RAND MINING LIMITED — Interim / Quarterly Report 2019

Jul 29, 2019

Quarterly Report for June 2019

Highlights

ASX ANNOUNCEMENT

30 July 2019

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

• During the quarter, 230,188 tonnes of EKJV ore were processed at the Kanowna Plant, 105,183 tonnes of EKJV ore and 0 tonnes of R&T ore were processed at the Greenfields Mill.

• 34,120 ounces of gold and 6,347 ounces of silver were credited to Rand and Tribune Bullion Accounts.

(Rand’s share is 25%)

• At the end of the quarter, Rand is entitled to a share of the following stockpiles:

 At the end of the quarter, Rand is entitled to a share of the following stockpiles:	 At the end of the quarter, Rand is entitled to a share of the following stockpiles:	 At the end of the quarter, Rand is entitled to a share of the following stockpiles:	 At the end of the quarter, Rand is entitled to a share of the following stockpiles:	 At the end of the quarter, Rand is entitled to a share of the following stockpiles:
STOCKPILES
ROM Pad	Ore Source	Ore	Grade	Rand’s Entitlement
		t	g/t Au	%
EKJV Stockpiles
Raleigh	Raleigh	-	-	12.50
Raleigh	Raleigh High Grade	7,255	10.08	12.50
Raleigh	Raleigh Low Grade	18,904	1.70	12.50
Rubicon	Pegasus,Rubicon & Hornet	21,592	4.94	12.25
Rubicon	P/R/H High Grade	251	8.87	12.25
Rubicon	P/R/H Low Grade	60,094	2.24	12.25
Kanowna Belle	Raleigh	-	-	12.50
Kanowna Belle	Raleigh High Grade	705	10.27	12.50
Kanowna Belle	Raleigh Low Grade	11,490	2.50	12.50
Kanowna Belle	Pegasus,Rubicon & Hornet	17,018	4.94	12.25
Kanowna Belle	P/R/H High Grade	5,428	9.33	12.25
Kanowna Belle	P/R/H Low Grade	-	-	12.25
Greenfields	Raleigh High Grade	3,000	10.27	12.50
Greenfields	Pegasus, Rubicon & Hornet	10,740	4.94	12.25
Rand’s Share of EKJV Stockpiles		19,272	3.86	100.00
Rand and Tribune Stockpiles
Rubicon	Pegasus,Rubicon & Hornet	72,966	5.65	25.00
Rubicon	P/R/H Low Grade	66,837	1.88	25.00
Greenfields	Pegasus, Rubicon & Hornet	8,704	4.17	25.00
Rand’s Share of R&T Stockpiles		37,127	3.87	100.00
Rand’s Share of All Stockpiles		56,399	3.86	100.00

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GEOLOGY AND MINING

EAST KUNDANA JOINT VENTURE

Raleigh Underground Mine Production

Stope production from the 6136, 6031, 5983, 5915, 5898, 5881, 5864 and 5795 levels 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
April	22,285	10.37	7,429
May	26,175	13.49	11,353
June	24,742	9.57	7,609
June 19Q	73,202	11.21	26,391
March 19Q	60,073	9.35	18,060

Rand’s Entitlements (12.5%)

Quarter	Tonnes	Grade	Ounces
	t	**g/t **	troy oz
June 19Q	9,150	11.21	3,299
March 19Q	7,509	9.35	2,258

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, the top of the Sadler Incline is at 5985 m RL, 360 m from the surface and the bottom of the Sadler Decline is at 5944 m RL, 401 m from the surface.

Development progressed on the 5972 level.

	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)
April	0.0	28.3	0.0	3.0	35.0
May	0.0	42.0	0.0	30.0	70.0
June	0.0	56.4	0.0	31.0	40.0
June 19Q	0.0	126.7	0.0	64.0	145.0
March 19Q	0.0	115.2	0.0	93.9	80.0

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RAND MINING LTD ASX ANNOUNCEMENT | 30 JULY 2019

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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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April 19 Green indicates new development at Raleigh
May 19 Green indicates new development at Raleigh
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June 19 Green indicates new development at Raleigh

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RAND MINING LTD ASX ANNOUNCEMENT | 30 JULY 2019

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Mine operating costs, incurred by the EKJV during the June 19 Quarter were $135 per tonne mined or $375 per ounce mined compared with the March 19 Quarter costs of $166 and $551 respectively.

Rubicon Underground Mine Production

Stope production from the Rubicon 5995, 5955 and 5875 to 5795 levels, the Hornet 5845 to 5805 and 5765 levels, the Pegasus 6250, 5990, 5970 and 5890 to 5810 levels, the Hera 5828 level and the Pode 6200 level 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
April	38,618	6.67	8,280	51,601	6.19	10,262
May	35,034	5.60	6,305	73,055	7.08	16,621
June	36,170	5.64	6,557	56,139	6.03	10,878
June 19Q	109,822	5.99	21,143	180,796	6.50	37,761
March 19Q	121,592	6.28	24,531	147,418	6.38	30,253

Rand’s Entitlements (12.25%)

Quarter	Tonnes	Grade	Ounces	Tonnes	Grade	Ounces
	t	g/t	troy oz	t	g/t	troy oz
June 19Q	13,453	5.99	2,590	22,147	6.50	4,626
March 19Q	14,895	6.28	3,005	18,059	6.38	3,706

Rubicon Underground Mine Development

At the end of the quarter, the bottom of the Rubicon Decline is at 5758 m RL, 585 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 6278 m RL, 65 m from the surface, the bottom of the Pegasus Decline is at 5745 m RL, 598 m from the surface, the top of the Pode Incline is at 6087 m RL, 256 m from the surface and the bottom of the Pode Decline is at 6040 m RL, 303 m from the surface.

Development progressed on the 5835, 5815 and 5776 levels at Rubicon and the 6250, 5870 to 5770, Hera 5838 to 5808 and 5758 and Pode 6225, 6083 to 6043 levels at Pegasus

.
	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)
April	0.0	2.7	0.0	10.8	45.0	13.7	137.4	0.0	541.6	40.0
May	0.0	16.0	0.0	44.9	70.0	21.8	74.8	9.0	607.7	35.0
June	0.0	9.7	0.0	40.3	40.0	7.4	127.7	0.0	474.7	30.0
June 19Q	0.0	28.4	0.0	96.0	155.0	42.9	339.9	9.0	1,624	105.0
March 19Q	0.0	107.0	0.0	133.5	120.0	73.8	811.5	25.7	1,221	100.0

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RAND MINING LTD ASX ANNOUNCEMENT | 30 JULY 2019

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

April 19 Green indicates new development at Rubicon, Hornet and Pegasus

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May 19 Green indicates new development at Rubicon, Hornet and Pegasus

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June 19 Green indicates new development at Rubicon, Hornet and Pegasus

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Mine operating costs, for Rubicon and Hornet, incurred by the EKJV during June 19 Quarter were $94 per tonne mined or $489 per ounce mined compared with the March 19 Quarter costs of $90 and $444 respectively.

Mine operating costs, for Pegasus, incurred by the EKJV during June 19 Quarter were $94 per tonne mined or $449 per ounce mined compared with the March 19 Quarter costs of $90 and $439 respectively.

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RAND MINING LTD ASX ANNOUNCEMENT | 30 JULY 2019

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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
June 19	57,948	169,315
March 19	47,588	199,036

During the quarter, 230,188 tonnes of EKJV ore were processed at the Kanowna Plant.

EKJV Ore hauled to Greenfields (tonnes-wet)	EKJV Ore hauled to Greenfields (tonnes-wet)	EKJV Ore hauled to Greenfields (tonnes-wet)
Quarter	Raleigh	Pegasus, Rubicon, Hornet
June 19	15,967	97,628
March 19	7,180	30,982

During the quarter, 105,183 tonnes of EKJV ore were processed at the Greenfields Mill.

R&T Ore hauled to Greenfields (tonnes-wet)	R&T Ore hauled to Greenfields (tonnes-wet)	R&T Ore hauled to Greenfields (tonnes-wet)
Quarter	Raleigh	Pegasus, Rubicon, Hornet
June 19	-	-
March 19	-	77,154

During the quarter, 0 tonnes of R&T ore were processed at the Greenfields Mill.

Bullion accredited to RAND & TRIBUNE	Bullion accredited to RAND & TRIBUNE	Bullion accredited to RAND & TRIBUNE
Quarter	Gold(oz)	Silver(oz)	Rand’s sharegold
June 19	34,120.175	6,347.006	8,530.042
March 19	34,473.934	5,549.662	8,618.483

Exploration and Development

Two drill rigs continued underground resource definition drilling programs across the EKJV mining complex during the quarter.

At Pegasus, drilling focussed on defining down plunge extensions Hera structures in the hanging wall of the northern and central portions of the Pegasus system with positive results.

Diamond drilling from underground platforms at Pegasus and Raleigh into the new Falcon trend located midway between Pegasus and Raleigh mines continued throughout the quarter.

The Falcon mineralised corridor has been traced for over 1.5 kilometres and remains open to north and south with extensional and in-fill resource definition drilling underway from both platforms.

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RAND MINING LTD ASX ANNOUNCEMENT | 30 JULY 2019

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Details are contained in the Quarterly Report of the EKJV exploration activities, released to the ASX on 24 July 2019.

OTHER EXPLORATION

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

Following the evaluation of past exploration across the project area and further gold target generation work, a campaign of aircore drilling testing conceptual targets commenced in June. A total of 86 holes for 4473 metres were completed by the end of the quarter. No assay results had been received by the end of the reporting period.

The aircore program is continuing through July and August in addition to a program of deep reverse circulation drilling at several advanced prospects.

CORPORATE

Validation of Tribune Share Purchases

Pursuant to the Take-Over Panel orders, all bar 1,135,000 shares of Rand’s 26.32% shareholding in Tribune Resources were vested in the Commonwealth, on trust for Rand, to be sold by ASIC, in accordance with the Takeover Panel orders.

This sale has now been completed and the proceeds from this sale have now been fully remitted to Rand, with the balance of funds being received in July 2019.

Rand has previously advised the market that it was proposing to seek Court Orders to clarify the position of the 1,135,000 shares previously purchased by Rand in Tribune Resources Limited.

On 26 July 2019 Rand successfully obtained these Court Orders.

The effect of these Court Orders is that the purchase of those shares is not invalid.

As part of the Court Orders, Rand has undertaken to dispose of these shares within 6 months or such longer period approved by ASIC and Rand is currently complying with ASIC direction with respect to the completion of their sale.

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RAND MINING LTD ASX ANNOUNCEMENT | 30 JULY 2019

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Interests in Mining Tenements

Project/Tenements	Location	Held at end of quarter	Acquired during thequarter	Disposed during thequarter
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		50.00% 50.00% 50.00% 50.00% 50.00% 50.00% 50.00% 50.00% 50.00% 50.00%
Mt Celia	WA, Australia
P15/6370		50%	50%
West Kimberly	WA, Australia
E04/2548		100%

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RAND MINING LTD ASX ANNOUNCEMENT | 30 JULY 2019

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 June 2019

Consolidated statement of cash flows	Current quarter $A’000	Year to date (12 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	- (132) (483) (6,742) (123) (935) - 10 (15) (1,303) - -	79,520 (879) (4,607) (25,041) (549) (2,707) - 28 (74) (3,436) - -
	(9,723)	42,255
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	(444) - - -	(2,880) - - -

• 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 (12 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	13 - 1,085 - - - -	52 - 42,449 - 1,000 48,694 (1,000)
	654	88,315
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	- - - - (242) - - -	- - - - (983) - (81,200)
	(242)	(82,183)
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)	60,062 (9,723) 654 (242)	2,364 42,255 88,315 (82,183)

• 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	Current quarter $A’000	Year to date (12 months) $A’000
4.5 Effect of movement in exchange rates on cash held 4.6 Cash and cash equivalents at end of period	-	-
	50,751	50,751

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)	50,751 - - -	60,062 - - -
	50,751	60,062

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 (38) 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		(38)
		-
(1) Directors fees, superannuation and executive accommodation (included in staff costs 1.2(d)) (31) (2) Royalty payment (included in production 1.2(c)) (7)

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

Page 3

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 1,421 1,421 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.	-	-
	-	-
	1,421	1,421
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	300
	1,800
	6,000
	150
	300
	-
	8,550

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	P15/6730	Granted to Mount Manning Resources Ltd	-	50%

• 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: 30/07/2019 (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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