RAND MINING LIMITED — Interim / Quarterly Report 2018

Jan 30, 2018

Quarterly Report for December 2017

Highlights

ASX ANNOUNCEMENT

31 January 2018

Key Points

Australian Securities Exchange Code: RND

Board of Directors:

Mr Otakar Demis Chairman and Joint Company Secretary

• During the quarter, 201,194 tonnes of EKJV ore were processed at the Kanowna Plant.

• 23,584 oz of gold and 3,789 oz of silver were credited to Rand and Tribune Bullion Accounts.

(Rand’s share is 25%)

• At the end of the quarter;

Mr Anton Billis Managing Director

Mr Gordon Sklenka Non-Executive Director

Mr Roland Berzins Joint Company Secretary

	EKJV STOCKPILES	EKJV STOCKPILES
ROM pad	Ore Source	Ore	Grade	Rand’s Entitlement
		t	g/t Au	%
Raleigh	Raleigh	3,060	10.03	12.50
Raleigh	Raleigh Low Grade	42,203	1.03	12.50
Rubicon	Pegasus, Rubicon & Hornet	40,708	3.01	12.25
Rubicon	P/R/H Low Grade	123,086	1.98	12.25
Kanowna Belle	Raleigh	7,041	11.36	12.50
Kanowna Belle	Raleigh Low Grade	10,685	2.50	12.50
Kanowna Belle	Pegasus, Rubicon & Hornet	76,754	5.82	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		GRADECONTROL ESTIMATES
Month	Tonnes	Grade	Ounces
	t	g/t	troy oz
October	19,894	5.67	3,627
November	25,105	6.45	5,208
December	23,520	6.46	4,883
December 17Q	68,519	6.23	13,718
September 17Q	54,600	8.48	14,885

Rand’s Entitlements (12.5%)

December 17Q	8,565	6.23	1,715
September 17Q	6,825	8.48	1,861

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, 6017, 6000, 5983, 5881, 5864, 5847, 5830 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)
October	0.0	47.0	68.0	260.0	20.0
November	0.0	63.5	75.7	267.3	5.0
December	0.0	91.5	79.5	263.9	20.0
December 17Q	0.0	202.0	223.2	791.2	45.0
September 17Q	0.0	118.1	31.6	872.2	40.0

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RAND MINING LTD ASX ANNOUNCEMENT | 31 JANUARY 2018

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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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October 17 Green indicates new development at Raleigh
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November 17 Green indicates new development at Raleigh

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December 17 Green indicates new development at Raleigh

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Mine operating costs, incurred by the EKJV during the December 17 Quarter were $108 per tonne mined or $542 per ounce mined compared with the September 17 Quarter costs of $120 and $441 respectively.

Rubicon Underground Mine Production

Development progressed on the 5875 and 5855 levels at Rubicon, on no levels at Hornet and the 6250, 6130, 6030, 5910, 5890 and 5870 levels at Pegasus. Stope production from the Rubicon 5975, 5955, 5935, 5915 and 5895 levels, the Hornet 5945, 5885 to 5785 levels and the Pegasus 6230, 6150, 6090 to 6050 , 5970 to 5910 and Pode 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:

	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 **
October	32,749	4.02	4,237	45,801	8.03	11,823
November	34,651	5.37	5,984	40,948	6.90	9,086
December	45,568	6.33	9,278	29,506	4.58	4,346
December 17Q	112,968	5.37	19,499	116,255	6.76	25,255
September 17Q	122,968	5.43	21,452	98,212	8.46	26,715
Rand’s Entitlements (12.25%)
December 17Q	13,839	5.37	2,389	14,241	6.76	3,094
September 17Q	15,064	5.43	2,628	12,031	8.46	3,273

Rubicon Underground Mine Development

At the end of the quarter, the bottom of the Rubicon Decline is at 5812 m RL, 531 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 6264 m RL, 79 m from the surface and the bottom of the Pegasus Decline is at 5816 m RL, 527 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	Past e	Decline	Other	Waste	Ore	Paste
	(m)	(m)	(m)	(m)	(m)	(m)	(m)	(m)	(m)	(m)
October	70.4	82.3	0.0	53.2	30.0	68.4	395.0	0.0	140.9	35.0
November	35.8	101.5	0.0	184.8	25.0	64.0	398.1	0.0	103.9	15.0
December	40.1	107.9	44.6	127.9	40.0	61.1	277.1	0.0	149.2	47.0
Dec 17Q	146.3	291.7	44.6	365.9	95.0	193.5	1,070	0.0	394.0	97.0
September 17Q	158.0	433.0	50.8	810.4	134.1	172.0	341.6	23.1	379.6	55.0

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RAND MINING LTD ASX ANNOUNCEMENT | 31 JANUARY 2018

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

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

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

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December 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 December 17 Quarter were $116 per tonne mined or $672 per ounce mined compared with the September 17 Quarter costs of $107 and $615 respectively.

Mine operating costs, for Pegasus, incurred by the EKJV during December 17 Quarter were $116 per tonne mined or $533 per ounce mined compared with the September 17 Quarter costs of $121 and $444 respectively.

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RAND MINING LTD ASX ANNOUNCEMENT | 31 JANUARY 2018

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Toll Processing

EKJV Ore hauled to Kanowna Belle (tonnes-wet)	EKJV Ore hauled to Kanowna Belle (tonnes-wet)	EKJV Ore hauled to Kanowna Belle (tonnes-wet)
**Quarter **	**Raleigh **	Pegasus ,Rubicon, Hornet
December 17	45,362	184,523
September 17	41,849	184,705

During the quarter, 210,194 tonnes of EKJV ore were processed at the Kanowna Plant.

Bullion accredited to RAND & TRIBUNE from Kanowna Belle	Bullion accredited to RAND & TRIBUNE from Kanowna Belle	Bullion accredited to RAND & TRIBUNE from Kanowna Belle	Bullion accredited to RAND & TRIBUNE from Kanowna Belle
**Quarter **	Gold (oz)	Silver (oz)	Rand’s share gold
December 17	23,584.223	3,789.809	5,896.055
September 17	22,344.847	3,218.893	5,586.211

EKJV Exploration

EKJV regional exploration for the quarter consisted of:

• Two EIS co-funded diamond drill holes at Papa Bear to assist in determining the stratigraphy of the Black Flag Group.

• A single RC drill hole at Papa Bear to twin a previous diamond hole that had poor core recovery through a mineralised zone.

• A RC/diamond drilling programme at the Pegasus Footwall project.

EKJV in-mine exploration for the quarter consisted of programmes on the following projects:

• Rubicon K2

• Hornet K2

• Raleigh Footwall

Details are contained in the Quarterly Report of the EKJV exploration activities, released to the ASX on 23 January 2018.

OTHER EXPLORATION

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

During the quarter, 178 holes for 5,384m were completed. The overall aim was to test various geochemical and structural targets for economic gold deposits. Further details can be found in the Seven Mile Hill Exploration Update released to the ASX on 24 January 2018.

Tapeta Iron Ore Project, Liberia, West Africa

The site is currently on care and maintenance.

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CORPORATE

Securities on Issue

During the quarter, the Company extended the current on market share buy-back to 11 December 2018. No securities were cancelled under the buy-back during the quarter ended 31 December 2017.

The number of securities on issue as at 31 December is 60,148,475.

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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 | 31 JANUARY 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 41 004 669 658 31 December 2017

Quarter ended (“current quarter”)

Consolidated statement of cash flows	Current quarter $A’000	Year to date (6 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	9,990 (123) (1,608) (5,703) (95) (488) - 5 (27) (2,029) - -	24,283 (674) (2,705) (12,123) (204) (603) - 10 (34) (4,053) - -
	(78)	3,897
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	(1,029) - - -	(1,920) - - -

• 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 (6 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	15 - - - - - -	15 - - - 200 2,632
	(1,014)	927
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	- - - - (169) - - -	- - - - (289) - (6,015)
	(169)	(6,304)
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	3,765 (78) (1,014) (169) -	3,984 3,897 927 (6,304) -
	2,504	2,504

• 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

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	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)		2,504 - - -	3,765 - - -
		2,504	3,765
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 (112) 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			(112)
			-
(1) Directors fees, superannuation and executive accommodation (included in staff costs 1.2(d)) (107) (2) Royalty payment (included in production 1.2(c)) (5)
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 (9) 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			(9)
			-
(1) Rent (included in administration and corporate costs 1.2(e)) (9)

• 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

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 1,122 1,122 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.	-	-
	1,122	1,122
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	9. Estimated cash outflows for next quarter	9. Estimated cash outflows for next quarter	$A’000	$A’000	$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			200
			1,500
			6,000
			120
			120
			-
			7,940
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: ............................................................ Date: 31/01/2018 (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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