Resolute Mining Limited — Interim / Quarterly Report 2004

Feb 23, 2004

ASX ANNOUNCEMENT

HALF YEAR REPORT

31 DECEMBER 2003

OPERATING PROFIT

The directors of Resolute Mining Limited are pleased to report the Company's consolidated net profit after tax and outside equity interests for the half year ended 31 December 2003 of \$26.7m (half year ended 30 June 2003: \$7.4m). This equates to a basic earnings per share of 16.3 cents.

Resolute's profit result has been driven by a non-recurring \$17.7m profit after tax on the sale of various assets including the Company's shareholdings in AGR Limited, Gallery Gold Limited and Red Back Mining NL, the Company's exploration assets in Australia and the Obotan plant in Ghana. The profit result was also aided by a better than expected performance at the Golden Pride gold mine in Tanzania, which produced 87,787 ounces of gold at a cash cost of \$318/oz or US\$218/oz.

The average cash received per ounce of gold sold during the period under review was \$536/oz. In accordance with the principles of hedge accounting, a portion of the cash received on the sale of gold during the half has not been recognised in the Statement of Financial Performance for the half year ended 31 December 2003 but will be recognised in a later accounting period.

CASHFLOWS

As at 31 December 2003, Resolute had \$50.4m of cash and bullion, liquid investments with a market value of \$3.6m and a convertible note for \$7.3m (US\$5.5m). Total borrowings were \$19.9m (US\$14.9m).

During the half year, Golden Pride delivered gross operating cashflows of approximately \$17m. The net operating cashflow of \$8.3m reported in the Consolidated Statement of Cashflows was generated after accounting for royalties, operational support and overhead costs, income tax paid, rehabilitation, Obotan closure costs and working capital movements

This operational cashflow plus proceeds on the sale of assets of \$33.3m have significantly bolstered the Company's cash reserves and strengthened the Company's Statement of Financial Position

DIVIDENDS

The directors have resolved to pay no dividend out of the half year profit. This decision is primarily due to the application of the majority of existing cash reserves to funding the acquisition of the Ravenswood gold operations.

OUTLOOK

The \$60m (US\$45m) acquisition of the Ravenswood gold operations in Queensland is due for settlement on 1 March 2004. This operation will be consolidated into Resolute's activities from this date. Resolute intends to fund the purchase using approximately \$40m of existing cash reserves and \$20m of project related debt.

The acquisition will provide a significant Australian asset to Resolute and transform it into the third largest Australian domiciled gold producer, with estimated annualised production of around 350,000 ounces.

The Ravenswood mine is expected to produce an average of approximately 200,000 ounces per annum over its projected six year mine life at a cash cost of approximately \$425/oz. It has a 1 million plus ounce reserve and 2.7 million ounce resource base with excellent exploration potential.

The Golden Pride gold mine will continue to run at or slightly better than its design capacity of 2.6 million tonnes of ore per annum though it is expected that gold production from Golden Pride will be lower in the next half year as the lower grade (approx. 2g/t) section of the pit is mined.

Resolute still maintains its option to acquire 80% of the company that owns the Syama gold mine in Mali. West Africa. Pre-feasibility study activities have advanced during the half year and a redevelopment plan for the mine concluded. The study is expected to be completed in the March 2004 quarter, and following the completion of the study, a decision will be made on whether to exercise the option. This could potentially provide the company with a third mining operation.

The directors look forward to providing updates on the Company's exploration and development activities in the second half of the 2004 financial year.

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

Enquiries about this report may be directed to the undersigned or Greg Fitzgerald.

PETER SULLIVAN Chief Executive Officer

24 February 2004

FINANCIAL REPORT

FOR THE HALF YEAR ENDED

31 DECEMBER 2003

DIRECTORS' REPORT

Your directors submit the report of Resolute Mining Limited for the half year ended 31 December 2003.

Directors

The names of the directors of the Company in office during the half year and until the date of this report are as follows. Directors were in office for this entire period unless otherwise stated.

Peter Ross Sullivan (Chief Executive Officer) Peter Ernest Huston (Non-Executive Chairman) Thomas Cummings Ford (Non-Executive Director) Henry Thomas Stuart Price (Non-Executive Director) - appointed 26 November 2003

Results

Consolidated entity profit from ordinary activities after tax and outside equity interests for the half year was \$26,738,153 (2002: \$7,857,265).

Review of Operations

(a) Production

The total Resolute Mining Limited group gold production for the half year ended 31 December 2003 was 87,787 ounces (2002: 121,126) at an average cash cost of A\$318/oz (or US\$218/oz) (2002: A\$374). The total production for the group for the half year ended 31 December 2003 came from the Golden Pride Mine.

Golden Pride Mine

The Golden Pride mine in Tanzania produced 87,787 ounces of gold in the 6 months ended 31 December 2003 at a cash cost of A\$318/oz (or US\$218/oz) compared to gold production of 71,977 ounces at a cash cost of A\$416/oz (or US\$231/oz) in the 6 months ended 31 December 2002.

Obotan Mine

The Obotan mine in Ghana was decommissioned in December 2002 and placed on care and maintenance. As such there was no production from the mine in the half year ended 31 December 2003 compared to 49,149 ounces of gold at a cash cost of A\$311/oz (or US\$172/oz) for the previous half year. As noted in the most recent annual report, the Obotan plant was sold to Golden Star Resources Limited for US\$4.3m and the profit on this transaction is included within the half year to 31 December 2003 results. Resolute has retained the mining lease and rehabilitation obligations following the removal of the plant from the site.

(b) Exploration and Development

Exploration programs undertaken during the half year under review concentrated on advancing Resolute's range of exploration properties located in Tanzania, Ghana and Burkina Faso and a variety of encouraging results were generated.

Resolute still retains an option to acquire 80% of the Syama Gold Project in Mali. A pre-feasibility study has commenced incorporating metallurgical test work, flow sheet development and a drill program to determine the viability of this project.

DIRECTORS' REPORT (continued)

(c) Corporate

The following significant activities occurred during the half year ended 31 December 2003.

• $(i)$ Resolute Mining Limited and Etruscan Resources Inc. entered into an option and joint venture agreement granting Resolute the right to earn up to a 60% interest in Etruscan's interest in the Finkolo gold exploration permit in Mali. Concurrent with the execution of the option agreement, Resolute completed a private placement in Etruscan for aggregate proceeds of US\$500,000 at a subscription price of CDN\$2.60 per common share.
• Resolute entered into an agreement with Bullion Minerals Limited whereby Resolute sold its $(ii)$ nickel interests over certain tenure, the wholly owned Chalice tenement and its interest in the Indee joint venture to Bullion in exchange for A\$750,000 cash, 10 million fully paid shares in Bullion, 2.5 million Bullion options with an exercise price of 25 cents and an expiry date of June 2005 and 2.5 million Bullion options with an exercise price of 30 cents and an expiry date of June 2006. This transaction was settled on 18 December 2003 and Resolute now holds 19.4% of Bullion's expanded issued capital.
• $(iii)$ Central Asia Gold Limited purchased Resolute's AGR shareholding by paying 28.5 cents per share, or \$11.3m in total.
• The Company sold its 12% stake in Gallery Gold Limited at a price of 30 cents per share, or $(iv)$ A\$13m in total.
• Resolute's shareholding in Red Back Mining NL was liquidated. $(v)$
• Dominion Mining Limited announced its decision to proceed with the underground mine $(v_i)$ development at the Challenger gold project in South Australia. This has significantly improved the likelihood of Resolute's royalty entitlement being triggered. The royalty entitlement equates to A\$20/oz for gold production in excess of 100,000 ounces.

Significant Events after the Balance Date

Acquisition of Ravenswood Gold Mine

On 13 January 2004, Resolute entered into an agreement with Xstrata Queensland Limited to purchase Carpentaria Gold Pty Ltd, the owner of the Ravenswood Gold Operations located in northwest Queensland, for US\$45 million cash. There are no major conditions to the acquisition and completion of the purchase is expected by 1 March 2004.

Sale of Burkina Faso Properties

As announced to the Australian Stock Exchange on 30 January 2004, Resolute has reached agreement with Goldbelt Resources Limited ("Goldbelt"), a TSX Venture Exchange listed company, to sell Resolute (West Africa) Limited, the owner of the Belahouro project and other exploration properties in Burkina Faso, to Goldbelt for cash and Goldbelt shares and warrants. This transaction is subject to a number of conditions, including due diligence and approval by the TSX Venture Exchange and Goldbelt shareholders.

Under the agreement Resolute will receive cash of US\$1.5m and Goldbelt shares and warrants to a value of CAD\$5m. Following completion of the transaction Resolute will become a major shareholder of Goldbelt and will assist it in identifying other gold exploitation opportunities in West Africa where it does not conflict with Resolute's activities.

Northern Mining Explorations Debt Repayment

On 29 January 2004, Northern Mining Explorations Limited repaid Resolute their outstanding balance of US\$5.5m. Resolute repaid a corresponding US\$5.5m to RMB Resources Ltd, a unit of Rand Merchant Bank, which settles all outstanding obligations with RMB.

DIRECTORS' REPORT (continued)

Rounding

RML is a company of the kind specified in Australian Securities & Investments Commission Class Order 98/0100. In accordance with that class order, amounts in the financial report have been rounded to the nearest thousand dollars unless specifically stated to be otherwise.

Signed in accordance with a resolution of the directors.

P.R. Sullivan Director

Perth, Western Australia 23 February 2004

ABN: 39 097 088 689

APPENDIX 4D

REPORT FOR THE

HALF YEAR ENDED 31 DECEMBER 2003

RESULTS FOR ANNOUNCEMENT TO THE MARKET

The reporting period is the half year ended 31 December 2003 with the corresponding reporting period being for the half year ended 31 December 2002.

Results				A\$'000
Revenues from ordinary activities	up	23.4%	to	82,963
Profit from ordinary activities after tax attributable to members	up	240.3%	to	26,738
Net profit for the period attributable to members	up	240.3%	to	26,738

	Amount per	Franked amount
IDividends	security	per security
Final dividend - no final dividend is proposed	n/a	n/a
Interim dividend	n/a	n/a
Record date for determining entitlements to the dividend	n/a

This half yearly report should be read in conjunction with the most recent annual financial report.

Page 4

CONDENSED STATEMENT OF FINANCIAL PERFORMANCE

FOR THE HALF YEAR ENDED 31 DECEMBER 2003

	Note	Consolidated
		For the half year ended 31-Dec-03 \$'000	For the half year ended 31-Dec-02 \$'000
Revenue from gold sales	1(a)	44,694	66,735
Cost of sales	1(c)	(33,780)	(56, 610)
Gross profit		10,914	10,125
Other revenues from ordinary activities	1(b)	38,269	494
Borrowing cost expense	1(d)	(346)	(378)
Other expenses from ordinary activities	1(e)	(19, 134)	(1,844)
Profit from ordinary activities before income tax		29,703	8,397
Income tax (expense)/benefit attributable to ordinary activities		(2,717)	155
Profit from ordinary activities after income tax		26,986	8,552
Net profit attributable to outside equity interests		248	695
Net profit attributable to members of Resolute Mining Limited		26,738	7,857
Net exchange difference on translation of financial reports of self sustaining foreign operations		(7, 165)	(153)
Total revenues, expenses and valuation adjustments attributable to members of Resolute Mining Limited and recognised directly in equity		(7, 165)	(153)
Total changes in equity other than those resulting from transactions with owners as owners		19,573	7,704
Basic earnings per share (cents per share)		16.3	4.9
Diluted earnings per share (cents per share)		14.9	4.9

CONDENSED STATEMENT OF FINANCIAL POSITION

AS AT 31 DECEMBER 2003

	Consolidated
	At end of current period \$'000	As shown in last annual report \$'000
CURRENT ASSETS
Cash assets	50,420	17,627
Receivables	13,389	11,802
Other financial assets		5,424
Inventories	14,419	16,453
Other	1,864	1,095
TOTAL CURRENT ASSETS	80,092	52,401
NON-CURRENT ASSETS
Receivables	50	50
Other financial assets	2,625	9,445
Mineral exploration and development interests	16,962	14,374
Property, plant and equipment	25,815	32,208
Deferred mining costs	16,087	17,556
Other	1,164	882
TOTAL NON-CURRENT ASSETS	62,703	74,515
TOTAL ASSETS	142,795	126,916
CURRENT LIABILITIES
Payables	11,961	14,452
Interest bearing liabilities	7,384	8,293
Tax liabilities	2,395
Provisions	9,537	9,236
TOTAL CURRENT LIABILITIES	31,277	31,981
NON-CURRENT LIABILITIES
Interest bearing liabilities	12,500	14,003
Provisions	2,196	2,842
Deferred tax liabilities	4,669	5,823
TOTAL NON-CURRENT LIABILITIES	19,365	22,668
TOTAL LIABILITIES	50,642	54,649
NET ASSETS	92,153	72,267
EQUITY
Parent entity interest:
Contributed equity	56,750	56,568
Reserves	(21, 959)	(14, 794)
Retained profits	55,879	29,141
Parent entity interest in equity	90,670	70,915
Outside equity interests:	1,483	1,352
TOTAL EQUITY	92,153	72,267

CONDENSED STATEMENT OF CASH FLOWS

FOR THE HALF YEAR ENDED 31 DECEMBER 2003

	Consolidated
	For the half year ended 31-Dec-03	For the half year ended 31-Dec-02
	\$'000	\$'000
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from customers	46,885	69,849
Payments to suppliers and employees	(38, 136)	(58, 429)
Interest received	216	291
Interest and other costs of finance paid	(266)	(475)
Income taxes paid GST refunded from the Australian Taxation Office	(513) 142	(452) 329.
Net operating cash flows	8,328	11,113
CASH FLOWS FROM INVESTING ACTIVITIES
Payment for property, plant and equipment	(981)	(11,235)
Proceeds from sale of plant and equipment	5,977	10
Payments for investments	(1, 102)	(2,935)
Proceeds from sale of investments	27,404	9
Expenditure on exploration and development areas	(5,097)	(3, 115) (6, 180)
Acquisition of development property Other		1
Net investing cash flows	26,201	(23, 445)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from issues of securities	182	7,663
Proceeds from borrowings	$\ddot{\phantom{0}}$	16,711
Return of capital	(10)	(923)
Other	(16)	(24)
Net financing cash flows	156	23,427
Net increase in cash held	34,685	11,095
Cash assets held at the beginning of the period	17,627	15,622
Exchange rate adjustment	(1,892)	7
Cash assets at end of period	50,420	26,724

FOR THE HALF YEAR ENDED 31 DECEMBER 2003

		Consolidated
		For the half year ended 31-Dec-03 \$'000	For the half year ended 31-Dec-02 \$'000
NOTE 1	PROFIT FROM ORDINARY ACTIVITIES
(a)	Revenues from operating activities
	Gold sales Total revenue from operating activities	44,694 44,694	66,735 66,735
(b)	Revenues from non operating activities
	Proceeds on sale of plant and equipment Proceeds on sale of investments Proceeds on sale of exploration properties Interest income - other persons/corporations Option premium Other income Total revenue from non operating activities	5,977 27,404 2,350 386 1,833 319 38,269	10 9 291 184 494
	Total revenues from ordinary activities	82,963	67,229
$\left( \mathrm{c}\right)$	Cost of sales
	Cash costs Amortisation of exploration & development costs Depreciation of mine properties, plant & equipment Royalty Gold in circuit adjustment Operational support costs Total cost of sales	27,853 622 2,992 1,450 121 742 33,780	45,244 4,616 4,969 2,148 (1, 179) 812 56,610
(d)	Borrowing costs
	Interest and fees paid/payable to other entities Total borrowing costs	346 346	378 378
(e)	Other expenses from ordinary activities
	Management and administration expenses Cost of plant and equipment sold Cost of investments sold Cost of exploration properties sold Insurance costs Foreign exchange (gain)/loss Write down of mineral exploration and development costs Provision for diminution in value of investments Other	1,315 1,355 14,847 506 284 266 305 256 19,134	1,279 9 321 (128) 718 (75) (280) 1,844
(f)	Profit on sale of assets
	Profit on sale of plant and equipment Profit on sale of investments Profit on sale of exploration properties	4,622 12,557 1,844 19,023	10 10.

FOR THE HALF YEAR ENDED 31 DECEMBER 2003

NOTE₂ BASIS OF FINANCIAL REPORT PREPARATION

The half year financial statements are general purpose financial reports made out in accordance with the Corporations Act 2001 and applicable Accounting Standards including Accounting Standard AASB 1029 "Interim Financial Reporting" and the Corporations Regulations 2001. Other mandatory professional reporting requirements (Urgent Issues Group Consensus Views and other authoritive pronouncements of the Australian Accounting Standards Board) have also been complied with.

The financial report has been prepared in accordance with the historical cost convention. Cost in relation to assets represents the cash amount paid or the fair value of the asset given in exchange.

It is recommended that this report be read in conjunction with the 30 June 2003 Annual Report and any public announcements made by Resolute Mining Limited and its controlled entities during the half year ended 31 December 2003 in accordance with the continuous disclosure obligations of the Corporations Act 2001 and Australian Stock Exchange Listing Rules.

For the purpose of preparing the half year financial statements, the half year has been treated as a discrete reporting period.

The accounting policies adopted are consistent with those of the previous financial year. The interim Appendix 4D does not include notes of the type normally included in the annual financial report.

Where necessary, comparatives have been reclassified and repositioned for consistency with current year disclosures.

NOTE₃ SUBSEQUENT EVENTS

Acquisition of Ravenswood Gold Mine

On 13 January 2004, Resolute entered into an agreement with Xstrata Queensland Limited to purchase Carpentaria Gold Pty Ltd, the owner of the Ravenswood Gold Operations located in northwest Queensland, for US\$45 million cash. There are no major conditions to the acquisition and completion of the purchase is expected by 1 March 2004.

Sale of Burkina Faso Properties

As announced to the Australian Stock Exchange on 30 January 2004, Resolute has reached agreement with Goldbelt Resources Limited ("Goldbelt"), a TSX Venture Exchange listed company, to sell Resolute (West Africa) Limited, the owner of the Belahouro project and other exploration properties in Burkina Faso, to Goldbelt for cash and Goldbelt shares and warrants. This transaction is subject to a number of conditions, including due diligence and approval by the TSX Venture Exchange and Goldbelt shareholders.

Under the agreement Resolute will receive cash of US\$1.5m and Goldbelt shares and warrants to a value of CAD\$5m. Following completion of the transaction Resolute will become a major shareholder of Goldbelt and will assist it in identifying other gold exploitation opportunities in West Africa where it does not conflict with Resolute's activities.

Northern Mining Explorations Debt Repayment

On 29 January 2004, Northern Mining Explorations Limited repaid Resolute their outstanding balance of US\$5.5m. Resolute repaid a corresponding US\$5.5m to RMB Resources Ltd, a unit of Rand Merchant Bank, which settles all outstanding obligations with RMB.

FOR THE HALF YEAR ENDED 31 DECEMBER 2003

NOTE 4 SEGMENT INFORMATION

Primary Segment - Geographical

The consolidated entity operates in two geographical segments.

Geographical Segments		Tanzania		Ghana	Corporate		Consolidated
	31/12/2003 SA'000	31/12/2002 SA'000	31/12/2003 \$A'000	31/12/2002 \$A'000	31/12/2003 SA'000	31/12/2002 SA'000	31/12/2003 \$A'000	31/12/2002 \$A'000
Revenue
Sales to customers	44.694	39,286		27.449			44,694	66.735
Other revenue	655	48	6,210	41	31,404	405	38,269	494
Segment revenue	45,349	39,334	6,210	27.490	31,404	405	82,963	67,229
Results
Segment results	11,269	1,868	4,288	7,779	14,146	(1,250)	29,703	8,397
Consolidated entity profit from ordinary activities							29,703
before income tax expense								8,397
Income tax (expense)/benefit							(2,717)	155
Consolidated entity profit from ordinary activities
after income tax (expense)/benefit							26,986	8,552

FOR THE HALF YEAR ENDED 31 DECEMBER 2003

NOTE₅ CONTINGENT LIABILITIES

Native Title Claims

Native title determination applications have been lodged with the National Native Title Tribunal established under the Native Title Act 1993 over areas of interest currently leased by the consolidated entity. Some of those claims have been accepted by the Tribunal. Acceptance of an application by the Tribunal is merely a preliminary step in the procedure established by the Native Title Act to determine whether or not native title exists. The final effect of these claims is not known and the claims are not currently affecting the mining and exploration projects of the consolidated entity.

NOTE 6 TAX CONSOLIDATION

For the purposes of income tax, Resolute Mining Limited ("RML") and its wholly-owned subsidiaries intend to form a tax consolidated group. At the date of signing the financial report, RML have not determined the date of entry into tax consolidation. The date of entry into the regime will be determined prior to, or at the time RML (as head entity for the tax consolidated group) lodges its 2003 income tax return.

RML, as the head entity of the tax consolidated group, will consider entering into a tax sharing agreement with its wholly owned subsidiaries at the time of entering into tax consolidation. The purpose of this agreement will be to define the basis on which to allocate the income tax expense/credit to the wholly-owned subsidiaries.

Based on a preliminary analysis, it is not anticipated that the deferred tax related balances will be materially impacted upon entry into the tax consolidations regime.

FOR THE HALF YEAR ENDED 31 DECEMBER 2003

NOTE₇ ISSUED AND QUOTED SECURITIES AT END OF CURRENT PERIOD

	Total Number	Number Quoted	Issue Price Per Security	Amount Paid Up Per Security
Ordinary securities
As at 31 December 2003	164,693,894	164.693.894	\$0.44	\$0.44
Changes during current period
Increases through exercise of unlisted options Increases through exercise of listed options	145,000 85.726	145,000 85,726	\$0.81 \$0.80	\$0.81 \$0.80
	Total Number	Number Quoted	Exercise Price	Expiry Date
Options
As at 31 December 2003	2,460,000 51, 183, 333 2,000,000 1.665.000 105,000	51,183,333	\$2.20 \$0.80 \$0.42 \$0.81 \$0.81	04/01/05 11/06/05 10/12/06 19/09/07 13/08/08
Changes during current period
Exercise of listed options during the current period Exercise of unlisted options during the current period Lapsed during current period Issue of unlisted options during the current period	(85, 726) (145,000) (50,000) 105,000	(85, 726)	\$0.80 \$0.81 \$0.81 \$0.81	11/06/05 19/09/07 19/09/07 13/08/08

DIRECTORS' DECLARATION

In accordance with a resolution of the Directors of Resolute Mining Limited, we state that:

In the opinion of the Directors:

• (a) the financial statements and notes of the consolidated entity:
• give a true and fair view of the financial position as at 31 December 2003 and of their $(i)$ performance for the half year ended on that date of the consolidated entity; and
• comply with Accounting Standard AASB 1029 "Interim Financial Reporting" and the $(ii)$ Corporations Regulations 2001; and
• (b) there are reasonable grounds to believe that the Company will be able to pay its debts as and when they become due and payable.

P.R.Sullivan Director

Perth, Western Australia 23 February 2004

EII ERNST & YOUNG

蟹 Central Park 152 St Georges Terrace Perth WA 6000 Australia

CPO Box M939 Perth WA 6843

Independent review report to members of Resolute Mining Limited

Scope

The financial report and directors' responsibility

The financial report comprises the statement of financial position, statement of financial performance, statement of cash flows and accompanying notes to the financial statements and the other information set out in Appendix 4D to the Australian Stock Exchange (ASX) Listing Rules for the consolidated entity comprising both Resolute Mining Limited (the company) and the entities it controlled during the 6 months, and the directors' declaration, for the company, for the 6 months ended 31 December 2003, but excludes the Directors' Report.

The directors of the company are responsible for preparing a financial report that gives a true and fair view of the financial position and performance of the consolidated entity, and that complies with Accounting Standard AASB 1029 "Interim Financial Reporting", in accordance with the Corporations Act 2001, and the ASX Listing Rules as they relate to Appendix 4D. This includes responsibility for the maintenance of adequate accounting records and internal controls that are designed to prevent and detect fraud and error, and for the accounting policies and accounting estimates inherent in the financial report.

Review approach

We conducted an independent review of the financial report in order to make a statement about it to the members of the company, and in order for the company to lodge the financial report with the ASX and the Australian Securities and Investments Commission.

Our review was conducted in accordance with Australian Auditing Standards applicable to review engagements, in order to state whether, on the basis of the procedures described, anything has come to our attention that would indicate that the financial report is not presented fairly in accordance with the Corporations Act 2001, Accounting Standard AASB 1029 "Interim Financial Reporting" and other mandatory professional reporting requirements in Australia, and the ASX Listing Rules as they relate to Appendix 4D, so as to present a view which is consistent with our understanding of the consolidated entity's financial position, and of its performance as represented by the results of its operations and cash flows.

A review is limited primarily to inquiries of company personnel and analytical procedures applied to the financial data. These procedures do not provide all the evidence that would be required in an audit, thus the level of assurance is less than given in an audit. We have not performed an audit and, accordingly, we do not express an audit opinion.

Independence

We are independent of the company, and have met the independence requirements of Australian professional ethical pronouncements and the Corporations Act 2001. In addition to our review of the financial report, we were engaged to undertake other non-audit services. The provision of these services has not impaired our independence.

Statement

Based on our review, which is not an audit, we have not become aware of any matter that makes us believe that the financial report, as defined in the scope section, of the consolidated entity Resolute Mining Limited and the entities it controlled during the period is not in accordance with:

$(a)$ the Corporations Act 2001, including:

• giving a true and fair view of the financial position of the consolidated entity at 31 December 2003 and of its $\ddot{\mathbf{u}}$ performance for the 6 months ended on that date; and
• $(ii)$ complying with Accounting Standard AASB 1029 "Interim Financial Reporting" and the Corporations Regulations 2001; and
• $(b)$ other mandatory financial reporting requirements in Australia and the ASX Listing Rules as they relate to Appendix 4D.

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1. Tid,

V W Tidy Partner Perth 23 February 2004