RAND MINING LIMITED — Interim / Quarterly Report 2003

Jul 29, 2003

30 July 2003

The Listing Manager Australian Stock Exchange Level 10 20 Bond Street SYDNEY

Ouarterly Report for Period ending 30 June 2003 Geology and mining

Highlights

• Raleigh and Rubicon mining production increased during the June 03 Quarter $\bullet$
• EKJV Cash Cost $A242 and Total Cost $A250 per ounce.
• EKJV project to date production exceeds 141,000 ounces of gold
• Ore in addition to the defined reserve continues to be mined for each deposit. $\bullet$
• The Company continues to self fund development of the Raleigh and Rubicon pits. $\bullet$
• $\bullet$ The Hornet open cut, Hornet-Rubicon underground projects as well as associated infrastructure sites continues to be self funded.
• Your Company remains debt free and gold sales are not hedged.
• Testwork for Oretek to recover copper, nickel and cobalt is being assessed to enable a pilot plant study to commence.
• Arsenic removal from water to below existing environmental legislation levels has been demonstrated in laboratory tests using an Oretek developed ion exchange resin.

REVIEW OF OPERATIONS

The East Kundana Joint Venture in which your company has a 12.25% interest has combined resources of 1.598 million ounces inclusive of an estimated 0.757 million ounces in reserves remaining as at the 30 June 2003.

During the June 2003 Quarter the EKJV processing recovered 37,192 ounces of gold at an average cash cost of $242 and total cash cost of $250 per ounce. A total of 26,483 troy ounces of gold and 3,898 troy ounces of silver bullion were delivered to the EKJV.

The development of the EKJV resources continues to be the main focus of the company.

Rand Mining NL ACN 004 669 658 Suite G1/2, 49 Melville Parade, South Perth. WA 6151 AustraliaCorrespondence: PO Box 307, West Perth. WA 6872 Australia Telephone (08) 9474 2113. Fax (08) 9367 9386

EAST KUNDANA JOINT VENTURE

Mining operations continued throughout the quarter at the Raleigh and Rubicon open cut pits.

$\sim$ . We can construct the component of the construction of $\sim$
Month	Pit	Tonnes	Estimated Ounces	Grade $(g/t)$
April 03	Raleigh	13,745	6,320	14.30
	Rubicon	12,020	4,946	12.8
May 03	Raleigh	14,604	5,138	10.94
	Rubicon	17,878	4,857	8.45
June 03	Raleigh	14,943	5,558	11.57
	Rubicon	27,705	10,163	11.41
Total for June 03 Quarter		100,895	36,982	11.40

EKJV gold mine production for June 03 Ouarter

Raleigh

• Raleigh Stage 2 pit was mined to a depth of 80 metres and Stage 3 pit 60 metres below surface by the end of the quarter.
• Production for the quarter totaled 43,290 dry tonnes at $12.22g/t$ Au compared to 28,438 dry tonnes at $11.57g/t$ Au for the previous quarter.
• Total cost to date of Raleigh open cut, and including development, mining and milling costs is $24.8M at an average cost per ounce of gold poured of $208.

The performance of mining production estimates compared to reserves depleted is:

Raleigh Pit 100% EKJV
	Production			Reserve depleted			Variation
	Tonnes	Grade	Gold	Tomes	Grade	Gold	tomnes	-g/t	ounces
	tomes	g/t	ounces	tonnes	.g/t	ounces	-%	%	%
June 03 Quarter	43.290	12.22	17.015	19,611	18.40	1.604	221	-66	147
Year 03	271.704	9.48	82,787	122.107	13.94	54,740	223	68	151
Project To 30 June 03	301.043	9.11	88.158	127.315	14.34	58,698	236	-64	150

Rubicon

• Rubicon Stage 3 open pit was mined to a depth of 84 metres below surface by the end of the quarter.
• Production for the quarter totaled 57,603 dry tonnes at $10.78g/t$ compared to 33,998 dry tonnes at $9.99g/t$ Au for the previous quarter.
• Total cost to date of Rubicon open cut, and including development, mining and milling costs is $19.7 M at an average cost per ounce of gold poured of $275.

The performance of mining production estimates compared to reserves depleted is:

Rubicon Pit 100% EKJV
	Production			Reserve depleted			Variation
	Tonnes	Grade	Gold oz	Tonnes	Grade	Gold oz	tonnes	g/t	ounces
	Tonnes	g/t	ounces	tonnes	g/t	ounces	$%$	$%$	$%$
June 03 Quarter	57.603	10.77	19.949	31,694	11.33	1.548	182	95	173
Year 03	185.595	8.22	49.047	118.269	7.02	26.694	157	117	184
Project To 30 June 03	273.801	6.88	60.601	182.108	6.80	39.794	150	101	152

Pope John

Pope John deposit, straddling the Kundana Gold operations and EKJV lease boundary and which is subject to a royalty payment from Kundana Gold Pty Ltd to the EKJV was not mined during the June 2003 Ouarter. Mining the Pope John deposit is now completed.

The performance of mining production estimates compared to reserves depleted is:

Pope John 100% EKJV
	Production			Reserve depleted			Variation
	Tonnes	Grade	Gold oz	Tonnes	Grade	Gold oz	Tonnes	Grade	Ounces:
	tonnes	g/t	ounces	tonnes	g/t	ounces	$\frac{9}{6}$	-%	$\frac{9}{6}$
June 03 Ouarter
Year 03
Project To 30 June 03	63.728	2.81	コズク	37.525	3.18	3.837	'76	-88	150

MINERAL PROCESSING

• The EKJV project has recovered 141,331 ounces of gold since commencement processing on $15th$ May 2002.
• 148,250 dry tonnes of ore at 8.15g/t was processed for the EKJV at the Kundana Mill during the quarter compared to 155,728 dry tonnes at 7.97g/t the previous quarter. A total of 619,860 dry tonnes at $7.42g/t$ has been processed project to date at an overall 95.60% recovery and 96.52% mill availability.
• Gold recovered for the quarter was 37,192 ounces at a 95.77% recovery compared to 38,274 ounces at a 95.91% recovery for the previous quarter.
• The processing campaign is expected to continue into October 2003.
• Gravity recoverable gold has remained almost constant at 53% compared to 52% for the Quarter ending in March reflecting coarse gold content in fresh ore.

	$P_{\text{max}}$ , gons bushon programs
Period	Ore.	Gold	Gold	Silver	Calc Head	Total
	processed	Recovered	bullion	bullion	$\text{grade}(\mathfrak{g}/\mathfrak{t})$	recovery
	(dry tonnes)	(oz)	(oz)	(oz)		(%)
April 03	55,261	12,337	12,152	1,663	7.20	96.44
May 03	50,999	10,567	6,790	1,000	6.75	95.51
June 03	41,990	14,287	7,541	1,236	11.10	95.37
Quarter	148,250	37,192	26,483	3,898	8.15	95.77
YTD	521,834	126,833	115,958	14,185	7.81	95.63
PTD	619,860	141,328	128,565	15,417	7.42	95.60

FK IV cold bullion produced

Ore on stockpile ahead of processing at the end of the quarter is estimated to be 50,000 tonnes at a grade of 7.3g/t for 11,696 ounces of contained gold.

Project Development

Raleigh Underground

An underground feasibility study and an addendum have been presented by Placer Dome Asia Pacific. Processing options in the Kalgoorlie district are currently being evaluated by the joint venture. Negotiations to enable the joint venture to mine Kundana Gold Pty Limited northern portion of the Raleigh deposit are in progress.

Hornet Open Pit

A feasibility study to develop the Hornet Stage 1 pit has commenced during the period.

Hornet-Rubicon-Pegasus Underground

The Hornet and Rubicon underground development pre-feasibility study has commenced. The Pegasus deposit requires further drilling to delineate the resource. Resources will be directed to advancing the Rubicon and Hornet underground feasibility study in the next 6 months.

EXPLORATION

Discovery and resource delineation drilling focused on the Hornet open cut resource. Infill drilling progressed in the area of the K2A and K2B structures as well as along the Mary Fault. Sterilisation drilling for infrastructure sites continued to assist scoping studies to be finalised.

Month	Project		Reverse circulation drilling	Diamond core drilling
		No holes	Metres drilled		No holes Metres drilled
	April 03 Hornet open pit stage 2 30		2,763	o	1,190.2
May 03	Hornet open pit stage 2	-27	2,435		1,067
June 03	Hornet open pit stage 2	-22	1,889		739
	Hornet open pit stage 1	$4*$	256	4	3,321
Total		83	7,343	-23	6,317.2

* Geotechnical and hydrogeological testing holes

Seven Mile Hill Joint Venture (50% interest)

The results of anomalous gold intersections in RC drilling programs performed in the March 03 quarter were evaluated during the June 03 quarter. A drilling program has been planned to commence in the September 03 quarter.

Little Nipper

No exploration was performed the tenements during the quarter.

RESOURCES and RESERVES

EKJV Resource inclusive of reserves remaining as at 30 June 2003

OREBODY	MEASURED		INDICATED		INFERRED			TOTAL RESOURCE
	RESOURCE		RESOURCE		RESOURCE
	(tonnes)	(g/t)	(tonnes)	(g/t)	(tonnes)	(g/t)	(tonnes)	(g/t)	(ounces)
POPE JOHN	1,000	1.4	11,000	1.1	$\theta$	0.0	12,000	1.1	434
RALEIGH SURFACE	0	0.0	34,000	50.7	8,000	1.8	42,000	41.4	55,884
RALEIGH UNDERGROUNDIMAIN VEIN	$\theta$	0.0	487,000	26.8	445.000	17.4	932,000	22.3	668,562
RALEIGH UNDERGROUNDHANGINGWALL VEIN	0	0.0	$\mathbf{0}$	0.0	6,000	35.4	6,000	35.4	6,829
HORNET SURFACE	0	0.0	581,000	2.5	1,000	1.8	582,000	2.5	46,757
HORNET UNDERGROUND	$\theta$	0.0	1,017,00O	7.0	706.000	5.0	1,723,000	6.2	342.373
RUBICON SURFACE	0	0.0	70.000	13.6	$\theta$	$\theta$	70,000	13.6	30,608
RUBICON UNDERGROUND	$\theta$	0.0	390,000	8.9	507,000	6.3	897,000	7.4	214,288
PEGASUS SURFACE	0	0.0	191,000	3.6	381,000	3.2	572,000	3.3	61,305
PEGASUS UNDERGROUND	$\theta$	0.0	219,000	6.6	500,000	6.6	719,000	6.6	152,726
DRAKE	$\theta$	0.0	$\overline{0}$	0.0	100,000	2.0	100,000	2.0	6,430
STOCKPILE – ROM PAD	12,000	7.2	$\overline{0}$	0.0	$\theta$	0.0	12.000	7.2	2.778
STOCKPILE –ADJACENTPITS	38,000	7.3	0	0.0	$\theta$	0.0	38,000	7.3	8,919
STOCKPILE – SUBGRADE	7,000	0.6	$\Omega$	0.0	$\theta$	0.0	7,000	0.6	135
TOTAL	58,000	6.4	3,000,000	10.0	2,654,000	7.3	5,712,000	8.7	1,598,027

(Prepared by M.Bampton and R. Cooper Placer Dome Asia Pacific Ltd)

EKJV RESERVES REMAINING AT 30 JUNE 2003

OREBODY		PROVEDRESERVE		PROBABLERESERVE		TOTAL RESERVE			TOTAL RESERVE AT 31 MAR03
	(tonnes $(g/t)$		(tonnes)	(g/t)	(tonnes)	(g/t)	(ounces)		(tonnes)	(g/t)	(ounces)
POPE JOHN	0	0.0	0	0.0	$\theta$	0.0	$\theta$		1.000	1.9	61
RALEIGH SURFACERALEIGH UNDERGROUNDIMAIN VEINRALEIGH UNDERGROUND	0$\theta$$\theta$	0.00.00.0	32,000965,0000	50.712.10.0	32.000965,000$\Omega$	50.712.10.0	52,161375,408$\theta$		43,000795,0000	46.015.50.0	63,594396,178$\Omega$
HANGINGWALL VEINHORNET SURFACE*	0	0.0	223,000	3.9	223,000	3.9	27,962		223,000	3.9	27,962
HORNET UNDERGROUND*RUBICON SURFACE	$\theta$0	0.00.0	940,00058,000	6.314.5	940,00058,000	6.314.5	190.39727,039		940,00088,000	6.313.7	190,39738,761
RUBICON UNDERGROUND*	$\theta$	0.0	168,000	8.5	168,000	8.5	45,911		168,000	8.5	45,911
PEGASUS SURFACE*PEGASUS UNDERGROUND*	0$\theta$	0.00.0	$\Omega$119,000	$\Omega$7.0	$\theta$119,000	0.07.0	026,782		0119,000	0.07.0	$\mathbf{O}$26,782
DRAKE	0	0.0	$\Omega$	0.0	$\theta$	0.0	0		$\theta$	0.0	$\theta$
ISTOCKPILES - ROM PADSTOCKPILES - ADJACENT PITS	12.00038,000	7.27.3	00	0$\Omega$	12.00038,000	7.27.3	2.7788,919		3.0004,000	13.82.4	1,331309
TOTAL	50,000	$\overline{7.3}$	2,505,000	9.3	2,555,000	9.2	757,356		2,384,000	10.3	791,285

Prepared by M.Bampton and R Cooper (Placer Dome Asia Pacific Ltd)Note* Preliminary reserve estimates for projects currently undergoing a scoping or bankable feasibility study.

Notes:

Pope John reserve written-off, based on a revised mining design taking account instability in the southeast wail of the pit. $\bullet$

• $\bullet$
• Raleigh Open Pit reserve based on stage 3 pit.Raleigh Underground reserve reflects SRK Underground Feasibility Study and PDAP Addendum Report that includes Stage 3 open pit extraction, revisions to crown pillar recoveries $\bullet$
• $\bullet$
• win accordance with Listing Rule 5.10 of the Australian Stock Exchange Limited, the gelosia aning we quarter.Mark Kaesehagen who are Members of the Australian Installation Ethiopian Interference and the sepond with relate $\bullet$

Oretek

Recovery of copper, nickel and cobalt from a PLS solution (pregnant leach solution) and from a depleted PLS solution has been conducted by Lakefield Oretest Pty. Ltd. in Western Australia. This work is now being assessed to enable the pilot plant study to commence.

Oretek has successfully removed arsenic using an Oretek-developed ion exchange resin from water derived from a Victorian gold mine. The arsenic concentration was reduced from 23,000 ppb to 10ppb, significantly below the 500ppb level set by existing Victorian environmental legislation. Work is now underway to determine the kinetics of this removal procedure for process plant design.

ş.

Yours faithfully

Judah Kalèndheri

Dr W. H. Jay Director

Appendix 5B

Mining exploration entity quarterly report

Name of entity

RAND MINING NL

ACN or ARBN

004 669 658

Quarter ended (current quarter)

30 June 2003

Consolidated statement of cash flows

	Cash flows related to operating activities		Current quarter$A=000	Year to date$(12$ months)$A=000
1.1	Receipts from product sales and related debtors		1,646	6,767
1.2	Payments for(b) development(c) production	(a) exploration and evaluation(d) administration (note 2)	(141)(1, 122)(361)	(626)(45)(3,889)(881)
1.3	Dividends received
1.4	Interest and other items of a similar nature received		4	19
1.5	Interest and other costs of finance paid			(100)
1.6	Taxes paid			(41)
1.7	Reimbursement of Exploration Costs
	Net Operating Cash flows		26	1,204
	Cash flows related to investing activities
1.8	payment for purchase of:	(a) prospects(b) equity investments(c) other fixed assets	(54)	(152)(2)
1.9	Proceeds from sale of:	(a) prospects(b) equity investments(c) other fixed assets
	1.10 Loans to other entities (note 3)			(56)
	1.11 Loans repaid by other entities
		1.12 Other (provide details if material) Loans from other entities
	Net investing cash flows		(54)	(210)

	1.13 Total operating and investing cash flows (brought forward)	(28)	994
	Cash flows related to financing activities1.14 Proceeds from issues of shares, options, etc.
	1.15 Proceeds from sale of forfeited shares
	1.16 Proceeds from borrowings
	1.17 Repayment of borrowings		(1,599)
	1.18 Dividends paid
	1.19 Commissions on capital raising
	Net financing cash flows		(1,599)
	Net increase (decrease) in cash held	(28)	(605)
	1.20 Cash at beginning of quarter/year to date	812	1,389
1.21	Exchange rate adjustment to 19
	1.22 Cash at end of quarter	784	784

Non-cash financing and investing activities

2.1 Details of financing and investing transactions which have had a material effect on consolidated assets and liabilities but did not involve cash flows

$N/A$

2.2 Details of outlays made by other entities to establish or increase their share in projects in which the reporting entity has an interest

$N/A$

Financing facilities available

Add notes as necessary for an understanding of the position.

		Amount available$A=000$	Amount used$$A=000$
-3.1	Loan facilities
3.2	Credit standby arrangements

Estimated cash outflows for next quarter

		$$A=000$
4.1	Exploration and evaluation	294
4.2	Development	1,540
	Total	1,834

Reconciliation of cash

Reconciliation of cash at the end of the quarter (as shown inthe consolidated statement of cash flows) to the relateditems in the accounts is as follows.		Current quarter$A=000$	Previous quarter$A=000$
5.1	Cash on hand at bank	784	812
5.2	Deposits at call	u.	$\overline{\phantom{a}}$
5.3	Bank overdraft	u.	$\mathbf{a}$
5.4	Other (provide details)
	Total: cash at end of quarter (item 1.22)	784	812

Changes in interest in mining tenements

		Tenementreference	Nature of interest(note(4))	Interest atbeginning ofquarter	Interest atend ofquarter
6.1	Interests in mining tenementsrelinquished, reduced or lapsed
6.2	Interest in mining tenementsacquired or increased

Issued and quoted securities at end of current quarterDescription includes rate of interest and any redemption or conversion rights together with process and dates

		Number issued	Number quoted	Par value (cents)	paid-up value (cents)
7.1	Preference securities(description)
7.2	Issued during quarter
7.3	Ordinary Securities	38,260,813	38,260,813	20 cents	20 cents
7.4	Issued during quarter
7.5	Convertible debtsecurities(description)
7.6	Issued during quarter			$\overline{a}$
7.7	Options(description)	400,0002,300,000		Exercise Price$1.20 cents20 cents	Expiry Date30 June 200330 April 2005

7.8	Issued during quarter	$\omega$
7.9	Exercised duringquarter	$\omega$
	7.10 Expired during quarter	$\omega$
7.11	Debentures(totals only)	$\omega$
	7.12 Unsecured notes(Totals only)	w

Compliance statement

• $\frac{1}{2}$ This statement has been prepared under accounting policies which comply with accounting standards as defined in the Corporations Law or other standards acceptable to ASX (see note 61
• $\mathbb{R}^2$ This statement does give a true and fair view of the matters disclosed.

ranggungsa

Notes

• Ť 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 wanting to disclose additional information is encouraged to do so, in a note or notes attached to this report.
• $\ddot{z}$ The aggregate amount of payments to suppliers and employees (item 1.2) made to directors of the entity and its related entities, associates of directors and associates of the entities (specified narties) must be disclosed by way of note with additions! explanations necessary for an understanding of the transactions.

$35,200.00 was paid to STT Pty Ltd for salaries and management fees for the March quarter.

• 3 The aggregate amount of loans (item 1.10) made to specified parties must be disclosed by way of note.
• 靍 The nature of interest (items 6.1 and 6.2) includes options in respect of interests in mining tenements acquired, exercised or lapsed during the reporting period. If the entity is involved in a joint venture agreement and there are conditions precedent which will change its percentage interest in a mining tenement, it should disclose the change of percentage interest and conditions precedent in the list required for items 6.1 and 6.2.
• 羲 The definitions in, and provisions of, AASB 1022: Accounting for Extractive Industries and AASB 1026: Statement of Cash Flows apply to this report.
• Ő Accounting Standards ASX will accept, for example, the use of International Accounting Standards for foreign entities. If the standards used do not address a topic, the Australian... standard on that topic (if any) must be complied with.