Resolute Mining Limited — Interim / Quarterly Report 2007

Feb 25, 2007

ASX ANNOUNCEMENT

HALF YEAR REPORT

31 DECEMBER 2006

INCOME STATEMENT

Resolute Mining Limited's (the "Group") net profit after tax attributable to its members for the half year ended 31 December 2006 is $172.9m (half year ended 31 December 2005 : $47.9m loss).

The record profit can be attributed to the $176.0m after tax profit derived on the sale of Uranium, Paladin Resources, and Goldbelt Resources the Group's Valhalla shareholdings. The majority of this gain is a result of the successful move in December 2005 to spin out the Group's key uranium assets into a separate listed entity, and the subsequent sale of this interest.

The Group's gross profit from continuing operations for the half year was a $3.5m profit (2005: $4.4m profit).

The Group's gold production for the half year was 127,460 ounces (half year ended 31 December 2005 - 146,494 ounces) at an average cash cost of $632/oz ($499/oz). The Golden Pride gold mine in Tanzania, produced 63,847 ounces (2005 : 74,351 ounces) of gold in the 6 months ended 31 December 2006 at a cash cost of $563/oz (or US$432/oz) (2005: $396/oz or US$296/oz) and the Ravenswood gold mine in Queensland, Australia, produced 63,613 ounces (2005 : 72,143 ounces) of gold at a cash cost of $702/oz (or US$539/oz) (2005: $606/oz or US$454/oz).

The Resolute Mining Group's operating result has been adversely impacted by issues with mining and processing experienced at both of the Group's gold mines. Whilst action plans to resolve these issues are being implemented, it has resulted in lower gold production and higher cash costs per ounce (compared to the corresponding period) than expected.

The average accounting revenue price achieved per ounce of gold shipped during the period was $728/oz.

CASH AND BORROWINGS

As at 31 December 2006, Resolute Mining had $155.5m of cash and bullion, and a further $15.8m of liquid investments. Borrowings at period end totalled $8.1m. Resolute Mining's balance sheet has strengthened considerably and at 31 December 2006, the consolidated net assets were $255.9m, which is a significant increase from the $83.7m at 31 December 2005.

The significant increase in cash balances and net assets is due to the receipt of $199.5m of cash proceeds on the sale of the group's Valhalla Uranium, Paladin Resources and Goldbelt Resources shareholdings. As a result of the receipt of these funds, the Company is now very well placed to continue to fund its growth projects.

To better optimise the use of funds, a decision was made to accelerate the repayment of borrowings, and during the half year, there was a net reduction in borrowings of $15.5m. In addition, a total of $37.1m was invested into a combination of the development of the Mt Wright and Svama gold projects, sustaining capital expenditure and on exploration properties held by the Resolute Mining group.

HEDGING

Details of Resolute's financial instruments have been provided in the recent December 2006 quarterly report. During the half year under review, Resolute reduced its hedging commitments by approximately 80,000 ounces and at period end, had committed approximately 20% of its reserves to hedging contracts, with the remaining 80% of its gold reserves fully participating in upward movements in the gold price.

In addition, Resolute restructured some of its hedging contracts by rolling out to subsequent years a portion of its forward sales contracts that were originally due to mature in the period ending 30 June 2007. This allows a reasonable level of participation in the current spot price of gold, whilst at the same time allowing for an orderly reduction in Resolute's existing hedging commitments.

Resolute does not, at this stage, propose any increase in its committed gold hedging position.

OUTLOOK

Operations

Both operations have faced challenges during the half and there has been little operational flexibility to overcome these issues in the short term, however, good progress has been made at both sites to resolve and rectify the position and the effects of this should be seen towards the latter part of the second half.

Golden Pride's gold production for the second half is anticipated to be higher as a result of expected improved head grade of the ore to be processed and improved mill throughput.

Ravenswood has experienced a challenging 6 months with a number of mine and plant issues that have affected both grade and throughput. Improved mill throughput and recoveries are expected when the installation of new agitators into the leaching tanks is completed in the June quarter. Mining at Sarsfield should move from the Area 5 ore body to the Keel area during the June quarter which is expected to lead to better grades. The integration of the Mt Wright mine into the Ravenswood operation will commence in the June quarter and should also have the effect of increasing the head grade to the Ravenswood mill

Project Development

The board has given its approval to proceed with the redevelopment of the Syama Gold Project in Mali. The revised estimated cost of the re-development of the Syama gold mine is US$118m, and the known gold reserves will deliver an initial mine life of just over 6 years with an average annual gold production of approximately 250,000 ounces at an average cash cost of approximately US$370/oz. Construction work has commenced and final commissioning is expected in the second half of 2008. This will deliver a third long life gold mine to the Resolute group.

The development of the Mt Wright underground mine located 11 kms from the Ravenswood treatment plant continues to progress in line with schedule and budget. Underground development of the main decline has progressed approximately 1,500 metres and stope resource definition drilling has commenced. First ore production is expected in the June 2007 quarter. The quantity of ore to be mined from Mt Wright is expected to be relatively modest up until mid 2008, at which time it will start to contribute a significant portion of Ravenswood's gold production.

Exploration

The company continues to invest in exploration of the very prospective tenure around each of its key assets. There has been excellent exploration results around Syama, Golden Pride and Ravenswood, and there are numerous very good targets still to be tested. Exploration activity will continue at the same pace in the coming 6 months.

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

PETER SULLIVAN Chief Executive Officer

26 February 2007

A.C.N. 097 088 689

APPENDIX 4D

REPORTING PERIOD

The reporting period is the half year ended 31 December 2006 with the corresponding reporting period being for the half year ended 31 December 2005.

RESULTS FOR ANNOUNCEMENT TO THE MARKET

Results				A$'000
Revenues from continuing operations	up	14.1%	to	97.734
Profit from continuing operations before treasury and tax	up	n/a	to	177,768
Profit after tax attributable to members from continuing operations	up	n/a	to	172,706
Net profit for the period attributable to members	up	n/a	to	172,855

IDividends	Amount persecurity	Franked amountper security
Final dividend	n/a	n/a
Interim dividend - no interim dividend is proposed	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.

TABLE OF CONTENTS

Corporate Information	3
Directors' Report	4
Auditor's Independence Declaration	6
Condensed Income Statement
Condensed Balance Sheet	8
Condensed Statement of Changes in Equity	9
Condensed Cash Flow Statement	11
Notes to the Financial Statements	12
Directors' Declaration	19
Independent Review Report	20

CORPORATE INFORMATION

Directors

Chairman - PE Huston Chief Executive Officer - PR Sullivan Non-Executive Director - TC Ford Non-Executive Director - HTS Price

Company Secretary GW Fitzgerald

Registered Office and Business Address

4th Floor, The BGC Centre 28 The Esplanade Perth. Western Australia 6000 Postal: PO Box 7232, Cloisters Square Perth, Western Australia 6850 Telephone: + 61 8 9261 6100 Facsimile: + 61 8 9322 7597 contact@resolute-ltd.com.au

Share Registry

Security Transfer Registrars Pty Ltd 770 Canning Highway, Applecross, Western Australia 6153 Telephone: + 61 8 9315 2333 Facsimile: + 61 8 9315 2233

Home Exchange

Australian Stock Exchange Limited Exchange Plaza, 2 The Esplanade Perth, Western Australia 6000

Quoted on the official list of the Australian Stock Exchange. ASX ordinary code: "RSG"

Legal Advisors

Hardy Bowen Level 1, 28 Ord Street West Perth, Western Australia 6005

Auditors

Ernst and Young Ernst and Young Building 11 Mounts Bay Road Perth, Western Australia 6000

Bankers

Standard Bank Plc Cannon Bridge House 25 Dowgate Hill London, United Kingdom EC4R 2SB

Investec (Australia) Limited 2 Chifley Square Sydney, New South Wales 2000

ABN AMRO Australia Limited ABN AMRO Tower 88 Phillip Street Sydney, New South Wales 2000

Citibank Limited Level 23. Citigroup Centre 2 Park Street Sydney, New South Wales 2000

Website

Resolute maintains a website where all major announcements to the ASX are available: www.resolute-ltd.com.au

RESOLUTE MINING LIMITED HALF YEAR REPORT For the six months ended 31 December 2006

DIRECTORS' REPORT

Your directors present their report on the consolidated entity (referred to hereafter as the "Group") consisting of Resolute Mining Limited and the entities it controlled at the end of or during the half-year ended 31 December 2006.

Corporate Information

Resolute Mining Limited ("RML" or "the Company") is a company limited by shares that is incorporated and domiciled in Australia.

Directors

The names of the Company's directors in office during the half-year and until the date of this report are as below. Directors were in office for this entire period.

PE Huston (Chairman) PR Sullivan (Chief Executive Officer) TC Ford (Non-Executive Director) HTS Price (Non-Executive Director)

Company Secretary

GW Fitzgerald

Review of Operations

Production

The Group gold production for the half-year was 127,460 ounces at an average cash cost of A$632/oz.

Golden Pride Mine

The Golden Pride mine in Tanzania produced 63,847 ounces of gold in the 6 months ended 31 December 2006 at a cash cost of A$563/oz (or US$432/oz) compared to gold production of 74,351 ounces at a cash cost of A$396/oz (or US$296/oz) in the half-year ended 31 December 2005.

Ravenswood Gold Mine

The Ravenswood mine in Queensland, Australia, produced 63,613 ounces of gold in the 6 months ended 31 December 2006 at a cash cost of A$702/oz compared to gold production of 72,143 ounces at a cash cost of A$606/oz in the half-year ended 31 December 2005.

Exploration and Development

Exploration programs undertaken during the half-year ended 31 December 2006 concentrated on advancing the Group's range of exploration properties located in Australia, Tanzania, Ghana and Mali.

Syama

The Syama project fiscal negotiations have now been completed and construction activities commenced, with detailed design and capital expenditure estimates nearly completed.

DIRECTORS' REPORT (continued)

Mt Wright

The Mt Wright project is progressing on time and within budget, with the first ore expected to be produced in the March 2007 quarter.

Corporate

During the period, the Valhalla Uranium Limited take over by Paladin Resources Limited was completed with Resolute Mining Limited receiving 31.6 million Paladin Resources Limited shares as consideration. These shares were subsequently sold and total proceeds received were A$173.1 million.

Additionally, Resolute Mining Limited sold its substantial shareholding in Goldbelt Resources Limited for cash consideration of A$26.4 million.

As a direct result of the Paladin Resources and Goldbelt Resources investment sales. Resolute Mining Limited fully repaid its debt facility for Golden Pride with Standard Bank of US$6.5 million. In addition to this, its Ravenswood debt facility with ABN AMRO/F.A. International of A$6.0 million was also fully repaid. A A$7.0 million Corporate debt facility drawn down during the half year to 31 December 2006 was also fully repaid.

Results of Operation

The Group's net profit after tax and minority interest for the six months ended 31 December 2006 was $172.9m (2005: $47.9 loss).

Auditor's Independence and Non-Audit Services

Refer to page 6 for a copy of the Auditor's Independence Declaration to the Directors of Resolute Mining Limited.

Rounding

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

Signed in accordance with a resolution of the directors.

PR Sullivan Director Perth, Western Australia 26 February 2007

EILERNST & YOU INC.

# The Ernst & Young Building 11 Mounts Bay Road Perth 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 2006, 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.

Ernst X Jourg

Ernst & Young

Your Buckingham

Gavin A Buckingham Partner Perth 26 February 2007

CONDENSED INCOME STATEMENT

	Note	Consolidated
		For the halfyear ended31-Dec-06$'000	For the halfyear ended31-Dec-05$'000
Continuing Operations
Revenue from gold sales	3(a)	95,122	83,935
Other revenue	3(b)	2,612	1,685
Cost of sales	3(c)	(94, 251)	(81, 220)
Gross profit		3,483	4,399
Other income	3(d)	181,114	611
Other expenses	3(e)	(5,922)	(5,671)
Profit/(loss) from continuing operations before treasury, tax and finance costs		178,675	(661)
Borrowing costs	3(f)	(907)	(1, 331)
Profit/(loss) before treasury and tax		177,768	(1,992)
Treasury - unrealised gains/(losses)		1,594	(46, 166)
Profit/(loss) before tax		179,362	(48, 157)
Income tax (expense)/benefit		(6,656)	247
Profit/(loss) from continuing operations after income tax		172,706	(47, 911)
Net loss attributable to minority interests		149
Net profit/(loss) attributable to members of Resolute Mining Limited		172,855	(47, 910)
Earnings per share for profit/(loss) from continuing operations attributable to theordinary equity shareholders of the Company:
Basic earnings per share for profit/(loss) for the half year (cents per share)		75.3	(21.0)
Diluted earnings per share for profit/(loss) for the half year (cents per share)		75.1	(21.0)

This Income Statement should be read in conjunction with the accompanying notes.

CONDENSED BALANCE SHEET

	Consolidated
	As at31-Dec-06$'000	As at30-Jun-06$'000
CURRENT ASSETS
Cash and cash equivalents	153,442	13,992
Receivables	13,398	10,859
Inventories	28,397	29,902
Available for sale financial assets	15,753	29,543
Financial derivative assets	50	465
Deferred expenditureOther	9,0542,741	21,8211,860
TOTAL CURRENT ASSETS	222,835	108,442
NON-CURRENT ASSETS
Financial derivative assets	478	4,876
Exploration and evaluation	58,670	56,456
Development expenditure	20,917	14,633
Property, plant and equipment	90,791	80,108
Deferred expenditure	26,603	21,199
Deferred tax assets	15,062	15,411
TOTAL NON-CURRENT ASSETS	212,521	192,683
TOTAL ASSETS	435,356	301,125
CURRENT LIABILITIES
Payables	30,233	30,093
Interest bearing liabilities	2,048	10,839
Tax liabilities	4,905	10
Financial derivative liabilities	53,164	71,847
Provisions	3,791	3,717
TOTAL CURRENT LIABILITIES	94,141	116,506
NON-CURRENT LIABILITIES
Interest bearing liabilities	6,075	12,797
Provisions	22,278	24,006
Financial derivative liabilities	55,125	64,058
Deferred tax liabilities	1,824	103
TOTAL NON-CURRENT LIABILITIES	85,302	100,964
TOTAL LIABILITIES	179,443	217,470
NET ASSETS	255,913	83,655
EQUITY
Contributed equity	113,917	112,955
Reserves	(13, 156)	(5,037)
Retained profits/(accumulated losses)	152,924	(26, 695)
Parent entity interest in equity	253,685	81,223
Minority interests	2,228	2,432
TOTAL EQUITY	255,913	83,655

This Balance Sheet should be read in conjunction with the accompanying notes.

RESOLUTE MINING LIMITED HALF YEAR REPORT For the six months ended 31 December 2006

CONDENSED STATEMENT OF CHANGES IN EQUITY

	IssuedCapital	RetainedEarnings	Foreign CurrencyTranslationReserve	Hedge ReservePut Options	Forwards	Hedge Reserve Hedge ReserveUnearnedIncome	Share Based UnrealisedPaymentsReserve	Gain/LossReserve	EquityReserve	MinorityInterest	TotalEquity
	$'000	$'000	$'000	$'000	$'000	$'000	$'000	$'000	$'000	$'000	$'000
As at 1 July 2006	112,955	(26, 695)	(4, 778)	(1,950)	(22, 505)	5,398	366	11,668	6,764	2,432	83,655
Currency translation differences			(7, 275)								(7,275)
Hedge reserve put options, net of tax				534							534
Hedge reserve forwards, net of tax				$\tilde{\phantom{a}}$	13,510						13,510
Hedge reserve unearned income, net of tax						(3,795)					(3,795)
Unrealised gains/(losses) reserve, net of tax						$\blacksquare$	$\cdot$	(4, 443)			(4, 443)
Total income/(expense) for the period recogniseddirectly in equity			(7,275)	534	13,510	(3, 795)		(4, 443)			(1,469)
Profit/(loss) for the period		172,855								(149)	172,706
Total income and expense for the period		172,855								(149)	172,706
Exercise of options	968										968
Share issue costs	(6)										(6)
Share option reserve, net of tax							114				114
Transfer to retained earnings on disposal of subsidiary		6,764						$\omega$	(6, 764)		$\blacksquare$
Minority interest movement in share capital										(1,227)	(1,227)
Minority interest movement in reserves										1,091	1,091
Minority interest movement in retained profits										81	81
Total other for the period recognised directly in equity	962	6,764				$\tilde{\phantom{a}}$	114	$\omega$	(6, 764)	(55)	1,021
As at 31 December 2006	113,917	152,924	(12, 053)	(1, 416)	(8,995)	1,603	480	7,225	$\boldsymbol{\kappa}$	2,228	255,913

This Statement of Changes in Equity should be read in conjunction with the accompanying notes.

RESOLUTE MINING LIMITED HALF YEAR REPORT For the six months ended 31 December 2006

CONDENSED STATEMENT OF CHANGES IN EQUITY (continued)

	IssuedCapital	RetainedEarnings	Foreign CurrencyTranslationReserve	Hedge ReservePut Options	Hedge ReserveForwards	Hedge ReserveUnearnedIncome	Share BasedPaymentsReserve	UnrealisedGain/LossReserve	EquityReserve	MinorityInterest	TotalEquity
	$'000	$'000	$'000	$'000	$'000	$'000	$'000	$'000	$'000	$'000	$'000
As at 1 July 2005	112,483	52,757	(3,757)				268			1,255	163,006
Adjustment on adoption of AASB 132 and AASB 139:ReservesRetained profits		(2,020)		(4, 834)	(18,083)	9,637		2,022			(11, 258)(2,020)
Restated total equity at the beginning of the financial year	112,483	50,737	(3,757)	(4,834)	(18,083)	9,637	268	2,022	$\blacksquare$	1,255	149,728
Currency translation differences	$\overline{a}$		960	$\ddot{\phantom{0}}$							960
Hedge reserve put options, net of tax			$\overline{a}$	860							860
Hedge reserve forwards, net of tax				$\tilde{\phantom{a}}$	(3,963)						(3,963)
Unrealised gains/(losses) reserve, net of tax				$\tilde{\phantom{a}}$			$\tilde{\mathbf{r}}$	(59)			(59)
Total income/(expense) for the period recogniseddirectly in equity			960	860	(3,963)			(59)			(2,202)
Loss for the period	$\tilde{\phantom{a}}$	(47, 910)	$\overline{a}$	$\tilde{\mathbf{r}}$						(1)	(47, 911)
Total income and expense for the period		(47, 910)								(1)	(47.911)
Exercise of options	126										126
Share issue costs	(2)										(2)
Share option reserve, net of tax							101				101
Equity reserve on subsidiary								$\mathbf{v}$	6,764		6,764
Minority interest movement in share capital										1,236	1,236
Minority interest movement in reserves										255	255
Minority interest movement in retained profits										(229)	(229)
Total other for the period recognised directly in equity	124						101	$\mathbf{v}_i$	6,764	1,262	8,251
As at 31 December 2005	112,607	2,827	(2,797)	(3,974)	(22, 046)	9,637	369	1,963	6,764	2,516	107,866

This Statement of Changes in Equity should be read in conjunction with the accompanying notes.

CONDENSED CASH FLOW STATEMENT

	Note	Consolidated
		For the halfyear ended31-Dec-06	For the halfyear ended31-Dec-05
		$'000	$'000
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from customers		88,480	74,499
Payments to suppliers and employees		(85, 214)	(90, 967)
Interest received		1,606	608
Interest and other costs of finance paidIncome taxes paid		(696)	(781)(106)
Net operating cash flows		4,176	(16, 747)
CASH FLOWS FROM INVESTING ACTIVITIES
Payment for property, plant and equipment		(21, 283)	(4,032)
Proceeds from sale of plant and equipment		50	31
Payments for investmentsProceeds from sale of available for sale financial assets		(4,655)199,499
Outflow of cash held by disposed subsidiary	5	(4,096)
Proceeds from sale of exploration properties			250
Expenditure on exploration and development areas		(15, 848)	(9, 454)
Royalties received		2,162	846
Net investing cash flows		155,829	(12, 359)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from issues of securities		968	8,118
Cost of issuing securities		(6)	(2)
Proceeds from borrowingsRepayment of borrowings		11,787(26, 576)	(4, 152)
Repayment of lease liability		(864)	(147)
Net financing cash flows		(14, 691)	3,817
Net increase/(decrease) in cash held		145,314	(25, 289)
Cash assets held at the beginning of the period		13,992	36,144
Exchange rate adjustment		(5,864)	1,362
Cash assets at the end of the period		153,442	12,217

This Cash Flow Statement should be read in conjunction with the accompanying notes.

NOTES TO THE FINANCIAL STATEMENTS

$11$ Basis of preparation of half-year report

a) Corporate information

The financial report of Resolute Mining Limited for the half year ended 31 December 2006 was authorised for issue in accordance with a resolution of directors on 26 February 2007.

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

The nature of operations and principal activities of Resolute Mining Limited are described in the Directors' Report.

b) Basis of preparation

This general purpose financial report for Resolute Mining Limited and its subsidiaries (the "Group" or "consolidated entity") for the interim half-year reporting period ended 31 December 2006 has been prepared in accordance with Accounting Standard AASB 134 Interim Financial Reporting and the Corporations Act 2001.

This interim financial report does not include all the 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 2006 and any public announcements made by Resolute Mining Limited during the interim reporting period in accordance with the continuous disclosure requirements of the Corporations Act $2001.$

The accounting policies adopted are consistent with those of the previous financial year and corresponding interim reporting period. Amended standards mandatory for interim reporting periods beginning on or after 1 July 2006, as described below, require no change to the current accounting policies:

• AASB amendment 2004-3 AASB Amendment to Australian Accounting Standard;
• * AASB amendment 2005-1 AASB 139 Financial Instruments: Recognition and Measurement;
• AASB amendment 2005-3 AASB 119 Employee Benefits;
• AASB amendment 2005-5 AASB 1 First-time adoption of AIFRS, AASB 139 Financial Instruments: Recognition and Measurement;
• AASB amendment 2005-6 AASB 3 Business Combinations:
• AASB amendment 2006-1 AASB 121:
• UIG 4 Determining whether an Arrangement contains a Lease;
• UIG 5 Rights to Interests in Decommissioning, Restoration and Environmental Rehabilitation Funds:
• UIG 8 Scope of AASB 2; and,
• UIG 9 Reassessment of Embedded Derivatives.

$2.$ Segment information

The consolidated entity operates in 4 geographical segments.

$2006$

Geographical Segments	TanzaniaHalf Year 2006$A'000	GhanaHalf Year 2006$A'000	MaliHalf Year 2006$A'000	AustraliaHalf Year 2006$A'000	ConsolidatedHalf Year 2006$A'000
Revenue
Sales to customersOther revenueSegment revenue	47,0618747,148	$\blacksquare$$\blacksquare$	$\blacksquare$$\blacksquare$	48,0612,52550,586	95,1222,61297,734
Results
Segment results from continuing operations	4,568	(927)	63	175,658	179,362
Consolidated entity profit from continuing operationsbefore income tax expense					179,362
Income tax expense					(6,656)
Consolidated entity profit from continuing operationsafter income tax expense					172,706
2005
Geographical Segments	TanzaniaHalf Year 2005$A'000	GhanaHalf Year 2005$A'000	MaliHalf Year 2005$A'000	AustraliaHalf Year 2005$A'000	ConsolidatedHalf Year 2005$A'000
Revenue
Sales to customersOther revenueSegment revenue	40,7534040,793	u.	$\omega$	43,1821,64544,827	83,9351,68585,620
Results
Segment results	7,626	(18)		(55,765)	(48, 157)
Consolidated entity loss from continuing operationsbefore income tax benefit					(48, 157)
Income tax benefit					247
Consolidated entity loss from continuing operationsafter income tax benefit					(47, 910)

$3.$ Profit/loss from continuing operations

		Note	Consolidated
			For the halfyear ended31-Dec-06$'000	For the halfyear ended31-Dec-05$'000
(a)	Revenue from gold sales
	Gold sales		95,122	83,935
(b)	Other Revenue
	Interest income - other persons/corporationsRoyalty income		1,6061,0062,612	6111,0741,685
(c)	Cost of sales
	Cost of productionAmortisation of exploration & development costsDepreciation of mine properties, plant & equipmentRoyaltyOperational support costsOther cost of salesTotal cost of sales		82,6701,6255,9213,10371921394,251	69,4141,5646,3292,88176926381,220
(d)	Other income
	Profit on sale of plant and equipmentProfit on sale of available for sale financial assetsProfit on sale of subsidiaryOther incomeTotal other income	5	1925,784155,093218181,114	24587611
(e)	Other expenses from ordinary activities
	Management and administration expensesInsurance costsOperating lease expenseWrite down of mineral exploration and development costsDepreciation of non mine site assetsNet call option premiumRealised loss on gold loanRealised loss on net settlement of forward sales contractsOtherTotal other expenses from ordinary activities		2,013240174729778794487226405,922	1,367228184146543,5801125,671
(f)	Borrowing costs
	Interest and fees paid/payable to other entitiesRehabilitation provision discount adjustmentTotal borrowing costs		696211907	1,1042271,331

4. Dividends

There were no dividends paid or provided for during the half-year.

5. Disposal of subsidiary

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

The results of Valhalla for the half-year until its disposal are presented below:

	ConsolidatedFor the halfyear ended31-Dec-06$'000
Revenue	67
Expenses	(394)
Loss before income tax	(327)
Income tax benefit
Loss after income tax	(327)
The carrying amounts of assets and liabilities until disposal were:
Cash	4,096
Receivables	21
Exploration & evaluation	2,815
Total Assets	6,932
Creditors
Total Liabilities
Minority interests	(1, 146)
Net Assets	5,786

5. Disposal of subsidiary (continued)

	Consolidated
	For the half
	year ended
	31-Dec-06
	$'000
Consideration received:
Shares in Paladin Resources Limited	161,076
Total disposal consideration	161,076
Carrying amount of net assets sold	(5,786)
Gain on sale before income tax	155,290
Other costs incidental to sale of ValhallaIncome tax expense	(197)
Gain on sale after income tax	155,093
Net cash inflow on disposal:
Cash consideration
Outflow of cash held by disposed subsidiaryReflected in cash flow statement	(4,096(4,096

6. Available for sale financial assets

During the 6 months ended 31 December 2006, the Group sold all of its investments in Paladin Resources Limited and Goldbelt Resources Limited for total proceeds of $199.5 million. Profit on sale of available for sale financial assets and the disposal of the subsidiary (refer note 5) was $180.9 million with tax payable of $4.9 million making profit after tax of $176.0 million.

$\overline{7}$ . Interest bearing loans and borrowings

During the 6 months ended 31 December 2006, the Group repaid US$7.5 million to Standard Bank Plc and A$8 million to ABN AMRO/F.A. International. In addition to this, a A$7 million debt facility with LIFT Finance was drawn down and repaid during the period.

Contributed equity 8.

	TotalNumber	NumberQuoted	Issue PricePer Security	Amount PaidUp Per Security
Ordinary securities
As at 31 December 2006	231,144,559	231,144,559
Changes during current period
Increases through exercise of unlisted optionsIncreases through exercise of unlisted optionsIncreases through exercise of unlisted options	2,000,00060,50050,000		$0.42$0.81$1.57	$0.42$0.81$1.57
	TotalNumber	NumberQuoted	ExercisePrice	ExpiryDate
Options on issue
As at 31 December 2006	787,500475,000405,000570,000		$0.81$1.57$1.28$1.48	19/09/0721/12/0923/03/1124/10/11
Changes during current period
Decreases through exercise of unlisted optionsDecreases through exercise of unlisted optionsDecreases through exercise of unlisted optionsIncreases through the issue of unlisted options	(2,000,000)(60, 500)(50,000)570,000		$0.42$0.81$1.57$1.48	10/12/0619/09/0721/12/0924/10/11

570,000 options were issued on 16 October 2006 under the employee share option plan. The strike price is $1.48 and the expiry date is 24 October 2011. One third of the options are available to be exercised after six months of issue, a further one third 18 months after issue and the remaining one third 30 months after issue.

The following table lists the key variables used in the valuation of these options for the six months ended 31 December 2006:

Number of options	570,000
Dividend yield (%)	0.00
Expected volatility (%)	50%
Risk free interest rate (%)	5.50%
Expected life of options (years)	5
Option exercise price $	1.48
Share price at grant date $	1.35
Value per option at grant date $	0.65

8. Contributed equity (continued)

The expected life of the options is based on historical data and is not necessarily indicative of exercise patterns that may occur. The expected volatility reflects the assumption that the historical volatility is indicative of future trends, which may also not necessarily be the actual outcome. No other features of options granted were incorporated in the measurement.

The fair value of the options is measured at the grant date using the Black Scholes option pricing model taking into account the terms and conditions upon which the instruments were granted. The services received and a liability to pay for those services is recognised over the expected vesting period.

9. Contingent Liabilities and Contingent Assets

Except for the item mentioned at (a) below, there have been no changes to the contingent liabilities or contingent assets of Resolute Mining Limited from those items disclosed in the financial report for the vear ended 30 June 2006.

(a) Summit Resources (Aust) Pty Ltd

Resolute Mining has entered into a Deed of Indemnity with Paladin Resources Limited ("Paladin") to indemnify Paladin for any loss it suffers as a result of a material breach of the Isa Uranium Joint Venture Agreement due to disclosure of information concerning the Joint Venture to persons not party to the Joint Venture. Under this indemnity, Resolute Mining's liability is capped at a maximum of A$75m. The Isa Uranium Joint Venture is a joint venture between Summit (Resources (Aust) Pty Ltd and Isa Uranium Pty Ltd (a wholly owned subsidiary of Valhalla Uranium Ltd, which in turn is wholly owned by Paladin. Valhalla Uranium Ltd was previously a wholly owned subsidiary of Resolute Mining).

Summit Resources (Australia) Pty Ltd has commenced proceedings in the Supreme Court of Western Australia in relation to disclosures made, allegedly in breach of the Isa Uranium Joint Venture Agreement, in connection with the successful takeover of Valhalla Uranium Ltd by Paladin.

Resolute Mining is confident that at all times the disclosure obligations under the Isa Uranium Joint Venture Agreement have been complied with.

During the quarter a defence and counter claim against Summit has been filed in the Supreme Court. The counter claim alleges a material breach of the Isa Uranium Joint Venture by Summit in its disclosure of Isa Uranium Joint Venture information.

10. Events occurring after balance date

No significant events have occurred post balance date.

11. Restatement of minority interests and reserves

At 30 June 2006, minority interest was overstated by $6,763,710 and equity reserve was understated by the same amount. Comparative amounts in the consolidated balance sheet and consolidated statement of changes in equity have been restated accordingly. This is an equity reclassification only and has no income statement impact.

DIRECTORS' DECLARATION

In the opinion of the directors:

• a) the financial statements and notes are in accordance with the Corporations Act 2001, including:
  • i. complying with Accounting Standards, the Corporations Regulations 2001 and other mandatory professional reporting requirements; and
  • ii. giving a true and fair view of the consolidated entity's financial position as at 31 December 2006 and of its performance as required by Accounting Standards, as represented by the results of its operations, changes in equity and its cash flows, for the half-year ended on that date; and
• b) there are reasonable grounds to believe that Resolute Mining Limited will be able to pay its debts as and when they become due and payable.

This declaration is made in accordance with a resolution of the directors.

PR Sullivan Director Perth, Western Australia 26 February 2007

EIFRNSTRYCHING

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

a Tel 61 8 9429 2222 Fax: 61 8 9429 2436

CPO 8ov M939 Perth WA 6843

To the members of Resolute Mining Limited Report on the Half-Year Condensed Financial Report

We have reviewed the accompanying half year financial report of Resolute Mining Limited and the entities it controlled during the half year, which comprises the condensed balance sheet as at 31 December 2006, and the condensed income statement, condensed statement of changes in equity and condensed cash flow statement for the six months ended on that date, other selected explanatory notes and the directors' declaration.

Directors' Responsibility for the Half Year Financial Report

The directors of the company are responsible for the preparation and fair presentation of the half year financial report in accordance with Australian Accounting Standards (including the Australian Accounting Interpretations) and the Corporations Act 2001. This responsibility includes designing, implementing and maintaining internal controls relevant to the preparation and fair presentation of the half year financial report that is free from material misstatement, whether due to fraud or error; selecting and applying appropriate accounting policies; and making accounting estimates that are reasonable in the circumstances.

Auditor's Responsibility

Our responsibility is to express a conclusion on the half year financial report based on our review. We conducted our review in accordance with Auditing Standard on Review Engagements ASRE 2410 Review of an Interim Financial Report Performed by the Independent Auditor of the Entity, in order to state whether, on the basis of the procedures described, we have become aware of any matter that makes us believe that the financial report is not in accordance with the Corporations Act 2001 including: giving a true and fair view of the consolidated entity's financial position as at 31 December 2006 and its performance for the six months ended on that date; and complying with Accounting Standard AASB 134 Interim Financial Reporting and the Corporations Regulations 2001 and other mandatory financial reporting requirements in Australia. As the auditor of Resolute Mining Limited and the entities it controlled during the half year, ASRE 2410 requires that we comply with the ethical requirements relevant to the audit of the annual financial report.

A review of a half year financial report consists of making enquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with Australian Auditing Standards and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Independence

In conducting our review, we have complied with the independence requirements of the Corporations Act 2001. We have given to the directors of the company a written Auditor's Independence Declaration, a copy of which is included in the Directors' Report. 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.

EII ERNST & YOUNG

Conclusion

Based on our review, which is not an audit, we have not become aware of any matter that makes us believe that the interim financial report of Resolute Mining Limited and the entities it controlled during the half year, is not in accordance with:

• the Corporations Act 2001, including: $(a)$
  • giving a true and fair view of the consolidated entity's financial position as at 31 $(i)$ December 2006 and of its performance for the six months ended on that date; and
  • $(ii)$ complying with Accounting Standard AASB 134 Interim Financial Reporting and the Corporations Regulations 2001; and
• other mandatory financial reporting requirements in Australia. $(b)$

Ernst X Young

Ernst & Young

yam Buckingham

Gavin A Buckingham Partner Perth 26 February 2007