RAND MINING LIMITED — Interim / Quarterly Report 2019

Oct 29, 2018

ASX ANNOUNCEMENT

30 October 2018

Australian Securities Exchange Code: RND

Board of Directors:

Mr Otakar Demis Chairman 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 2018

Highlights

• During the quarter, 207,666 tonnes of EKJV ore were processed at the Kanowna Plant and 50,112 tonnes of EKJV ore were processed at the Greenfields Mill.
• 23,878 oz of gold and 4,073 oz of silver were credited to Rand and Tribune Bullion Accounts.

(Rand's share is 25%)

At the end of the quarter, the EKJV had the following stockpiles:

	EKJV STOCKPILES
ROM pad	Ore Source	Ore	Grade	Rand's
				Entitlement
		t	g/t Au	%
Raleigh	Raleigh	4,278	7.11	12.50
Raleigh	Raleigh Low Grade	15,216	1.84	12.50
Rubicon	Pegasus, Rubicon &	26,468	5.50	12.25
	Hornet
Rubicon	P/R/H Low Grade	4,965	1.88	12.25
Rubicon	Pegasus, Rubicon &	143,845	4.92	12.25
	Hornet
Rubicon	P/R/H Low Grade	66,837	1.88	12.25
Rubicon	Raleigh Ore Sorting	1,204	9.16	12.50
	Samples
Rubicon	RHP Ore Sorting Samples	4,000	4.55	12.25
Kanowna	Raleigh	7,665	7.11	12.50
Belle
Kanowna	Raleigh Low Grade	11,490	2.50	12.50
Belle
Kanowna	Pegasus, Rubicon &	40,065	5.51	12.25
Belle	Hornet
Kanowna	P/R/H Low Grade	-	-	12.25
Belle
	Total EKJV Stockpiles	326,033	4.23
	Rand attributable	40,039	4.23
	stockpiles

During the Quarter, the Takeovers Panel heard and made findings with regards to an earlier application by R Hedley into the affairs of Tribune Resources, a significant shareholder in Rand. The findings and Orders are currently being reviewed by the Company.

GEOLOGY AND MINING

EAST KUNDANA JOINT VENTURE

Raleigh Underground Mine Production

Stope production from the 5966-TL, 5932, 5915, 5898, 5847 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	TonnesGradeOunces
	t	g/t	troy oz
July	16,497	9.50	5,038
August	28,051	7.49	6,758
September	17,408	7.11	3,982
September 18Q	61,956	7.92	15,778
June 18Q	73,693	10.06	23,841

Rand's Entitlements (12.5%)

Quarter	Tonnes	Grade	Ounces
	t	g/t	troy oz
September 18Q	7,745	7.92	1,972
June 18Q	9,212	10.06	2,980

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 and the bottom of the Raleigh Exploration Drive is at 5973 m RL, 372 m from the surface.

Development progressed on the 6085, 6067 and 6034 levels.

RALEIGH UNDERGROUND DEVELOPMENT
Month		Capital	Operating
	Decline	Secondary	Waste	Ore	Paste Fill
	(m)	(m)	(m)	(m)	(m)
July	0.0	112.8	13.1	200.2	66.7
August	0.0	135.8	41.9	153.0	28.0
September	0.0	150.1	65.0	34.7	0.0
September 18Q	0.0	398.7	120.0	387.9	94.7
June 18Q	0.0	582.7	8.6	517.7	94.0

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

RAND MINING LTD ASX ANNOUNCEMENT | 30 OCTOBER 2018 3

Mine operating costs, incurred by the EKJV during the September 18 Quarter were $158 per tonne mined or $622 per ounce mined compared with the June 18 Quarter costs of $88 and $271 respectively.

Rubicon Underground Mine Production

Development progressed on the 5835 to 5795 levels at Rubicon, on the 5745 level at Hornet and the 6270, 5890 to 5810, and Pode 6200 levels at Pegasus. Stope production from the Rubicon 5975 to 5855 levels, the Hornet 5865 to 5765 levels and the Pegasus 6230, 6210, 6130, 6030 and 5970 to 5830 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
ORE BODY		RUBICON & HORNET			PEGASUS
Month	Tonnes	Grade	Ounces	Tonnes	Grade	Ounces
	t	g/t	troy oz	t	g/t	troy oz
July	53,095	5.21	8,898	45,316	5.85	8,529
August	53,583	5.11	8,803	41,478	5.79	7,724
September	39,878	5.55	7,114	43,587	5.45	7,639
September 18Q	146,556	5.27	24,814	130,381	5.70	23,891
June 18Q	139,339	4.81	21,561	171,712	6.94	38,315

Rand's Entitlements (12.25%)

Quarter	Tonnes	Grade	Ounces	Tonnes	Grade	Ounces
	t	g/t	troy oz	t	g/t	troy oz
September 18Q	17,953	5.27	3,040	15,972	5.70	2,927
June 18Q	17,069	4.81	2,641	21,035	6.94	4,694

Rubicon Underground Mine Development

At the end of the quarter, the bottom of the Rubicon Decline is at 5763 m RL, 580 m from the surface, the bottom of the Hornet Decline is at 5711 m RL, 632 m from the surface, the bottom of the Exploration Decline is at 5661 m RL, 682 m from the surface, the top of the Pegasus Incline is at 6273 m RL, 70 m from the surface and the bottom of the Pegasus Decline is at 5767 m RL, 576 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	3.5	218.7	0.0	115.2	40.0	56.1	229.7	0.0	250.7	20.0
August	16.2	220.4	0.0	88.3	40.0	13.8	371.2	0.0	287.7	20.0
September	65.6	222.1	0.0	54.3	45.0	64.1	341.9	0.0	236.3	35.0
September 18Q	85.3	661.2	0.0	257.8	125.0	134.0	942.8	0.0	774.7	75.0
June 18Q	162.0	203.7	30.7	590.3	100.0	113.1	683.8	8.2	1,117	89.7

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

July 18 Green indicates new development at Rubicon, Hornet and Pegasus

August 18 Green indicates new development at Rubicon, Hornet and Pegasus

September 18 Green indicates new development at Rubicon, Hornet and Pegasus

Mine operating costs, for Rubicon & Hornet, incurred by the EKJV during September 18 Quarter were $78 per tonne mined or $460 per ounce mined compared with the June 18 Quarter costs of $91 and $587 respectively.

Mine operating costs, for Pegasus, incurred by the EKJV during September 18 Quarter were $83 per tonne mined or $454 per ounce mined compared with the June 18 Quarter costs of $91 and $410 respectively.

Toll Processing

EKJV Ore hauled to Kanowna Belle (tonnes-wet)
Quarter	Raleigh	Pegasus ,Rubicon, Hornet
September 18	59,935	187,360
June 18	76,319	96,623

During the quarter, 207,666 tonnes of EKJV ore were processed at the Kanowna Plant.

EKJV Ore hauled to Greenfields (tonnes-wet)
Quarter	Raleigh	Pegasus ,Rubicon, Hornet
September 18	-	52,990
June 18	-	-

During the quarter, 50,112 tonnes of EKJV ore were processed at the Greenfields Mill.

Bullion accredited to RAND & TRIBUNE from Kanowna Belle
		Rand's share gold
		5,969.703
25,902.156	4,294.417	6,475.539
	Gold (oz)23,878.815	Silver (oz)4,073.395

Exploration and Development

Four drill rigs continued underground exploration and resource definition diamond drilling programs across the Rubicon-Hornet-Pegasus and Raleigh South mining complexes during the quarter.

At Pegasus, drilling focussed on defining down plunge extensions to the K2 and Pode structures at the northern end of the Pegasus system.

Resource definition drilling at Rubicon focussed on hanging wall positions to the Rubicon K2 with good success. An exploration hole targeted the Raleigh structure to the west of Rubicon successfully intersecting the target at depth beneath the Golden Hind area.

Two drill rigs focussed on resource definition drilling from the Raleigh South drill drive during the quarter targeting the southern extensions of the Raleigh Main Vein. All drill holes completed to date have successfully intersected the Raleigh structure with varying degrees of mineralisation including visible gold.

Regional Exploration

Surface diamond drill programs continued across the EKJV during the quarter with a major focus on Raleigh South and Drake.

At Raleigh South, surface resource definition diamond drilling targeted the Raleigh Main Vein up-dip above proposed underground development to extend the defined mineralisation envelope. All holes intersected the Raleigh structure with varying amounts of mineralised quartz vein material, often with visible gold, on the target structure.

Further south, an initial surface diamond drilling program at the Sir Walter prospect, targeted extensions of the Raleigh Main Vein approximately 300-500m south of the Raleigh South area. The program was highly successful with all holes intersecting vein

material on the Raleigh structure, with three intersections containing visible gold. Assay results are pending.

At the Drake prospect, situated midway between the Pegasus and Moonbeam deposits, surface diamond drilling is in progress targeting the K2 structure north from Pegasus. Initial intersections on the primary K2 structure have been modest however, significant "Pode style" mineralisation has been intersected in the hanging wall outlining a significant new mineralised surface

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%)

The aircore drilling programme testing additional structural and geochemical targets at Seven Mile Hill is continuing. A review of all drilling results is in progress.

Tapeta Iron Ore Project, Liberia, West Africa

On 24 September 2018, Rand let lapse an option to acquire all of the issued share capital in Iron Resources Limited ('IRL'), a wholly owned subsidiary of Resource Capital Ltd ('RCL'), from RCL. IRL is the registered holder of a mineral exploration license over a 599.82 square kilometre area located in Northern-Central Liberia, West Africa, (Tapeta Iron Ore Project).

CORPORATE

Dividend

During the quarter the Company made the following announcements regarding dividend.

On the 22 August 2018, the Company announced that a dividend would be paid on the following conditions:

Record Date:	31 August 2018
Payable date:	14 September 2018
Amount:	$0.10 per Fully Paid ordinary Share - fully franked

On the 19 September 2018, the Company announced that a dividend would be paid on the following conditions:

Record Date:	26 September 2018
Payable date:	12 October 2018 amended to 4 October 2018
Amount:	$1.25 per Fully Paid Ordinary Share - fully franked

Takeovers panel

On 20 September 2018, the Company announced that it has been mentioned in an announcement by the Takeover Panel on 17 September 2018, regarding a Declaration of Unacceptable Circumstances in relation to the affairs of Tribune Resources Ltd.

Post Quarter-end, the Takeovers Panel, on October 29 2018, the Takeovers Panel published orders with respect to its findings. These Orders include directions with regards to Rand's shareholding in Tribune.

The Company is currently reviewing the Orders.

Interests in Mining Tenements

Project/Tenements	Location	Held at endof quarter	Acquiredduring the	Disposedduring the
			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%
Seven Mile Hill	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%
West Kimberly	WA, Australia
E04/2548		100%

+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")

	Consolidated statement of cash flows	Current quarter$A'000	Year to date (12months)$A'000
1.	Cash flows from operating activities
1.1	Receipts from customers	79,451	79,451
1.2	Payments for
	(a)exploration & evaluation	(674)	(674)
	(b)development	(1,463)	(1,463)
	(c)production	(5,108)	(5,108)
	(d)staff costs	(107)	(107)
	(e)administration and corporate costs	(212)	(212)
1.3	Dividends received (see note 3)	-	-
1.4	Interest received	2	2
1.5	Interest and other costs of finance paid	(17)	(17)
1.6	Income taxes paid	(1,140)	(1,140)
1.7	Research and development refunds	-	-
1.8	Other (provide details if material)	-	-
1.9	Net cash from / (used in) operatingactivities	70,732	70,732

2.	Cash flows from investing activities
2.1	Payments to acquire:
	(a)property, plant and equipment	(714)	(714)
	(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$A'000	Year to date (12months)$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	1,000	1,000
2.4	Dividends received (see note 3)	2,632	2,632
2.5	Other (cash advances between RandMining Ltd and Tribune Resources Ltd)	(1,000)	(1,000)
2.6	Net cash from / (used in) investingactivities	1,918	1,918

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	(247)	(247)
3.7	Transaction costs related to loans andborrowings	-	-
3.8	Dividends paid	(6,015)	(6,015)
3.9	Other (provide details if material)	-
3.10	Net cash from / (used in) financingactivities	(6,262)	(6,262)

4.	Net increase / (decrease) in cash andcash equivalents for the period
4.1	Cash and cash equivalents at beginning ofperiod	2,364	2,364
4.2	Net cash from / (used in) operatingactivities (item 1.9 above)	70,732	70,732
4.3	Net cash from / (used in) investing activities(item 2.6 above)	1,918	1,918
4.4	Net cash from / (used in) financing activities(item 3.10 above)	(6,262)	(6,262)

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

	Consolidated statement of cash flows	Current quarter$A'000	Year to date (12months)$A'000
4.5	Effect of movement in exchange rates oncash held	-	-
4.6	Cash and cash equivalents at end ofperiod	68,752	68,752

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	68,752	2,364
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)	68,752	2,364

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	(70)
6.2	Aggregate amount of cash flow from loans to these parties includedin item 2.3	-
6.3	Include below any explanation necessary to understand the transactions included initems 6.1 and 6.2
	(1) Directors fees, superannuation and executive accommodation (included in staff costs1.2(d)) (61)(2) Royalty payment (included in production 1.2(c)) (9)

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

7.	Payments to related entities of the entity and theirassociates	Current quarter$A'000
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 includedin item 2.3	-
7.3	Include below any explanation necessary to understand the transactions included initems 7.1 and 7.2

• (1) Rent (included in administration and corporate costs 1.2(e)) (14)
• (2) Cash advances between Rand Mining Ltd and Tribune Resources Ltd (included in 2.3 and 2.5) net effect NIL

8.	Financing facilities 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	1,551	1,551
8.4	Include below a description of each facility above, including the lender, interest rate andwhether it is secured or unsecured. If any additional facilities have been entered into or areproposed to be entered into after quarter end, include details of those facilities as well.
	Various finance leases cover underground mining equipment. The terms range between 30-36months. 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	500
9.2	Development	1,500
9.3	Production	6,000
9.4	Staff costs	120
9.5	Administration and corporate costs	250
9.6	Other (provide details if material)	-
9.7	Total estimated cash outflows	8,370

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

10.	Changes intenements(items 2.1(b) and2.2(b) above)	Tenementreference andlocation	Nature ofinterest	Interest atbeginningof quarter	Interestat end ofquarter
10.1	Interests in miningtenements andpetroleum tenementslapsed, relinquishedor reduced	Tapeta Iron OreProject, LiberiaWest Africa	100%	100%	-
10.2	Interests in miningtenements andpetroleum tenementsacquired orincreased	West Kimberly,E04/2548	100%	-	100%

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: 30/10/2018
	(Director)

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.