 303(5)(a) of the Corporations Act 2001.

On behalf of the directors

________________________________

Anthony Billis Director

13 March 2015 Perth

Level 1 10 Kings Park Road West Perth WA 6005

Correspondence to: PO Box 570 West Perth WA 6872

T +61 8 9480 2000 F +61 8 9322 7787 E info.wa@au.gt.com W www.grantthornton.com.au

Independent Auditor's Review Report To the Members of Rand Mining Limited

We have reviewed the accompanying half-year financial report of Rand Mining Limited ("the Company"), which comprises the consolidated financial statements being the statement of financial position as at 31 December 2014, and the statement of profit or loss and other comprehensive income, statement of changes in equity and statement of cash flows for the half-year ended on that date, notes comprising a statement or description of accounting policies, other explanatory information and the directors' declaration of the consolidated entity, comprising both the Company and the entities it controlled at the halfyear'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 of the half-year financial report that gives a true and fair view in accordance with Australian Accounting Standards and the Corporations Act 2001 and for such controls as the directors determine is necessary to enable the preparation of the half-year financial report that is free from material misstatement, whether due to fraud or error.

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 the Auditing Standard on Review Engagements ASRE 2410 Review of a Financial Report 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 half-year 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 2014 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 Limited, 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 Ltd ABN 41 127 556 389

'Grant Thornton' refers to the brand under which the Grant Thornton member firms provide assurance, tax and advisory services to their clients and/or refers to one or more member firms, as the context requires. Grant Thornton Australia Ltd is a member firm of Grant Thornton International Ltd (GTIL). GTIL and the member firms are not a worldwide partnership. GTIL and each member firm is a separate legal entity. Services are delivered by the member firms. GTIL does not provide services to clients. GTIL and its member firms are not agents of, and do not obligate one another and are not liable for one another's acts or omissions. In the Australian context only, the use of the term 'Grant Thornton' may refer to Grant Thornton Australia Limited ABN 41 127 556 389 and its Australian subsidiaries and related entities. GTIL is not an Australian related entity to Grant Thornton Australia Limited.

Liability limited by a scheme approved under Professional Standards Legislation. Liability is limited in those States where a current scheme applies.

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

• a giving a true and fair view of the consolidated entity's financial position as at 31 December 2014 and of its performance for the half-year ended on that date; and
• b complying with Accounting Standard AASB 134 Interim Financial Reporting and Corporations Regulations 2001.

GRANT THORNTON AUDIT PTY LTD Chartered Accountants

C A Becker Partner - Audit & Assurance

Perth, 13 March 2015