Resolute Mining Limited — Annual Report 2007

Aug 30, 2007

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ASX ANNOUNCEMENT

APPENDIX 4E: PRELIMINARY FINAL REPORT FINANCIAL YEAR ENDED 30 JUNE 2007

INCOME STATEMENT

Resolute Mining Limited announces a net profit after tax attributable to its members for the year ended 30 June 2007 of $170.2m (year ended 30 June 2006: $77.4m loss).

The record profit can be attributed to the $175.0m after tax profit derived on the sale of the Company’s Valhalla Uranium Limited, Paladin Resources Limited and Goldbelt Resources Limited shareholdings. The majority of this gain is a result of the successful move in December 2005 to spin out the Company’s key uranium assets into a separate listed entity, and the subsequent sale of this interest.

The group’s gross profit from continuing operations for year was $4.2m (2006: $25.3m).

The group’s gold production for the year was 255,942 ounces (2006: 290,749 ounces) at an average cash cost of $634/oz (2006: $518/oz). The Golden Pride gold mine in Tanzania, Africa, produced 138,421 ounces (2006: 145,043 ounces) of gold at a cash cost of $510/oz (or US$403/oz) (2006: $418/oz or US$312/oz) and the Ravenswood gold mine in Queensland, Australia, produced 117,521 ounces (2006: 145,706 ounces) of gold at a cash cost of $781/oz (or US$617/oz) (2006: $617/oz or US$461/oz).

The consolidated operating result has been adversely impacted by increases in all input costs. As well, there have been mining and processing issues experienced at both of the group’s gold mines. Whilst action plans to resolve these issues have been implemented, it has resulted in lower gold production and higher cash costs per ounce (compared to the corresponding period) than expected.

The average accounting revenue price achieved per ounce of gold shipped during the year increased marginally to $686/oz (2006: $657/oz).

RESOLUTE MINING LIMITED ABN 39 097 088 689

4th Floor, BGC Centre, 28 The Esplanade, Perth, Western Australia 6000. P.O. Box 7232 Cloisters Square, Perth, Western Australia 6850 Telephone : (08) 9261 6100 Facsimile : (08) 9322 7541 Email : contact@resolute-ltd.com.au

CASH AND BORROWINGS

As at 30 June 2007, Resolute had $67.8m of cash and bullion. As well as this cash balance, Resolute is expecting reimbursement from the Syama mining contractor of US$18.7m (or $22.1m) once the mining contract is signed. Additionally, Resolute held $13.5m of liquid investments. Borrowings at period end totalled $7.7m. The group’s balance sheet has strengthened considerably and at 30 June 2007, the consolidated net assets were $264.6m, which is a significant increase from the $83.7m at 30 June 2006.

The significant increase during the year in cash balances and net assets was due to the receipt of $199.5m of cash proceeds on the sale of the group’s Valhalla Uranium Limited / Paladin Resources Limited and Goldbelt Resources Limited shareholdings.

To better optimise the use of funds, a decision was made to accelerate the repayment of borrowings, and so during the year there was a reduction in borrowings of $26.6m.

Additionally, the following significant investing cash outflows occurred during the year:

• Exploration expenditure of $15.3m;

• Mt Wright development expenditure of $24.8m;

• Syama mine redevelopment expenditure of $35.6m;

• Syama power station expenditure of $6.3m;

• Syama mining fleet costs of $29.5m; and;

• other development expenditure of $9.9m; and

• expenditure on Golden Pride and Ravenswood property, plant and equipment (including tailings dam lifts) of $8.9m.

HEDGING

Details of the Resolute’s financial instruments have been provided in the recent June 2007 quarterly report. During the year under review, Resolute reduced its hedging commitments by 154,159 ounces and at period end, had committed approximately 20% of its reserves to hedging contracts, with the remaining 80% of its gold reserves fully participating in upward movements in the gold price.

Resolute continues to amortise its hedge positions and there are over 200,000 ounces committed for delivery in the coming financial year. This will see a significant reduction in the company’s overall gold hedging position and, at this stage, it does not intend to increase its position.

OUTLOOK

Operations

At Golden Pride, an amicable termination with the existing mining contractor has been negotiated and a new mining contractor commenced mining operations from 1 July 2007.

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The transition has been seamless with the new contractor taking over the existing equipment and workforce. New replacement mining equipment is expected on site during the September 2007 quarter. Furthermore, the installation of two new pre-leach tanks is anticipated to be completed in September 2007. This will lift overall plant recoveries. Mining has commenced on the re optimised pit design. Higher grade ore in the first 3 quarters of the coming financial year is expected to lift the average grade of ore to be processed. Towards the end of the year access to higher grade ore will be limited and the head grade is predicted to reduce significantly, whilst the majority of the mill feed is temporarily sourced from low grade stockpiles.

At Ravenswood, a major shutdown was carried out in June and a number of changes made to improve the future performance of the treatment plant. This was successfully completed and the plant has ramped up to normal throughput rates. Sarsfield open pit mining is moving to the Keel and Bell areas with the poorer performing Area 5 ore now completed. At the Mt Wright underground mine, located 11 kms from the Ravenswood treatment plant, there has been over 3.4 kilometres of decline development and ore mining from the upper stopes is underway. The decline is projected to extend to the main ore zone by the end of 2008. Mt Wright ore is expected to provide approximately 20% of the Ravenswood gold production in the coming year. An improvement in Ravenswood gold production and cost per ounce is expected due to the rectification work undertaken, and the positive impact that the introduction of Mt Wright ore will have on the average head grade of ore to be processed in the coming year.

Forecast gold production for the Resolute group for the year ending 30 June 2008 is 330,000 ounces, which is significantly higher than gold production in the year ended 30 June 2007. This improved outlook is being driven by anticipated improvements in throughput, head grade and recoveries at Golden Pride, anticipated improvements in head grade and recoveries at Ravenswood, and the potential for the production of some gold from the Syama project in the latter part of the financial year during the commissioning/ramp up phase. The forecast cash cost per ounce is around $560, which is lower than that achieved in the 2006/07 year, mainly driven by the anticipated higher head grade of ore to be processed.

Project Development

Work continues on the re-development of the six million ounce Syama gold mine in Mali. Completion is scheduled for the second half of 2008. Once complete, Syama will become a major production asset contributing 250,000 ounces of annual production to the group.

Engineering is nearly complete and procurement well advanced with pipe and steelwork starting to arrive at site. Construction activities are progressing on schedule.

Recruitment of key senior management is well advanced with a number of new employees recently taking up posts.

The contract negotiation with mining contractor PW International, for the Syama Bulk Mining Phase, is nearing completion. Mining equipment deliveries have started and mining is planned to commence in the December quarter.

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To date, the costs associated with the redevelopment of Syama are tracking US$3m above the budget of US$118m. In addition, Resolute has committed to the purchase of a US$16m power station, which will increase project capital costs by this amount, but this will be offset by lower ongoing operating costs. The redevelopment is approximately 27% complete, and up until 31 July 2007, US$38m had been spent on the redevelopment (including payments made on the power station), with a further US$38m of expenditure committed. The majority of the remaining development expenditure is expected to occur in the half year to 31 December 2007.

Exploration and Project Evaluation

The gold exploration and project evaluation plan for the coming financial year is focussed on three major geographical areas, being Ravenswood in Queensland, Tanzania (Golden Pride and the Nyakafuru areas), and Mali (Syama Region and the Finkolo JV). A budget of $21m has been allocated to exploration and project evaluation over the next 12 months.

Key development activities over this period, which offer potential to significantly improve the position of the respective assets, are:

• further testing and evaluation of the oxide resources at Syama and Finkolo

• resource definition drilling at Mt Wright

• resource definition drilling around and below the current Golden Pride pit.

FUNDING OF FUTURE EXPLORATION AND DEVELOPMENT EXPENDITURE

Resolute is committed to unlocking the value of its assets as demonstrated by the current re-development of the Syama gold mine in Mali and the ongoing development of the Mount Wright underground mine. In addition, Resolute plans to continue to commit funds to its ongoing project evaluation activities and very prospective exploration programmes.

The combination of these activities will result in significant cash outflows over the next 12 months. To fully fund these programs, the Company has been examining the different funding options to determine the most effective package for the Company and shareholders. A decision on the most appropriate package is expected to made and announced in the next few weeks.

This report together with other general information on the Company and Quarterly - Reports are available at www.resolute ltd.com.au

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PETER SULLIVAN Chief Executive Officer

31 August 2007

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A.C.N: 097 088 689

APPENDIX 4E PRELIMINARY FINAL REPORT For the year ended 30 June 2007

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RESOLUTE MINING LIMITED APPENDIX 4E For the year ended 30 June 2007

TABLE OF CONTENTS

Appendix 4E	7
Condensed Income Statement	8
Condensed Balance Sheet	9
Condensed Statement of Changes in Equity	10
Condensed Cash Flow Statement	12
Notes to the Financial Statements	13

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RESOLUTE MINING LIMITED APPENDIX 4E For the year ended 30 June 2007

REPORTING PERIOD

The reporting period is the year ended 30 June 2007 with the corresponding reporting period being for the year ended 30 June 2006.

RESULTS FOR ANNOUCEMENT TO THE MARKET

Results Revenues from continuing operations Profit before unrealised treasury and tax Profit from ordinary activities after tax attributable to members (Loss in the prior year) Net profit attributable to members (Loss in the prior year)	A$'000 down 3% to 192,148 up 1489% to 171,391 up n/a to 170,170 up n/a to 170,170	A$'000 down 3% to 192,148 up 1489% to 171,391 up n/a to 170,170 up n/a to 170,170
Dividends Final dividend - no final dividend is proposed Interim dividend Record date for determining entitlements to the dividend	Amount per security	Franked amount persecurity
	n/a n/a	n/a n/a
	n/a

The above results should be read in conjunction with the notes and commentary contained within this report.

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RESOLUTE MINING LIMITED APPENDIX 4E For the year ended 30 June 2007

Note CONDENSED INCOME STATEMENT Continuing Operations Revenue from gold sales 3(a) Other revenue 3(b) Cost of sales 3(c) Gross profit Other income 3(d) Other expenses 3(e) Profit/(loss) from continuing operations before unrealised treasury, tax and finance costs Borrowing costs 3(f) Profit/(loss) before unrealised treasury and tax Treasury - unrealised gains/(losses) Profit/(loss) before tax Income tax (expense)/benefit 4 Profit/(loss) from continuing operations after income tax Net loss attributable to minority interest Net profit/(loss) attributable to members of Resolute Mining Limited Earnings per share for profit/(loss) from continuing operations attributable to the ordinary equity shareholders of the Company: Basic earnings per share for profit/(loss) for the year (cents per share) Diluted earnings per share for profit/(loss) for the year (cents per share)	2007 2006 $'000 $'000 Consolidated 185,297 194,393 6,851 3,172 (187,903) (172,293)
	4,245 25,272
	184,388 538 (15,924) (11,803)
	172,709 14,007
	(1,318) (2,497)
	171,391 11,510
	7,945 (114,460)
	179,336 (102,950)
	(9,340) 25,390
	169,996 (77,560)
	174 128
	170,170 (77,432)
	73.91 (33.87) 73.55 (33.87)

The above income statement should be read in conjunction with the following notes.

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RESOLUTE MINING LIMITED APPENDIX 4E For the year ended 30 June 2007

Current Assets Cash and cash equivalents 5 Receivables 6 Inventories 7 Available for sale financial assets 8 Financial derivative assets 9 Deferred expenditure 10 Other 11 Total Current Assets Non Current Assets Financial derivative assets Exploration and evalua Development expenditur Property, plant and equi Deferred expenditure Deferred tax assets Other Total Non Current Ass Total Assets Current Liabilities Payables Interest bearing liabilities Tax liabilities Financial derivative lia Provisions Total Current Liabilties Non Current Liabilities Interest bearing liabilities Provisions Financial derivative lia Deferred tax liabilities Total Non Current Liabilit Total Liabilities Net Assets Equity Contributed equity Reserves Retained profits/(accu Parent entity interest in Minority interest Total Equit Note CONDENSED BALANCE SHEET 12 tion 13 e 14 pment 15 16 17 ets 18 19 20 bilities 21 22 23 24 bilities 25 ies 26 27 mulated losses) 28 equity 29 y	67,661 13,992 16,358 10,859 31,834 29,902 13,480 29,543 205 465 4,701 21,821 23,674 1,860 Consolidated 2007 2006 $'000 $'000
	157,913 108,442
	300 4,876 63,105 56,456 54,841 14,633 100,365 80,108 21,537 21,199 7,439 15,411 6,310 -
	253,897 192,683
	411,810 301,125
	34,908 30,093 3,367 10,839 5,069 10 32,702 71,847 4,414 3,717
	80,460 116,506
	4,330 12,797 21,021 24,006 39,690 64,058 1,673 103
	66,714 100,964
	147,174 217,470
	264,636 83,655
	113,917 112,955 (1,936) (5,037) 150,239 (26,695)
	262,220 81,223
	2,416 2,432
	264,636 83,655

The above balance sheet should be read in conjunction with the following notes.

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RESOLUTE MINING LIMITED APPENDIX 4E For the year ended 30 June 2007

CONDENSED STATEMENT OF CHANGES IN EQUITY

As at 1 July 2006 Currency translation differences Hedge reserve put options, net of tax Hedge reserve forwards, net of tax Hedge reserve unearned income, net of tax Unrealised gains/(losses) reserve, net of tax Total income/(expense) for the period recognised directly in equity Profit/(loss) for the period Total income and expense for the period Exercise of options Share issue costs Share option reserve Transfer to retained earnings on disposal of subsidiary Minority interest movement in share capital Minority interest movement in reserves Minority interest movement in retained profits Total other for the period recognised directly in equity As at 30 June 2007	Issued Retained Foreign Currency Hedge Reserve Hedge Reserve Hedge Reserve Share Based Unrealised Equity Minority Total Capital Earnings Translation Put Options Forwards Unearned Payments Gain/Loss Reserve Interest Equity Reserve Income Reserve Reserve $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 112,955 (26,695) (4,778) (1,950) (22,505) 5,398 366 11,668 6,764 2,432 83,655
	- - (16,318) - - - - - - - (16,318) - - - 1,233 - - - - - - 1,233 - - - - 36,156 - - - - - 36,156 - - - - - (5,398) - - - - (5,398) - - - - - - - (6,069) - - (6,069)
	- - (16,318) 1,233 36,156 (5,398) - (6,069) - - 9,604
	- 170,170 - - - - - - - (174) 169,996
	- 170,170 - - - - - - - (174) 169,996
	968 - - - - - - - - - 968 (6) - - - - - - - - - (6) - - - - - - 261 - - - 261 - 6,764 - - - - - - (6,764) - - - - - - - - - - - (1,227) (1,227) - - - - - - - - - 1,304 1,304 - - - - - - - - - 81 81
	962 6,764 - - - - 261 - (6,764) 158 1,381
	113,917 150,239 (21,096) (717) 13,651 - 627 5,599 - 2,416 264,636

The above statement of changes in equity should be read in conjunction with the following notes.

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RESOLUTE MINING LIMITED APPENDIX 4E

For the year ended 30 June 2007

CONDENSED STATEMENT OF CHANGES IN EQUITY (continued)

As at 1 July 2005 Currency translation differences Hedge reserve put options, net of tax Hedge reserve forwards, net of tax Hedge reserve unearned income, net of tax Unrealised gains/(losses) reserve, net of tax Total income/(expense) for the period recognised directly in equity Loss for the period Total income and expense for the period Exercise of options Share issue costs Share option reserve Equity reserve on subsidiary Minority interest movement in share capital Minority interest movement in reserves Minority interest movement in retained profits Total other for the period recognised directly in equity As at 30 June 2006	Issued Retained Foreign Currency Hedge Reserve Hedge Reserve Hedge Reserve Share Based Unrealised Equity Minority Total Capital Earnings Translation Put Options Forwards Unearned Payments Gain/Loss Reserve Interest Equity Reserve Income Reserve Reserve $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 112,483 50,737 (3,757) (4,834) (18,083) 9,637 268 2,022 - 1,255 149,728
	- - (1,021) - - - - - - - (1,021) - - - 2,884 - - - - - - 2,884 - - - - (4,422) - - - - - (4,422) - - - - - (4,239) - - - - (4,239) - - - - - - - 9,646 - - 9,646
	- - (1,021) 2,884 (4,422) (4,239) - 9,646 - - 2,848
	- (77,432) - - - - - - - (128) (77,560)
	- (77,432) - - - - - - - (128) (77,560)
	480 - - - - - - - - - 480 (8) - - - - - - - - - (8) - - - - - - 98 - - - 98 - - - - - - - - 6,764 - 6,764 - - - - - - - - - 1,227 1,227 - - - - - - - - - 306 306 - - - - - - - - - (228) (228)
	472 - - - - - 98 - 6,764 1,305 8,639
	112,955 (26,695) (4,778) (1,950) (22,505) 5,398 366 11,668 6,764 2,432 83,655

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The above statement of changes in equity should be read in conjunction with the following notes.

RESOLUTE MINING LIMITED APPENDIX 4E For the year ended 30 June 2007

CONDENSED CASH FLOW STATEMENT

Note Cash Flows from Operating Activities Receipts from customers Payments to suppliers and employees Interest received Interest and other costs of finance paid Income taxes paid Net operating cash flows 30 Cash Flows from Investing Activities Expenditure on exploration and development areas Payment for property, plant and equipment Payments for available for sale financial assets Proceeds from sale of plant and equipment Royalties received Proceeds from sale of available for sale financial assets Cash outflow on disposal of subsidiary Proceeds on sale of exploration properties Net investing cash flows Cash Flows from Financing Activities Proceeds from issues of securities Cost of issuing securities Proceeds from borrowings Repayment of borrowings Repayment of lease liability Net financing cash flows Net increase/(decrease) in cash held Cash assets held at the beginning of the year Exchange rate adjustment Cash assets held at the end of the year 5	2007 2006 $'000 $'000 Consolidated 179,370 182,896 (166,385) (175,104) 4,470 996 (907) (1,586) - (1,914)
	16,548 5,288
	(110,442) (19,807) (22,366) (7,064) (4,655) (3,044) 143 88 2,162 846 199,499 - (4,096) - - 250
	60,245 (28,731)
	968 8,472 (6) (8) 12,580 306 (26,569) (8,156) (1,554) (275)
	(14,581) 339
	62,212 (23,104) 13,992 36,144 (8,543) 952
	67,661 13,992

The above cash flow statement should be read in conjunction with the accompanying notes.

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RESOLUTE MINING LIMITED APPENDIX 4E For the year ended 30 June 2007

NOTES TO THE FINANCIAL STATEMENTS

NOTE 1: BASIS OF PREPARATION OF PRELIMINARY FINAL REPORT

a) Corporate information

The preliminary financial report of Resolute Mining Limited (“Resolute”) for the full year ended 30 June 2007 was authorised for issue in accordance with a resolution of directors.

Resolute Mining Limited is a company incorporated in Australia and limited by shares, which are publicly traded on the Australian Stock Exchange.

b) Basis of preparation

This preliminary financial report has been prepared in accordance with Australian Accounting Standards, other Australian Accounting Standards Board authoritative pronouncements, Urgent Issues Group Interpretations and the Corporations Act 2001 .

This report is based on accounts that are in the process of being audited.

This report does not include all notes normally included in an annual financial report. Accordingly this report is to be read in conjunction with the financial report for the year ended 30 June 2007 and any public announcements made by Resolute during the reporting period in accordance with the continuous disclosure requirements of the Corporations Act 2001 .

The accounting policies adopted are consistent with those of the previous financial year and corresponding reporting period. For the financial period ended 30 June 2007, AASB 139 Financial Instruments: Recognition and Measurement amendment AASB 2005-9 has been applied for the first time in the year ended 30 June 2007 and subsequent comparatives have been restated.

NOTE 2: ANNUAL GENERAL MEETING

The annual general meeting will be held as follows:

Place: To be advised Date: To be advised Time: To be advised Approximate date the annual report will be available: Late October 2007

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RESOLUTE MINING LIMITED APPENDIX 4E For the year ended 30 June 2007

NOTES TO THE FINANCIAL STATEMENTS

NOTE 3: PROFIT/(LOSS) FROM CONTINUING OPERATIONS (a) Revenues from gold sales Gold sales (b) Other revenue Royalty income Interest income - other persons/corporations (c) Cost of sales Cost of production Amortisation of exploration, development & rehabilitation costs Depreciation of mine properties, plant & equipment Royalty Operational support costs Total cost of sales (d) Other income Profit on sale of plant and equipment Profit on sale of available for sale financial assets Profit on sale of subsidiary Foreign exchange gain Other income Realised gain on options Total other income (e) Other expenses from ordinary activities Management and administration expenses Foreign exchange loss Insurance costs Loss on sale of plant and equipment Operating lease expense Write down of mineral exploration and development costs Depreciation of non mine site assets Realised loss on options Realised loss on net settlement of forward sales contracts Realised loss on gold loan Share based payment expense Total other expenses from ordinary activities (f) Borrowing costs Interest and fees paid/payable to other entities Rehabilitation provision discount adjustment Total borrowing costs	CONSOLIDATED 2007 2006 $’000 $’000 185,297 194,393
	185,297 194,393
	2,243 2,161 4,608 1,011
	6,851 3,172
	165,388 148,862 3,511 3,983 11,129 11,545 6,406 6,251 1,469 1,652
	187,903 172,293
	- 81 25,679 - 154,414 - - 126 243 331 4,052 -
	184,388 538
	4,415 3,807 7,710 - 465 491 19 - 514 319 968 221 153 108 - 6,601 722 - 588 - 370 256
	15,924 11,803
	907 2,067 411 430
	1,318 2,497

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RESOLUTE MINING LIMITED APPENDIX 4E For the year ended 30 June 2007

NOTES TO THE FINANCIAL STATEMENTS

NOTE 4: INCOME TAX (a) Income tax expense/(benefit) attributable to continuing operations Current tax expense Deferred tax expense/(benefit) Income tax expense/(benefit) attributable to profit/(loss) from continuing operations (b) Numerical reconciliation of income tax expense/(benefit) to prima facie tax expense/(benefit) Profit/(loss) from continuing operations before income tax expense/(benefit) Prima facie income tax expense/(benefit) at 30% (2006: 30%) Tax effect of permanent differences: - derecognition of tax losses previously used to offset deferred tax liabilities - recognition of tax losses to offset current year tax expense - tax benefit of investment allowance - current year losses incurred for which no deferred tax asset has been recognised - effect of different rates of tax on overseas income - effect of adoption of AASB 132 and AASB 139 - effect of share based payments expense not deductible - prior year over provision - other Income tax expense/(benefit) attributable to profit/(loss) from continuing operations (c) Amounts recognised directly in equity Amounts debited directly to equity NOTE 5: CASH AND CASH EQUIVALENTS (Current) Cash at bank and on hand Short term deposits	CONSOLIDATED 2007 2006 $’000 $’000 5,060 1,688 4,280 (27,078)
	9,340 (25,390)
	179,336 (102,950) 53,801 (30,885) 2,811 4,202 (51,267) (903) (4,332) (3,702) 7,256 7,910 944 - - (1,975) 111 77 (53) - 69 (114)
	9,340 (25,390)
	5,398 4,321
	66,201 7,234 1,460 6,758
	67,661 13,992

Cash at bank earns interest at fixed and floating rates based on daily bank deposit rates.

Short-term deposits are made for varying periods depending on the immediate cash requirements of the Group, and earn interest at the respective short term deposit rates.

The fair value of cash and cash equivalents is equal to their book value.

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RESOLUTE MINING LIMITED APPENDIX 4E For the year ended 30 June 2007

NOTES TO THE FINANCIAL STATEMENTS

	CONSOLIDATED	CONSOLIDATED
	2007	2006
	$’000	$’000
NOTE 6: TRADE AND OTHER RECEIVABLES (Current)
Sundry debtors	16,388	10,879
Provision for doubtful debts	(155)	(170)
Bullion on hand	125	150
	16,358	10,859
Sundry debtors are non interest bearing and are generally on 30-90 day terms.
NOTE 7: INVENTORIES (Current)
Gold in circuit at cost	8,094	11,652
Consumables at cost	19,178	14,906
Ore stockpiles at cost	3,806	1,092
Ore stockpiles at net realisable value	756	2,252
	31,834	29,902
NOTE 8: AVAILABLE FOR SALE FINANCIAL ASSETS (Current)
Shares at fair value - listed	13,480	26,365
Share options at fair value - unlisted	-	3,178
	13,480	29,543
Available for sale financial assets consist of investments in ordinary shares, and
therefore have no maturity date or coupon rate.
The fair value of the unlisted available for sale investments has been estimated
using valuation techniques based on assumptions that are not supported by
observable market prices or rates. Management believes the estimated fair values
resulting from the valuation techniques and recorded in the balance sheet and the
related changes in fair values recorded in the income statement or unrealised
gain/(loss) reserve are reasonable and the most appropriate at the balance sheet
date.

NOTE 9: FINANCIAL DERIVATIVE ASSETS (Current)

Gold put options Lease rate swap NOTE 10: DEFERRED EXPENDITURE (Current) Deferred mining costs	205 416 - 49
	205 465
	4,701 21,821
	4,701 21,821

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RESOLUTE MINING LIMITED APPENDIX 4E For the year ended 30 June 2007

NOTES TO THE FINANCIAL STATEMENTS

NOTES TO THE FINANCIAL STATEMENTS
	CONSOLIDATED
	2007	2006
	$’000	$’000
NOTE 11: OTHER ASSETS (Current)
Prepayments	1,610	1,860
Other (a)	22,064	-
	23,674	1,860
(a) This amount relates to advances paid by Resolute for the Syama mining fleet
which are expected to be reimbursed by the mining contractor, PW Mining
International Ltd S.A.R.L.
NOTE 12: FINANCIAL DERIVATIVES ASSETS (Non current)
Gold put options	300	4,876
	300	4,876
The consolidated entity considers that gold put options provide an economic hedge
for future gold production, however are only partially considered effective hedges
per accounting criteria.
NOTE 13: MINERAL EXPLORATION AND EVALUATION EXPENDITURE (Non
current)
The consolidated entity has gold mineral exploration and evaluation costs carried
forward in respect of areas of interest in the following phases:
Areas in Production (at cost less amortisation)	17,725	19,222
Areas in Exploration and Evaluation (at cost)	45,380	37,234
	63,105	56,456
Ultimate recoupment of costs carried forward, in respect of areas of interest in the
exploration and evaluation phase, is dependent upon the successful development
and commercial exploitation, or alternatively the sale of the respective areas at an
amount at least equivalent to the carrying value.
NOTE 14: DEVELOPMENT EXPENDITURE (Non current)
Areas in Development (at cost)	54,841	14,633
	54,841	14,633
NOTE 15: PROPERTY PLANT & EQUIPMENT (Non current)
Buildings - at cost	6,018	5,248
Accumulated depreciation	(2,753)	(2,637)
Net carrying amount	3,265	2,611
Mine properties, plant and equipment - at cost	132,736	114,720
Accumulated depreciation	(42,917)	(39,741)
Net carrying amount	89,819	74,979

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RESOLUTE MINING LIMITED APPENDIX 4E For the year ended 30 June 2007

NOTES TO THE FINANCIAL STATEMENTS

NOTE 15: PROPERTY PLANT & EQUIPMENT (Non current) (continued) Motor vehicles - at cost Accumulated depreciation Net carrying amount Office equipment - at cost Accumulated depreciation Net carrying amount Plant & equipment under lease at capitalised cost Accumulated amortisation Net carrying amount Total property, plant & equipment: Cost Accumulated depreciation & amortisation Total written down amount NOTE 16: DEFERRED EXPENDITURE (Non current) Deferred mining costs NOTE 17: OTHER ASSETS (Non current) Prepayments NOTE 18: PAYABLES (Current) Trade creditors and accruals Other creditors Payables are non interest bearing and generally settled on 30-90 day terms. NOTE 19: INTEREST BEARING LIABILITIES (Current) Lease liability Borrowings Gold loan		CONSOLIDATED 2007 2006 $’000 $’000 2,830 2,107 (1,565) (1,461)
		1,265 646
		1,444 1,302 (807) (646)
		637 656
		7,116 1,536 (1,737) (320)
		5,379 1,216
		150,144 124,913 (49,779) (44,805)
		100,365 80,108
		21,537 21,199
		21,537 21,199
		6,310 -
		6,310 -
		34,554 29,862 354 231
		34,908 30,093
		1,564 281 - 8,609 1,803 1,949
		3,367 10,839

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RESOLUTE MINING LIMITED APPENDIX 4E For the year ended 30 June 2007

NOTES TO THE FINANCIAL STATEMENTS

NOTE 20: TAX LIABILITIES (Current) Tax payable NOTE 21: FINANCIAL DERIVATIVE LIABILITIES (Current) Gold forwards Gold call options	CONSOLIDATED 2007 2006 $’000 $’000 5,069 10
	5,069 10
	32,702 59,541 - 12,306
	32,702 71,847

(a) The current derivative liabilities are partially secured and partially unsecured. All of Carpentaria Gold Pty Ltd and Resolute (Tanzania) Limited’s derivative liabilities are secured by their respective financiers. All of Resolute (Treasury) Pty Ltd’s derivative liabilities are unsecured. The unsecured current balance amounts to $11.0m (2006: $22.5m).

(b) Included in the derivative liabilities balance above is an amount of $5.2m (2006: $13.1m) relating to undesignated hedging commitments that do not mature in the next 12 months. As a result of the maturity dates being > 12 months, these liabilities would ordinarily be disclosed as non current liabilities, as Resolute Mining Limited and its subsidiaries are under no obligation to make any payments relating to these derivative contracts for at least 12 months. However, due to a technical accounting requirement in AASB 101, these liabilities have been disclosed in these financial statements as a current liability.

(c) The consolidated entity considers that gold forwards and gold put options are an economic hedge for future gold production, however are only partially considered effective hedges per accounting criteria. Of the above amount, $19.2m (2006: $41.6m) of gold forwards are considered to be effective hedges per accounting criteria.

NOTE 22: PROVISIONS (Current)

Employee entitlements Dividend payable Site restoration NOTE 23: INTEREST BEARING LIABILITIES (Non current) Borrowings Gold loan Lease liability	2,601 2,162 69 170 1,744 1,385
	4,414 3,717
	- 9,269 579 2,520 3,751 1,008
	4,330 12,797

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RESOLUTE MINING LIMITED APPENDIX 4E For the year ended 30 June 2007

NOTES TO THE FINANCIAL STATEMENTS

NOTE 24: PROVISIONS (Non current) Site restoration Employee entitlements NOTE 25: FINANCIAL DERIVATIVES LIABILITIES (Non current) Gold forwards The non current derivative liabilities are fully secured. These financial derivatives are considered to be effective hedges per accounting criteria. NOTE 26: CONTRIBUTED EQUITY Ordinary share capital 231,144,559 ordinary fully paid shares (2006: 229,034,059) (b) Movements in contributed equity Balance at the beginning of the year Exercise of 60,500 unlisted options at 81 cents per share, net of fees Exercise of 50,000 unlisted options at $1.57 per share, net of fees Exercise of 2,000,000 unlisted options at 42 cents per share, net of fees Exercise of 9,750 listed options at 80 cents per share, net of fees Exercise of 476,000 unlisted options at 81 cents per share, net of fees Exercise of 55,000 unlisted options at $1.57 per share, net of fees Balance at the end of the year NOTE 27: RESERVES Foreign currency translation reserve Share based payment reserve Hedge reserve - put options Hedge reserve - forwards Hedge reserve - unearned income Unrealised gain/(loss) reserve Equity reserve	CONSOLIDATED 2007 2006 $’000 $’000 20,823 23,828 198 178
	21,021 24,006
	39,690 64,058
	39,690 64,058
	113,917 112,955
	112,955 112,483 49 - 76 - 837 - - 6 - 383 - 83
	113,917 112,955
	(21,096) (4,778) 627 366 (717) (1,950) 13,651 (22,505) - 5,398 5,599 11,668 - 6,764
	(1,936) (5,037)

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RESOLUTE MINING LIMITED APPENDIX 4E For the year ended 30 June 2007

NOTES TO THE FINANCIAL STATEMENTS

NOTE 28: RETAINED PROFITS/(ACCUMULATED LOSSES) Retained profits/(accumulated losses) at the beginning of the year Adjustment on adoption of AASB 132 and AASB 139 Transfer of equity reserve to retained earnings on disposal of subsidiary Net profit/(loss) attributable to members Retained profits/(accumulated losses) at the end of the financial year NOTE 29: MINORITY INTEREST Analysis of minority interest in controlled entities: - Share capital - Reserves - Retained profits NOTE 30: NOTES TO THE CASH FLOW STATEMENT Reconciliation of net profit/(loss) from continuing operations after income tax to the net operating cash flows: Net profit/(loss) from ordinary activities after income tax Add/(Deduct) Non-Cash Items: Write down of mineral exploration and development costs Depreciation and amortisation of property, plant and equipment Amortisation of exploration and development costs Rehabilitation expense Share based payments Loss/(profit) on sale of property, plant and equipment Profit on sale of investments Unrealised foreign exchange loss Bad debts expense Provision for employee entitlements Unearned income Other Changes in Operating Assets and Liabilities: Receivables Inventories Financial derivatives Prepayments Deferred expenditure Payables Provision for taxation Provisions Deferred tax balances Net operating cash flows	CONSOLIDATED 2007 2006 $’000 $’000 (26,695) 52,757 - (2,020) 6,764 - 170,170 (77,432)
	150,239 (26,695)
	912 2,139 1,183 (121) 321 414
	2,416 2,432
	169,996 (77,560) 968 221 11,282 11,653 3,087 3,432 835 981 370 256 19 (81) (180,093) - 833 - - 85 144 (80) (5,204) (4,478) 4 (725) (5,499) 2,229 (1,932) (4,912) (8,004) 105,273 250 (501) 16,782 (10,252) 5,795 3,480 5,059 (93) (2,288) (600) 4,144 (23,040) 16,548 5,288

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RESOLUTE MINING LIMITED APPENDIX 4E For the year ended 30 June 2007

NOTES TO THE FINANCIAL STATEMENTS

NOTE 31: DISPOSAL OF SUBSIDIARY

On 11 September 2006, the consolidated entity sold its 83.3% interest in Valhalla Uranium Limited (“Valhalla”).

The results of Valhalla for the period from 1 July 2006 until its disposal on 11 September 2006 are presented below:

Revenue Expenses Loss before income tax Income tax benefit Loss after income tax The carrying amounts of assets and liabilities until disposal were: Cash Receivables Exploration & evaluation Total Assets Creditors Total Liabilities Minority Interests Net Assets Consideration received: Shares in Paladin Resources Limited Total disposal consideration Carrying amount of net assets sold Gain on sale before income tax Other costs incidental to the sale of Valhalla Income tax expense Gain on sale after income tax Net cash inflow on disposal: Cash consideration Outflow of cash held by disposed subsidiary Reflected in cash flow statement

CONSOLIDATED 2007 $’000 67 (394) (327) - (327) 4,096 21 2,815 6,932 - - (1,146) 5,786 161,076 161,076 (5,786) 155,290 (876) - 154,414 - (4,096) (4,096)

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RESOLUTE MINING LIMITED APPENDIX 4E For the year ended 30 June 2007

NOTES TO THE FINANCIAL STATEMENTS

NOTE 32: SEGMENT INFORMATION

2007 Geographical Segments Revenue Sales to customers Other revenue Segment revenue Results Segment results from continuing operations Group profit from ordinary activities before income tax expense Income tax expense Group profit from ordinary activities after income tax expense Assets Segment assets Liabilities Segment liabilities Other Segment Information Depreciation and amortisation Acquisition of non-current assets Write off of mineral exploration and development costs 2006 Geographical Segments Revenue Sales to customers Other revenue Segment revenue	Tanzania Ghana Mali Australia A$'000 A$'000 A$'000 A$'000 99,126 - - 86,171 177 - 11 6,663	Consolidated A$'000 185,297 6,851
	99,303 - 11 92,834	192,148
	15,907 (1,142) 75 164,496	179,336
	81,251 6,983 119,872 203,704	179,336 (9,340)
		169,996
		411,810
	32,791 372 14,445 99,566	147,174
	6,627 6 - 8,160	14,793
	12,776 2,515 80,498 37,021	132,810
	(75) (729) - (164) (968)
	Tanzania Ghana Mali Australia Consolidated A$'000 A$'000 A$'000 A$'000 A$'000 91,624 - - 102,769 194,393 159 126 - 2,887 3,172
	91,783 126 - 105,656 197,565

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RESOLUTE MINING LIMITED APPENDIX 4E For the year ended 30 June 2007

NOTES TO THE FINANCIAL STATEMENTS

NOTE 32: SEGMENT INFORMATION (continued)

Geographical Segments Tanzania Ghana Mali Australia Consolidated A$'000 A$'000 A$'000 A$'000 A$'000 Results Segment results 19,215 (1,058) - (121,107) (102,950) Grouplossfrom ordinary activities before income tax benefit (102,950) Income tax benefit 25,390 Grouplossfrom ordinary activities after income tax benefit (77,560) Assets Segment assets 81,591 6,049 43,753 169,732 301,125 Liabilities Segment liabilities 57,386 810 9,791 149,483 217,470 Other Segment Information Depreciation and amortisation 7,188 96 - 8,352 15,636 Acquisition of non-current assets 8,383 2,617 3,263 15,002 29,265 Write off of mineral exploration and development costs (36) (188) - 3 (221) The 2006 comparative information has been restated to include the previous Unallocated segment into the Australia segment. NOTE 33: ISSUED AND QUOTED SECURITIES AT END OF CURRENT PERIOD Total Number Issue Price Amount Paid Number Quoted Per Security Up Per Security Ordinary securities As at 30 June 2007 231,144,559 231,144,559 Changes during current period Increases through exercise of unlisted options 60,500 60,500 $0.81 $0.81 Increases through exercise of unlisted options 50,000 50,000 $1.57 $1.57 Increases through exercise of unlisted options 2,000,000 2,000,000 $0.42 $0.42	Tanzania Ghana Mali Australia Consolidated A$'000 A$'000 A$'000 A$'000 A$'000 19,215 (1,058) - (121,107) (102,950)	Tanzania Ghana Mali Australia Consolidated A$'000 A$'000 A$'000 A$'000 A$'000 19,215 (1,058) - (121,107) (102,950)
	81,591 6,049 43,753 169,732	(102,950) 25,390
		(77,560)
		301,125
	57,386 810 9,791 149,483	217,470
	7,188 96 - 8,352	15,636
	8,383 2,617 3,263 15,002	29,265
	(36) (188) - 3	(221)

The 2006 comparative information has been restated to include the previous Unallocated segment into the Australia segment.

NOTE 33: ISSUED AND QUOTED SECURITIES AT END OF CURRENT PERIOD

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RESOLUTE MINING LIMITED APPENDIX 4E For the year ended 30 June 2007

NOTES TO THE FINANCIAL STATEMENTS

NOTE 33: ISSUED AND QUOTED SECURITIES AT END OF CURRENT PERIOD (continued)

	Total	Number		Exercise	Expiry
	Number	Quoted		Price	Date
Options
As at 30 June 2007	787,500		-	$0.81	19/09/07
	475,000		-	$1.57	21/12/09
	405,000		-	$1.28	23/03/11
	570,000		-	$1.48	24/10/11
Changes during current period
Exercise of unlisted options during the current period	(60,500)		-	$0.81	19/09/07
Exercise of unlisted options during the current period	(50,000)		-	$1.57	21/12/09
Exercise of unlisted options during the current period	(2,000,000)		-	$0.42	10/12/06
Issue of unlisted options during the current period	570,000		-	$1.48	24/10/11
NOTE 34: NET TANGIBLE ASSETS
	2007	2006
	$	$
Net tangible assets per ordinary security is:	1.14	0.37

Signed in accordance with a resolution of directors.

==> picture [77 x 40] intentionally omitted <==

P.R. Sullivan Director Perth, Western Australia 31 August 2007

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