RAND MINING LIMITED — Interim / Quarterly Report 2018

Apr 29, 2018

Quarterly Report for March 2018

Highlights

ASX ANNOUNCEMENT

30 April 2018

Australian Securities Exchange Code: RND

• During the quarter, 237,909 tonnes of EKJV ore were processed at the Kanowna Plant..

• 22,920 oz of gold and 3,387 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/tAu	%
Raleigh	Raleigh	2,710	8.73	12.50
Raleigh	Raleigh Mineralised Waste	58,685	0.79	12.50
Rubicon	Pegasus, Rubicon & Hornet	87,004	3.75	12.25
Rubicon	P/R/H Low Grade	137,031	1.89	12.25
Kanowna Belle	Raleigh	11,837	8.16	12.50
Kanowna Belle	Raleigh Low Grade	11,490	2.50	12.50
Kanowna Belle	Pegasus, Rubicon & Hornet	76,049	5.87	12.25
Kanowna Belle	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 5966, 5932, 5915, 5898, 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
January	32,487	6.16	6,433
February	24,606	4.04	3,200
March	24,573	8.54	6,745
March 18Q	81,666	6.24	16,378
December 17Q	68,519	6.23	13,718

Rand’s Entitlements (12.5%)

March 18Q	10,208	6.24	2,047
December 17Q	8,565	6.23	1,715

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 progressed on the 6149, 6136, 6102, 6085, 6067and 6034 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)
January	0.0	68.9	36.3	419.0	27.0
February	0.0	99.2	0.0	304.5	20.0
March	0.0	171.9	0.0	197.0	35.0
March 18Q	0.0	340.0	36.3	920.5	82.0
December 17Q	0.0	202.0	223.2	791.2	45.0

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

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RAND MINING LTD ASX ANNOUNCEMENT | 30 APRIL 2018

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January 18 Green indicates new development at Raleigh

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February 18

Green indicates new development at Raleigh

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March 18 Green indicates new development at Raleigh

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Mine operating costs, incurred by the EKJV during the March 18 Quarter were $104 per tonne mined or $518 per ounce mined compared with the December 17 Quarter costs of $108 and $542 respectively.

Rubicon Underground Mine Production

Development progressed on the 5855 to 5815 levels at Rubicon, on the 5785 level at Hornet and the 5890, 5870 and Pode 6200 levels at Pegasus. Stope production from the Rubicon 5975 to 5875 levels, the Hornet 5945, 5865 to 5765 levels and the Pegasus 6230, 6170, 6090 to 6030 and 5970 to 5890 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	UNDERGROUNDGRADECONTROL ESTIMATES	UNDERGROUNDGRADECONTROL ESTIMATES	UNDERGROUNDGRADECONTROL ESTIMATES	UNDERGROUNDGRADECONTROL ESTIMATES
ORE BODY	RUBICON & HORNET				PEGASUS
Month	Tonnes	Grade	Ounces	Tonnes	Grade	Ounces
	t	g/t	troy oz	t	g/t	troy oz
January	36,454	5.86	6,869	40,133	6.90	8,908
February	41,039	4.61	6,089	31,702	7.45	7,592
March	54,861	5.19	9,151	30,803	6.94	6,869
March 18Q	132,354	5.20	22,109	102,638	7.08	23,369
December 17Q	112,968	5.37	19,499	116,255	6.76	25,255
Rand’s Entitlements (12.25%)
March 18Q	16,213	5.20	2,708	12,573	7.08	2,863
December 17Q	13,839	5.37	2,389	14,241	6.76	3,094

Rubicon Underground Mine Development

At the end of the quarter, the bottom of the Rubicon Decline is at 5795 m RL, 548 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 5798 m RL, 545 m from the surface.

	UNDERGROUND DEVELOPMENT	UNDERGROUND DEVELOPMENT	UNDERGROUND DEVELOPMENT	UNDERGROUND DEVELOPMENT	UNDERGROUND DEVELOPMENT	UNDERGROUND DEVELOPMENT	UNDERGROUND DEVELOPMENT	UNDERGROUND DEVELOPMENT	UNDERGROUND DEVELOPMENT	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)
January	3.5	165.6	25.4	108.0	25.0	50.7	289.5	0.0	146.0	78.3
February	39.4	71.7	0.0	202.9	20.0	42.7	391.7	0.0	143.2	34.0
March	65.1	32.0	7.0	280.7	35.0	59.4	258.1	60.1	203.8	60.4
March 18Q	108.0	269.3	32.4	591.6	80.0	152.8	939.3	60.1	493.0	172.7
December 17Q	146.3	291.7	44.6	365.9	95.0	193.5	1,070	0.0	394.0	97.0

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

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RAND MINING LTD ASX ANNOUNCEMENT | 30 APRIL 2018

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

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

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

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Mine operating costs, for Rubicon & Hornet, incurred by the EKJV during March 18 Quarter were $100 per tonne mined or $600 per ounce mined compared with the December 17 Quarter costs of $116 and $672 respectively.

Mine operating costs, for Pegasus, incurred by the EKJV during March 18 Quarter were $102 per tonne mined or $450 per ounce mined compared with the December 17 Quarter costs of $116 and $533 respectively.

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Toll Processing

Toll Processing	Toll Processing	Toll Processing
EKJV Ore hauled to Kanowna Belle (tonnes-wet)
Quarter	Raleigh	Pegasus ,Rubicon, Hornet
March 18	67,683	182,114
December 17	45,362	184,523
	EKJV Ore hauled to Greenfields (tonnes-wet)
Quarter	Raleigh	Pegasus ,Rubicon, Hornet
March 18	Nil	Nil
December 17	Nil	Nil

During the quarter, 237,909 tonnes of EKJV ore were processed at the Kanowna Plant.

Bullion accredited to RAND & TRIBUNE from Kanowna Belle & Greenfields	Bullion accredited to RAND & TRIBUNE from Kanowna Belle & Greenfields	Bullion accredited to RAND & TRIBUNE from Kanowna Belle & Greenfields	Bullion accredited to RAND & TRIBUNE from Kanowna Belle & Greenfields
**Quarter **	Gold (oz)	Silver (oz)	Rand’s share gold
March 18	22,920.209	3,387.037	5,730.051
December 17	23,584.223	3,789.809	5,896.055

EKJV Exploration

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

At Pegasus, infill drilling focussed on defining extensions to the Pode structure, extending the K2 structure at Pegasus South and the definition of the new Hera zone in the hanging wall to the K2 structure at depth.

Exploration diamond drilling also commenced from the new 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. Assay results are pending.

The Quarterly Report of the EKJV exploration activities has been received and will be released to the ASX.

OTHER EXPLORATION

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

The drilling programme is continuing.

Tapeta Iron Ore Project, Liberia, West Africa

The site is currently on care and maintenance.

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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	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 APRIL 2018

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 31 March 2018

Consolidated statement of cash flows	Current quarter $A’000	Year to date (9 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	11,005 (352) (1,392) (6,125) (150) (223) - 2 (15) (1,437) - -	35,288 (1,026) (4,097) (18,253) (355) (627) - 12 (42) (5,490) - -
	1,313	5,410
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	(616) - (550) -	(2,536) - (550) -

• 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

Consolidated statement of cash flows	Current quarter $A’000	Year to date (9 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 to other entities 2.4 Dividends received (see note 3) 2.5 Other (cash advances between Rand Mining Ltd and Tribune Resources Ltd) 2.6 Net cash from / (used in) investing activities	- - - - - - -	15 - - - 830 2,632 (830)
	(1,166)	(439)
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	- - - - (194) - - -	- - - - (483) - (6,015)
	(194)	(6,498)
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)	2,504 1,313 (1,166) (194)	3,984 5,410 (439) (6,498)

• See chapter 19 for defined terms 1 September 2016

Page 2

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

Consolidated statement of cash flows	Consolidated statement of cash flows	Current quarter $A’000	Year to date (9 months) $A’000
4.5 Effect of movement in exchange rates on cash held 4.6 Cash and cash equivalents at end of period		-	-
		2,457	2,457
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)		2,457 - - -	2,504 - - -
		2,457	2,504
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 (86) 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			(86)
			-
(1) Directors fees, superannuation and executive accommodation (included in staff costs 1.2(d)) (80) (2) Royalty payment (included in production 1.2(c)) (6)

• 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

7. Payments to related entities of the entity and their associates	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 included in item 2.3 - 7.3 Include below any explanation necessary to understand the transactions included in items 7.1 and 7.2	(14)
	-
(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 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.	-	-
	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.

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
	1,500
	6,000
	120
	250
	-
	8,370

• 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

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

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: 30/04/2018 (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.

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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