Resolute Mining Limited — Interim / Quarterly Report 2005

Feb 23, 2005

ASX ANNOUNCEMENT

HALF YEAR REPORT

31 DECEMBER 2004

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 2004 of $10.4m (half year ended 30 June 2004 : $5.2m and half year ended 31 December 2003: $9.0m + a non recurring profit on sale of non core assets of $17.7m). The current period profit equates to basic earnings per share of 5.8 cents and compares favourably to the normalised profit in the previous two half year periods.

The profit result was driven by a stronger gold price and solid operational performances. The Ravenswood gold mine in Queensland, Australia, produced 91,875 ounces of gold in the 6 months ended 31 December 2004 at a cash cost of A$431/oz (or US$316/oz) and the Golden Pride gold mine in Tanzania, produced 72,364 ounces of gold at a cash cost of $355/oz (or US$261/oz). The total Resolute Mining group gold production for the half year was 164,239 ounces at an average cash cost of $398/oz.

The average accounting revenue price (including net option income) achieved per ounce of gold poured during the period was $544/oz.

CASH AND BORROWINGS

As at 31 December 2004, Resolute had $9.2m of cash and bullion and liquid investments with a market value of $3.0m. Borrowings at period end totalled $37m.

During the half year, Ravenswood and Golden Pride delivered net operating cashflow of $6.9m. This operational cashflow plus a portion of the cash reserves existing at the start of the year were reinvested into feasibility work at Syama, exploration in Australia, Tanzania, Mali and Ghana and capital expenditure at Ravenswood and Golden Pride.

DIVIDENDS

The directors have resolved to pay no dividend out of the half year profit. This decision is primarily due to the desire to preserve cash reserves whilst the funding requirements for the Syama and Mt Wright development projects are determined.

HEDGING

Since last reported on 31 December 2004, Resolute's forward sales have been reduced by over half, from 244,435 ounces to 122,064 ounces. This is a result of the close out of all of Resolute's AUD gold forward sales contracts and the ongoing delivery of one third of Golden Pride's gold production into the USD forward sales contracts. Put options purchased have remained constant since last reported at 403,500 ounces at an average strike price of $566/oz and call options sold have decreased to 300,000 ounces at an average strike price of $540/oz. Total committed ounces is currently less than 14% of Resolute's reserves and the continued shift of "price protection" hedging from forward sales to put options leaves Resolute in an excellent position to participate in a rallying gold price.

LISTED OPTIONS

The company has listed options (RSGO) with an exercise price of eighty cents each that expire on 11 June 2005. Conversion of these options will raise approximately $40 million of new capital and could provide a key comporent of the funding required for the Syama and Mt Wright developments.

OUTLOOK

Golden Pride continues to operate in an efficient manner and the focus will be on maintaining cost control and improving operational efficiencies. The ore being mined in the coming 6 months is from the lowest grade part of the orebody, and as a result, the head grade to be processed is expected to be slightly less than that achieved in the last half year. It is hoped that higher throughput levels will partially mitigate the effect of the anticipated lower head grade on production and cash costs.

The various changes implemented at Ravenswood since the project was acquired on 1 March 2004 have been successful in reducing the cost profile of this operation and the cash costs are nearing the target level of $425/oz. Disruptions due to heavy rainfalls in January, poor recovery levels and lower grades in some parts of the cut back fringe

zones of the open pit will hamper gold production in the March quarter. Production levels are expected to improve again in the June quarter.

The feasibility study currently being undertaken on the Syama gold project in Mali is scheduled to be completed by the end of March and a positive outcome of the study will lead to the re-development of the Syama project. The unhedged Syama gold project provides shareholders with considerable leverage to a rising gold price and its successful development would deliver to Resolute Mining its third producing gold mine and elevate gold production to over 500,000 ozs per annum.

A feasibility study into the development of the Mt Wright underground deposit at Ravenswood has recently commenced. The Mt Wright orebody is situated approximately 15 km's from Ravenswood and has a resource of 970,000 ounces. Inclusion of higher grade Mt Wright ore to the plant feed would have a significant positive impact on the Ravenswood operations extending its life and increasing production by around 50,000 ounces per annum. The feasibility study is expected to be finished by the end of June 2005.

Following some good intersections, further exploration drilling is planned on several of the advanced projects. In particular, at Golden Pride where the Golden Pride East prospect returned several good intersections including 17m @ 30.9 g/t and the Southern Oxide Zone to the south of the pit, 41m @ 10.5 g/t. Also, the Akoase project in Ghana where mineralisation has been encountered over several kilometres, with recent results of 30m @ 2.1g/t and 18m @ 3.5 g/t.

As a result of recent changes in the outlook for uranium, the Company is investigating options to release value from its 50% ownership of the Valhalla and Skal deposits in the Mt Isa region of Queensland. These two deposits have a combined global resource of 30,000 tonnes of UsOs and make up the third largest undeveloped uranium resource in Australia.

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

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

PETER SULLIVAN Chief Executive Officer

24 February 2005

TABLE OF CONTENTS

Directors' Report	1
Appendix 4D	3
Condensed Statement of Financial Performance	4
Condensed Statement of Financial Position	5
Condensed Statement of Cash Flows	6
Notes to the Financial Statements
Directors' Declaration	14
Auditor's Independence Declaration	15
Independent Review Report	16

DIRECTORS' REPORT

Your directors submit the report of Resolute Mining Limited for the half year ended 31 December 2004.

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

Results

Consolidated entity profit from ordinary activities after tax and outside equity interests for the half year was $10,355,808 (2003: $26,738,153). The prior year profit included 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.

Review of Operations

(a) Production

The total Resolute Mining Limited group gold production for the half year ended 31 December 2004 was 164,239 ounces (2003: 87,787) at an average cash cost of A$398/oz (or US$292/oz) (2003: A$318/oz or US$218/oz). The total production for the group for the half year ended 31 December 2003 came from the Golden Pride Mine whereas for the half year ended 31 December 2004, the total production came from the Golden Pride Mine and the Ravenswood Mine.

Golden Pride Mine

The Golden Pride mine in Tanzania produced 72,364 ounces of gold in the 6 months ended 31 December 2004 at a cash cost of A$355/oz (or US$261/oz) compared to gold production of 87,787 ounces at a cash cost of A$318/oz (or US$218/oz) in the 6 months ended 31 December 2003.

Ravenswood Gold Mine

The Ravenswood mine in Queensland, Australia, produced 91,875 ounces of gold in the 6 months ended 31 December 2004 at a cash cost of A$431/oz (or US$316/oz). There are no comparatives due to the acquisition of Ravenswood being 1 March 2004.

(b) Exploration and Development

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

Finalisation of the bankable feasibility study being conducted at Syama has been deferred, as a number of areas require further assessments to be made.

(c) Corporate

There were no significant activities during the half year ended 31 December 2004.

Significant Events after the Balance Date

There are no subsequent events up to the date of this report that will have a material impact on the accounts.

Auditor's Independence Declaration

The Auditor's Independence Declaration to the directors of Resolute Mining Limited on page 15 forms part of the Directors' Report for the half year ended 31 December 2004.

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 24 February 2005

APPENDIX 4D

REPORTING PERIOD

The reporting period is the half year ended 31 December 2004 with the corresponding reporting period being for the half year ended 31 December 2003.

RESULTS FOR ANNOUNCEMENT TO THE MARKET

IResults				A$'000
Revenues from ordinary activities	up	7.1%	to	88,838
Profit from ordinary activities after tax attributable to members	down	61.3%	to	10,356
Net profit for the period attributable to members	down	61.3%	to	10.356

Dividends	Amount persecurity	Franked amountper security
[Final dividend - no final dividend is proposed	n/a	n/a
IInterim 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.

CONDENSED STATEMENT OF FINANCIAL PERFORMANCE

for the half year ended 31 December 2004

	Note	Consolidated
		For the halfyear ended31-Dec-04$'000	For the halfyear ended31-Dec-03$'000
Revenue from gold sales	1(a)	85,759	44,694
Cost of sales	1(c)	(74, 912)	(33,780)
Gross profit		10,847	10,914
Other revenues from ordinary activities	1(b)	3,079	38,269
Borrowing cost expense	1(d)	(1,004)	(346)
Other expenses from ordinary activities	1(e)	(1,479)	(19, 134)
Profit from ordinary activities before income tax		11,443	29,703
Income tax expense attributable to ordinary activities		(1, 176)	(2,717)
Profit from ordinary activities after income tax		10,267	26,986
Net (profit)/loss attributable to outside equity interests		89	(248)
Net profit attributable to members of Resolute Mining Limited		10,356	26,738
Net exchange difference on translation of financial reportsof self sustaining foreign operations		(5.146)	(7, 165)
Share issue costs		(4)
Total revenues, expenses and valuation adjustmentsattributable to members of Resolute Mining Limited andrecognised directly in equity		(5, 150)	(7, 165)
Total changes in equity other than those resulting fromtransactions with owners as owners		5,206	19,573
Basic earnings per share (cents per share)		5.8	16.3
Diluted earnings per share (cents per share)		5.2	14.9

CONDENSED STATEMENT OF FINANCIAL POSITION

as at 31 December 2004

		Consolidated
	At end ofcurrent period$'000	As shown in lastannual report$'000
CURRENT ASSETS
Cash assets	9,152	19,274
Receivables	9,310	8.927
Inventories	25,270	25,942
Other	2,754	2.980
TOTAL CURRENT ASSETS	46,486	57,123
NON-CURRENT ASSETS
Receivables	52	50
Other financial assets	2,925	2,625
Mineral exploration and development interests	50,043	40.214
Property, plant and equipment	87,917	92,747
Deferred expenditure	35.030	25.872
TOTAL NON-CURRENT ASSETS	175,967	161,508
TOTAL ASSETS	222,453	218,631
CURRENT LIABILITIES
Payables	23,899	27,008
Interest bearing liabilities	8,184	4,391
Tax liabilities	860	1,491
Provisions	7,507	11,820
TOTAL CURRENT LIABILITIES	40,450	44,170
NON-CURRENT LIABILITIES
Interest bearing liabilitiesProvisions	28,99525,251	32,718
Deferred tax liabilities	7,450	19,4757.090
TOTAL NON-CURRENT LIABILITIES	61,696	59,283
TOTAL LIABILITIES	102,146	103,453
NET ASSETS	120,307	115,178
EQUITY
Parent entity interest:
Contributed equity	71,547	71.442
Reserves	(23,956)	(18, 810)
Retained profits	71,392	61,036
Parent entity interest in equity	118,983	113,668
Outside equity interests:	1,324	1,510
TOTAL EQUITY	120,307	115,178

CONDENSED STATEMENT OF CASH FLOWS

for the half year ended 31 December 2004

	Consolidated
	For the halfyear ended31-Dec-04$'000	For the halfyear ended31-Dec-03$'000
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from customersPayments to suppliers and employeesInterest receivedInterest and other costs of finance paidIncome taxes paid	87,476(79, 432)205(806)(519)	46.885(37,994)216(266)(513)
Net operating cash flows	6,924	8,328
CASH FLOWS FROM INVESTING ACTIVITIES
Payment for property, plant and equipmentProceeds from sale of plant and equipmentPayments for investmentsProceeds from sale of investmentsExpenditure on exploration and development areas	(6,938)88(300)3(11,007)	(981)5,977(1, 102)27,404(5,097)
Net investing cash flows	(18, 154)	26,201
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from issues of securitiesCost of issuing securitiesProceeds from borrowingsReturn of capitalRepayment of lease liabilityOther	109(4)3,151(42)	186(4)(10)(6)(10)
Net financing cash flows	3,214	156
Net increase in cash heldCash assets held at the beginning of the periodExchange rate adjustment	(8,016)19,274(2, 106)	34,68517,627(1, 892)
Cash assets at end of period	9,152	50,420

for the half year ended 31 December 2004

		Consolidated
		For the halfyear ended31-Dec-04$'000	For the halfyear ended31-Dec-03$'000
NOTE 1	PROFIT FROM ORDINARY ACTIVITIES
(a)	Revenues from operating activities
	Gold salesTotal revenue from operating activities	85,75985,759	44,69444,694
(b)	Revenues from non operating activities
	Proceeds on sale of plant and equipment (Note 1 (f))Proceeds on sale of investments (Note 1 (f))Proceeds on sale of exploration properties (Note 1 (f))Interest income - other persons/corporationsNet option premiumOther incomeTotal revenue from non operating activitiesTotal revenues from ordinary activities	8832052,4233603,07988,838	5,97727,4042,3503861,83331938,26982,963
$\left( 0 \right)$	Cost of sales
	Cash costsAmortisation of exploration & development costsDepreciation of mine properties, plant & equipmentRoyaltyGold in circuit adjustmentOperational support costsTotal cost of sales	65,2952,0455,7642,365(1,266)70974,912	27,8536222,9921,45012174233,780
(d)	Borrowing costs
	Interest and fees paid/payable to other entitiesTotal borrowing costs	1,0041,004	346346
(e)	Other expenses from ordinary activities
(f)	Management and administration expensesCarrying value of plant and equipment sold (Note 1 (f))Carrying value of investments sold (Note 1 (f))Carrying value of exploration properties sold (Note 1 (f))Insurance costsOperating lease expenseForeign exchange (gain)/lossWrite down of mineral exploration and development costsDepreciation of non minesite assetsOtherTotal other expenses from ordinary activitiesProfit on sale of assets	1,12313234252(1, 272)219518591,479	1,0931,35514,8475062842222663055719919,134
	Profit on sale of plant and equipmentProfit on sale of investmentsProfit on sale of exploration propertiesTotal profit on the sale of assets	75378	4,62212,5571,84419,023

NOTES TO THE FINANCIAL STATEMENTS

for the half year ended 31 December 2004

NOTE 2 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 half year 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 2004 Annual Report and any public announcements made by Resolute Mining Limited and its controlled entities during the half year ended 31 December 2004 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.

NOTE 3 SUBSEQUENT EVENTS

There are no subsequent events up to the date of this report which will have a material impact on the accounts.

NOTE 4 CONTINGENT LIABILITIES

Since the last annual reporting date, there has been no material changes in any contingent liabilities.

26,986

NOTES TO THE FINANCIAL STATEMENTS

for the half year ended 31 December 2004

NOTE 5 SEGMENT INFORMATION

Primary Segment - Geographical

The consolidated entity operates in four geographical segments.

2004

Geographical Segments	TanzaniaHalf Year 2004$A'000	GhanaHalf Year 2004$A'000	MaliHalf Year 2004$A'000	AustraliaHalf Year 2004$A'000	UnalfocatedHalf Year 2004$A'000	ConsolidatedHalf Year 2004$A'000
Revenue
Sales to customersOther revenueSegment revenue	34,535(807)33,728	$\overline{\mathbf{f}}$	٠	51.2243.88555,109	$\overline{\phantom{a}}$٠	85,7593.07988,838
Results
Segment results	3,164	(1, 111)		9,390	۰	11,443
Consolidated entity profit from ordinary activitiesbefore income tax expense						11,443
Income tax expense						(1, 176)
Consolidated entity profit from ordinary activitiesafter income tax expense						10.267
2003
Geographical Segments	TanzaniaHalf Year 2003$A'000	GhanaHalf Year 2003$A'000	MaliHalf Year 2003$A'000	AustraliaHalf Year 2003$A'000	UnalfocatedHalf Year 2003$A'000	ConsolidatedHalf Year 2003$A'000

Revenue
Sales to customersOther revenueSegment revenue	44.69465545.349	$\overline{\phantom{a}}$6.2106.210	۰	ъ.7.0967,096	-24,30824,308	44.69438.26982,963
Results
Segment results	11,269	4.288		2,896	11,250	29,703
Consolidated entity profit from ordinary activitiesbefore income tax expense						29.703
Income tax expense						(2,717)
Concertidated cutto creft from publican adjustication

Consolidated entity profit from ordinary activitiesafter income tax expense

For the half year ended 31 December 2004

NOTE 6: INTERNATIONAL FINANCIAL REPORTING STANDARDS (IFRS)

The Australian Accounting Standards Board (AASB) is adopting IFRS for application to reporting periods beginning on or after 1 January 2005. The AASB has issued Australian equivalents to IFRS, and the Urgent Issues Group will issue abstracts corresponding to IASB interpretations originating by the International Financial Reporting Interpretations Committee (IFRIC) or the former Standing Interpretations Committee.

The adoption of Australian equivalents to IFRS will be first reflected in Resolute's financial statements for the half-year ending 31 December 2005 and the year ending 30 June 2006. Entities complying with Australian equivalents to IFRS for the first time will be required to restate their comparative financial statements to amounts reflecting the application of IFRS to that comparative period. Most adjustments required on transition to IFRS will be made, retrospectively, against opening retained earnings as at 1 July 2004.

To facilitate an efficient and accurate transition to IFRS reporting, Resolute has established a project team. The project team is chaired by the General Manager Finance and Administration and reports half yearly to the Audit Committee. The project team has a conversion plan, which includes a calculation of the estimate of the financial impact of convergence and preparation of the various opening IFRS-based financial statements, staff training and management information system enhancements for conversion.

Set out below are the key areas where the accounting policies will change and may have an impact on the financial report of Resolute.

The impact disclosed below are the best estimates as at the date of these half year financial statements. However, they could change due to further work being undertaken by the IFRS Project Team and any potential amendments to IFRSs and Interpretations thereof being issued by the standard setters and IFRIC.

1. Financial Instruments

The consolidated entity uses derivative financial instruments to manage commodity price exposures.

Under AASB 139 Financial Instruments: Recognition and Measurement, derivative financial instruments will be recognised on the Statement of Financial Position at fair value. This will result in a change in the company's current accounting policy where certain derivative financial instruments are not presently recognised in the Statement of Financial Position at fair value. There are also more stringent requirements to be met in order to apply hedge accounting under AASB 139, which will determine whether changes in the fair value of derivative financial instruments are taken directly to the Statement of Financial Performance or to a new equity account on the Statement of Financial Position.

In order to qualify for hedge accounting, the company is required to meet the following criteria:

• Identify the type of hedge: fair value or cashflow;
• Identify the hedged item or transaction;
• Identify the nature of the risk being hedged;
• Identify the hedging instrument;
• Demonstrate that the hedge has and will continue to be highly effective; and
• Document the hedging relationship, including the risk management objectives and strategy for undertaking the hedge and how effectiveness will be tested.

For the half vear ended 31 December 2004

Impact on Resolute

Resolute is currently determining whether it meets the necessary tests in relation to its hedge instruments in order to apply hedge accounting. In respect of hedge accounting, AASB 139 does not apply retrospectively to the period commencing 1 July 2004, but will apply to Resolute from 1 July 2005.

2. Exploration and Evaluation

AASB 6 "Exploration for and Evaluation of Mineral Resources" continues to apply "area of interest" accounting for exploration and evaluation expenditures, effectively grandfathering the treatment currently used under AASB 1022 "Accounting for the Extractive Industries". Under AASB 6, if facts and circumstances suggest that the carrying amount of any recognised exploration and evaluation assets may be impaired, an impairment test must be performed on those assets in accordance with AASB 136 "Impairment of Assets". Impairment of exploration and evaluation assets is to be assessed at a cash generating unit or group of cash generating units level provided this is no larger than an area of interest. Any impairment loss is to be recognised as an expense in accordance with AASB 136.

Impact on Resolute

The company expects that the existing policy of accounting for exploration and evaluation will comply with IFRS requirements and therefore no significant difference is expected to result in relation to the recognition of exploration and evaluation assets.

3. Income Tax

Income tax will be calculated based on the "balance sheet" approach, replacing the current income statement method. This may result in the recognition of additional deferred tax assets and liabilities. In addition, tax losses will be recognised as an asset to the extent that future taxable profits are probable. This may result in greater deferred tax assets compared to the existing parameters of recognising future income tax benefits when tax losses are virtually certain of being realised and timing differences where realisation is assured beyond reasonable doubt.

Impact on Resolute

On adoption, the change to the balance sheet approach may result in the recognition of additional deferred tax assets and liabilities with a corresponding impact to retained earnings. Post adoption any movements in deferred assets and liabilities will be recognised in the Statement of Financial Performance.

4. Provision for Environmental Rehabilitation

Environmental obligations associated with the retirement and/or disposal of tenure will be recognised when the disturbance occurs and is based on the extent of damage incurred. The provision is measured as the present value of the future expenditure. A corresponding rehabilitation asset is also recognised to the extent that the obligation relates to development or an operating expense depending on the nature of the rehabilitation impact. On an ongoing basis, the rehabilitation liability will be remeasured at each reporting period in line with the change in the time value of money (recognised as an interest expense in the Statement of Financial Performance and an increase in the provision), and additional disturbances/change in the rehabilitation cost will be recognised as additions/ changes to the corresponding asset and rehabilitation liability. The rehabilitation asset will be amortised to the statement of financial performance on the same basis as the development asset. Currently Resolute has a rehabilitation liability, which progressively increases (with the corresponding amount booked in the Statement of Financial Performance) over the life of the operation.

For the half year ended 31 December 2004

Impact on Resolute

On transition, Resolute will be required to:

• Remeasure the existing environmental rehabilitation provision to the present value of the future expenditure;
• Estimate the value that would have been included in the cost of the asset when the liability arose; and
• Amortise the asset to the date of transition.

Retained earnings will be impacted to the extent that this net position differs from the existing provision.

On an ongoing basis, the statement of financial performance will recognise both an interest expense and amortisation of rehabilitation asset.

5. Share Based Payments

Under AASB 2 "Share Based Payments", the company will be required to determine the fair value of options issued to employees as remuneration and recognise an expense in the Statement of Financial Performance. This standard is not limited to options and also extends to other forms of equity-based remuneration. It applies to all share-based payments issued after 7 November 2002, which have not vested as at 1 January 2005.

Impact on Resolute

To the extent that any of the remuneration options on issue have not vested by 1 January 2005, they will need to be recognised and measured in accordance with AASB 2.

Reliable estimation of the future financial effects of this change in accounting policy is impracticable as the details of the future equity-based remuneration plans are unknown.

for the half year ended 31 December 2004

NOTE 7 ISSUED AND QUOTED SECURITIES AT END OF CURRENT PERIOD

	TotalNumber	NumberQuoted	Issue PricePer Security	Amount PaidUp Per Security
Ordinary securities
As at 31 December 2004	177,320,380	177,320,380	$0.49	$0.49
Changes during current period
Increases through exercise of unlisted optionsIncreases through exercise of listed options	120.00014,607	120.00014.607	$0.81$0.80	$0.81$0.80
	TotalNumber	NumberQuoted	ExercisePrice	ExpiryDate
Options
As at 31 December 2004	2,460,00051,116,9292,000,0001,320,00095.000810.000	51,116,929	$2.20$0.80$0.42$0.81$0.81$1.57	04/01/0511/06/0510/12/0619/09/0713/08/0821/12/09
Changes during current period
Exercise of listed options during the current periodExercise of unlisted options during the current periodLapsed during current periodIssue of unlisted options during the current period	(14, 607)(120,000)(25,000)810.000	(14.607)	$0.80$0.81$0.81$1.57	11/06/0519/09/0719/09/0721/12/09

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 2004 and of their $\left($ i $\right)$ 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 24 February 2005

ELLERNST & YOUNG

# The Ernst & Young Building 11 Mounts Bay Road Perih WA 6000 Australia

■ Tel 61 8 9429 2222 Fax 61 8 9429 2436

GPO Box M939 Perth WA 6843

Auditor's Independence Declaration to the Directors of Resolute Mining Limited

In relation to our review of the financial report of Resolute Mining Limited for the half-year ended 31 December 2004, to the best of my knowledge and belief, there have been no contraventions of the auditor independence requirements of the Corporations Act 2001 or any applicable code of professional conduct.

$\mathcal{C}_{\mu\nu}$ (m)

Ernst & Young

V W Tidy

Partner Perth 24 February 2005

VT;HG;RESOLUTE;063

ELLERNST & VOLUME

The frust & Young Building 11 Mounts Bay Road Perth WA 6000 Australia

■ Tel 61894292222 Fax 61 8 9429 2436

GPO 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 for the consolidated entity comprising both Resolute Mining Limited (the company) and the entities it controlled during the half-year, and the directors' declaration for the company, for the period ended 31 December 2004.

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. 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 Australian Stock Exchange 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 financial reporting requirements in Australia, 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. We have given to the directors of the company a written Auditor's Independence Declaration, a copy of which follows. In addition to our review of the financial report, we were engaged to undertake other 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 of the consolidated entity, comprising Resolute Mining Limited and the entities it controlled during the half-year 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 2004 $(i)$ and of its performance for the half-year ended on that date; and
  • complying with Accounting Standard AASB 1029 "Interim Financial Reporting" and the $(ii)$ Corporations Regulations 2001; and

$(b)$ other mandatory financial reporting requirements in Australia.

Ernst & Young

Partner Perth 24 February 2005