Resolute Mining Limited — Annual Report 2011

Aug 29, 2011

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Appendix 4E
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Preliminary Final Report
ACN 097 088 689
FOR THE YEAR ENDED 30 JUNE 2011
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HIGHLIGHTS

• Net profit after tax attributable to members of the parent of $61.4m (2010: $37.2m loss).

• Gold production of 330,859 ounces at a cash cost of $908/oz.

• Cash and bullion of $25.7m.

• Unhedged and reducing already low gearing.

• Project Proved and Probable Reserves have increased by 80% to 5.24m ounces of gold.

• Group gold production forecast to rise from current year by 24% to 410,000 ounces in 2011/12.

• Group cash costs in 2011/12 forecast to fall from

• current year by 20% to $730/oz.

• Stronger cash flows to drive significant balance sheet improvement, fund identified growth opportunities across asset portfolio and capital management initiatives.

RESULTS

• Revenues from gold sales increased by 30% to $445.1m (2010: $342.5m). Revenues were enhanced by the close out of the hedge book in October which has allowed greater participation in the strong spot gold price.

• The average cash price received per ounce of gold sold during the year was $1,337/oz (2010: $1,070/oz).

• Net profit after tax attributable to members increased significantly to $61.4m (2010: $37.2m loss).

• Syama’s results have been included in the 2011 full year profit result but partially excluded from the 2010 comparative result due to all costs and revenue being capitalised during the half year ended 31 December 2009.

• The $78.4m cost of closing out the hedge book did not have a significant impact on the current

year profit result due to this expense being recognised in prior periods

• Net operating cash inflows during the year (which include exploration expenditure) were $58.7m (2010: $31.8m). This does not include the $14.5m of bullion on hand at 30 June 2011.

• Net investing cash outflows of $34.2m (2010: $54.0m) relate mainly to expenditure on property, plant and equipment and development.

• Net financing outflows of $31.8m (2010: $27.3m inflow) include $46.9m of borrowing repayments.

OPERATIONS

• The Group gold production for the year was 330,859 ounces (2010: 352,302 oz) of gold at an average cash cost of $908/oz (2010: $741/oz).

• Golden Pride gold mine in Tanzania, Africa, produced 122,921 ounces (2010: 148,675 oz) at a cash cost of $713/oz (or US$708/oz) (2010: $583/oz or US$514/oz).

• Ravenswood gold mine in Queensland, Australia, produced 122,576 ounces (2010: 125,652 oz) at a cash cost of $893/oz (2010: $804/oz).

• Syama gold mine produced a total of 85,362 ounces (2010: 77,975 oz) at a cash cost of $1,209/oz (or US$1,197/oz)(2010: $1,114/oz or US$1,001).

DEVELOPMENT

Mali

• The Syama Strategic Study was completed and resulted in an expanded pit with a contained reserve of 31.7Mt @ 2.9g/t Au for 2.94 million ounces of gold. This reserve represents a 104% increase over reserves at 30 June 2010.

• Project management and engineering design for the Syama Expansion Definitive Feasibility Study (“DFS”) was awarded to GR Engineering

The information in this report that relates to the Mineral Resources and Ore Reserves is based on information compiled by Mr Richard Bray who is a Registered Professional Geologist with the Australian Institute of Geoscientists and Mr Iain Wearing a member of The Australian Institute of Mining and Metallurgy. Mr Richard Bray and Mr Iain Wearing both have more than 5 years experience relevant to the styles of mineralisation and type of deposit under consideration and to the activity which they are undertaking to qualify as a Competent Person, as defined in the 2004 Edition of the "Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves". Mr Richard Bray and Mr Iain Wearing are full time employees of

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APPENDIX 4E PRELIMINARY FINAL REPORT
30 JUNE 2011 2
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• Services in Perth. This study will include all aspects of the open pit expansion as well as the design and construction of a parallel oxide ore circuit. This study is due for completion in Q1 2012.

• A positive Feasibility Study was completed for the Supply and Installation of a High Voltage Grid to supply power to Syama. A Memorandum of Understanding and Terms of Reference documents are being progressed between the State of Mali, the Energie du Mali and SOMISY.

Queensland

• An internal scoping study to assess the benefits of re-developing the Sarsfield open cut supported the expansion of the open pit. As a result the reserve base at Ravenswood has increased 174% to greater than 1.5m ounces, supporting a further 10 years of operation. A DFS is now underway to evaluate this expansion and also the process to obtain all regulatory approvals for this has commenced.

• New proven and probable reserves of 6.0Mt @ 2.7g/t Au for 519,000 ounces were estimated for Mt Wright. Infill diamond drilling to the 600mRL delivered a 90,000 ounce reserve addition which largely replaced full-year production at Ravenswood.

EXPLORATION

• Exploration drilling was carried out in Mali, Tanzania and Queensland while target definition and tenement consolidation work continued in Cote d’Ivoire.

Mali

• Resource estimates for the Syama Extension, Alpha and Tellem deposits added 5.82Mt@ 2.3g/t for 428,000 ounces to the Syama resource inventory.

• Drilling at the BA01 Prospect, 5km northeast of Syama, returned excellent first pass intercepts including; 13m @ 5.41g/t Au from 58m and 14m @ 6.48g/t Au from 141m, and 25m @ 7.64g/t Au from 62m.

Queensland

• Further diamond drilling at Welcome Breccia returned impressive results including 55m @ 10.54 g/t Au from 420m including 14m @ 21.83 g/t Au from 425m, 12m @ 6.18 g/t Au from

• 524m, and 50m @ 3.87 g/t Au from 298m. Subsequently, an initial inferred resource of 2.04Mt @ 2.04g/t Au for 210,000 ounces was estimated.

• A drill campaign was commenced in the June Quarter 2011 to test the vertical and lateral extents on the Welcome Deposit. Significant assay results have included 14m @ 18.78 g/t Au from 69m and 25m @ 1.70 g/t Au from 98m from RC drilling just below the old Welcome open pit.

• Several other Mt Wright style targets in the district are now ready for ground geophysical work and/or drill testing.

Tanzania

• RC drilling at the Far East deposit returned exceptional near surface intercepts including 18m @ 10.27 g/t Au from 12m, 9m @ 19.16 g/t Au from 23m and 5m @ 6.82 g/t Au from 58m.

Cote d’Ivoire

• Resolute has secured a significant land holding over targeted portions of the largely underexplored Birimian greenstone belts in Cote d’Ivoire. First pass surface geochemical programs have already defined ten significant gold and pathfinder element anomalies that will undergo further exploration in the coming year.

CORPORATE

• Group cash and bullion at 30 June 2011 was $25.7m (2010: $27.9m).

• Fund raising activities during the year, through a combination of a fully underwritten institutional placement and exercise of existing options, provided gross proceeds of $41.8m.

• The hedging program was closed out in October 2010. Funding for the gold purchases to achieve this comprised approximately $30.4m from the equity raising in October and $48.5m of credit from the hedging counterparties, Barclays and Investec. The credit is being repaid in monthly instalments between February and September 2011, and as at 30 June, only $18.9m of repayments remain.

• At 30 June 2011, the face value of Resolute’s total borrowings were $126.0m (2010: $134.9m). The borrowings amounts stated here differ to those shown on the balance sheet as

Resolute Mining Limited

4th Floor, The BGC Centre, 28 The Esplanade, Perth, Western Australia 6000 Telephone: + 61 8 9261 6100 Facsimile: + 61 8 9322 7597 E-mail: contact@rml.com.au

www.rml.com.au

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APPENDIX 4E PRELIMINARY FINAL REPORT
30 JUNE 2011 3
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these amounts exclude sunk-cost establishment fees and apportionments between debt and equity as required by accounting standards.

• The Barclays/Investec senior credit facilities have been recently amended to provide Resolute with more financial flexibility going forward. The revised amortisation profile sees the facility limit reduce to US$25m at 31 December 2011, US$12.5m at 30 June 2012 and nil by 10 December 2012.

• Repayments of borrowings during the year totalled $46.9m (2010: $14.4m), including a voluntary principal repayment of US$10m to Barclays/Investec on 30 June. Following the repayment and as a result of the amendment to the debt repayment schedule, Resolute has up to US$10m of unused credit on this cash advance facility, which can be utilised if necessary in line with the above limits.

• Interest of $4.1m owing on the Resolute Convertible Notes for the 6 months ended 30 June 2011 was paid in cash on 1 July 2011 and the $4.5m owing for the previous 6 months was funded / paid from an issue of 3.6m Resolute ordinary shares at an issue price of $1.24 each.

OUTLOOK

Forecast gold production for the Group for the year ending 30 June 2012 is 410,000 ounces at a cash cost of approximately $730 per ounce (based on an assumed USD/AUD exchange rate of US$1.05).

Golden Pride

Gold production is expected to increase slightly this year as a result of the processing of higher grade ore.

Ravenswood

Gold production is expected to be marginally lower in the coming year due to the completion of processing the Sarsfield low grade ore stockpiles and reconfiguration of the operation to treatment of Mt Wright ore only.

Syama

Gold production is expected to significantly improve as the effects of improved reliability and throughput impact positively on the operation and better grade material becomes available from the pit.

Development

Work will continue on the DFS for the Syama Expansion, Syama High Voltage Grid Connection and Sarsfield Open Pit projects, with completion of all three expected during the year.

Diamond drilling is planned to test the down dip and adjacent extents of the Mt Wright deposit.

A scoping study of the Nyakafuru Project in Tanzania will be undertaken along with further resource drilling.

Exploration

The exploration budget has been doubled to $20 million in the current financial year. Exploration spending will be primarily directed towards a number of highly prospective tenement package areas around existing infrastructure.

In Mali this includes the numerous oxide and sulphide targets identified along the Syama Sheer to the north and south of the Syama pit.

The Mt Wright-style targets at the Welcome Breccia and Golden Valley/ Mt Success Projects near Ravenswood will also be advanced.

Corporate

Cash flow is expected to improve over the year significantly strengthening the balance sheet.

In the early part of the year this will involve the aggressive pay down of secured debt.

Depending on market conditions, further de-gearing of the balance sheet could occur through the early redemption/conversion of the Convertible Notes representing approximately $68m of unsecured debt.

Consideration will also be given to capital management initiatives.

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PR SULLIVAN

Chief Executive Officer

30 August 2011

Resolute Mining Limited

4th Floor, The BGC Centre, 28 The Esplanade, Perth, Western Australia 6000 Telephone: + 61 8 9261 6100 Facsimile: + 61 8 9322 7597 E-mail: contact@rml.com.au

www.rml.com.au

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Appendix 4E
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FOR THE YEAR ENDED 30 JUNE 2011
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RESOLUTE MINING LIMITED APPENDIX 4E: PRELIMINARY FINAL REPORT For the year ended 30 June 2011

TABLE OF CONTENTS

	Page
Appendix 4E	6
Consolidated Statement of Comprehensive Income	7
Consolidated Statement of Financial Position	9
Consolidated Statement of Changes in Equity	11
Consolidated Cash Flow Statement	13
Notes to the Financial Statements	15

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RESOLUTE MINING LIMITED APPENDIX 4E: PRELIMINARY FINAL REPORT For the year ended 30 June 2011

REPORTING PERIOD

The reporting period is the year ended 30 June 2011 with the corresponding reporting period being for the year ended 30 June 2010.

RESULTS FOR ANNOUNCEMENT TO THE MARKET

RESULTS FOR ANNOUNCEMENT TO THE MARKET
Results Revenue from gold sales (Loss in the prior year) Profit after tax attributable to members of the parent (Loss in the prior year) Profit before tax attributable to members of the parent	A$'000 up 30% to 445,055 up n/a to 76,322 up n/a to 61,385
Dividends Final dividend ‐ no final dividend is proposed Interim dividend Record date for determining entitlements to the dividend	security Amount per	per security Franked amount
	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: PRELIMINARY FINAL REPORT For the year ended 30 June 2011

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

Note Continuing Operations	For the year ended 30‐Jun‐11 $'000	For the year ended 30‐Jun‐10 $'000
Revenue from gold sales 3(a) Costs of production relating to gold sales 3(b) Gross profit before depreciation, amortisation and other operating costs Depreciation and amortisation relating to gold sales 3(c) Other operating costs relating to gold sales 3(d) Gross profit Other revenue 3(e) Other income 3(f) Exploration expenditure Share of associate's loss Administration and other expenses 3(g) Profit before treasury, tax and finance costs Finance costs 3(h) Profit before treasury and tax Treasury ‐ movement on gold forward contracts closed out 5 Treasury ‐ other realised (losses)/gains 3(i) Treasury ‐ unrealised gains/(losses) 3(j) Profit/(loss) before income tax Tax expense Profit/(loss) for the year	445,055 (293,499) 151,556 (62,391) (23,276) 65,889 329 1,316 (8,726) (800) (9,757) 48,251 (19,597) 28,654 34,742 (4,574) 730 59,552 (14,937) 44,615	342,484 (229,007)
		113,477 (43,141) (16,565)
		53,771 294 10,098 (9,280) (258) (7,576)
		47,049 (11,220)
		35,829
		‐ 195 (75,976)
		(39,952)
		(16,619)
		(56,571)
Profit/(loss) attributable to: Members of the parent Non‐controlling interest	61,385 (16,770) 44,615	(37,173) (19,398)
		(56,571)

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RESOLUTE MINING LIMITED APPENDIX 4E: PRELIMINARY FINAL REPORT For the year ended 30 June 2011

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (continued)

Note For the year For the year ended ended 30‐Jun‐11 30‐Jun‐10 $'000 $'000	Note For the year For the year ended ended 30‐Jun‐11 30‐Jun‐10 $'000 $'000
Profit/(loss) for the year (brought forward) Other comprehensive (loss)/income Exchange differences on translation of foreign operations: ‐ Members of the parent ‐ Transferred to profit and loss ‐ disposed subsidiaries ‐ Non‐controlling interest Cash flow hedges: Transfer to profit and loss, net of tax Changes in the fair value of available for sale financial assets, net of tax Other comprehensive loss for the period, net of tax Total comprehensive income/(loss) for the period Total comprehensive income/(loss) attributable to:	44,615 (56,571) (23,831) 1,538 ‐ (1,886) 1,437 1,607 ‐ (5,343) (52) (200) (22,446) (4,284) 22,169 (60,855) 37,502 (43,064) (15,333) (17,791) 22,169 (60,855) 13.80 (9.90) 11.24 (9.90)
Members of the parent	37,502 (43,064)
Non‐controlling interest Earnings per share for net profit/(loss) attributable to the ordinary equity holders of the parent:
Basic earnings/(loss) per share 6 Diluted earnings/(loss) per share 6	13.80 (9.90) 11.24 (9.90)

The above consolidated statement of comprehensive income should be read in conjunction with the accompanying notes.

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RESOLUTE MINING LIMITED APPENDIX 4E: PRELIMINARY FINAL REPORT For the year ended 30 June 2011

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

Note Current assets	As at As at 30‐Jun‐11 30‐Jun‐10 $'000 $'000
Cash	11,213 18,259
Receivables ‐ gold bullion sales	14,465 9,662
Receivables ‐ other Inventories Available for sale financial assets Financial derivative assets Other	4,033 6,533 96,464 85,754 692 818 11 89 3,270 3,866
Total current assets Non current assets	130,148 124,981
Receivables Financial derivative assets	3,769 4,083 ‐ 901
Exploration and evaluation expenditure Development expenditure	9,045 10,970 219,329 231,030
Property, plant and equipment	190,878 221,274
Deferred mining costs Investment in associate	20,585 13,504 5,092 5,892
Total non current assets Total assets Current liabilities	448,698 487,654
	578,846 612,635
Payables Interest bearing liabilities Tax liabilities Financial liabilities 5 Provisions	47,433 47,652 23,539 29,445 2,725 3,454 18,910 92,075 12,776 10,933
Total current liabilities Non current liabilities	105,383 183,559
Interest bearing liabilities Financial liabilities Provisions Deferred tax liabilities Other	78,341 93,300 ‐ 21,026 38,000 28,624 1,125 3,049 ‐ 37
Total non current liabilities Total liabilities Net assets	117,466 146,036
	222,849 329,595
	355,997 283,040

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RESOLUTE MINING LIMITED APPENDIX 4E: PRELIMINARY FINAL REPORT For the year ended 30 June 2011

CONSOLIDATED STATEMENT OF FINANCIAL POSITION (continued)

	As at As at 30‐Jun‐11 30‐Jun‐10 $'000 $'000
Equity attributable to equity holders of the parent	287,125 237,083 (447) 22,690 102,443 41,058 389,121 300,831 (33,124) (17,791) 355,997 283,040
Contributed equity Reserves
Retained earnings	102,443 41,058
Parent interest
Non‐controlling interest	(33,124) (17,791)
Total equity

The above consolidated statement of financial position should be read in conjunction with the accompanying notes.

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RESOLUTE MINING LIMITED APPENDIX 4E: PRELIMINARY FINAL REPORT For the year ended 30 June 2011

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

	Ordinary shares Net unrealised gain/(loss) reserve Convertible notes equity reserve Share options equity reserve Employee equity benefits reserve Foreign currency translation reserve Retained earnings Non‐controlling interest Total
At 1 July 2010 Net profit/(loss) for the year	$'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000
	237,083 164 14,233 5,987 2,021 285 41,058 (17,791) 283,040
	‐ ‐ ‐ ‐ ‐ ‐ 61,385 (16,770) 44,615
Other comprehensive (loss)/income, net of tax	‐ (52) ‐ ‐ ‐ (23,831) ‐ 1,437 (22,446)
Total comprehensive (loss)/income for the period, net of tax ‐ (52) ‐ ‐ ‐ (23,831) 61,385 (15,333) 22,169
Transactions with owners
Shares issued Share issue costs Equity portion of compound financial instruments, net of tax and transaction costs	53,107 ‐ ‐ ‐ ‐ ‐ ‐ ‐ 53,107 (3,065) ‐ ‐ ‐ ‐ ‐ ‐ ‐ (3,065) ‐ ‐ (469) ‐ ‐ ‐ ‐ ‐ (469)
Share‐based payments to employees	‐ ‐ ‐ ‐ 1,215 ‐ ‐ ‐ 1,215
At 30 June 2011	287,125 112 13,764 5,987 3,236 (23,546) 102,443 (33,124) 355,997

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RESOLUTE MINING LIMITED APPENDIX 4E: PRELIMINARY FINAL REPORT For the year ended 30 June 2011

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (continued)

At 1 July 2009 Net loss for the year Other comprehensive (loss)/income, net of tax	Ordinary shares Net unrealised gain/(loss) reserve Hedge reserve forwards gain/(loss) Convertible notes equity reserve Share options equity reserve Employee equity benefits reserve Foreign currency translation reserve Retained earnings Non‐controlling interest Total $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000
	209,680 364 5,343 3,492 4,064 1,499 633 78,231 ‐ 303,306
	‐ ‐ ‐ ‐ ‐ ‐ ‐ (37,173) (19,398) (56,571) ‐ (200) (5,343) ‐ ‐ ‐ (348) ‐ 1,607 (4,284)
Total comprehensive loss for the period, net of tax	‐ (200) (5,343) ‐ ‐ ‐ (348) (37,173) (17,791) (60,855)
Transactions with owners Shares issued Share issue costs Options issued to convertible note holders and shareholders, net of tax Equity portion of compound financial instruments, net of tax and transaction costs	28,446 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 28,446 (1,043) ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ (1,043) ‐ ‐ ‐ ‐ 1,923 ‐ ‐ ‐ ‐ 1,923 ‐ ‐ ‐ 10,741 ‐ ‐ ‐ ‐ ‐ 10,741
Share‐based payments to employees At 30 June 2010	‐ ‐ ‐ ‐ ‐ 522 ‐ ‐ ‐ 522
	237,083 164 ‐ 14,233 5,987 2,021 285 41,058 (17,791) 283,040

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

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RESOLUTE MINING LIMITED APPENDIX 4E: PRELIMINARY FINAL REPORT For the year ended 30 June 2011

CONSOLIDATED CASH FLOW STATEMENT

	For the For the year ended year ended 30‐Jun‐11 30‐Jun‐10 $'000 $'000 Consolidated
Cash flows from operating activities Receipts from customers Payments to suppliers, employees and others Income tax paid Exploration expenditure Interest paid Interest received Net cash flows from operating activities Cash flows from investing activities Payments for property, plant & equipment Proceeds from property, plant & equipment Payments for development costs Other Net cash flows from investing activities Cash flows from financing activities Proceeds from issuing ordinary shares Costs of issuing ordinary shares Proceeds from issuing convertible notes Costs of issuing convertible notes Proceeds from issuing options Costs from issuing options Payments for close‐out of derivatives funded with proceeds from issuing ordinary shares Repayment of borrowings Repayment of lease liability Proceeds from finance facility Net cash flows from financing activities	440,378 325,447 (353,202) (273,080) (15,825) (8,398) (8,649) (9,280) (4,373) (3,188) 329 290
	58,658 31,791
	(20,415) (13,280) 71 48 (13,225) (41,053) (673) 284
	(34,242) (54,001)
	41,808 18,900 (3,065) (1,038) ‐ 23,864 ‐ (1,332) ‐ 1,322 ‐ (67) (30,368) ‐ (44,243) (11,815) (2,705) (2,561) 6,750 ‐
	(31,823) 27,273

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RESOLUTE MINING LIMITED APPENDIX 4E: PRELIMINARY FINAL REPORT For the year ended 30 June 2011

CONSOLIDATED CASH FLOW STATEMENT (continued)

	For the For the year ended year ended 30‐Jun‐11 30‐Jun‐10 $'000 $'000 Consolidated
Net (decrease)/increase in cash and cash equivalents Cash and cash equivalents at the beginning of the financial period Exchange rate adjustment Cash and cash equivalents at the end of the period Cash and cash equivalents comprise the following: Cash Bank overdraft	(7,407) 5,063 11,900 6,880 (822) (43) 3,671 11,900 11,213 18,259 (7,542) (6,359) 3,671 11,900

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

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RESOLUTE MINING LIMITED APPENDIX 4E: PRELIMINARY FINAL REPORT For the year ended 30 June 2011

NOTES TO THE FINANCIAL STATEMENTS

NOTE 1: BASIS OF PREPARATION OF PRELIMINARY FINAL REPORT

a) Corporate information

The preliminary final report of Resolute Mining Limited and its subsidiaries (“Resolute” or the “Group”) for the full year ended 30 June 2011 was authorised for issue in accordance with a resolution of directors.

Resolute Mining Limited (“RML”) is a company incorporated in Australia and limited by shares, which are publicly traded on the Australian Securities Exchange.

b) Basis of preparation

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 2010 and any public announcements made by RML during the reporting period in accordance with the continuous disclosure requirements of the Corporations Act 2001 .

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 2011

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RESOLUTE MINING LIMITED APPENDIX 4E: PRELIMINARY FINAL REPORT For the year ended 30 June 2011

NOTES TO THE FINANCIAL STATEMENTS

NOTE 3: PROFIT/(LOSS) FROM CONTINUING OPERATIONS

NOTE 3: PROFIT/(LOSS) FROM CONTINUING OPERATIONS
		For the year For the year ended ended 30‐Jun‐11 30‐Jun‐10 $'000 $'000 Consolidated
(a) Revenue from gold sales Gold sales at spot price (i) Realised loss on gold forward contracts Amortisation of the gold forward contract hedge reserve		462,911 393,936 (17,856) (59,084) 445,055 334,852 ‐ 7,632 445,055 342,484 300,342 234,139 (6,843) (5,132) 293,499 229,007 27,491 18,445 34,900 24,696 62,391 43,141 19,541 13,232 3,735 3,333 23,276 16,565 329 294 329 294
(i) Proceeds received on the sale of gold produced at the Syama Project up until 31 December 2009 were capitalised into pre‐production costs.
(b) Costs of production relating to gold sales Costs of production (excluding gold in circuit inventories movement) (i) Gold in circuit inventories movement
(i) Costs incurred on the production of gold at the Syama Project up until 31 December 2009 were capitalised into pre‐production costs.
(c) Depreciation and amortisation relating to gold sales Amortisation of evaluation, development & rehabilitation costs Depreciation of mine site properties, plant & equipment (d) Other operating costs relating to gold sales Royalty expense Operational support costs
(e) Other revenue Interest income ‐ other persons/corporations

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RESOLUTE MINING LIMITED APPENDIX 4E: PRELIMINARY FINAL REPORT For the year ended 30 June 2011

NOTES TO THE FINANCIAL STATEMENTS

NOTE 3: PROFIT/(LOSS) FROM CONTINUING OPERATIONS (continued)

NOTE 3: PROFIT/(LOSS) FROM CONTINUING OPERATIONS (continued)
		For the year For the year ended ended 30‐Jun‐11 30‐Jun‐10 $'000 $'000 Consolidated
(f) Other income Rehabilitation provision adjustment from non operating mine sites Profit on sale of subsidiaries (i) Profit on sale of property, plant and equipment Other		1,073 726 ‐ 7,208 139 1,934 104 230 1,316 10,098 4,248 4,297 714 737 770 512 ‐ 28 1,215 522 250 271 1,361 ‐ 1,199 1,209 9,757 7,576 18,612 10,701 985 519 19,597 11,220
(i) On 7 May 2010, Resolute disposed of a number of Australian and Ghanaian subsidiaries to Viking Ashanti Limited. Proceeds received comprised of 23 million shares in Viking Ashanti Limited and a cash component. As a result of this transaction, Resolute holds 33.25% of the ordinary shares of Viking Ashanti Limited.
(g) Administration and other expenses Other management and administration expenses Non mine site insurance costs Operating lease expenses Loss on sale of available for sale financial assets Share based payments expense Depreciation of non mine site assets Impairment of accounts receivable Other
(h) Finance costs Interest and fees paid/payable to other entities (i) Rehabilitation provision discount adjustment

(i) Interest and fees paid/payable to other entities relating to financing of the Syama redevelopment and pre‐production costs up until 31 December 2009 were capitalised into pre‐production costs.

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RESOLUTE MINING LIMITED APPENDIX 4E: PRELIMINARY FINAL REPORT For the year ended 30 June 2011

NOTES TO THE FINANCIAL STATEMENTS

NOTE 3: PROFIT/(LOSS) FROM CONTINUING OPERATIONS (continued)

NOTE 3: PROFIT/(LOSS) FROM CONTINUING OPERATIONS (continued)
	For the year For the year ended ended 30‐Jun‐11 30‐Jun‐10 $'000 $'000 Consolidated
(i) Treasury ‐ other realised (losses)/gains Realised gain on gold call options Realised loss on gold put options Realised foreign exchange loss	‐ 1,522 (3,909) ‐ (665) (1,327) (4,574) 195 ‐ 2,077 2,930 (5,467) ‐ (1,393) 7,991 3,351 (10,191) (74,544) 730 (75,976)
(j) Treasury ‐ unrealised gains/(losses) Unrealised gain on gold forward contracts Unrealised gain/(loss) on gold put options Unrealised loss on gold call options Unrealised foreign exchange gain Unrealised foreign exchange loss on loans with subsidiaries

NOTE 4: DIVIDENDS PAID OR PROVIDED FOR

There were no dividends paid or provided for during the year and up to the date of this report.

FRANKING CREDITS

The amount of franking credits available for subsequent financial years is as follows. The amount has been determined using a tax rate of 30%. 7,417 7,417

NOTE 5: FINANCIAL LIABILITIES

• a) In October 2010, the Group completed the close out of its hedge book. Funding for the gold purchases to achieve this comprised approximately A$30.368m from an equity raising in October and A$47.991m of credit from the hedging counterparties, Barclays and Investec. The credit was scheduled to be repaid in monthly instalments between February and September 2011. The remaining balance owing as at 30 June 2011 is A$18.910m and is scheduled to be fully repaid by September 2011.

• b) The financing arrangement to fund the gold purchases has the same securities in place as the senior debt facility provided by Barclays Bank Plc, and Investec Bank (Australia) Limited, the environmental bond facility, and the deferred put option premium facility.

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RESOLUTE MINING LIMITED APPENDIX 4E: PRELIMINARY FINAL REPORT For the year ended 30 June 2011

NOTES TO THE FINANCIAL STATEMENTS

NOTE 5: FINANCIAL LIABILITIES (continued)

Those securities are as follows:

• (i) Cross Guarantee and Indemnity given by Resolute Mining Limited, Carpentaria Gold Pty Ltd, Resolute (Tanzania) Limited, Mabangu Mining Limited, Resolute Pty Ltd, Resolute (Treasury) Pty Ltd and Resolute (Somisy) Limited;

• (ii) fixed and floating charge over all the current and future assets of Resolute (Tanzania) Limited including onshore and offshore bank accounts and shares of Mabangu Mining Ltd;

• (iii) fixed and floating charge over all the current and future assets of Mabangu Mining Limited including onshore and offshore bank accounts;

• (iv) mortgage over mining lease ML 19/97 of the Resolute (Tanzania) Limited group of companies;

• (v) mortgage over prospecting licences PL 1461/2000, PL 1462/2000, PL 1732/2001, PL 347/95, PL 1833/2001, PL 1890/2002, PL 1891/2002 and PL 1892/2002 of Resolute (Tanzania) Limited;

• (vi) share Mortgage by Resolute Pty Ltd over all of its shares in Resolute (Tanzania) Limited and including an assignment of Tanzanian general and political risks insurance policies with the Security Trustee being named as the loss payee;

• (vii) share Mortgage by the Borrower over all of its shares in Carpentaria Gold Pty Ltd;

• (viii) share Mortgage by the Borrower over all of its shares in Resolute (Somisy) Limited and including an assignment of rights under Malian general and political risks insurance policies with the Security Trustee being named as the loss payee;

• (ix) fixed and floating charge over all the current and future assets of Resolute (Treasury) Pty Ltd including bank accounts and an assignment of all Hedging Contracts;

• (x) fixed and floating charges over all the current and future assets of Carpentaria Gold Pty Ltd including bank accounts and an assignment of all Hedging Contracts;

• (xi) mortgage over key Carpentaria Gold Pty Ltd mining tenements, and

• (xii) mortgage over the loan receivable from Societe des Mines de Syama SA.

19

RESOLUTE MINING LIMITED APPENDIX 4E: PRELIMINARY FINAL REPORT For the year ended 30 June 2011

NOTES TO THE FINANCIAL STATEMENTS

NOTE 6: EARNINGS PER SHARE

Basic earnings per share Profit/(loss) used in calculation of basic earnings per share ($'000) Weighted average number of ordinary shares outstanding during the period used in the calculation of basic EPS Basic EPS (cents per share) Diluted earnings per share Profit/(loss) used in calculation of basic earnings per share ($'000) Tax effected interest on convertible notes ($'000) Net profit/(loss) attributable to ordinary equity holders of the parent adjusted for the effect of convertible notes ($'000) Weighted average number of ordinary shares outstanding during the period used in the calculation of basic EPS Weighted average number of notional shares used in determining diluted EPS Weighted average number of ordinary shares outstanding during the period used in the calculation of diluted EPS Number of potential ordinary shares that are not dilutive and hence not included in calculation of diluted EPS Diluted EPS (cents per share)	2011 2010 61,385 (37,173) 444,809,350 375,297,701 13.80 (9.90) 61,385 (37,173) 8,305 6,363 Consolidated
	69,690 (30,810)
	444,809,350 375,297,701 175,133,158 n/a
	619,942,508 375,297,701
	1,873,000 200,669,184 11.24 (9.90)

Dilutive securities are not included in the calculation of diluted earnings per share for the year ended 30 June 2010 because the result was a loss.

20

RESOLUTE MINING LIMITED APPENDIX 4E: PRELIMINARY FINAL REPORT For the year ended 30 June 2011

NOTES TO THE FINANCIAL STATEMENTS

NOTE 7: ISSUED & CONTRIBUTED EQUITY

Total Number Issue Price Amount Paid Number Quoted Per Security Up Per Security

Ordinary securities

As at 30 June 2011	467,638,948	467,638,948
Changes during current period
Increases through exercise of unlisted options	55,000	55,000	$1.12	$1.12
Increases through exercise of unlisted options	65,000	65,000	$1.09	$1.09
Increases through exercise of unlisted options	359,001	359,001	$0.42	$0.42
Increases through exercise of listed options	44,917,993	44,917,993	$0.60	$0.60
Increases through placement of shares to sophisticated
investors	11,762,463	11,762,463	$1.24	$1.24
Increases through conversion of convertible notes	14,289,793	14,289,793	$0.50	$0.50
Increases through issue of shares to convertible note
holders for interest owing	3,603,264	3,603,264	$1.24	$1.24

	Total	Number	Exercise	Expiry
	Number	Quoted	Price	Date
Options on issue
As at 30 June 2011	125,000	‐	$1.32	24/10/2011
	213,000	‐	$2.12	22/05/2013
	51,000	‐	$1.62	29/08/2013
	1,250,000	‐	$1.63	1/10/2011
	680,667	‐	$0.42	31/01/2014
	51,056,723	51,056,723	$0.60	31/12/2011
	500,000	‐	$1.00	31/03/2012
	500,000	‐	$0.74	30/06/2012
	3,000,000	‐	$0.72	24/10/2012
	739,000	‐	$1.09	14/02/2015
	99,000	‐	$1.21	15/07/2015
	135,000	‐	$1.43	15/11/2015
	2,000,000	‐	$1.36	4/01/2016
	1,163,000	‐	$1.43	24/01/2016
	130,000	‐	$1.18	15/07/2016

21

RESOLUTE MINING LIMITED APPENDIX 4E: PRELIMINARY FINAL REPORT For the year ended 30 June 2011

NOTES TO THE FINANCIAL STATEMENTS

NOTE 7: ISSUED & CONTRIBUTED EQUITY (continued)

	Total	Number	Exercise	Expiry
	Number	Quoted	Price	Date
Changes during current period
Exercise of unlisted options	55,000	‐	$1.12	23/03/2011
Lapsing of unlisted options	130,000	‐	$1.32	24/10/2011
Lapsing of unlisted options	24,000	‐	$2.12	22/05/2013
Lapsing of unlisted options	24,000	‐	$1.62	29/08/2013
Lapsing of unlisted options	133,334	‐	$0.42	31/01/2014
Exercise of unlisted options	359,001	‐	$0.42	31/01/2014
Exercise of listed options	44,917,993	44,917,993	$0.60	31/12/2011
Lapsing of unlisted options	260,000	‐	$1.09	14/02/2015
Exercise of unlisted options	65,000	‐	$1.09	14/02/2015
Issue of unlisted options	(179,000)	‐	$1.21	15/07/2015
Issue of unlisted options	(135,000)	‐	$1.43	15/11/2015
Issue of unlisted options	(2,000,000)	‐	$1.36	4/01/2016
Issue of unlisted options	(1,366,000)	‐	$1.43	24/01/2016
Lapsing of unlisted options	203,000	‐	$1.43	24/01/2016
	Total	Number	Exercise	Expiry
	Number	Quoted	Price	Date
Convertible notes on issue
As at 30 June 2011	136,862,475	136,862,475	$0.50	31/12/2012
Changes during current period
Conversion of convertible notes	(14,289,793)	(14,289,793)	$0.50	31/12/2012

22

RESOLUTE MINING LIMITED

APPENDIX 4E: PRELIMINARY FINAL REPORT

For the year ended 30 June 2011

NOTES TO THE FINANCIAL STATEMENTS

NOTE 8: OPERATING SEGMENTS

NOTE 8: OPERATING SEGMENTS
2011 Revenue Gold sales at spot to external customers (a) Total segment gold sales revenue Cash costs	RAVENSWOOD GOLDEN PRIDE SYAMA CORP/OTHER TREASURY TOTAL (AUSTRALIA) (TANZANIA) (MALI) $'000 $'000 $'000 $'000 $'000 $'000 ( c ) ( c ) 170,036 176,745 116,130 ‐ ‐ 462,911 UNALLOCATED
	170,036 176,745 116,130 ‐ ‐ 462,911 (109,435) (87,710) (103,197) ‐ ‐ (300,342)
Depreciation and amortisation	(24,791) (6,502) (31,098) ‐ ‐ (62,391)
Other operating costs (b) Other corporate/admin costs (b) Segment operating result before treasury, other income/(expenses) and tax Other income Exploration expenditure Finance costs	(5,672) (9,383) (4,175) (682) ‐ (19,912) (64) ‐ ‐ (4,585) ‐ (4,649)
	30,074 73,150 (22,340) (5,267) ‐ 75,617 ‐ ‐ ‐ 1,073 572 1,645 (2,374) (1,950) (2,933) (1,469) ‐ (8,726) ‐ ‐ ‐ ‐ (19,597) (19,597)
Realised loss on gold forward contracts delivered into with production	‐ ‐ ‐ ‐ (17,856) (17,856)
Other	‐ ‐ ‐ (2,429) ‐ (2,429)
Segment operating result before treasury and tax
	27,700 71,200 (25,273) (8,092) (36,881) 28,654
Treasury ‐ movement on gold forward contracts closed out	‐ ‐ ‐ ‐ 34,742 34,742
Treasury ‐ other realised losses Treasury ‐ other unrealised losses Income tax expense Net profit/(loss) after tax	‐ ‐ ‐ ‐ (4,574) (4,574) ‐ ‐ ‐ ‐ 730 730 ‐ (14,629) ‐ (308) ‐ (14,937)
	27,700 56,571 (25,273) (8,400) (5,983) 44,615

23

RESOLUTE MINING LIMITED APPENDIX 4E: PRELIMINARY FINAL REPORT

For the year ended 30 June 2011

NOTES TO THE FINANCIAL STATEMENTS

NOTE 8: OPERATING SEGMENTS (continued)

2011	RAVENSWOOD GOLDEN PRIDE SYAMA CORP/OTHER TREASURY TOTAL (AUSTRALIA) (TANZANIA) (MALI) $'000 $'000 $'000 $'000 $'000 $'000 ( c ) ( c ) UNALLOCATED	RAVENSWOOD GOLDEN PRIDE SYAMA CORP/OTHER TREASURY TOTAL (AUSTRALIA) (TANZANIA) (MALI) $'000 $'000 $'000 $'000 $'000 $'000 ( c ) ( c ) UNALLOCATED
Reconciliation of total segment revenue to statement of comprehensive income: Total segment gold sales revenue to external customers Realised loss on gold forward contracts Total revenue per statement of comprehensive income Cash flow by segment, including receivables ‐ gold bullion sales Reconciliation of cash flow by segment to the cash flow statement: Movement in receivables ‐ gold bullion sales Movement in bank overdraft Exchange rate adjustment Movement in cash and cash equivalents per cash flow statement Capital expenditure Segment assets Segment liabilities	462,911 (17,856) 445,055 23,541 60,409 (29,779) (3,193) (53,221) (2,243) (4,803) (1,183) 822 (7,407) 12,545 1,021 6,704 217 ‐ 20,487	462,911 (17,856)
		(7,407) 20,487
	130,130 65,500 354,333 28,872 11	578,846
	39,257 22,712 37,064 10,557 113,259	222,849

24

RESOLUTE MINING LIMITED

APPENDIX 4E: PRELIMINARY FINAL REPORT

For the year ended 30 June 2011

NOTES TO THE FINANCIAL STATEMENTS

NOTE 8: OPERATING SEGMENTS (continued)

NOTE 8: OPERATING SEGMENTS (continued)
2010 Revenue Gold sales at spot to external customers (a) Total segment gold sales revenue Cash costs Depreciation and amortisation Other operating costs (b) Other corporate/admin costs (b) Segment operating result before treasury, other income/(expenses) and tax Other income Exploration expenditure Finance costs Realised loss on gold forward contracts delivered into with production Other Segment operating result before unrealised treasury, other income/(expenses) and tax Treasury ‐ other realised losses Treasury ‐ other unrealised losses Income tax (expense)/benefit Net profit/(loss) after tax	RAVENSWOOD GOLDEN PRIDE SYAMA CORP/OTHER TREASURY TOTAL (AUSTRALIA) (TANZANIA) (MALI) $'000 $'000 $'000 $'000 $'000 $'000 ( c ) ( c ) 158,456 181,446 54,034 ‐ ‐ 393,936 UNALLOCATED
	158,456 181,446 54,034 ‐ ‐ 393,936 (101,081) (86,617) (46,441) ‐ ‐ (234,139) (21,034) (6,155) (15,952) ‐ ‐ (43,141) (6,112) (6,990) (291) (388) ‐ (13,781) (53) ‐ ‐ (4,353) ‐ (4,406)
	30,176 81,684 (8,650) (4,741) ‐ 98,469 38 9 ‐ 10,023 294 10,364 (1,586) (2,415) (2,995) (2,284) ‐ (9,280) ‐ ‐ ‐ ‐ (11,220) (11,220) ‐ ‐ ‐ ‐ (51,452) (51,452) ‐ ‐ ‐ (1,052) ‐ (1,052)
	28,628 79,278 (11,645) 1,946 (62,378) 35,829 ‐ ‐ ‐ ‐ 195 195 ‐ ‐ ‐ ‐ (75,976) (75,976) (2,290) (15,555) ‐ 1,226 ‐ (16,619)
	26,338 63,723 (11,645) 3,172 (138,159) (56,571)

25

RESOLUTE MINING LIMITED APPENDIX 4E: PRELIMINARY FINAL REPORT For the year ended 30 June 2011

NOTES TO THE FINANCIAL STATEMENTS

NOTE 8: OPERATING SEGMENTS (continued)

2010	RAVENSWOOD GOLDEN PRIDE SYAMA CORP/OTHER TREASURY TOTAL (AUSTRALIA) (TANZANIA) (MALI) $'000 $'000 $'000 $'000 $'000 $'000 ( c ) ( c ) UNALLOCATED
Reconciliation of total segment revenue to statement of comprehensive income: Total segment gold sales revenue to external customers Realised loss on gold forward contracts Amortisation of gold hedge reserve Total revenue per statement of comprehensive income Cash flow by segment, including receivables ‐ gold bullion sales Reconciliation of cash flow by segment to the cash flow statement: Movement in receivables ‐ gold bullion sales Movement in bank overdraft Exchange rate adjustment Movement in cash and cash equivalents per cash flow statement Capital expenditure Segment assets Segment liabilities
	121,117 79,131 380,726 31,572 89
	26,983 24,685 40,929 6,373 230,625

(a) Revenue from external sales for each reportable segment is derived from several customers. The customers each make up greater than 10% of the respective segments’ sales revenue. (b) Includes inter‐segment revenue and expenditure.

(c) This information does not represent an operating segment as defined by AASB 8, however this information is analysed in this format by the Chief Operating Decision Makers, and forms part of the reconciliation of the results and positions of the operating segments to the financial statements.

26

RESOLUTE MINING LIMITED APPENDIX 4E: PRELIMINARY FINAL REPORT For the year ended 30 June 2011

NOTES TO THE FINANCIAL STATEMENTS

NOTE 9: NET TANGIBLE ASSETS

NOTE 9: NET TANGIBLE ASSETS
	As at	As at
	30‐Jun‐11	30‐Jun‐10
	$'000	$'000
Net tangible assets per share ($)	0.76	0.72

Signed in accordance with a resolution of directors.

==> picture [74 x 31] intentionally omitted <==

P.R. Sullivan Director Perth, Western Australia 30 August 2011

27