RAND MINING LIMITED — Interim / Quarterly Report 2020

Apr 29, 2020

ASX ANNOUNCEMENT

30 April 2020

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 & Mr Brett Tucker Joint Company Secretaries Quarterly Report for March 2020

Highlights

• During the quarter, 35,016 tonnes of EKJV ore were processed at the Kanowna Plant, 12,348 tonnes of R&T ore were processed at the Lakewood Mill and 109,037 tonnes**^^** were added to the R&T stockpiles.
• 7,045 ounces of gold and 801 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:

STOCKPILES
ROM Pad	Ore Source	Ore	Grade	Rand's
				Entitlement
		t	g/t	%
			Au
	EKJV Stockpiles
Raleigh	Raleigh	9,511	6.43	12.50
Raleigh	Raleigh Low Grade	19,026	1.71	12.50
Rubicon	Pegasus, Rubicon & Hornet	14,569	4.10	12.25
Kanowna Belle	Pegasus, Rubicon & Hornet	16,401	4.76	12.25
Kanowna Belle	P/R/H Low Grade	9,486	1.60	12.25
	Rand's Share of EKJV Stockpiles	8,523	3.57	100.00
	Rand and Tribune Stockpiles
Raleigh^^	Raleigh	11,435	4.84	25.00
Rubicon^^	Pegasus, Rubicon & Hornet	97,602	5.18	25.00
Rubicon	Pegasus, Rubicon & Hornet	72,966	5.65	25.00
Rubicon	P/R/H Low Grade	40,624	1.88	25.00
Lakewood	P/R/H Low Grade	13,306	1.88	25.00
Greenfields	Pegasus, Rubicon & Hornet	8,704	4.17	25.00

Rand's Share of AllStockpiles	69,682	4.42	100.00

Rand's Share of R&T Stockpiles 61,159 4.54 100.00

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

GEOLOGY AND MINING

EAST KUNDANA JOINT VENTURE

Raleigh Underground Mine Production

As detailed in the EKJV Production Update, released to the ASX on 3 February 2020, a large seismic event occurred at Raleigh on 14 January within the lower Raleigh South stoping blocks which caused major disruption to mining activity. The impact of this event and continued seismic activity has resulted in the suspension of mining operations at Raleigh from mid-April. The mine will be placed on care and maintenance but still utilised for resource development drilling platforms. A comprehensive study will assess the economics of recommencing mining.

The Company notes that operations at the other mines were unaffected by the seismic event and are continuing.

Stope production from the 6102, 6031 and 5983 to 5949 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	TonnesGradeOunces
	t	g/t	troy oz
January	7,869	3.67	929
February	12,582	5.37	2,173
March	9,241	8.11	2,410
March 20Q	29,692	5.77	5,512
December 19Q	40,143	8.27	10,679

Rand's Entitlements (12.5%)

Quarter	Tonnes	Grade	Ounces
	t	g/t	troy oz
March 20Q	3,711	5.77	689
December 19Q	5,018	8.27	1,335

Raleigh Underground Mine Development

At the end of the quarter, the bottom of the Raleigh Decline is 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.

RALEIGH UNDERGROUND DEVELOPMENT
Month		CapitalOperating
	Decline(m)	Secondary (m)	Waste(m)	Ore(m)	Paste Fill(m)
January	37.2	36.9	0.0	38.0	20.0
February	0.0	0.0	0.0	8.8	0.0
March	0.0	0.0	0.0	0.0	0.0
March 20Q	37.2	36.9	0.0	46.8	20.0
December 19Q	81.2	26.4	0.0	0.0	63.0

Development progressed on the 5947 level.

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

February 20 Green indicates new development at Raleigh

March 20 Green indicates new development at Raleigh

Mine operating costs, incurred by the EKJV during the March 20 Quarter were $149 per tonne mined or $800 per ounce mined compared with the December 19 Quarter costs of $162 and $610 respectively.

Rubicon Underground Mine Production

Stope production from the Rubicon 6015, 5915, 5835, 5815 levels, the Hornet 5785 to 5725 levels, the Pegasus 6270, 6230, 5970 to 5790 levels and the Pode 6043, 6200 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
January	24,512	5.08	4,003	54,942	5.68	10,039
February	11,016	4.42	1,565	66,476	5.00	10,689
March	27,256	4.77	4,179	53,059	5.03	8,580
March 20Q	62,783	4.83	9,748	174,477	5.22	29,308
December 19Q	76,196	5.40	13,230	165,017	4.74	25,133

Rand's Entitlements (12.25%)

Quarter	Tonnes	Grade	Ounces	Tonnes	Grade	Ounces
	t	g/t	troy oz	t	g/t	troy oz
March 20Q	7,691	4.83	1,194	21,373	5.22	3,590
December 19Q	9,334	5.40	1,621	20,215	4.74	3,079

Rubicon 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 5712 m RL, 631 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 5982 m RL, 361 m from the surface.

Development progressed on the Rubicon 5775 level, the Pegasus 5830, 5790 to 5750 levels, the Hera 5808, 5758 levels and the Pode 6245, 6183, 6163, 6103, 6083, 6023, 6003 levels.

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	0.0	17.8	0.0	0.0	30.0	9.7	245.0	0.0	406.1	45.0
February	0.0	10.6	0.0	0.0	28.0	36.9	150.3	0.0	458.7	30.0
March	0.0	40.9	0.0	0.0	25.0	17.6	221.7	0.0	491.8	53.0
March 20Q	0.0	69.3	0.0	0.0	83.0	64.2	617.0	0.0	1,357	128.0
December 19Q	0.0	154.0	0.0	203.2	50.0	98.1	743.2	0.0	1,024	120.0

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

February 20 Green and red indicate new development at Rubicon Hornet Pegasus

Mine operating costs, for Rubicon and Hornet, incurred by the EKJV during March 20 Quarter were $124 per tonne mined or $801 per ounce mined compared with the December 19 Quarter costs of $112 and $645 respectively.

Mine operating costs, for Pegasus, incurred by the EKJV during March 20 Quarter were $124 per tonne mined or $741 per ounce mined compared with the December 19 Quarter costs of $114 and $749 respectively.

Toll Processing

EKJV Ore hauled to Kanowna Belle (tonnes-wet)
Quarter	RaleighPegasus,Rubicon, Hornet
March 20	-	45,440
December 19	-	203,792

During the quarter, 35,016 tonnes of EKJV ore were processed at the Kanowna Plant.

EKJV Ore hauled to Greenfields (tonnes-wet)
Quarter	RaleighPegasus,Rubicon, Hornet
March 20	-	-
December 19	44,033	14,692

During the quarter there were no tonnes of EKJV ore were processed at the Greenfields Mill.

R&TOre hauled to Lakewood(tonnes-wet)
Quarter	RaleighPegasus,Rubicon, Hornet
March 20	-	24,332
December 19	-	32,172

During the quarter, 12,348 tonnes of R&T ore were processed at the Lakewood Mill.

Bullion accredited to RAND & TRIBUNE
QuarterGold (oz)Silver (oz)Rand's share gold
March 20	7,044.736	800.955	1,761.183
December 19	23,493.983	4,049.721	5,873.494

Exploration

Diamond underground drilling from underground platforms at Pegasus, Hornet and Raleigh was largely focussed on extensional and in-fill resource definition programs into the new Falcon trend located midway between Pegasus and Raleigh mines with continued success. Exploratory underground development to access the Falcon mineralised corridor from the Pegasus infrastructure continued with the intersection of the Falcon zone expected early next quarter.

Resource definition drilling in the Hera Lode within the Pegasus hanging wall continues to achieve good results while late in the quarter, exploration drilling from a platform at Rubicon commenced targeting the Startrek prospect area located deep in the footwall to the Rubicon Mine sequence.

Full details of all drilling completed and results received are provided in the March 2020 Quarterly EKJV Exploration Report released on 30 April 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 March Quarter.

CORPORATE

Proceedings against Northern Star Resources Ltd

The proceedings against Northern Star Resources Group of Companies previously updated to the market on 28 January 2020 are continuing.

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 31 March 2020.

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

Completion of Sale of Shares Purchased

On 16 January 2020 the Company confirmed the sale of 1,135,000 shares in Tribune Resources Ltd in accordance with the Court order.

Appointment of Company Secretary

Mr Brett Tucker was appointed as Joint Company Secretary on 9 March 2020.

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	26
Directors fees and superannuation payable to Otakar Demis	43
Directors fees payable to Gordon Sklenka	7
Payment of rent, rates and levies for office to Meville Parade Pty Ltd*	36
Payment of royalties by the EKJV to Lake Grace Exploration Pty Ltd*	2
Reimbursement of operating expenses to Iron Resources Liberia Ltd*	100

*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.

Interests in Mining Tenements

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

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	31 March 2020

	Consolidated statement of cash flows	Current quarter$A'000	Year to date (9Months)$A'000
1.	Cash flows from operating activities
1.1	Receipts from customers	-	-
1.2	Payments for
	(a)exploration & evaluation (if expensed)	(100)	(746)
	(b)development	(887)	(2,879)
	(c)production	(6,780)	(19,422)
	(d)staff costs	(97)	(294)
	(e)administration and corporate costs	(294)	(1,071)
1.3	Dividends received (see note 3)	-	-
1.4	Interest received	32	95
1.5	Interest and other costs of finance paid	(16)	(48)
1.6	Income taxes paid	-	(16,971)
1.7	Government grants and tax incentives	-	-
1.8	Other (provide details if material)	-	-
1.9	Net cash from / (used in) operatingactivities	(8,142)	(41,336)

Note: Following the 31 December 2019 half yearly review, along with changes to the reporting under the Appendix 5B, some of the cashflow items were reclassified.

2.	Cash flows from investing activities
2.1	Payments to acquire:
	(a)entities	-	-
	(b)tenements	-	-
	(c)property, plant and equipment	(213)	(1,528)
	(d)exploration & evaluation (if capitalised)	(237)	267
	(e)investments	-	-
	(f)other non-current assets	-	-

	Consolidated statement of cash flows	Current quarter$A'000	Year to date (9Months)$A'000
2.2	Proceeds from the disposal of:
	(a)entities	-	-
	(b)tenements	-	-
	(c)property, plant and equipment	1	11
	(d)investments	4,136	9,224
	(e)other non-current assets	-	-
2.3	Cash flows from loans to other entities	-	-
2.4	Dividends received (see note 3)	-	227
2.5	Other (provide details if material)	-	-
2.6	Net cash from / (used in) investingactivities	3,687	8,201

Note: Following the 31 December 2019 half yearly review, along with changes to the reporting under the Appendix 5B, some of the cashflow items were reclassified.

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 debtsecurities	-	-
3.3	Proceeds from exercise of options	-	-
3.4	Transaction costs related to issues of equitysecurities or convertible debt securities	-	-
3.5	Proceeds from borrowings	-	-
3.6	Repayment of borrowings	(321)	(919)
3.7	Transaction costs related to loans andborrowings	-	-
3.8	Dividends paid	-	(6,015)
3.9	Other (provide details if material)	-	-
3.10	Net cash from / (used in) financingactivities	(321)	(6,934)

4.	Net increase / (decrease) in cash andcash equivalentsfor the period
4.1	Cash and cash equivalents at beginning ofperiod	15,458	50,751
4.2	Net cash from / (used in) operatingactivities (item 1.9 above)	(8,142)	(41,336)
4.3	Net cash from / (used in) investing activities(item 2.6 above)	3,687	8,201
4.4	Net cash from / (used in) financing activities(item 3.10 above)	(321)	(6,934)

	Consolidated statement of cash flows	Current quarter$A'000	Year to date (9Months)$A'000
4.5	Effect of movement in exchange rates oncash held	-	-
4.6	Cash and cash equivalents at end ofperiod	10,682	10,682

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	10,682	15,458
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)	10,682	15,458

6.	Payments to related partiesof the entityand theirassociates	Current quarter$A'000
6.1	Aggregate amount of payments to related parties and theirassociates included in item 1	214
6.2	Aggregate amount of payments to related parties and theirassociates included in item 2	-

Note: if any amounts are shown in items 6.1 or 6.2, your quarterly activity report must include a description of and an explanation for such payments.

7.	FinancingfacilitiesNote: the term "facility' includes all forms of financingarrangements available to the entity.	Total facilityamountat quarter	Amount drawnatquarter end
	Add notes as necessary for an understanding of thesources of finance available to the entity.	end$A'000	$A'000
7.1	Loan facilities	-	-
7.2	Credit standby arrangements	-	-
7.3	Other (EKJV Lease)	1,742	1,742
7.4	Total financing facilities	1,742	1,742
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, interestrate, maturity date and whether it is secured or unsecured. If any additional financingfacilities have been entered into or are proposed to be entered into after quarter end,

include a note providing details of those facilities as well.

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	$A'000
8.1	Net cash from / (used in) operating activities (Item 1.9)	(8,142)
8.2	Capitalised exploration & evaluation (Item 2.1(d))	(237)
8.3	Total relevant outgoings (Item 8.1 + Item 8.2)	(8,379)
8.4	Cash and cash equivalents at quarter end (Item 4.6)	10,682
8.5	Unused finance facilities available at quarter end (Item 7.5)	-
8.6	Total available funding (Item 8.4 + Item 8.5)	10,682
8.7	Estimated quarters of funding available (Item 8.6 divided byItem 8.3)	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.

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.

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 April 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.
• 1. 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.
• 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.
• 1. 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".
• 1. 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.