RAND MINING LIMITED — Interim / Quarterly Report 2016

Oct 30, 2016

ASX ANNOUNCEMENT

31 October 2016

Australian Securities Exchange Code: RND

Board of Directors:

Mr Otakar Demis Chairman and Joint Company Secretary

Mr Anton Billis Managing Director

Mr Gordon Sklenka Non-Executive Director

Mr Roland Berzins Joint Company Secretary

Suite G1, 49 Melville Parade South Perth WA 6151 T: +61 8 9474 2113 F: +61 8 9367 9386 E: info@randmining.com.au W: www.randmining.com.au

ABN: 41 004 669 658

Quarterly Report for September 2016

Highlights

• During the quarter, 273,648 tonnes of EKJV ore were processed at the Kanowna Plant.
• 27,951 oz of gold and 5,685 oz of silver were credited to Rand and Tribune Bullion Accounts.

(Rand's share is 25%)

At the end of the quarter

EKJVSTOCKPILES
ROMpad	OreSourceOreGrade
		t	g/tAu	%
Raleigh	Raleigh	5,143	9.13	12.50
Rubicon	Rubicon & Hornet	6,784	3.51	12.25
Pegasus	Pegasus	7,380	10.22	12.25
Kanowna Belle	Raleigh	9,543	9.13	12.50
Kanowna Belle	Rubicon & Hornet	33,565	4.00	12.25
Kanowna Belle	Pegasus	33,194	8.04	12.25

GEOLOGY AND MINING

EAST KUNDANA JOINT VENTURE

Raleigh Underground Mine Production

Stope production from the 5881, 5795, 5761, 5631 and 5614 levels at Raleigh continued during the quarter. Extraction of the Crown Pillar commenced from the 6202 level.

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

RALEIGHUNDERGROUNDGRADECONTROLESTIMATES
Month	TonnesGrade
	t	g/t	troyoz
July	15,968	11.39	5,849
August	17,977	12.11	6,998
September	13,963	8.74	3,924
September16Q	47,908	10.89	16,771
June 16 Q	42,681	7.8	10,656

Rand's Entitlements (12.5%)

September16Q	5,989	10.89	2,096
June16 Q	5,335	7.8	1,332

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 of the Skinners structure progressed on the 5949, 5932, 5915, 5898, 5882, 5847, 5830 and 5761 levels.

RALEIGHUNDERGROUNDDEVELOPMENT
Month		Capital	Operating
	DeclineSecondary		Waste	PasteFill
	(m)	(m)	(m)	(m)	(m)
July	0.0	0.0	0.0	268.2	31.1
August	0.0	0.0	28.6	286.1	36.2
September	0.0	0.0	15.9	193.7	52.7
September16Q	0.0	0.0	44.5	748.0	120.0
June 16 Q	0.0	0.0	61.1	555.6	46.0

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

Mine operating costs, incurred by the EKJV during the September 2016 Quarter were $110 per tonne mined or $315 per ounce mined compared with the June 2016 Quarter costs of $97 and $388 respectively.

Rubicon Underground Mine Production

Development progressed on the 5995, 5975, 5955, 5935 and 5915 levels at Rubicon, on the 5805 and 5785 levels at Hornet and the 6230, 5990, 5970 and 5950 levels at Pegasus. Stope production from the Rubicon 5975 level, the Hornet 5925 to 5845 levels and the Pegasus 6190, 6170, 6150 and 6090 to 5990 levels continued during the quarter.

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

UNDERGROUNDGRADECONTROLESTIMATES
OREBODY	RUBICON&HORNET				PEGASUS
Month	Tonnes	GradeOunces		Tonnes	Grade	Ounces
	t	g/t	troyoz	t	g/t	troyoz
July	42,864	5.50	7,586	27,443	5.90	5,204
August	33,453	4.83	5,190	31,840	6.81	6,973
September	28,320	3.90	3,550	33,314	12.73	13,635
September16Q	104,637	4.85	16,325	92,597	8.67	25,812
June 16 Q	114,750	5.9	21,659	112,878	9.7	35,130

Rand's Entitlements (12.25%)

September16Q	12,818	4.85	2,000	11,343	8.67	3,162
June 16 Q	14,057	5.9	2,653	13,828	9.7	4,303

Rubicon Underground Mine Development

During the quarter, decline development at Rubicon, Hornet and Pegasus continued and the Hornet Exploration Decline was started. At the end of the quarter, the bottom of the Rubicon Decline is at 5891 m RL, 452 m from the surface, the bottom of the Hornet Decline is at 5757 m RL, 586 m from the surface, the bottom of the Hornet Exploration Decline is at 5741 m RL, 602 m from the surface, the top of the Pegasus Incline is at 6242 m RL, 101 m from the surface and the bottom of the Pegasus Decline is at 5913 m RL, 430 m from the surface.

UNDERGROUND DEVELOPMENT
ORE BODY			RUBICON & HORNET			PEGASUS
Month	Capital			Operating		Capital			Operating
	Decline	Other	Waste	Ore	Paste	Decline	Other	Waste	Ore	Paste
	(m)	(m)	(m)	(m)	(m)	(m)	(m)	(m)	(m)	(m)
July	13.6	258.9	0.0	402.0	15.0	50.7	226.2	0.0	201.4	25.0
August	93.3	265.7	0.0	329.8	15.0	69.9	189.1	0.0	130.6	20.0
September	123.4	226.0	0.0	354.1	25.0	92.2	100.0	0.0	167.8	25.0
September 16 Q	230.3	750.6	0.0	1,086.0	55.0	212.8	515.3	0.0	499.8	70.0
June 16 Q	182.1	629.6	0.0	1,096.0	84.0	394.0	398.8	0.0	852.2	48.0

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

August 16 Green indicates new development at Rubicon, Hornet and Pegasus

September 16 Green indicates new development at Rubicon, Hornet and Pegasus

Mine operating costs, for Rubicon & Hornet, incurred by the EKJV during September 2016 Quarter were $100 per tonne mined or $639 per ounce mined compared with the June 2016 Quarter costs of $104 and $549 respectively.

Mine operating costs, for Pegasus, incurred by the EKJV during September 2016 Quarter were $99 per tonne mined or $356 per ounce mined compared with the June 2016 Quarter costs of $97 and $311 respectively.

Toll Processing

EKJVOrehauledtoKanownaBelle(tonnes‐wet)
Quarter	RaleighRubicon,Hornet,Pegasus
September16	41,000	257,405
June 1651,900196,855

During the quarter, 273,648 tonnes of EKJV ore were processed.

BullionaccreditedtoRANDandTRIBUNEfromKanownaBelle
Quarter	Gold(oz)Silver(oz)Rand'ssharegold
September16	27,951.653	5,685.572	6,987.913
June 16	28,398.340	6,054.796	7,099.584

EKJV Exploration

The Quarterly Report of the EKJV exploration activities was released to the ASX on 31 October 2016.

The drilling commentary in the September 2016 Quarterly EKJV Exploration Report is from in‐mine resource definition drilling which is not usually reported under exploration. There was no surface drilling activity.

OTHER EXPLORATION

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

A new drilling programme is being planned based on previous drilling data and interpretation of recent seismic results.

Tapeta Iron Ore Project, Liberia, West Africa

Work on the project is currently suspended due to the rainy season.

CORPORATE

Securities on issue

No securities were cancelled under the Company's current Share Buy – Back plan during the quarter ended 30 September 2016.

The number of securities on issue as at 30 June 2016 is 60,148,475.

INTERESTS IN MINING TENEMENTS

Project/Tenements	Location	Heldatendof	Acquired	Disposedduringthe
		quarter	duringthe	quarter
			quarter
Kundana	WA, Australia
M15/1413		12.25%
M15/993		12.25%
M16/181		12.25%
M16/182		12.25%
M16/308		12.25%
M16/309		12.25%
M16/325		12.25%
M16/326		12.25%
M16/421		12.25%
M16/428		12.25%
M24/924		12.25%
SevenMileHill	WA, Australia
M15/1233		50.00%
M15/1234		50.00%
M15/1291		50.00%
M15/1388		50.00%
M15/1394		50.00%
M15/1409		50.00%
M15/1743		50.00%
M26/563		50.00%
P15/5182		50.00%
P15/5183		50.00%
P15/5184		50.00%
TapetaIronOreProject	Liberia, West	100% (under
(currently under option to	Africa	option)
acquire issued capital of
Iron Resources Ltd, the
owner of the project)

+Rule 5.5

Appendix 5B

Mining exploration entity and oil and gas exploration entity quarterly report

Introduced 01/07/96 Origin Appendix 8 Amended 01/07/97, 01/07/98, 30/09/01, 01/06/10, 17/12/10, 01/05/13, 01/09/16

Name of entity
Rand Mining Ltd
ABN	Quarter ended ("current quarter")
41 004 669 658	30 September 2016

	Consolidated statement of cash flows	Current quarter$A'000	Year to date (3months)$A'000
1.	Cash flows from operating activities
1.1	Receipts from customers	7,060	7,060
1.2	Payments for
	(a)exploration & evaluation	(461)	(461)
	(b)development	(1,101)	(1,101)
	(c)production	(4,354)	(4,354)
	(d)staff costs	(141)	(141)
	(e)administration and corporate costs	(119)	(119)
1.3	Dividends received (see note 3)	-	-
1.4	Interest received	33	33
1.5	Interest and other costs of finance paid	(7)	(7)
1.6	Income taxes paid	(1,111)	(1,111)
1.7	Research and development refunds	-	-
1.8	Other (provide details if material)	-	-
1.9	Net cash from / (used in) operatingactivities	(201)	(201)

2.	Cash flows from investing activities
2.1	Payments to acquire:
	(a)property, plant and equipment	(468)	(468)
	(b)tenements (see item 10)	-	-
	(c)investments	-	-
	(d)other non-current assets	-	-

• See chapter 19 for defined terms

1 September 2016 Page 1

Appendix 5B Mining exploration entity and oil and gas exploration entity quarterly report

	Consolidated statement of cash flows	Current quarter$A'000	Year to date (3months)$A'000
2.2	Proceeds from the disposal of:
	(a)property, plant and equipment	-	-
	(b)tenements (see item 10)	-	-
	(c)investments	-	-
	(d)other non-current assets	-	-
2.3	Cash flows from loans to other entities	-	-
2.4	Dividends received (see note 3)	-	-
2.5	Other (provide details if material)	-	-
2.6	Net cash from / (used in) investingactivities	(468)	(468)

3.	Cash flows from financing activities
3.1	Proceeds from issues of shares
3.2	Proceeds from issue of convertible notes	-	-
3.3	Proceeds from exercise of share options	-	-
3.4	Transaction costs related to issues ofshares, convertible notes or options	-	-
3.5	Proceeds from borrowings	-	-
3.6	Repayment of borrowings	(87)	(87)
3.7	Transaction costs related to loans andborrowings	-	-
3.8	Dividends paid	-	-
3.9	Other (provide details if material)	-	-
3.10	Net cash from / (used in) financingactivities	(87)	(87)

4.	Net increase / (decrease) in cash andcash equivalents for the period
4.1	Cash and cash equivalents at beginning ofperiod	3,751	3,751
4.2	Net cash from / (used in) operatingactivities (item 1.9 above)	(201)	(201)
4.3	Net cash from / (used in) investing activities(item 2.6 above)	(468)	(468)
4.4	Net cash from / (used in) financing activities(item 3.10 above)	(87)	(87)
4.5	Effect of movement in exchange rates oncash held	-	-
4.6	Cash and cash equivalents at end of
	period	2,995	2,995

• See chapter 19 for defined terms

1 September 2016 Page 2

5.	Reconciliation of cash and cashequivalentsat the end of the quarter (as shown in theconsolidated statement of cash flows) to therelated items in the accounts	Current quarter$A'000	Previous quarter$A'000
5.1	Bank balances	2,995	3,752
5.2	Call deposits	-	-
5.3	Bank overdrafts	-	-
5.4	Other (provide details)	-	-
5.5	Cash and cash equivalents at end ofquarter (should equal item 4.6 above)	2,995	3,752

6. Payments to directors of the entity and their associates Current quarter

• 6.1 Aggregate amount of payments to these parties included in item 1.2 (55)
• 6.2 Aggregate amount of cash flow from loans to these parties included in item 2.3
• 6.3 Include below any explanation necessary to understand the transactions included in items 6.1 and 6.2
  • (1) Directors fees and superannuation (included in staff costs 1.2(d)) (48)
  • (2) Royalty payment (included in production 1.2(c)) (7)

7. Payments to related entities of the entity and their associates

• 7.1 Aggregate amount of payments to these parties included in item 1.2 (14)
• 7.2 Aggregate amount of cash flow from loans to these parties included in item 2.3
• 7.3 Include below any explanation necessary to understand the transactions included in items 7.1 and 7.2
  • (1) Rent (included in administration and corporate costs 1.2(e)) (14)

Current quarter$A'000
-

$A'000

8.	Financingfacilities available
	Add notes as necessary for an
	understanding of the position

8.	Financingfacilities availableAdd notes as necessary for anunderstanding of the position	Total facility amountat quarter end$A'000	Amount drawn atquarter end$A'000
8.1	Loan facilities	-	-
8.2	Credit standby arrangements	-	-
8.3	Other – EKJV Finance Lease	694	694

8.4 Include below a description of each facility above, including the lender, interest rate and whether it is secured or unsecured. If any additional facilities have been entered into or are proposed to be entered into after quarter end, include details of those facilities as well.

Various finance leases from Sandvik and Commonwealth Bank cover underground mining equipment. The interest rates range between 1.16% and 1.77%. and the terms range between 30- 36 months

9.	Estimated cash outflows for next quarter	$A'000
9.1	Exploration and evaluation	500
9.2	Development	1,200
9.3	Production	4,500
9.4	Staff costs	120
9.5	Administration and corporate costs	120
9.6	Other (provide details if material)	-
9.7	Total estimated cash outflows	6,440

10.	Changes intenements(items 2.1(b) and2.2(b) above)	Tenementreferenceandlocation	Nature of interest	Interest atbeginningof quarter	Interestat end ofquarter
10.1	Interests in miningtenements andpetroleum tenementslapsed, relinquishedor reduced
10.2	Interests in miningtenements andpetroleum tenementsacquired or increased

Compliance statement

• 1 This statement has been prepared in accordance with accounting standards and policies which comply with Listing Rule 19.11A.
• 2 This statement gives a true and fair view of the matters disclosed.

Sign here: ............................................................ Date: 31/10/2016 (Director/Company secretary)

Print name: Anton 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 that wishes to disclose additional information is encouraged to do so, in a note or notes included in or attached to this report.
• 1. If this quarterly report has been prepared in accordance with Australian Accounting Standards, the definitions in, and provisions of, AASB 6: Exploration for and Evaluation of Mineral Resources and AASB 107: Statement of Cash Flows apply to this report. If this quarterly report has been prepared in accordance with other accounting standards agreed by ASX pursuant to Listing Rule 19.11A, the corresponding equivalent standards apply to this report.
• 1. Dividends received may be classified either as cash flows from operating activities or cash flows from investing activities, depending on the accounting policy of the entity.