RAND MINING LIMITED — Interim / Quarterly Report 2017

Oct 29, 2017

Quarterly Report for September 2017

Highlights

ASX ANNOUNCEMENT

30 October 2017

Australian Securities Exchange Code: RND

• During the quarter, 206,770 tonnes of EKJV ore were processed at the Kanowna Plant.

• 22,344 oz of gold and 3,218 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	EKJV STOCKPILES
ROM pad	Ore Source	Ore	Grade	Rand’s Entitlement
		t	g/t Au	%
Raleigh	Raleigh	1,856	10.84	12.50
Raleigh	Raleigh Low Grade	18,078	1.72	12.50
Rubicon	Pegasus, Rubicon & Hornet	10,034	6.39	12.25
Rubicon	P/R/H Low Grade	113,115	1.98	12.25
KanownaBelle	Raleigh	13,233	5.57	12.50
Kanowna Belle	Raleigh Low Grade	14,458	2.50	12.50
Kanowna Belle	Pegasus, Rubicon & Hornet	59,005	7.50	12.25
KanownaBelle	P/R/H Low Grade	-	-	12.25

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GEOLOGY AND MINING

EAST KUNDANA JOINT VENTURE

Raleigh Underground Mine Production

Stope production from the 5932, 5915, 5882, 5864 and 5614 levels and the Crown Pillar at Raleigh 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
July	16,522	9.85	5,232
August	17,306	9.78	5,442
September	20,772	6.30	4,211
September 17Q	54,600	8.48	14,885
June 17Q	53,553	8.56	14,745

Rand’s Entitlements (12.5%)

September 17Q	6,825	8.48	1,861
June 17Q	6,694	8.56	1,843

Raleigh Underground Mine Development

Late in the quarter, a diamond drilling program commenced at Raleigh targeting parallel structures in the footwall to the Raleigh Main Vein.

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 6017, 6000, 5983, 5966, 5881, 5864, 5847 and 5797 levels.

	RALEIGH UNDERGROUND DEVELOPMENT	RALEIGH UNDERGROUND DEVELOPMENT	RALEIGH UNDERGROUND DEVELOPMENT	RALEIGH UNDERGROUND DEVELOPMENT	RALEIGH UNDERGROUND DEVELOPMENT
Month	Capital			Operating
	Decline (m)	Secondary (m)	Waste (m)	Ore (m)	Paste Fill (m)
July	0.0	56.3	0.0	244.3	15.0
August	0.0	39.5	0.0	323.2	20.0
September	0.0	22.3	31.6	304.7	5.0
September 17Q	0.0	118.1	31.6	872.2	40.0
June 17Q	0.0	137.7	0.0	854.8	63.0

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RAND MINING LTD ASX ANNOUNCEMENT | 30 OCTOBER 2017

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

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July 17 Green indicates new development at Raleigh
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August 17 Green indicates new development at Raleigh

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September 17 Green indicates new development at Raleigh

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RAND MINING LTD ASX ANNOUNCEMENT | 30 OCTOBER 2017

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Mine operating costs, incurred by the EKJV during the September 17 Quarter were $120 per tonne mined or $441 per ounce mined compared with the June 17 Quarter costs of $105 and $381 respectively.

Rubicon Underground Mine Production

Development progressed on the 5915, 5895 and 5875 levels at Rubicon, on the 5865, 5845 and 5745 levels at Hornet and the 6250, 6030, 5950, 5910 and 5890 levels at Pegasus. Stope production from the Rubicon 5975, 5955 and 5935 levels, the Hornet 5905 to 5785 levels and the Pegasus 6210, 6190, 6070 to 5910 and Pode 6225 and 6201 levels continued during the quarter.

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

	UNDERGROUND GRADE CONTROL ESTIMATES	UNDERGROUND GRADE CONTROL ESTIMATES	UNDERGROUND GRADE CONTROL ESTIMATES	UNDERGROUND GRADE CONTROL ESTIMATES	UNDERGROUND GRADE CONTROL ESTIMATES
ORE BODY	RUBICON & HORNET				PEGASUS
Month	Tonnes	Grade	Ounces	Tonnes	Grade	Ounces
	t	g/t	troy oz	t	g/t	troy oz
July	31,765	5.39	5,509	25,970	9.51	7,937
August	36,997	5.49	6,530	40,367	7.36	9,548
September	54,206	5.40	9,413	31,875	9.01	9,230
September 17Q	122,968	5.43	21,452	98,212	8.46	26,715
June 17Q	102,478	7.83	25,783	122,418	6.23	24,531
Rand’s Entitlements (12.25%)
September 17Q	15,064	5.43	2,628	12,031	8.46	3,273
June 17Q	12,554	7.83	3,158	14,996	6.23	3,005

Rubicon Underground Mine Development

Underground diamond drilling across the Rubicon-Hornet-Pegasus complex continued during the quarter with three diamond rigs.

Resource definition drilling at Rubicon Central concentrated on lateral extensions to the Nugget lode mineralisation associated with the K2B structure in a similar position to the Pode at Pegasus. In addition, several drill holes targeting the footwall of Rubicon for potential new lodes near the White Foil Fault and drilling commenced from the northernmost available stockpile of the Exploration Decline at Rubicon South testing the depth extensions to the main K2 structure.

At Hornet, drilling from the Exploration Decline targeted north and south extensions of Hornet K2 and adjacent hanging wall mineralisation.

Resource definition drilling programs at Pegasus Central continued targeting the northern extension of the Nugget lode adjacent to the current mining operations.

At the end of the quarter, the bottom of the Rubicon Decline is at 5833 m RL, 510 m from the surface, the bottom of the Hornet Decline is at 5711 m RL, 632 m from the surface, the bottom of the Hornet Exploration Decline is at 5664 m RL, 679 m from the surface, the top of the Pegasus Incline is at 6260 m RL, 83 m from the surface and the bottom of the Pegasus Decline is at 5837 m RL, 506 m from the surface.

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RAND MINING LTD ASX ANNOUNCEMENT | 30 OCTOBER 2017

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	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	33.0	107.1	0.0	234.7	39.0	47.2	111.6	18.0	99.2	10.0
Aug	89.7	123.6	50.8	273.3	65.1	51.1	98.0	5.1	153.1	25.0
Sept	35.3	202.3	0.0	302.4	30.0	73.7	132.0	0.0	127.3	20.0
Sept 17Q	158.0	433.0	50.8	810.4	134.1	172.0	341.6	23.1	379.6	55.0
June 17Q	145.6	753.1	0.0	658.5	100.0	121.1	583.6	67.7	666.7	65.0

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

July 17 Green indicates new development at Rubicon, Hornet and Pegasus

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August 17 Green indicates new development at Rubicon, Hornet and Pegasus

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RAND MINING LTD ASX ANNOUNCEMENT | 30 OCTOBER 2017

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September 17 Green indicates new development at Rubicon, Hornet and Pegasus

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Mine operating costs, for Rubicon & Hornet, incurred by the EKJV during September 17 Quarter were $107 per tonne mined or $615 per ounce mined compared with the June 17 Quarter costs of $126 and $502 respectively.

Mine operating costs, for Pegasus, incurred by the EKJV during September 17 Quarter were $121 per tonne mined or $444 per ounce mined compared with the June 17 Quarter costs of $113 and $563 respectively.

Toll Processing

Toll Processing	Toll Processing	Toll Processing
EKJV Ore hauled to Kanowna Belle (tonnes-wet)
Quarter	Raleigh	Pegasus ,Rubicon, Hornet
September 17	41,849	184,705
June17	66,044	180,107
EKJV Ore hauled to Greenfields (tonnes-wet)
Quarter	Raleigh	Pegasus ,Rubicon, Hornet
September 17	-	-
June17	-	34,438

During the quarter, 206,770 tonnes of EKJV ore were processed at the Kanowna Plant. No EKJV ore was toll treated at the Greenfields Mill.

Bullion accredited to RAND & TRIBUNE from	Bullion accredited to RAND & TRIBUNE from	Bullion accredited to RAND & TRIBUNE from	Kanowna Belle & Greenfields
Quarter	Gold (oz)	Silver (oz)	Rand’s share gold
September 17	22,344.847	3,218.893	5,586.211
June17	28,218.568	4,968.177	7,054.641

EKJV Exploration

The Quarterly Report of the EKJV exploration activities was released to the ASX on 17 October 2017.

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RAND MINING LTD ASX ANNOUNCEMENT | 30 OCTOBER 2017

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EKJV regional exploration for the quarter consisted of surface diamond drilling at Falcon, Papa Bear and Pegasus together with initial aircore drilling at the Montague prospect.

At Papa Bear, RC and diamond drilling tested an anomalous grade trend on the Kurrawang structure generated from previous aircore drilling.

A five-hole diamond drilling program at Falcon South, located 400m west of Pegasus and Drake prospects, targeted extensions to previous economic intercepts at Falcon.

Four underground diamond holes were drilled from Pegasus that have successfully defined the position of two key stratigraphic units within the Pegasus footwall zone.

At the Montague prospect located west of Raleigh, an initial geochemical drilling program was completed as a top-of-fresh geochemical survey over the Raleigh hanging wall stratigraphy immediately south of the deposit.

OTHER EXPLORATION

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

The planned 10,000 m drilling programme has commenced.

Tapeta Iron Ore Project, Liberia, West Africa

The site is currently on care and maintenance.

CORPORATE

Securities on issue

No securities were cancelled under the Company’s current Share Buy – Back plan during the quarter ended 30 September 2017.

The number of securities on issue as at 30 September 2017 is 60,148,475.

Dividend

The maiden dividend of 10 cents per share, fully franked was paid on the 31[st] July 2017.

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RAND MINING LTD ASX ANNOUNCEMENT | 30 OCTOBER 2017

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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
M15/1233 M15/1234 M15/1291 M15/1388 M15/1394 M15/1409 M15/1743 M26/563 P15/5182 P15/5183 P15/5184		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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RAND MINING LTD ASX ANNOUNCEMENT | 30 OCTOBER 2017

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

+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 2017

Consolidated statement of cash flows	Current quarter $A’000	Year to date (3 months) $A’000
1. Cash flows from operating activities 1.1 Receipts from customers 1.2 Payments for (a) exploration & evaluation (b) development (c) production (d) staff costs (e) administration and corporate costs 1.3 Dividends received (see note 3) 1.4 Interest received 1.5 Interest and other costs of finance paid 1.6 Income taxes paid 1.7 Research and development refunds 1.8 Other (provide details if material) 1.9 Net cash from / (used in) operating activities	14,293 (551) (1,097) (6,420) (109) (115) - 5 (7) (2,024) - -	14,293 (551) (1,097) (6,420) (109) (115) - 5 (7) (2,024) - -
	3,975	3,975
2. Cash flows from investing activities 2.1 Payments to acquire: (a) property, plant and equipment (b) tenements (see item 10) (c) investments (d) other non-current assets	(891) - - -	(891) - - -

• 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 (3 months) $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 from other entities 2.4 Dividends received (see note 3) 2.5 Other (provide details if material) 2.6 Net cash from / (used in) investing activities	- - - - 200 2,632 -	- - - - 200 2,632
	1,941	1,941
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 of shares, convertible notes or options 3.5 Proceeds from borrowings 3.6 Repayment of borrowings 3.7 Transaction costs related to loans and borrowings 3.8 Dividends paid 3.9 Other (provide details if material) 3.10 Net cash from / (used in) financing activities	- - - - (120) - (6,015) -	- - - - (120) - (6,015)
	(6,135)	(6,135)
4. Net increase / (decrease) in cash and cash equivalents for the period 4.1 Cash and cash equivalents at beginning of period 4.2 Net cash from / (used in) operating activities (item 1.9 above) 4.3 Net cash from / (used in) investing activities (item 2.6 above) 4.4 Net cash from / (used in) financing activities (item 3.10 above) 4.5 Effect of movement in exchange rates on cash held 4.6 Cash and cash equivalents at end of period	3,984 3,975 1,941 (6,135) -	3,984 3,975 1,941 (6,135) -
	3,765	3,765

• See chapter 19 for defined terms

1 September 2016

Page 2

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

5. Reconciliation of cash and cash equivalents at the end of the quarter (as shown in the consolidated statement of cash flows) to the related items in the accounts	Current quarter $A’000	Previous quarter $A’000
5.1 Bank balances 5.2 Call deposits 5.3 Bank overdrafts 5.4 Other (provide details) 5.5 Cash and cash equivalents at end of quarter (should equal item 4.6 above)	3,765 - - -	3,984 - - -
	3,765	3,984
6. Payments to directors of the entity and their associates Current quarter $A'000 6.1 Aggregate amount of payments to these parties included in item 1.2 (101) 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
		Current quarter $A'000
		(101)
		-

• (1) Directors fees, superannuation and executive accommodation (included in staff costs 1.2(d)) (94)

• (2) Royalty payment (included in production 1.2(c)) (7)

7.	Payments to related entities of the entity and their	Current quarter
	associates	$A'000
7.1	Aggregate amount of payments to these parties included in item 1.2	(19)
7.2	Aggregate amount of cash flow from loans to these parties included	200
	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)) (19)

• (2) Loan from Tribune Resources Ltd (included in Cash flows from loans from other entities 2.3) 200

• See chapter 19 for defined terms 1 September 2016

Page 3

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

	Appendix 5B Mining exploration entity and oil andgas exploration entity quarterly report	oil andgas exploration	Appendix 5B entity quarterly report
	8. Financing facilities available Add notes as necessary for an understanding of the position Total facility amount at quarter end $A’000 Amount drawn at quarter end $A’000 8.1 Loan facilities - - 8.2 Credit standby arrangements 8.3 Other – EKJV Finance Lease 1,081 1,081 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.	Total facility amount at quarter end $A’000	Amount drawn at quarter end $A’000
		-	-
		1,081	1,081
Various finance leases cover underground mining equipment. The terms range between 30-36 months. Details relating to lease providers and rates is considered commercially sensitive.

Various finance leases cover underground mining equipment. The terms range between 30-36 months. Details relating to lease providers and rates is considered commercially sensitive.

9. Estimated cash outflows for next quarter	$A’000
9.1 Exploration and evaluation 9.2 Development 9.3 Production 9.4 Staff costs 9.5 Administration and corporate costs 9.6 Other (provide details if material) 9.7 Total estimated cash outflows	500 1,100 6,500 120 120 -
	8,340

10. Changes in tenements (items 2.1(b) and 2.2(b) above)	Tenement reference and location	Nature of interest	Interest at beginning of quarter	Interest at end of quarter
10.1 Interests in mining tenements and petroleum tenements lapsed, relinquished or reduced
10.2 Interests in mining tenements and petroleum tenements acquired or increased

• See chapter 19 for defined terms 1 September 2016

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Appendix 5B

Mining exploration entity and oil and gas exploration entity quarterly report

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:

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............................................................

Date: 30/10/2017

(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.

2. 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.

3. 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.

4. See chapter 19 for defined terms 1 September 2016

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