Resolute Mining Limited — Interim / Quarterly Report 2008

Jul 21, 2008

For the quarter to 30 June 2008

A.C.N. 097 088 689 ASX CODE – RSG

OVERVIEW

OPERATIONS

Annual Production

• Total production for the year of 293,057 (255,942) ounces of gold was achieved at a cash cost of A$612 per ounce (A$634).
• Golden Pride in Tanzania achieved annual gold production of 150,224 (138,421) ounces of gold at a cash cost of A$494 (A$510) (US$446: US$403) per ounce.
• Annual gold production for Ravenswood Gold Mine in Queensland was 142,833 (117,521) ounces of gold at a cash cost of A$737 (A$781) per ounce.

Quarterly Production

• Total gold production for the quarter of 82,977 (70,292) ounces of gold was achieved at a cash cost of A$556 per ounce (A$633).
• Production at Golden Pride in Tanzania for the quarter was 42,143 (35,871) ounces of gold at a cash cost of A$435 (A$506) (US$414: US$463) per ounce.
• Gold production at Ravenswood generated 40,834 (34,421) ounces at a cash cost of A$682 (A$764) per ounce.

DEVELOPMENT

Syama

• Current overall progress is 80% with the oxide plant 99% complete. Commissioning of the oxide circuit is underway, with production

planned to be achieved during July 2008.

• Roaster commissioning remains on track for December Quarter 2008.
• US$136m has been incurred on the re-development project and power station and a further US$11m of expenditure committed.
• Estimated total costs of the redevelopment have been revised to US$170m (due to higher transport and material costs and a weak US$).
• Mining operations are ramping up to planned extraction rates.
• Feasibility study on free milling ore progressing

Mt Wright

• First drill hole to test depth extension very encouraging.

EXPLORATION

Exploration drilling continued at regional prospects near Syama in Mali, Golden Pride in Tanzania and Ravenswood in Queensland.

• In Mali, further excellent results have been reported from drilling on regional prospects around Syama at Tellem, Tabakoroni and N'gokoli. Deeper drilling on the Tabakoroni prospect continued to deliver high grade intercepts including 44m @ 11.6g/t Au and 16m @ 16.2g/t Au. The continuing success supports the prospects of developing several new oxide ore sources in the 'Syama Camp'.

• In Tanzania, systematic drilling commenced on the Kavsav target near Golden Pride following up on the strong mineralised system identified including intercepts of 21m @ 4.05g/t Au (reported last quarter). Results from the first reverse circulation drill holes include 9m @ 4.4g/t Au, 27m @ 1.5g/t Au (including 10m @ 3.8g/t Au), 32m @1.3g/t, and 31m at 1.2g/t**.** Some 3,000m of drilling is planned to test the Kavsav target which is now defined over 1,600m of strike.
• In Queensland a significant new target has emerged at "Golden Valley" north of Ravenswood. A deep drilling programme is planned, in part funded by the Queensland Government Collaborative Drilling Scheme.

CORPORATE

• Group cash and bullion at the end of the quarter was A$30m (A$7m).
• Gross cash inflow from operations for the quarter was A$28m (A$16m inflow).
• Continuing review of funding requirements over Syama ramp-up period.
• Put Option programme covering 110,000 ozs at a strike price of A$1,000/oz completed.

Chief Executive Officer 22 July 2008

The information in this report as it relates to ore reserves, mineral resources or mineralisation is reported in accordance with the Aus.IMM "Australian Code for reporting of Identified Mineral Resources and Ore Reserves" and is based on information compiled by T Brown and R Bray, competent persons as defined by the Code. T Brown and R Bray have consented in writing to the inclusion in this report of the numbers based on the information in the form and context in which it appears. "Significant" drill results refer to results that are indicative of potentially economic mineralisation or that warrant follow-up work.

PRODUCTION SUMMARY

	Ore Mined	Ore	Head Grade	Recovery	Plant Availability	Total	Cash	*Total
	(t)	Milled	(g/t)	(%)	(%)	Production	Cost	Cost
		(t)				(Oz gold)	A$/oz	A$/oz
Golden Pride
June Quarter	496,575	710,605	2.02	91.5	89.7	42,143	435	496
March Quarter	330,319	608,172	2.01	91.5	84.9	35,871	506	570
Ravenswood
June Quarter	1,331,753	1,241,604	1.19	85.997.7		40,834	682	802
March Quarter	1,406,122	1,263,993	1.00	84.3	97.7	34,421	764	862
Syama
June Quarter	87,841	0	0	0	0	0	0	0
March Quarter	11,124	0	0	0	0	0	0	0
Total
June Quarter	1,916,169	1,952,209	1.49	88.6	93.7	82,977	556	646
March Quarter	1,747,565	1,872,165	1.33	87.8	90.3	70,292	633	713
					*Total Cost includes cash costs, depreciation and amortisation, royalties and in-country operational support costs

OPERATIONS

Golden Pride, Tanzania (Resolute 100%)

The Project had two lost time injuries and an unfortunate fatality for the quarter. The fatality occurred when a casual worker drowned in the raw water dam. This is the first fatality at Golden Pride in its ten years of operation. The twelve-month moving average Lost Time Injury Frequency Rate at the end of the quarter has risen to 1.17 (0.00).

Golden Pride produced 42,143 (35,871) ounces of gold from 710,605 (608,172) tonnes of ore at a head grade of 2.02 (2.01) grams

per tonne at a cash cost of US$414 (US$463) for the quarter.

The mine had a much improved quarter with minimal disruptions due to rain, with the exception of a pit closure for a two week period in early April with a major rainfall event. All the primary ore was sourced from the main pit which is nearing completion. Stripping of the central pit continues on the south wall to access the ore at depth.

The plant continues to perform to expectation. The increase in throughput was a factor of improved plant availability coupled with the continuation of blending

oxide stockpiles with the run of mine feed.

Ore production will be maintained during the next quarter with the focus being the mining of primary ore from the bottom of the main pit. This section of mining will be completed during the next quarter.

Waste stripping of the central pit will continue with access to ore expected during the March 09 quarter. The mining contractor has mobilised additional equipment so that the schedule is not comprised by equipment availabilities.

Blending of the low grade ore into the plant will continue to maintain

JUNE 2008 QUARTERLY REPORT

throughput during the next quarter. The oxygen levels remain critical to hold the higher recoveries experienced during the last quarter. Trials of hydrogen peroxide are currently being undertaken to ascertain the effectiveness and thus reducing other reagents in the circuit. No major shutdowns are expected in the quarter.

The average head grade is expected to reduce, by approximately 20% over the coming quarter in line with current mine plan ore body models, affecting gold production for the balance of the year.

Ravenswood, Australia (Resolute 100%)

The Ravenswood Operation had three lost time injuries during the quarter. The twelve-month moving average Lost Time Injury Frequency Rate at the end of the quarter increased to 6.5 (3.3).

Gold produced during the quarter was 40,834 (34,421) ounces from 1,241,604 (1,263,993) tonnes at a head grade of 1.19 (1.00) grams per tonne. Gold recovery was 85.9 (84.3) percent. Cash cost per ounce of gold was A$682 (A$764). The lower cash cost per ounce when compared to the March quarter can be attributed to increased ounces produced as a result of the higher recovery and improved head grade.

The higher recovery can be attributed to the faster leaching Bell ore treated during the quarter and better performance of the leaching circuit.

The low-grade beneficiation circuit produced 203,113 (156,440) tonnes of mill feed from 473,971 (410,354) tonnes for the quarter, screening product gold grade was 1.15 (0.95) grams per tonne.

The upgrade factor of 1.83 (1.64) increased from the previous quarter.

Mining activities in the Sarsfield open pit concentrated mainly on the eastern side of the pit, with the last of the ramp removal being completed in early June.

Production rates improved with the larger mining areas and total movement for the quarter was better than expected. Pit dewatering of the main mining area was successfully managed through the quarter.

The Mt Wright underground project increased development to 1,071m (1,052m) for the quarter. Ore production was 85,640t @ 2.54g/t (126,160t @ 2.34g/t). The low production rates were due to poor availability of the trucking fleet. This availability issue will continue to restrict production rates into the next quarter. Powerline construction was completed during the quarter with grid electricity connected.

Gold production over the next quarter is expected to be maintained with consistent highgrade ore available from the bottom of the Sarsfield pit and steady tonnes of ore mined from Mt Wright.

A parcel of Mt Wright ore was processed through the treatment plant during the quarter to assess the metallurgical, grade control, and ore body modelling techniques.

The results for this parcel were as follows:

Mill reconciled 54,860t @ 2.30g/t

Resource model 54,860t @ 1.97g/t

The trial indicates that grade control techniques are working well and the ore body is behaving above feasibility expectations. The milling characteristics of the ore exhibited very close correlation with previous test work programmes. A metallurgical profile was conducted during the trial which has yielded statistics for circuit modelling for the long term treatment of the ore.

The Mt Wright decline started in June 2006. To date there has been two stopes developed and fully mined and the mining method is proving to be very successful.

Spalling from the walls of the stopes has been minimal and current dilution has been calculated at 15%.

There has been a high rate of conversion of the feasibility inferred resource to measured and indicated category.

The key performance statistics of the operation to the 960RL (31 May 08) compared to the feasibility are tabled below.

		Feasibility	Actual
PHYSICALS
Development
CapitalDevelopment	m	4,550	4,795
LevelDevelopment	m	1,092	1,722
Production
Total Oretonnes	t	230,527	507,862
Grade	g/t	2.90	2.16
Gold Ounces	oz	21,491	35,334
EXPENDITURE
Capital	$m	34.3	43.7
OperatingExpenditure	$m	15.4	24.4
Unit Costs
CapitalDevelopment	$/m	2,375	3,950
OperatingDevelopment	$/m	2,258	3,732
OperatingCost/t	$/t	65.12	48.04
OperatingCost/oz	$/oz	717.81	690.56
RESOURCE(to 920RL @1.8g/t cut off)
ReconciledDefinedResource	t	2,953,600	3,263,052
	oz	238,744	273,365

Overall these favourable comparisons to the feasibility give significant confidence in the viability of this mine.

DEVELOPMENT

Syama, Mali (Resolute 80%)

Work continued on the redevelopment of the Syama gold mine in Mali.

Completion is scheduled for the December Quarter of 2008.

Principal project activities during the quarter included:

Process Plant and Infrastructure

Commissioning of the oxide circuit has commenced. The oxide circuit encompasses the crushing, milling, leaching and gold recovery areas of the project. Commissioning has identified various issues which have been or are being resolved.

The installation of Caterpillar generating sets & the power station electrics is complete and commissioned. The power station is generating power for the plant and village. The first Rolls Royce Allen generator is being installed. The 2nd Allen set has passed its factory acceptance test during April, and is now en route to site.

Installation of tailings lines is complete.

The new roaster vessel shell has been erected, and refractory supports are being installed.

Primary cyclone & ductwork modifications are underway. The scrubbing area civil works are well underway, and the scrubbing equipment is on site ready for installation. Most equipment for the completion of the sulphide circuit is now onsite, with only limited materials en route to site.

Water supply lines from Syama Pit & Syama Extension Pit are being commissioned. The civil work for river water pipeline pump stations is complete, and tanks have been

installed at each of the pump stations. The first 10 months water supply is to be supplied from dewatering of the Syama Pit.

Project Progress and Schedule

Current overall progress is 80% with the oxide plant 99% complete. Commissioning of the oxide circuit is underway, with production planned to be achieved during July 2008.

Roaster commissioning remains on track for the December Quarter 2008.

Project expenditure incurred to 30 June 2008 was US$136m.

Commitments to date on the project total US$147m.

Forecast total capital costs of the re-development have been revised to US$170m (due to higher transport and material costs and a weak USD).

Operations

The Project had no lost time injuries for the quarter. The twelvemonth moving average Lost Time Injury Frequency Rate at the end of the quarter is 6.0 (11.6).

Syama produced no gold this quarter as the plant was still under construction and undergoing commissioning.

Mining rates for this quarter were below forecast, as a result of the slow contract start up for the explosives sub-contractor which has caused significant delays. These problems have been overcome by the end of the quarter. In addition there were restrictions in the east wall cutback as the pit has been re-designed in this area due to slightly poorer

geotechnical conditions than were expected.

Mining rates are expected to increase to planned rates over the coming quarter now that explosives supply issues have been resolved and the east wall cutback progresses to catch up to the rest of the pit floor. As the cut back progresses sulphide ore production from the main zone of the ore body will increase allowing a meaningful reconciliation against the ore body model to be made.

Commissioning of the plant on oxide ore has commenced late in the quarter in the crushing, milling, CIL sections and tails dam. The operations team is working alongside the construction commissioning team to bring the plant into production. First ore through the plant is expected to commence in late July.

Feasibility Study on Syama Free Milling Ore

A Feasibility Study into an expansion of the Syama Gold Mine to exploit the free milling resources located near the existing plant has commenced.

An infill drilling programme on the A21-Quartz Vein Hill deposit on the Syama Permit was completed during the quarter. Highlights include 12m @ 11.6g/t Au in drill hole QVC-250 and 12m @ 12.6g/t Au in drill hole QVC 253. Samples from this programme were sent to Ammtec in Australia for metallurgical test work (comminution, gravity and leach). Results from these tests will be used to determine the key design criteria for the addition of a free milling circuit to the current treatment plant.

The drill results will also be used to upgrade the resource model which combined with the metallurgical recovery data will provide the basis for reserve estimation. Current resources at a 1g/t cut off are, measured and indicated resource estimated at 4.0 Mt @ 2.1g/t Au for 266,000oz plus an inferred resource of 5.8Mt @ 1.8g/t Au for 336,000oz.

A listing of all significant results received from this drilling are presented in Table 6.

Depth Extension at Mt Wright, Australia (Resolute 100%)

The decline at Mt Wright has now reached a level that allows drilling

EXPLORATION

to test the depth of mineralisation in the Mt Wright rhyolite. Establishing that the mineralisation continues beneath the current modelled ore body could have significant implications for the scope of the Mt Wright mine.

The first drill hole MTWR146, was drilled from the 1040RL, targeting the 460RL, during the quarter. The drill hole did not lift as was planned and plotting of the hole has indicated that it has deviated from azimuth and ended paralleling the granite/rhyolite breccia contact.

The drill hole was stopped at a depth of 819m as the foot clamps had reached their capacity to hold the weight of the drill string.

Approximately 213m of rhyolite breccia with intense sulphidation (Marcasite and Sphalerite) was intersected in the drill hole. These sulphides are generally adjacent to and present within in the gold mineralised zones of the rhyolite breccia.

Preliminary results from pulverised and leach (PAL) assaying showed only two intercepts assaying over 1g/t. Full assay results of the core are pending.

A rig with greater capacity is expected onsite in the coming quarter. This rig will be used to carry out wedging from this hole to continue the testing at depth the rhyolite mineralized zone.

Exploration drilling continued at regional prospects near Syama in Mali, Golden Pride in Tanzania and Ravenswood in Queensland.

MALI

Follow up drilling in the Syama belt continues to deliver very encouraging results on both the Syama tenure and the adjacent JV tenure with Etruscan. During the quarter drilling was carried out in the Syama South, Tabakoroni and N'gokoli areas, each of which returned excellent results and demonstrates good potential for the development of near surface oxide ore sources within easy reach of Syama.

Syama Regional Exploration (Resolute 80%)

Syama South

Tellem: (10km south of Syama)- Follow up air core and reverse circulation drilling on the Tellem Prospect has returned further encouraging results.

Air core drilling completed in April undertook to extend the drill defined strike of the Tellem trend by stepping out incrementally north and south of previous drilling. Assay results from this work have now delineated the trend to over 2km strike length and continue to confirm the exceptional continuity of the mineralised structure. Notable air core results from unsplit 4m composites include SYA-511: 16m @ 2.64g/t Au some 500m south of previous reverse circulation drilling, and SYA-516: 16m @ 1.28g/t Au some 600m north of previous reverse circulation drilling (table 2).

Six wide spaced reverse circulation drill holes were also completed on the Tellem structure during the period. The step out drilling confirmed the continuity of the mineralised structure although grade tenor and continuity are poorly defined at this stage suggesting that additional infill drilling is required to fully define the distribution of ore grades. Refer to table 3 for results from this programme.

Systematic infill reverse circulation drilling is required at Tellem to establish if the higher grades intersected in the initial drill holes (e.g. 18m @ 10.0g/t Au) form coherent shoots of significant size within the overall mineralized envelope. A reverse circulation drill programme comprising twenty one drill holes for 1,980m is now in progress over the Tellem trend to test 100m spaced sections over 1,700m of strike.

Drag Queen: (2.5km south of Syama) - Some six reverse circulation drill holes were completed on the Drag Queen Prospect. This drilling followed up previous air core drill results including 20m @ 1.94 g/t Au from surface and 8m @ 1.76g/t Au from surface. Recent results include 6m @ 2.17g/t Au (table 3). Reinterpretation of the geology from the drilling suggests the recently completed drill holes may have failed to adequately test the host structure. Further reverse circulation drilling is proposed to test the new interpretation.

Syama Regional

An airborne electromagnetic survey was completed over a significant portion of the Syama belt during the quarter. The helicopter borne VTEM survey was flown in conjunction with other companies in the district and straddles the border with Cote d'Ivoire providing seamless coverage over the belt. Initial images from the survey demonstrate excellent resolution of stratigraphy and structure in areas previously completely 'blank' in airborne magnetics which will help enormously in targeting drilling. The quality and usefulness of the data prompted an immediate extension of the survey to cover the southern Syama tenure and new permit applications to the west of Syama.

Finkolo - Etruscan Resources JV (Resolute 60%)

Finkolo Permit

Detailed drilling during 2007-8 has increased the Tabakoroni resource by 53% to 9.2Mt @ 2.53g/t for 745,000oz. Earlier in 2008 deeper diamond core holes have been completed to test the depth extension of the high grade shoots in the Tabakoroni Main Shear Zone (TMSZ) at vertical depths of 120 to 300m. Whilst some crucial results are still pending some recent fresh rock intercepts have returned encouragement e.g. 44m @ 11.6g/t Au (TACD-272) and **16m@16.2g/t Au (**TAC-258). Both these results upgrade previous drilling in the area and would be likely to fall into an optimised open pit (table 1 and figure 2).

Other significant results from the TMSZ include 12m @ 3.6g/t Au (TACD-243), 8m @ 3.8g/t Au (TACD-248), 26m @ 2.4g/t Au (TAC-266), 14m @ 3.1g/t Au (TACD-269), and 14m @ 3.4g/t Au (TACD-270) (figure 1 and figure 2).

Results were also returned from holes drilled into the 'gap' area between the TMSZ and the porphyry zone. This area was

previously untested. Results to date include 4m @ 2.0g/t Au from 99m and 7m @ 2.7g/t Au from 82m (table 1). Mineralisation coincides with areas of sericite pyrite+/-arsenopyrite in selvedge to quartz veining identical in appearance to the greywacke lodes of the main deposit.

In the next quarter the Tabakoroni project will largely be handed over to the Resolute development group to initiate a mining feasibility study. However, in parallel with the development drilling further exploratory work is justified to test the continuity of the high grade shoots at depth on a 100m spacing (within potential open pit depth) as well as cover off on some near surface extensions that have not been fully tested.

Whilst Tabakoroni moves on to development the remainder of the Finkolo permit remains relatively unexplored with virtually no drilling. Following from the success of carefully targeted wide spaced air core drilling traverses in identifying mineralisation near Syama, a similar programme has been designed to test the 15km of strike north of Tabakoroni towards Syama. The programme of some two hundred drill holes will test a number of highly prospective structural targets identified from the recent electro-magnetic survey as well as priority geochemical targets. Drilling will commence in mid-August.

N'Gokoli Permit

An air core drilling programme comprising of ninety drill holes for 5,524m was completed in March to test a number of high priority targets located within the N'Gokoli permit some 40-50km south of Syama. Drilling was focussed along a NNE-SSW trending structure, locally referred to as the 'Bandit Shear'.

A significant number of drill holes reported highly anomalous intercepts up to 19m @ 1.27g/t Au (full results are detailed in table 4). These encouraging results confirm the potential of the bandit shear

over a 9km strike length with almost every line of drilling intersecting significant mineralisation over the structure. This drilling was designed as a first pass and as such drill hole spacing does not constrain any of the zones intersected either along strike or laterally. Further drilling is required to follow up these anomalous gold results, and to delineate further targets associated with the Bandit Shear Zone.

A 100m spaced induced polarisation survey was completed with the aim of better defining local mineralization controls in the Bandit shear and to enable effective and focused drill hole planning within the Bandit area.

TANZANIA

Golden Pride (Resolute 100%)

Golden Pride Near Mine

A soil sampling programme was initiated to follow-up and infill good results from a recently completed regional 1kmx1km soil sampling and closer spaced prospect-scale sampling over ranked prospects on the GP mining lease. The aim is to complete the sampling programmes over prospect areas and to have the results interpreted prior drill testing in the next quarter.

Kavsav

Systematic reverse circulation and diamond core drilling commenced in late in the quarter on the Kavsav prospect some 8km north-east of Golden Pride. Some 3,000m of drilling is planned to test the nature, extent and continuity of mineralization over the extensive Kavsav target.

Fourteen reverse circulation drill holes (MSR020-033) have so far been completed. Initial drilling was designed to test the strike extensions to a previous best intercept of 29.7m @ 2.97g/t Au (including 21m @ 4.08g/t Au) in MSR0012D. 9m @ 4.4g/t Au, 27m @ 1.5g/t Au (including 10m @

3.8g/t Au), 32m @1.3g/t Au and 31m @ 1.2g/t Au. (table 5). Results for remaining drill holes are pending.

A forty three line kilometre three dimensional induced polarisation survey has been completed at Kavsav. The survey will delineate any resistive and/or conductive zones associated with Au mineralisation and aid drill hole planning. Final images are pending.

Results from the four trenches completed over Kavsav in May have been received. Significant zones of Au mineralisation were encountered, including 8m @ 1.45g/t Au (MST021) and 14m @ 0.95g/t Au (MST019), however the main mineralised trend has still not been clearly defined.

Golden Pride Regional

Follow up soil sampling on the 'Igusule Main Reefs' target has provided further definition of a significant geochemical target over 2km of strike length on the regional NW trend, with a further 1km long anomaly on a NE trending cross structure. Extensive air core drilling will be required to scope out the potential of this prospect.

Barrick was notified during the month that RTL had achieved the required expenditure of US$400,000 during the Option Period, and that the JV was now entering the Earning Period whereby RTL can earn 51% of Barrick's equity in the project after spending a further US$2.6m by November 2012.

Nyakafuru (Resolute 100%)

Exploration re-commenced at Nyakafuru to test high priority targets. The largest target with potential to add significant resources to the project is at 'Kanegele Hill' and lies on a major crustal shear zone (the 'Kanegele Shear'). An extensive geochemical halo of several kilometres extent has been subject to limited drilling previously. Sixteen reverse

circulation holes have been completed to the end of June.

Further air core and reverse circulation drilling is in progress on the southern extension of the Nyakafuru Reefs resource area covering resistivity and chargeability features 600m along strike to the south of Reefs 2E and 2W. Extension drilling is also planned along strike of the Grange resource.

AUSTRALIA

Ravenswood (Resolute 100%)

A significant target has emerged north of Ravenswood at "Golden Valley". The target includes a large breccia complex of similar size and lithology to other north Queensland breccia hosted deposits such as Kidston (5Moz) or Mt Leyshon (3Moz). Previous drilling at Golden Valley has been shallow in nature and has not tested the potential for a large (>1Moz) mineralising system at depth. Comparison with the similar but smaller breccia pipe at Mt Wright, which was also very poorly mineralised near surface, demonstrates that economic mineralisation might be expected at depths of ~200m.

An application to the Queensland Department of Minerals and Energy Collaborative Drilling Initiative for a deep drilling programme at Golden Valley was approved in May. As a result half the drilling costs for the proposed programme (up to $115,000) will be refunded by the Queensland Government. A suitable diamond drill rig is currently being sourced in order to initiate the drilling programme as soon as possible.

Reconnaissance reverse circulation drilling on a series of smaller prospects largely focused on old prospector workings near Ravenswood has been completed. Better results came from the 'Area 11' target and included 4m @ 1.8g/t Au.

Regional (1km x 1km) sampling in the Ravenswood district carried out over the last twelve months appears to be effectively defining the major mineralising systems using very low detection gold and multi-element 'pathfinder' analyses. Based on an interpretation of the results to date some eight primary areas have been selected for infill follow up sampling. Elevated rock chip sample results including 8.9g/t Au and 1.2g/t Au were obtained during follow-up on the 8 Mile Creek and Upper Tea Tree prospects respectively.

Further drilling is planned on targets at Devils Elbow, Airstrip, John Bull and Britannia.

GHANA

Existing Resolute projects in Ghana are being offered for divestment, negotiations with a preferred buyer are close to being finalised

.

CORPORATE

Cash Balances and Movements

As at 30 June 2008, the Resolute Group had A$29.7m in cash (March 2008: A$7.4m).

In addition to the cash balance above, Resolute held listed investments with a market value of A$4.7m at month end.

The principal movements in the cash balance during the quarter were attributable to:

Operating Cash flows

• gross cash inflows from operations of A$28.2m
• cash outflows for royalty payments, operational capital expenditure, rehabilitation, insurance, overhead and operational support costs of A$5.6m
• Syama pre-production operating costs of A$10.1m
• negative movements in working capital of A$5.4m
• purchase of 110,000 ounces of gold put options for A$7.9m

Investing Cash flows

• exploration expenditure of A$3.3m
• Mt Wright development expenditure of A$6.2m
• Syama mine re-development and pre-production capital equipment expenditure of A$25.9m
• Syama power station purchase costs of A$4.7m
• other group development expenditure of A$1.8m
• proceeds of A$1.2 from the sale of just under half of

Resolute's shareholding in Uranium Equities

Financing Cash flows

• net inflow from drawdown of debt facilities and payment of facility fees of A$63.5m
• other A$0.3m

Borrowings

At 30 June 2008, Resolute's total borrowings were A$69.4m (compared to A$5.1m at 31 March 2008) and comprised US$55m (or A$57.5m in AUD terms) owing on the Barclays debt facility, US$7.6m (or A$7.9m in AUD terms) of loans from Barclays used to purchase gold put options and hire purchase/finance leases totalling A$4.0m.

During the quarter, Resolute Mining entered into and drew down on a US$55m secured senior Debt Facility arranged by Barclays Capital and underwritten by Barclays Bank PLC. The Debt Facility is a secured revolving corporate loan that is to be repaid in half yearly instalments from December 2008 to December 2012.

The Company is continuing to review its future funding requirements for the period covering the completion of the Syama project and its production ramp-up. The working capital requirement is sensitive to the gold price and cost volatilities as well as the commissioning timetable. In addition, the Company has a number of important development activities it wants to proceed with on a timely and efficient basis.

To meet these demands, funding options, in addition to finalisation of a A$20m standby facility, are being evaluated.

Group Hedging Profile at 30 June 2008

GoldHedging	Forward Sales		Put OptionsBought
Y/E	Ounces	$	Ounces	$
AUD's
30/06/09	4,310	732	55,000	673
30/06/10	77,361	726	-	-
30/06/11	108,061	726	52,800	1,000
30/06/12	27,015	726	57,200	1,000
	216,747	726	165,000	891
USD's
30/06/09	71,178	530	30,000	446
30/06/10	37,065	522	-	-
	108,243	527	30,000	446
Total	324,990		195,000

Using the 30 June 2008 USD spot gold price of US$930/oz and the USD/AUD foreign exchange rate of 0.9562, the mark to market of the Resolute hedge book at period end was a negative amount of approximately A$116m (March 2008 : A$138m).

The quantity of hedging commitments continued to decrease and was reduced by 20,094 ounces during the quarter. This brings the total reduction in hedging commitments over the year ended 30 June 2008 to 155,612 ounces.

At 30 June 2008 approximately 15% of Resolute's gold reserves are committed to hedging contracts.

During the quarter, Resolute restructured its hedge book to allow a higher spot price participation in the short term. In

addition, in conjunction with the new Barclays debt facility draw down, 110,000 ounces of AUD gold put options with a A$1,000 per ounce strike price and terms ranging from 2 to 4 years were purchased at an average cost of A$72/oz. The purchase of these put options was funded by way of a credit facility provided by Barclays. This loan is repayable as and when the various put options mature (i.e. between July 2010 and June 2012).

The average cash price received per ounce of gold sold during the quarter was A$871/oz.

Approximately 24% of the group's gold shipped during the quarter was delivered into existing forward sales contracts and the balance sold into the spot market.

The average cash price received per ounce of gold sold during the year was A$775/oz. Approximately 54% of the group's gold shipped during the year was delivered into existing forward sales contracts and the balance sold into the spot market.

Figure 1: Tabakoroni Prospect Showing Q2 2008 Drill results

Figure 2: Tabakoroni Prospect – Long Section hilighting Q2 2008 Drill Results

Table 1: Tabakoroni Reverse Circulation / Diamond Drilling – Significant Results

		CoordinatesDipAzi*Intercept (m)			Intercept	Grade
Hole ID.	m North*	m East*	(°)	(°)	From	To	width (m)	(g/t Au)
TACD-201	1163998	810431	-55.6	66.2	103	152	49	1.80
TACD-236	1164150	810401	-56.9	68.3	133	148	15	2.60
TACD-242	1163729	810447	-60	65	189	195	6	3.00
TACD-243	1163889	810438	-60	65	145	150	5	3.00
and					155	156	1	14.50
and					248	260	12	3.60
TACD-244	1164001	810319	-60	65	256	264	8	3.40
TAC-247	1164669	810537	-60	105	17	24	7	2.40
TACD-248	1163604	810532	-60	65	41	42	1	8.10
and					163	171	8	3.80
and					180	185	5	1.80
and					223	224	1	8.50
TAC-249	1164678	810485	-60	105	25	32	7	1.10
TAC-250	1164700	810439	-60	105	99	103	4	2.01
TAC-251			-60	105	0	2	2	0.70
TAC-253	1164585	810462	-60	105	48	49	1	7.94
TAC-254	1164598	810414	-60	105	17	20	3	2.27
and			-60	105	82	89	7	2.67
TAC-255	1164463	810533	-60	105	104	107	3	4.50
TAC-258	1164778	810217	-60	245	61	77	16	16.20
TAC-260	1164818	810178	-60	65	55	56	1	15.30
TAC-262	1164849	810135	-60	65	96	105	9	2.20
TAC-266	1164425	810289	-60	65	105	131	26	2.40
TAC-267	1164335	810313	-60	65	148	150	2	2.10
TACD-268	1164695	810395	-60	245	0	13	13	1.90
and					81	82	1	6.70
and					317	322	5	0.70
TACD-269	1164672	810344	-60	245	194	201	7	2.70
and					204	218	14	3.10
TACD-270	1164494	810436	-60	245	73	87	14	2.40
and					187	201	14	3.40
TAD-271	1164887	810094	-60	65	124	125	1	1.30
TACD-272	1164378	810305	-60	65	130	132	2	9.70
and					141	185	44	11.60

Table 2: Syama South Air Core Drilling – Significant Results

	Coordinates		Dip	Azi	Intercept (m)		Intercept	Grade
Hole ID.	m North*	m East*	(°)	(°)	From	To	width (m)	(g/t Au)
SYA-498	1183600	813300	-60	90	40	44	4	1.45
SYA-499	1183600	813250	-60	90	32	36	4	1.40
SYA-510	1184000	813000	-60	90	84	88	4	1.02
SYA-511	1184000	812950	-60	90	88	104	16	2.64
SYA-516	1186100	812900	-60	90	76	92	16	1.28

*UTM WGS84 Zone 29N

Table 3: Syama South Reverse Circulation Drilling (Tellem/Drag Queen Prospects) – Significant Results

	Coordinates		Dip	Azi*	Intercept (m)		Intercept	Grade
Hole ID.	m North*	m East*	(°)	(°)	From	To	width (m)	(g/t Au)
TEC-012	1185350	812899	-60	84	100	102	2	1.93
TEC-014	1184550	812950	-60	84	26	29	3	1.41
TEC-014	1184550	812950	-60	84	33	37	4	3.44
DQC-003	1192268	818753	-60	109	115	117	2	2.56
DQC-005	1192128	818575	-60	109	0	6	6	2.17

*UTM WGS84 Zone 29N

Table 4: N'Gokoli AC Drilling – Significant Results

		Coordinates	Dip	Azi*	Intercept (m)		Intercept	Grade
Hole ID.	m North*	m East*	(°)	(°)	From	To	width (m)	(g/t Au)
NGA-011	1157400	816400	-60	0	10	12	2	0.56
and					20	22	2	0.99
NGA-012	1157300	816400	-60	0	25	26	1	0.66
NGA-015	1157000	818600	-60	90	55	58	3	0.70
NGA-016	1157000	818400	-60	90	13	15	2	0.70
and					52	56	4	0.77
NGA-018	1157000	818000	-60	90	8	21	13	0.32
NGA-023	1155400	817600	-60	90	17	18	1	1.58
NGA-024	1155400	817400	-60	90	17	19	2	0.88
NGA-028	1155400	816700	-60	90	42	43	1	0.85
NGA-035	1154200	814000	-60	90	55	56	1	0.99
NGA-039	1154200	819600	-60	90	17	20	3	0.89
NGA-074	1150600	815200	-60	90	40	59	19	1.27
NGA-085	1150200	815200	-60	90	77	84	7	0.85
and					91	92	1	1.07

		Coordinates	Dip	Azim	Intercept (m)		Intercept	Grade
Hole No.	m North*	m East*	(°)	(°)	From	To	Width (m)	(g/t Au)
MSR0020#	9550155	530020	-55	320	42	60	18	1.92
MSR0021	9550136	530037	-55	320	5	29	24	1.14
Includes					20	27	7	3.53
and					42	69	27	1.50
Includes					42	52	10	3.84
MSR0027	9550788	530968	-55	320	39	127	88	0.67
Includes					46	49	3	1.24
Includes					54	86	32	1.32
MSR0028	9550647	530630	-55	320	40	49	9	4.39
and					71	102	31	1.15
Includes					71	85	14	2.05

Table 5: Kavsav Prospect (Tanzania): Final Reverse Circulation/Diamond drilling results.

* UTM Arc60 # Ended in mineralisation

Table 6: Quartz Vein Hill / A21 Area – Significant Results

	Coordinates		Dip	Azi (magnetic)	Intercept (m)		Intercept	Grade
Hole ID	mNorth*	mEast*	(°)	(°)	From	To	width (m)	(g/t Au)
QVC-230	1202549	823199	-60	96	35	43	8	2.14
QVC-232	1201651	822650	-60	96	44	47	3	2.85
QVC-233	1200548	822548	-61	99	22	48	26	1.84
and					67	72	5	2.13
QVC-235	1200649	822505	-60	99	13	30	17	2.09
QVC-240	1200748	822554	-60	96	34	41	7	3.21
QVC-243	1200851	822552	-61	100	23	26	3	4.59
QVC-244	1200852	822499	-61	94	48	52	4	4.59
QVC-246	1200950	822498	-61	99	54	64	10	3.93
QVC-248	1201192	822470	-61	116	92	95	3	7.40
QVC-249	1201246	822502	-56	114	52	61	9	9.82
QVC-250	1201311	822504	-55	98	42	54	12	1.83
QVC-251	1201390	822581	-55	98	50	62	12	11.59
QVC-252	1201451	822650	-61	97	35	42	7	3.88
QVC-253	1201449	822600	-60	100	62	74	12	12.58
QVC-254	1201600	822719	-60	100	28	36	8	3.77
and					41	53	12	1.98
and					83	86	3	9.72
QVC-255	1201600	822650	-60	94	85	90	5	7.56
and					95	101	6	4.60
QVC-256	1201301	822655	-60	99	40	45	5	3.31
QVC-257	1201399	822711	-60	98	40	44	4	5.23
QVCD-236	1200652	822452	-62	88	69	74	5	2.83
QVCD-258	1201650	822608	-60	97	104	107	3	8.71

* UTM WGS84 Zone 29N

CORPORATE DIRECTORY

Senior Management

P.R. Sullivan Chief Executive Officer M.B. Turner Operations P.J. Venn Business Development G.W. Fitzgerald Finance/Admin and Company Secretary L. Taylor Operations Manager Golden Pride, Tanzania R. McLellan Operations Manager Ravenswood, Queensland

W. Foote Operations Manager

Syama, Mali

Registered and Principal Office

4th Floor, BGC Centre 28 The Esplanade Perth, WA, Australia, 6000 Tel: 61 8 9261 6100 Fax: 61 8 9322 7597 Web: www.resolute-ltd.com.au

Home Exchange

The Company's shares are listed on the Australian Securities Exchange and the home exchange is Perth

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Security Transfer Registrars Pty Ltd PO Box 535, Applecross, WA 6953 Australia Tel: 61 8 9315 2333

Fax: 61 8 9315 2233

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