RAND MINING LIMITED — Interim / Quarterly Report 2020

Jul 29, 2020

A.B.N. 41 004 669 658

ASX ANNOUNCEMENT

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30 July 2020

ASX:RND

Quarterly Report for June 2020

Highlights

Board of Directors

Mr Otakar Demis Chairman & Joint Company Secretary

Mr Anton Billis Managing Director

Mr Gordon Sklenka Non-Executive Director

• During the quarter, 41,308 tonnes of EKJV ore were processed at the Kanowna Plant and 47,623 tonnes of R&T ore were processed at the Lakewood Mill

• 8,858 ounces of gold and 1,192 ounces of silver were credited to Rand and Tribune Bullion Accounts.

• Rand’s 25% share of bullion produced was 2,214.6 oz of gold and 298 oz of silver.

Mr Brett Tucker & Mr Roland Berzins Joint Company Secretaries

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Suite G1, 49 Melville Parade South Perth WA 6151 T: +61 8 9474 2113 | F: +61 8 9367 9386 W: www.randmining.com.au

Ore Stockpiles

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

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Geology and Mining

East Kundana Joint Venture

Raleigh Underground Mine Production

A large seismic event occurred at Raleigh on 14 January. Mining operations were suspended in April. The mine has been placed on care and maintenance. A detailed study is assessing the economics of recommencing mining.

Some stope production occurred in April from the 6031 level.

Contained gold in stope ore mined during the quarter is tabulated below:

RALEIGH UNDERGROUNDGRADECONTROL ESTIMATES	RALEIGH UNDERGROUNDGRADECONTROL ESTIMATES	RALEIGH UNDERGROUNDGRADECONTROL ESTIMATES	RALEIGH UNDERGROUNDGRADECONTROL ESTIMATES
**Month **	Tonnes	Grade (g/t)	Ounces
April	3,687	5.86	694
May	0	0.00	0
June	0	0.00	0
June 20Q	**3,687 **	5.86	**694 **
March 20Q	29,692	5.77	5,512
Rand’s Entitlements (12.5%)
			Ounces 87 689
**Quarter **	Tonnes	Grade (g/t)	Ounces
June 20Q	**461 **	5.86	**87 **
March 20Q	3,711	5.77	689

Raleigh Underground Mine Development

At the end of the quarter, the bottom of the Raleigh Decline remains at 5602 m RL, 743 m from the surface, the top of the Sadler Incline remains at 5989 m RL, 356 m from the surface and the bottom of the Sadler Decline remains at 5944 m RL, 401 m from the surface.

There was no development during the quarter.

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	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)
June 20Q	0.0	0.0	0.0	0.0	0.0
March 20Q	37.2	36.9	0.0	46.8	20.0

The diagram below shows the status of the mine at the end of April and of the quarter. Green indicates new development at Raleigh.

April 20 and June 20

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Mine operating costs at Raleigh, incurred by the EKJV during the June 20 Quarter, were $282 per tonne mined or $1,496 per ounce mined compared with the March 20 Quarter costs of $149 and $800 respectively.

Rubicon-Hornet-Pegasus Underground Mine Production

Stope production was from the Rubicon 6015, 5995, 5915, 5835, 5815 levels, the Hornet 5805, 5785, 5745 levels, the Pegasus 6270 to 6230, 5930 to 5770 levels and the Pode 6043, 6200 levels during the quarter.

Contained gold in stope and development ore mined during the quarter 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
April	12,686	4.74	1,935	76,473	5.25	12,900
May	16,062	5.85	3,020	91,207	4.74	13,909
June	36,922	4.17	4,952	68,516	3.96	8,725
June 20Q	65,670	4.69	9,906	**236,197 **	4.68	35,535
March 20Q	62,783	4.83	9,748	174,477	5.22	29,308
Rand’s Entitlements (12.25%)
	Rubicon and Hornet				Pegasus
Quarter	Tonnes	Grade (g/t)	Ounces	Tonnes	Grade (g/t)	Ounces
June 20Q	8,045	4.69	1,214	**28,934 **	4.68	4,353
March 20Q	7,691	4.83	1,194	21,373	5.22	3,590

Rubicon-Hornet-Pegasus Underground Mine Development

At the end of the quarter, the bottom of the Rubicon Decline remains at 5758 m RL, 585 m from the surface, the bottom of the Hornet Decline remains at 5711 m RL, 632 m from the surface, the bottom of the Exploration Decline remains at 5661 m RL, 682 m from the surface, the top of the Pegasus Incline remains at 6279 m RL, 64 m from the surface, the bottom of the Pegasus Decline is at 5705 m RL, 638 m from the surface, the top of the Pode Incline remains at 6103 m RL, 240 m from the surface and the bottom of the Pode Decline is at 5969 m RL, 374 m from the surface.

Development progressed on the Rubicon 6135, 6095, 5795, 5775 levels, the Pegasus 6010, 5830, 5770 to 5730 levels, the Hera 5808, 5758 levels, the Pode 6245, 6183, 6163, 6103, 6023, 6003, 5983 levels and the Falcon 5796 level.

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	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)
April	0.0	78.8	12.1	9.3	15.0	9.3	165.2	9.4	424.3	35.0
May	0.0	86.7	0.0	20.4	15.0	15.7	267.6	0.0	533.8	25.0
June	0.0	33.4	0.0	108.1	15.0	21.8	235.0	0.0	409.4	87.8
June 20Q	0.0	198.9	12.1	137.8	45.0	46.8	667.8	9.4	**1,367 **	147.8
March 20Q	0.0	69.3	0.0	0.0	83.0	64.2	617.0	0.0	1,357	128.0

The diagrams below show the status of the mine at the end of each month of the quarter. Green indicates new development.

April 20

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May 20

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June 20

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Mine operating costs, for Rubicon and Hornet, incurred by the EKJV during June 20 Quarter were $93 per tonne mined or $616 per ounce mined compared with the March 20 Quarter costs of $124 and $801 respectively.

Mine operating costs, for Pegasus, incurred by the EKJV during June 20 Quarter were $99 per tonne mined or $655 per ounce mined compared with the March 20 Quarter costs of $124 and $741 respectively.

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Toll Processing

During the quarter, 25,720 wet tonnes of EKJV ore were hauled to Kanowna Belle, 128,693 tonnes of R&T ore were hauled to Lakewood Mill and 34,941 tonnes of R&T ore were hauled to Sons of Gwalia Mill to await Toll Processing.

During the quarter, 41,308 tonnes of EKJV ore was processed at Kanowna Belle and 47,623 tonnes of R&T ore was processed at Lakewood Mill.

A toll processing batch trial will be conducted at St Barbara’s Gwalia treatment plant in July 2020. More continuous processing of 40,000 tonnes per month of R&T ore is scheduled for GMM’s Lakewood Mill over the next 12 months.

Rand and Tribune gold production for the June Quarter 2020, along with Rand’s share is tabulated below –

Bullion accredited to RAND& TRIBUNE	Bullion accredited to RAND& TRIBUNE	Bullion accredited to RAND& TRIBUNE
**Quarter **	Gold (oz)	Silver (oz)	Rand’s share gold
June 20	8,858.505	**1,191.887 **	2,214.626
March 20	7,044.736	800.955	1,761.183

EKJV Exploration and Development

Underground diamond drilling from Pegasus and Raleigh continued the extensional and in-fill resource definition programs into the new Falcon trend with continued success. Underground development from the Pegasus infrastructure successfully intersected the Falcon mineralised corridor during the quarter. Initial development and grade control programs commenced late in the quarter in preparation for trial stoping next quarter.

Exploration drilling of the Startrek prospect, located in the footwall to the Rubicon Mine sequence, continued during the quarter.

Full details of all exploration activities and results received are contained in the June 2020 Quarterly EKJV Exploration Report, released to the ASX on 23 July 2020.

Other Exploration

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

No work was undertaken on the Seven Mile Hill Joint Venture during the June Quarter.

CORPORATE

On-Market Share Buy-Back

During the quarter, the Company extended the current on market share buy-back to 9 January 2021. No securities were cancelled under the buy-back during the quarter ended 30 June 2020.

The number of securities on issue as at 30 June 2020 is 60,148,475.

Payments to Related Parties

During the quarter the following payments were made to related parties of the entity and their associates as disclosed in Item 6 of the Appendix 5B;

	Details Amount $000 Directors fees and superannuation payable to Anthony Billis 22 Directors fees payable to Gordon Sklenka 7.5 Payment of rent, rates and levies for office to Meville Parade Pty Ltd 21 Reimbursement of operating expenses to Iron Resources Liberia Ltd 103 Executive accomodation payment to Anthony Billis controlled entity (Lake Grace Exploration Pty Ltd) 13.5

*An entity in which Anthony Billis is a director.

This report and the attached Appendix 5B have been authorised by the Board of Rand Mining Ltd.

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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 P15/6370# P26/4173		50% 50% 50% 50% 50% 50% 50% 50% 50% 50%

Leases under

Application

Leases under **Application **
Project/Tenements	Location	Held at end of quarter	Acquired during thequarter	Disposed during thequarter
Unallocated	WA, Australia
P15/6398 P15/6399 P15/6400 P15/6401 P26/4476 P26/4477		50% 50% 50% 50% 50% 50%
West Kimberly	WA, Australia
E04/2548		100%

#P15/6370 Was included under Mt Celia in March Quarter. This has now been included under Seven Mile Hill

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Rule 5.5

Appendix 5B

Mining exploration entity or oil and gas exploration entity quarterly cash flow report

Name of entity Rand Mining Ltd ABN Quarter ended (“current quarter”) 41 004 669 658 30 June 2020

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 (if expensed) (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 Government grants and tax incentives 1.8 Other (provide details if material) 1.9 Net cash from / (used in) operating activities	2,632 (274) (809) (5,485) (80) (453) - 3 (16) - - -	2,632 (1,020) (3,688) (24,907) (374) (1,524) - 98 (64) (16,971) - -
	(4,482)	(45,818)
2. Cash flows from investing activities 2.1 Payments to acquire: (a) entities (b) tenements (c) property, plant and equipment (d) exploration & evaluation (if capitalised) (e) investments (f) other non-current assets	- - (143) (113) - -	- - (1,671) 154 - -

ASX Listing Rules Appendix 5B (01/12/19) + See chapter 19 of the ASX Listing Rules for defined terms.

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Appendix 5B

Mining exploration entity or oil and gas exploration entity quarterly cash flow 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) entities (b) tenements (c) property, plant and equipment (d) investments (e) other non-current assets 2.3 Cash flows from loans to 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	- - 3 - - - - -	- - 14 9,224 - - 227 -
	(253)	7,948
3. Cash flows from financing activities 3.1 Proceeds from issues of equity securities (excluding convertible debt securities) 3.2 Proceeds from issue of convertible debt securities 3.3 Proceeds from exercise of options 3.4 Transaction costs related to issues of equity securities or convertible debt securities 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	- - - - (317) - - -	- - - - (1,236) - (6,015) -
	(317)	(7,251)
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)	10,682 (4,482) (253) (317)	50,751 (45,818) 7,948 (7,251)

ASX Listing Rules Appendix 5B (01/12/19) + See chapter 19 of the ASX Listing Rules for defined terms.

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Appendix 5B

Mining exploration entity or oil and gas exploration entity quarterly cash flow 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	-	-
	5,630	5,630
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)	5,630 - - -	10,682 - - -
	5,630	10,682
6. Payments to related parties of the entity and their associates 6.1 Aggregate amount of payments to related parties and their associates included in item 1 6.2 Aggregate amount of payments to related parties and their associates included in item 2 Note: if any amounts are shown in items 6.1 or 6.2, your quarterly activity report must and an explanation for such payments.
		Current quarter $A'000
		167
		-
		include a description of

ASX Listing Rules Appendix 5B (01/12/19) + See chapter 19 of the ASX Listing Rules for defined terms.

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Appendix 5B

Mining exploration entity or oil and gas exploration entity quarterly cash flow report

7. Financing facilities Note: the term “facility’ includes all forms of financing arrangements available to the entity. Add notes as necessary for an understanding of the sources of finance available to the entity. Total facility amount at quarter end $A’000 Amount drawn at quarter end $A’000 7.1 Loan facilities - - 7.2 Credit standby arrangements - - 7.3 Other (EKJV Lease) 1,893 1,893 7.4 Total financing facilities 1,893 1,893 7.5 Unused financing facilities available at quarter end - 7.6 Include in the box below a description of each facility above, including the lender, interest rate, maturity date and whether it is secured or unsecured. If any additional financing facilities have been entered into or are proposed to be entered into after quarter end, include a note providing details of those facilities as well.	Total facility amount at quarter end $A’000	Amount drawn at quarter end $A’000
	-	-
	-	-
	1,893	1,893
	1,893	1,893
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.

8. Estimated cash available for future operating activities	8. Estimated cash available for future operating activities	$A’000
8.1 Net cash from / (used in) operating activities (Item 1.9) 8.2 Capitalised exploration & evaluation (Item 2.1(d)) 8.3 Total relevant outgoings (Item 8.1 + Item 8.2) 8.4 Cash and cash equivalents at quarter end (Item 4.6) 8.5 Unused finance facilities available at quarter end (Item 7.5) 8.6 Total available funding (Item 8.4 + Item 8.5) 8.7 Estimated quarters of funding available (Item 8.6 divided by Item 8.3)		(4,482) (113) (4,595) 5,630 - 5,630
		1.2
8.8 If Item 8.7 is less than 2 quarters, please provide answers to the following questions: 1. Does the entity expect that it will continue to have the current level of net operating cash flows for the time being and, if not, why not?
	Answer: Yes.

Answer: Yes.

1. Has the entity taken any steps, or does it propose to take any steps, to raise further cash to fund its operations and, if so, what are those steps and how likely does it believe that they will be successful?

Answer: No, see answer below.

1. Does the entity expect to be able to continue its operations and to meet its business objectives and, if so, on what basis?

Answer: Yes. Operations will continue to be funded by the current bullion reserves.

ASX Listing Rules Appendix 5B (01/12/19) + See chapter 19 of the ASX Listing Rules for defined terms.

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Appendix 5B

Mining exploration entity or oil and gas exploration entity quarterly cash flow 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.

Date: 30 July 2020

Authorised by: By the Board.

(Name of body or officer authorising release – see note 4)

Notes

1. This quarterly cash flow report and the accompanying activity report provide a basis for informing the market about the entity’s activities for the past quarter, how they have been financed and the effect this has had on its cash position. An entity that wishes to disclose additional information over and above the minimum required under the Listing Rules is encouraged to do so.

2. If this quarterly cash flow 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 cash flow 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. If this report has been authorised for release to the market by your board of directors, you can insert here: “By the board”. If it has been authorised for release to the market by a committee of your board of directors, you can insert here: “By the [ name of board committee – eg Audit and Risk Committee ]”. If it has been authorised for release to the market by a disclosure committee, you can insert here: “By the Disclosure Committee”.

5. If this report has been authorised for release to the market by your board of directors and you wish to hold yourself out as complying with recommendation 4.2 of the ASX Corporate Governance Council’s Corporate Governance Principles and Recommendations , the board should have received a declaration from its CEO and CFO that, in their opinion, the financial records of the entity have been properly maintained, that this report complies with the appropriate accounting standards and gives a true and fair view of the cash flows of the entity, and that their opinion has been formed on the basis of a sound system of risk management and internal control which is operating effectively.

ASX Listing Rules Appendix 5B (01/12/19) + See chapter 19 of the ASX Listing Rules for defined terms.

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