RAND MINING LIMITED — Interim / Quarterly Report 2016

Jan 28, 2016

Quarterly Report for December 2015

Highlights

ASX ANNOUNCEMENT

29 January 2016

Australian Securities Exchange Code: RND

• During the quarter, 236,762 tonnes of EKJV ore were processed at the Kanowna Plant.

• 26,388.783 oz of gold and 5,175.655 oz of silver were credited to Rand and Tribune Bullion Accounts.

(Rand’s share is 25%)

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

• At the end of the quarter;

	EKJV STOCKPILES
ROM pad	Ore Source	Ore	Grade	Rand’s Entitlement
		t	g/tAu	%
Raleigh	Raleigh	11,416	12.02	12.50
Rubicon	Rubicon&Hornet	16,022	6.42	12.25
Pegasus	Pegasus	1,106	9.78	12.25
KanownaBelle	Raleigh	5,687	12.02	12.50
KanownaBelle	Rubicon&Hornet	24,829	6.42	12.25
KanownaBelle	Pegasus	26,121	9.78	12.25

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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
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GEOLOGY AND MINING

EAST KUNDANA JOINT VENTURE

Raleigh Underground Mine Production

Stope production from the Raleigh 5722, 5705, 5654, 5631 and 5614 levels continued during the quarter. Rehabilitation of the levels damaged in the February earthquake is proceeding.

Stope production from the Skinners structure started in November on the 5812 level.

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

RALEIGH UNDERGROUND		GRADECONTROL ESTIMATES
**Month **	Tonnes	Grade	Ounces
	t	g/t	**troy oz **
October	7,104	8.84	2,019
November	12,523	8.72	3,510
December	16,618	11.64	6,217
December 15 Q	36,245	10.1	11,746
September 15 Q	35,078	9.1	10,278

Rand’s Entitlements (12.5%)

December 15 Q	**4,531 **	10.1	1,468
September 15 Q	4,385	9.1	1,285

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 5915, 5864 and 5812 levels. Development associated with the extraction of the Crown Pillar started in October on the 6212 level.

	RALEIGH UNDERGROUND DEVELOPMENT
Month	Capital			Operating
	Declin e (m)	Secondar y (m)	Waste (m)	Ore (m)	Paste Fill (m)
October	0.0	0.0	52.1	6.1	22.5
November	0.0	0.0	48.2	7.0	18.0
December	0.0	0.0	0.0	164.8	30.0
December 15 Q	0.0	0.0	100.3	177.9	70.5
September 15 Q	0.0	1.3	26.8	224.5	48.0

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

October 15 Green indicates new development at Raleigh

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November 15 Green indicates new development at Raleigh

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December 15 Green indicates new development at Raleigh

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Mine operating costs, incurred by the EKJV during the December 2015 Quarter were $112 per tonne mined or $345 per ounce mined compared with the September 2015 Quarter costs of $96 and $329 respectively.

Rubicon Underground Mine Production

Development progressed on the 5995 and 5975 levels at Rubicon, on the 5885, 5865, 5845 and 5825 levels at Hornet and the 6190, 6170, 6070, 6050 and 6030 levels at Pegasus. Stope production from the Rubicon 6035 and 6015 levels, the Hornet 5985, 5965, 5945, 5925, 5905 and 5885 levels and the Pegasus 6127, 6110 and 6090 levels continued during the quarter.

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

	UNDERGROUNDGRADECONTROL ESTIMATES
ORE BODY	RUBICON & HORNET				PEGASUS
**Month **	Tonnes	Grade	Ounces	Tonnes	Grade	Ounces
	t	g/t	**troy oz **	t	g/t	**troy oz **
October	40,094	6.04	7,784	20,571	6.36	4,206
November	42,128	5.68	7,687	17,710	6.17	3,511
December	40,559	6.23	8,127	25,652	9.44	7,785
December 15 Q	**122,781 **	6.0	23,598	63,933	7.5	**15,502 **
September 15 Q	106,934	7.5	25,994	43,816	5.1	7,234
Rand’s Entitlements (12.25%)
December 15 Q	15,041	6.0	**2,891 **	**7,832 **	7.5	1,899
September 15 Q	13,099	7.5	3,184	5,367	5.1	886

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 5961 m RL, 382 m from the surface, the bottom of the Hornet Decline is at 5808 m RL, 535 m from the surface, the top of the Pegasus Incline is at 6207m RL, 136 m from the surface and the bottom of the Pegasus Decline is at 6015 m RL, 328 m from the surface.

	UNDERGROUND DEVELOPMENT
ORE BODY	RUBICON & HORNET					PEGASUS
Month	Capital		Operating			Capital		Operating
	Decline	Other	Waste	Ore	Past e	Decline	Other	Waste	Ore	Paste
	(m)	(m)	(m)	(m)	(m)	(m)	(m)	(m)	(m)	(m)
October	93.0	158.5	0.0	236.0	30.0	93.6	115.9	0.0	297.6	0.0
November	56.6	102.0	0.0	371.8	30.0	63.9	125.2	0.0	312.2	0.0
December	86.9	157.8	0.0	371.5	24.0	107.2	43.2	0.0	291.0	0.0
December 15 Q	236.5	418.3	0.0	979.3	84.0	264.7	284.3	0.0	900.8	0.0
September 15 Q	305.8	486.3	23.8	495.2	138.0	306.3	509.0	0.0	496.6	0.0

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

October 15 Green indicates new development at Rubicon, Hornet and Pegasus

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November 15 Green indicates new development at Rubicon, Hornet and Pegasus

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December 15 Green indicates new development at Rubicon, Hornet and Pegasus

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Mine operating costs, for Rubicon & Hornet, incurred by the EKJV during December 2015 Quarter were $101 per tonne mined or $524 per ounce mined compared with the September 2015 Quarter costs of $107and $440 respectively.

Mine operating costs, for Pegasus, incurred by the EKJV during December 2015 Quarter were $105 per tonne mined or $431 per ounce mined compared with the September 2015 costs of $103 and $621 respectively.

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Toll Processing

**EKJV Ore **	hauled to Kanowna Belle (tonnes‐wet)	hauled to Kanowna Belle (tonnes‐wet)	hauled to Kanowna Belle (tonnes‐wet)
Quarter	Raleigh	Rubicon	Pegasus
December 15	27,016	107,611	71,710
September 15	41,724	123,958	41,704

During the quarter, 236,762 tonnes of EKJV ore were processed.

Bullion accredited to RANDand TRIBUNE	Bullion accredited to RANDand TRIBUNE	Bullion accredited to RANDand TRIBUNE	from Kanowna Belle
**Quarter **	**Gold (oz) **	Silver (oz)	Rand’s share gold
December 15	26,388.783	5,175.655	6,597.196
September 15	20,475.335	4,021.829	5,118.833

EKJV Exploration

The Quarterly Report of the EKJV exploration activities was released to the market on 29 January 2016.

OTHER EXPLORATION

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

An air core drilling programme on the southern tenements has commenced. A total of 108 holes for 3,571 metres has been completed. The drilling utilised a specialist track rig to access the salt lake and surrounding areas. Several days of significant rainfall and summer storms hampered the progress of the drilling. The current programme is approximately two thirds completed. The completion of the drilling is subject to weather and access to other parts of the project area. No significant results have been received. Any material results will be announced when assays become available.

Tapeta Iron Ore Project, Liberia, West Africa

Drilling is continuing.

New results will be announced when assays become available.

CORPORATE

Share Buy‐Back

On 10 December 2015, the Directors announced that the Company would extend the period of the Share Buy‐Back for a further 12 months. The buy‐back period will now expire on 11 December 2016 and it is the Company’s intention to buy‐back up to a further 5,391,386 fully paid ordinary shares.

No shares were purchased or cancelled during the quarter ended 31 December 2015.

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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 M15/1233 M15/1234 M15/1291 M15/1388 M15/1394 M15/1409 M15/1743 M26/563 P15/5182 P15/5183 P15/5184 P26/3617	WA, Australia	50.00% 50.00% 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)

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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		Quarter ended (“current quarter”) 31 December 2015	Quarter ended (“current quarter”) 31 December 2015
	Rand Mining Ltd
	ABN 41 004 669 658 Consolidated statement of cash flows
			31 December 2015
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 (6 months) $A’000
			6,903 (536) (903) (3,459) (39) ‐ 5 ‐ (491) ‐	13,798 (1,299) (1,901) (7,473) (318) ‐ 12 ‐ (928) ‐
			1,480	1,891
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 repaid by other entities Net investing cash flows 1.13 Total operating and investing cash flows (carried forward)			‐ ‐ (1,848) ‐ ‐ ‐ ‐ ‐ ‐	‐ ‐ (2,192) ‐ ‐ ‐ ‐ ‐ ‐
			(1,848)	(2,192)
			(368)	(301)

• 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)	(368)	(301)
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 – Share buy‐back 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	(368) 2,479 ‐	(301) 2,412 ‐
	2,111	2,111

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
		(105)
		‐
1.25	Explanation necessaryfor an understandingof the transactions
	(1) Directors fees and superannuation (included in administration 1.2(d)) (55) (2) Royalty payment to Lake Grace Exploration Pty Ltd (included in production 1.2(c)) (4) (3) Executive rent payment to Lake Grace Exploration Pty Ltd (included in administration 1.2(d)) (13) (4) Consulting fees to Lake Grace Exploration Pty Ltd (included in administration 1.2(d)) (11) (5) Rent and outgoings to Melville Parade Pty Ltd (included in administration 1.2(d)) (22)

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.

3.1 Loan facilities 3.2 Credit standby arrangements	Amount available $A’000	Amount used $A’000
	‐	‐
	‐	‐

Estimated cash outflows for next quarter

Estimated cash outflows for next quarter
4.1 Exploration and evaluation 4.2 Development 4.3 Production 4.4 Administration	$A’000
	1,000
	1,000
	4,000
	130
Total	6,130

Reconciliation of cash

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	2,111	2,479
5.2 Deposits at call	‐	‐
5.3 Bank overdraft	‐	‐
5.4 Other (provide details)	‐	‐
Total: cash at end of quarter(item 1.22)	2,111	2,479

• See chapter 19 for defined terms.

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Appendix 5B Mining exploration entity quarterly report

Changes in interests in mining tenements

6.1 Interests in mining tenements relinquished, reduced or lapsed 6.2 Interests in mining tenements acquired or increased	Tenement reference	Nature of interest (note (2))	Interest at beginning ofquarter	Interest at end of quarter

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	60,148,475	60,148,475
7.5 +Convertible debt securities (description)

• See chapter 19 for defined terms.

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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 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 January 2016 (Director) 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

• See chapter 19 for defined terms.

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Appendix 5B Mining exploration entity quarterly report

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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