Resolute Mining Limited — Interim / Quarterly Report 2008

Feb 28, 2008

A.C.N. 097 088 689 ASX CODE – RSG

• $86m spent on the advancement of • Production at Ravenswood in Qld, Syama, Mt Wright and exploration Australia, was 67,578 oz at $756/oz, properties. (2006: 63,613 oz at $702/oz).

INCOME STATEMENT

• Revenues from continuing operations of $94.7m (2006: $97.7m).

• Barclays Capital Plc has been mandated to provide approximately $60m of corporate credit facilities to Resolute Mining. Financial closure of this debt raising is anticipated to occur in March 2008. This is the last stage in the funding package for the Syama and Mt Wright development projects.

• HEDGING

DEVELOPMENT

Syama

• Loss from continuing operations before treasury and tax of $11.4m (2006: $3.1m loss – normalised)

• As at 31 December 2007, re-

• last stage in the funding package development of Syama was 62%

• • This result includes the effect of a for the Syama and Mt Wright complete overall, with the oxide

• significant reduction in hedging development projects. plant 88% complete.

• contracts, with 74% of gold production delivered into forward • To 31 December 2007, US$88m sales contracts, resulting in a had been spent on the re- HEDGING

• realised selling price for the half of development project and power $685/oz (2006: $728/oz). • The hedge book was significantly station, with a further US$28m of

• • Cash cost of gold produced of reduced over the half year with the expenditure committed. $635/oz (2006: $632/oz). delivery of 99,269 ounces into • Mining activities commenced during forward contracts. the December 2007 quarter.

• • Net loss after tax for the period, • Restructuring of the remaining

• attributable to members, of $41.0m. forward contracts (which equates to Mt Wright

• • As reported in the December 2007 approximately 15% of reserves) is quarterly report, this result includes planned to allow for a more gradual • The Mt Wright project is an unrealised treasury loss of amortisation and a higher progressing on time and within $44.9m due to the Group’s financial proportion of spot sales. budget, with the Mt Wright ore instruments no longer satisfying the contributing to approximately 9% of accounting criteria to be classified • The Company does not propose to Ravenswood gold production as “effective hedges”. This loss will increase its committed gold during the half year. hedging position and no

• be reversed in future periods as the financial instruments mature. requirement for this is expected under the terms of the new credit EXPLORATION facility.

• CASH & BORROWINGS • Exploration drilling continued at prospects near Syama in Mali,

• OPERATIONS

• • Group cash at 31 December 2007 Golden Pride in Tanzania and was $42.7m (June 2007: $67.7m). Ravenswood in Queensland. • Gold production for the half year of

• • Borrowings at 31 December were 139,788 (2006: 127,460) ounces of • A 53% resource upgrade to 745,000 $7.4m (June 2007: $7.7m). gold at an average cash cost of ounces of gold at the Tabakoroni $635/oz (2006: $632/oz). deposit in Mali.

• • The major cash inflow during the half year was from the $50m rights • Production at Golden Pride in issue completed in November. Tanzania was 72,210 oz at $521/oz, or US$456/oz (2006: 63,847 oz at $563/oz, or US$432/oz).

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, competent person as defined by the Code. T Brown has 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.

HALF YEAR REPORT

• South of Syama reconnaissance air core drilling on wide spaced lines over a 10km strike length has returned very encouraging results including 19m @ 16.0g/t Au and 20m @ 1.9g/t Au.

• Completion of the redevelopment,

• commissioning and initial production from sulphide ore is scheduled for the second half of 2008.

• Ravenswood: A marginal increase in production and commensurate reduction in cash costs per ounce is expected with the gradual change in mill feed to include more ore from the Mt Wright underground project.

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

• Syama: Initial gold production expected in the June 2008 quarter from the treatment of oxide stockpiles.

• In Tanzania, the first reverse circulation diamond drilling of an induced polarisation/geochem target at ‘Kavsav’, just 8km from Golden Pride, has returned 30m @ 2.94g/t Au, including 21m @ 4.05g/t Au.

Exploration

Development (Syama)

• Exploration of the very prospective tenure around Syama, Golden Pride and Ravenswood will continue at the same pace in the coming six months.

• Forecast total capital costs have increased by US$10m to a total of US$151m (including the power station).

OUTLOOK

Operations

• About half of this overrun is associated with scope changes in the finalisation of the roaster and scrubber sections and higher transport costs.

• Full year production guidance of 305,000 ounces at $630/oz.

• Golden Pride: An increase in gold production is expected during the coming half. Modification to the leach kinetics of the circuit will improve gold recovery in the plant. Better mechanical availability of the mining fleet and a slight improvement in the ore grade from the open pit are expected.

• The balance is the currency impact of the weaker US$ on the non US$ component of the project.

PR SULLIVAN

• Overall project capital cost is in line with the original $A estimates.

Chief Executive Officer 28 February 2008

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A.C.N. 097 088 689
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APPENDIX 4D

REPORTING PERIOD

The reporting period is for the half year ended 31 December 2007 with the corresponding reporting period being for the half year ended 31 December 2006.

RESULTS FOR ANNOUNCEMENT TO THE MARKET

Results Revenues from continuing operations Loss from continuing operations before treasury and tax Loss after tax attributable to members from continuing operations Net loss for the period attributable to members	A$'000 down -3.1% to 94,713 down n/a to (11,432) down n/a to (40,965) down n/a to (40,952)

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

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

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A.C.N. 097 088 689

CONDENSED HALF YEAR REPORT

For the six months ended 31 December 2007

RESOLUTE MINING LIMITED HALF YEAR REPORT For the six months ended 31 December 2007

TABLE OF CONTENTS

Corporate Information	4
Directors’ Report	5
Auditor’s Independence Declaration	8
Consolidated Income Statement	9
Consolidated Balance Sheet	10
Consolidated Statement of Changes in Equity	11
Consolidated Cash Flow Statement	13
Notes to the Financial Statements	14
Directors’ Declaration	21
Independent Review Report	22

RESOLUTE MINING LIMITED HALF YEAR REPORT For the six months ended 31 December 2007

CORPORATE DIRECTORY

Directors

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

Quoted on the official lists of the Australian Securities Exchange ASX Ordinary Share Code: “RSG”

Securities on Issue (31/12/2007)

Secretary

GW Fitzgerald

Registered Office and Business Address

4[th] Floor, The BGC Centre 28 The Esplanade Perth, Western Australia 6000

Ordinary Shares 277,739,457

Legal Advisor

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

Auditor

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

ABN 39 097 088 689

Web Site

RML maintains a web site where all major announcements to the ASX are available www.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 registrar@securitytransfer.com.au

Home Exchange

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

Ernst & Young Ernst & Young Building 11 Mounts Bay Rd Perth, Western Australia 6000

Bankers

Barclays Bank Plc Level 24 400 George Street Sydney, New South Wales 2000

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

Investec Bank (Australia) Limited Level 21, 140 St Georges Terrace Perth, Western Australia 6000

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

Shareholders wishing to receive copies of Resolute Mining Limited ASX announcements by e-mail should register their interest by contacting the Company at contact@resolute-ltd.com.au

4

RESOLUTE MINING LIMITED HALF YEAR REPORT For the six months ended 31 December 2007

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 2007.

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 139,788 (2006: 127,460) ounces at an average cash cost of A$635/oz (2006: A$632/oz).

Golden Pride Mine

The Golden Pride mine in Tanzania produced 72,210 ounces of gold in the 6 months ended 31 December 2007 at a cash cost of A$521/oz (or US$456/oz) compared to gold production of 63,847 ounces at a cash cost of A$563/oz (or US$432/oz) in the half year ended 31 December 2006.

Ravenswood Gold Mine

The Ravenswood mine in Queensland, Australia, produced 67,578 ounces of gold in the 6 months ended 31 December 2007 at a cash cost of A$756/oz compared to gold production of 63,613 ounces at a cash cost of A$702/oz in the half year ended 31 December 2006.

Exploration and Development

Exploration programs undertaken during the half year ended 31 December 2007 concentrated on advancing the Group’s range of exploration properties located in Australia, Tanzania and Mali.

5

RESOLUTE MINING LIMITED HALF YEAR REPORT For the six months ended 31 December 2007

DIRECTORS’ REPORT

Syama

Work continues on the redevelopment of the six million ounce reserve Syama gold mine in Mali. Completion is scheduled for the second half of calendar 2008. Once complete, Syama will become a major production asset contributing a budgeted 250,000 ounces of annual production to the Group.

As at 31 January 2008, the forecast total capital costs associated with the redevelopment of Syama are tracking US$13m above the budget of US$118m. In addition, the Group has committed to the purchase of a US$20m power station, which will increase project capital costs by this amount, but this will be offset by lower ongoing operating costs. As at 31 December 2007, the redevelopment is approximately 62% complete, and US$88m had been spent on the redevelopment (including payments made on the power station), with a further US$28m of expenditure committed.

Mt Wright

The Mt Wright project is progressing on time and within budget, with the Mt Wright ore contributing to approximately 9% of Ravenswood gold production during the half year.

Corporate

During the period, the Company invited its shareholders to subscribe to a rights issue of up to 46.4 million ordinary shares at an issue price of $1.10 per share on the basis of 1 share for every 5 fully paid ordinary shares held, with such shares issued on 5 November 2007. The rights issue was strongly supported by the Company’s shareholders with just over 98% of them participating in the A$50m capital raising.

The Company is currently negotiating a new debt facility of approximately A$60m. A credit approved term sheet has been received from Barclays Bank Plc, who has been mandated to be the lead arranger and underwriter of these credit facilities. Financial closure and draw down of this debt raising is anticipated to occur in March 2008. This is the last stage in the funding package for the Syama redevelopment project and Mt Wright development project.

Results of Operation

The Group’s net loss after tax and minority interest for the six months ended 31 December 2007 was $41.0m (2006: $172.9m profit). The 2006 profit result was directly impacted by the one off sale of the Group’s uranium assets.

In the year ended 30 June 2007, the Group’s financial instruments satisfied the accounting criteria to be classified as “effective hedges” and as a result, the movements from designation as effective hedges up to the year ended 30 June 2007 in fair value of these financial instruments was recorded in a Hedge Reserve on the Balance Sheet.

6

RESOLUTE MINING LIMITED HALF YEAR REPORT For the six months ended 31 December 2007

DIRECTORS’ REPORT

Subsequently, from 1 July 2007, the Group has resolved to cease hedge accounting and as such all movements during the half year ended 31 December 2007 in these financial instruments has been recorded in the Income Statement. This change in accounting treatment has a negative impact on the Group’s Income Statement in the half year ended 31 December 2007.

Auditor’s Independence

Refer to page 8 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.

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PR Sullivan Director Perth, Western Australia 28 February 2008

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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 2007, 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.

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Ernst & Young

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Gavin A Buckingham Partner Perth 28 February 2008

Liability limited by a scheme approved under Professional Standards Legislation.

GAB:KT:RESOLUTE:122

RESOLUTE MINING LIMITED HALF YEAR REPORT For the six months ended 31 December 2007

CONSOLIDATED INCOME STATEMENT

Note Continuing operations Revenue from gold sales 4(a) Other revenue 4(b) Cost of sales 4(c) Gross (loss)/profit Other income 4(d) Other expenses 4(e) (Loss)/profit from continuing operations before unrealised treasury, tax and finance costs Borrowing costs 4(f) (Loss)/profit before unrealised treasury and tax Treasury - unrealised (loss)/gain 4(g) (Loss)/profit before tax Income tax benefit/(expense) (Loss)/profit from continuing operations after income tax Attributable to: Minority interests Members of the parent Earnings per share for (loss)/profit from continuing operations attributable to the ordinary equity shareholders of the Company: Basic earnings per share for (loss)/profit for the half year (cents per share) Diluted earnings per share for (loss)/profit for the half year (cents per share)	For the half For the half year ended year ended 31-Dec-07 31-Dec-06 $'000 $'000 92,528 95,122 2,185 2,612 (95,917) (94,251) (1,204) 3,483 2,766 181,114 (12,477) (5,922) (10,915) 178,675 (517) (907) (11,432) 177,768 (44,912) 1,594 (56,344) 179,362 15,379 (6,656) (40,965) 172,706 (13) (149) (40,952) 172,855 (16.68) 75.29 (16.68) 75.12 Consolidated	For the half For the half year ended year ended 31-Dec-07 31-Dec-06 $'000 $'000 92,528 95,122 2,185 2,612 (95,917) (94,251) (1,204) 3,483 2,766 181,114 (12,477) (5,922) (10,915) 178,675 (517) (907) (11,432) 177,768 (44,912) 1,594 (56,344) 179,362 15,379 (6,656) (40,965) 172,706 (13) (149) (40,952) 172,855 (16.68) 75.29 (16.68) 75.12 Consolidated
		3,483 181,114 (5,922)
		178,675 (907)
		177,768 1,594
		179,362 (6,656)
		172,706
		(149) 172,855
		75.29 75.12

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

9

RESOLUTE MINING LIMITED HALF YEAR REPORT For the six months ended 31 December 2007

CONSOLIDATED BALANCE SHEET

Current assets Cash and cash equivalents Receivables Inventories Available for sale financial assets Financial derivative assets Deferred expenditure Other Total current assets Non current assets Financial derivative assets Exploration and evaluation Development expenditure Property, plant and equipment Deferred expenditure Deferred tax assets Other Total non current assets Total assets Current liabilities Payables Interest bearing liabilities Tax liabilities Financial derivative liabilities Provisions Total current liabilities Non current liabilities Interest bearing liabilities Provisions Financial derivative liabilities Other liabilities Deferred tax liabilities Total non current liabilities Total liabilities Net assets Equity Contributed equity Reserves Retained profits Parent entity interest in equity Minority interest Total equity	As at As at 31-Dec-07 30-Jun-07 $'000 $'000 42,680 67,661 18,300 16,358 36,891 31,834 7,922 13,480 50 205 4,326 4,701 2,280 23,674 112,449 157,913 - 300 70,283 63,105 163,352 54,841 95,363 100,365 16,642 21,537 23,228 7,439 6,927 6,310 375,795 253,897 488,244 411,810 40,544 34,908 4,792 3,367 2,161 5,069 56,651 32,702 3,687 4,414 107,835 80,460 2,636 4,330 22,862 21,021 69,812 39,690 353 - 1,461 1,673 97,124 66,714 204,959 147,174 283,285 264,636 164,914 113,917 6,590 (1,936) 109,287 150,239 280,791 262,220 2,494 2,416 283,285 264,636 Consolidated	As at As at 31-Dec-07 30-Jun-07 $'000 $'000 42,680 67,661 18,300 16,358 36,891 31,834 7,922 13,480 50 205 4,326 4,701 2,280 23,674 112,449 157,913 - 300 70,283 63,105 163,352 54,841 95,363 100,365 16,642 21,537 23,228 7,439 6,927 6,310 375,795 253,897 488,244 411,810 40,544 34,908 4,792 3,367 2,161 5,069 56,651 32,702 3,687 4,414 107,835 80,460 2,636 4,330 22,862 21,021 69,812 39,690 353 - 1,461 1,673 97,124 66,714 204,959 147,174 283,285 264,636 164,914 113,917 6,590 (1,936) 109,287 150,239 280,791 262,220 2,494 2,416 283,285 264,636 Consolidated
		157,913
		300 63,105 54,841 100,365 21,537 7,439 6,310
		253,897
		411,810
		34,908 3,367 5,069 32,702 4,414
		80,460
		4,330 21,021 39,690 - 1,673
		66,714
		147,174
		264,636
		113,917 (1,936) 150,239
		262,220
		2,416
		264,636

The above balance sheet should be read in conjunction with the accompanying notes. 10

RESOLUTE MINING LIMITED HALF YEAR REPORT For the six months ended 31 December 2007

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

As at 1 July 2007 Currency translation differences Hedge reserve put options, net of tax Hedge reserve forwards, net of tax Unrealised gain/(loss) reserve, net of tax Total income/(expense) for the period recognised directly in equity Loss for the period Total income and expense for the period Exercise of options Rights issue Share issue costs Share option reserve Minority interest movement in reserves Total other for the period recognised directly in equity As at 31 December 2007	Issued Retained Foreign Currency Hedge Reserve Hedge Reserve Share Based Unrealised Minority Total Capital Earnings Translation Put Options Forwards Payments Gain/Loss Interest Equity Reserve Gain/(loss) Gain/(loss) Reserve Reserve $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 113,917 150,239 (21,096) (717) 13,651 627 5,599 2,416 264,636
	- - 12,198 - - - - - 12,198 - - - 448 - - - - 448 - - - - (649) - - - (649) - - - - - - (3,804) - (3,804)
	- - 12,198 448 (649) - (3,804) - 8,193
	- (40,952) - - - - - (13) (40,965)
	- (40,952) 12,198 448 (649) - (3,804) (13) (32,772)
	880 - - - - - - - 880 50,201 - - - - - - - 50,201 (84) - - - - - - - (84) - - - - - 333 - - 333 - - - - - - - 91 91
	50,997 - - - - 333 - 91 51,421
	164,914 109,287 (8,898) (269) 13,002 960 1,795 2,494 283,285

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

11

RESOLUTE MINING LIMITED HALF YEAR REPORT For the six months ended 31 December 2007

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (continued)

As at 1 July 2006 Currency translation differences Hedge reserve put options, net of tax Hedge reserve forwards, net of tax Hedge reserve unearned income, net of tax Unrealised gain/(loss) reserve, net of tax Total income/(expense) for the period recognised directly in equity Profit/(loss) for the period Total income and expense for the period Exercise of options Share issue costs Share option reserve Transfer to retained earnings on disposal of subsidiary Minority interest movement in share capital Minority interest movement in reserves Minority interest movement in retained profits Total other for the period recognised directly in equity As at 31 December 2006	Issued Retained Foreign Currency Hedge Reserve Hedge Reserve Hedge Reserve Share Based Unrealised Equity Minority Total Capital Earnings Translation Put Options Forwards Unearned Payments Gain/(Loss) Reserve Interest Equity Reserve Gain/(loss) Gain/(loss) Income Reserve Reserve $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 112,955 (26,695) (4,778) (1,950) (22,505) 5,398 366 11,668 6,764 2,432 83,655
	- - (7,275) - - - - - - - (7,275) - - - 534 - - - - - - 534 - - - - 13,510 - - - - - 13,510 - - - - - (3,795) - - - - (3,795) - - - - - - - (4,443) - - (4,443)
	- - (7,275) 534 13,510 (3,795) - (4,443) - - (1,469)
	- 172,855 - - - - - - - (149) 172,706
	- 172,855 (7,275) 534 13,510 (3,795) - (4,443) - (149) 171,237
	968 - - - - - - - - - 968 (6) - - - - - - - - - (6) - - - - - - 114 - - - 114 - 6,764 - - - - - - (6,764) - - - - - - - - - - - (1,227) (1,227) - - - - - - - - - 1,091 1,091 - - - - - - - - - 81 81
	962 6,764 - - - - 114 - (6,764) (55) 1,021
	113,917 152,924 (12,053) (1,416) (8,995) 1,603 480 7,225 - 2,228 255,913

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

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RESOLUTE MINING LIMITED HALF YEAR REPORT For the six months ended 31 December 2007

CONSOLIDATED CASH FLOW STATEMENT

Note Cash flows from operating activities Receipts from customers Payments to suppliers and employees Interest received Interest and other costs of finance paid Net operating cash flows Cash flows from investing activities Expenditure on exploration and development areas Payments for property, plant and equipment Proceeds from sale of property, plant and equipment Payments for available for sale financial assets Proceeds from sale of available for sale financial assets Cash outflow on disposal of subsidiary Proceeds from the reimbursement for the Syama mining fleet Royalties received Net investing cash flows Cash flows from financing activities Proceeds from issues of securities Cost of issuing securities Proceeds from borrowings Repayment of borrowings Repayment of lease liability Net financing cash flows Net (decrease)/increase in cash held Cash assets held at the beginning of the period Exchange rate adjustment Cash assets held at the end of the period 6	For the half For the half year ended year ended 31-Dec-07 31-Dec-06 $'000 $'000 92,529 88,480 (101,036) (85,214) 1,220 1,606 (205) (696) (7,492) 4,176 (85,996) (15,848) (19,439) (21,283) 8,302 50 - (4,655) 298 199,499 - (4,096) 28,137 - 2,164 2,162 (66,534) 155,829 51,081 968 (84) (6) 230 11,787 (317) (26,576) (763) (864) 50,147 (14,691) (23,879) 145,314 67,661 13,992 (1,102) (5,864) 42,680 153,442 Consolidated	For the half For the half year ended year ended 31-Dec-07 31-Dec-06 $'000 $'000 92,529 88,480 (101,036) (85,214) 1,220 1,606 (205) (696) (7,492) 4,176 (85,996) (15,848) (19,439) (21,283) 8,302 50 - (4,655) 298 199,499 - (4,096) 28,137 - 2,164 2,162 (66,534) 155,829 51,081 968 (84) (6) 230 11,787 (317) (26,576) (763) (864) 50,147 (14,691) (23,879) 145,314 67,661 13,992 (1,102) (5,864) 42,680 153,442 Consolidated
		4,176
		(15,848) (21,283) 50 (4,655) 199,499 (4,096) - 2,162
		155,829
		968 (6) 11,787 (26,576) (864)
		(14,691)
		145,314 13,992 (5,864)
		153,442

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

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RESOLUTE MINING LIMITED HALF YEAR REPORT For the six months ended 31 December 2007

NOTES TO THE FINANCIAL STATEMENTS

NOTE 1: CORPORATE INFORMATION

The financial report of Resolute Mining Limited (the “Group”) for the half year ended 31 December 2007 was authorised for issue in accordance with a resolution of directors on 28 February 2008.

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

NOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis of preparation

This general purpose financial report for the interim half year reporting period ended 31 December 2007 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 of the type normally included in an annual financial report. Accordingly, this report is to be read in conjunction with the annual report for the year ended 30 June 2007 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 .

Going concern

As at 31 December 2007, the Group’s payables of A$40.5 million and estimated future committed capital expenditure requirements in connection with the redevelopment of the Syama Gold Mine in Mali of US$27.6 million are in excess of the Group’s available cash and bullion on hand at 31 December 2007 of A$36.7 million. In addition, the Group plans to enter into further commitments for capital expenditure as the redevelopment progresses.

Notwithstanding this matter, management and the directors are satisfied the Group can continue on a going concern basis after having regard to the following mitigating factor:

(i) Management intends to put in place an approximately A$60 million credit facility. A credit approved term sheet has been received from Barclays Bank Plc in relation to this credit facility. This facility is expected to be in place by March 2008.

New accounting standards and interpretation

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 2007, as described below, require no change to the current accounting policies:

14

RESOLUTE MINING LIMITED HALF YEAR REPORT For the six months ended 31 December 2007

NOTES TO THE FINANCIAL STATEMENTS

NOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

• AASB 101 (revised October 2006) Presentation of Financial Statements

• AASB 7 Financial Instruments: Disclosures ;

• AASB 2005-10 Amendments to Australian Accounting Standards ( AASB 132, 101, 114, 117, 133, 139, 1, 4, 1023 and 1038) ;

• AASB 2007-1 Amendments to Australian Accounting Standards arising from Interpretation 11 (AASB 2) ;

• AASB 2007-4 Amendments to Australian Accounting Standards arising from ED 151 and Other Amendments ;

• AASB 2007-7 Amendments to Australian Accounting Standards (AASB 1, 2, 4, 5, 107 and 128) ;

• Interpretation 10 Interim Financial Reporting and Impairment ; and

• Interpretation 11 AASB 2 Group Treasury Share Transactions .

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RESOLUTE MINING LIMITED HALF YEAR REPORT For the six months ended 31 December 2007

NOTES TO THE FINANCIAL STATEMENTS

NOTE 3: SEGMENT INFORMATION

The consolidated entity operates in 4 geographical segments.

2007 Geographical Segments Tanzania Ghana Mali Australia Consolidated Half Year 2007 Half Year 2007 Half Year 2007 Half Year 2007 Half Year 2007 $A'000 $A'000 $A'000 $A'000 $A'000 Revenue Sales to customers 52,060 - - 40,468 92,528 Other revenue 41 - 8 2,136 2,185 Segment revenue 52,101 - 8 42,604 94,713 Results Segment results from continuing operations 1,451 (90) 8 (57,713) (56,344) Consolidated entity loss from continuing operations before income tax benefit (56,344) Income tax benefit 15,379 Consolidated entity loss from continuing operations after income tax benefit (40,965) 2006 Geographical Segments Tanzania Ghana Mali Australia Consolidated Half Year 2006 Half Year 2006 Half Year 2006 Half Year 2006 Half Year 2006 $A'000 $A'000 $A'000 $A'000 $A'000 Revenue Sales to customers 47,061 - - 48,061 95,122 Other revenue 87 - - 2,525 2,612 Segment revenue 47,148 - - 50,586 97,734 Results Segment results from continuing operations 4,568 (927) 63 175,658 179,362 Consolidated entity profit from continuing operations before income tax expense 179,362 Income tax expense (6,656) Consolidated entity profit from continuing operations after income tax expense 172,706	Tanzania Ghana Mali Australia Consolidated Half Year 2007 Half Year 2007 Half Year 2007 Half Year 2007 Half Year 2007 $A'000 $A'000 $A'000 $A'000 $A'000 52,060 - - 40,468 92,528 41 - 8 2,136 2,185	Tanzania Ghana Mali Australia Consolidated Half Year 2007 Half Year 2007 Half Year 2007 Half Year 2007 Half Year 2007 $A'000 $A'000 $A'000 $A'000 $A'000 52,060 - - 40,468 92,528 41 - 8 2,136 2,185
	52,101 - 8 42,604 94,713
	1,451 (90) 8 (57,713) (56,344)
		(56,344) 15,379
		(40,965)
		Consolidated Half Year 2006 $A'000 95,122 2,612
	47,148 - - 50,586	97,734
	4,568 (927) 63 175,658	179,362
		179,362 (6,656)
		172,706

16

RESOLUTE MINING LIMITED HALF YEAR REPORT For the six months ended 31 December 2007

NOTES TO THE FINANCIAL STATEMENTS

NOTE 4: (LOSS)/PROFIT FROM CONTINUING OPERATIONS

(a) Revenue from gold sales Gold sales (b) Other Revenue Interest income - other persons/corporations Royalty income (c) Cost of sales Cost of production Amortisation of exploration, development & rehabilitation costs Depreciation of mine properties, plant & equipment Royalty Operational support costs Total cost of sales (d) Other income Profit on sale of property, plant and equipment Profit on sale of available for sale financial assets Profit on sale of subsidiary Profit on disposal of exploration property Other income Total other income (e) Other expenses from ordinary activities Management and administration expenses Insurance costs Operating lease expense Loss on sale of property, plant and equipment Write down of mineral exploration and development costs Depreciation of non mine site assets Realised loss on gold options Realised loss on gold loan Realised loss on net settlement of forward sales contracts Foreign exchange loss Other Total other expenses from ordinary activities (f) Borrowing costs Interest and fees paid/payable to other entities Rehabilitation provision discount adjustment Total borrowing costs	For the half For the half year ended year ended 31-Dec-07 31-Dec-06 $'000 $'000 92,528 95,122 92,528 95,122 1,144 1,606 1,041 1,006 2,185 2,612 85,594 82,670 1,823 1,838 4,794 5,921 3,146 3,103 560 719 95,917 94,251 - 19 - 25,784 - 155,093 2,671 - 95 218 2,766 181,114 1,809 2,013 207 240 268 174 273 - 41 729 72 77 3,916 879 126 448 - 722 5,680 - 85 640 12,477 5,922 205 696 312 211 517 907 Consolidated	For the half For the half year ended year ended 31-Dec-07 31-Dec-06 $'000 $'000 92,528 95,122 92,528 95,122 1,144 1,606 1,041 1,006 2,185 2,612 85,594 82,670 1,823 1,838 4,794 5,921 3,146 3,103 560 719 95,917 94,251 - 19 - 25,784 - 155,093 2,671 - 95 218 2,766 181,114 1,809 2,013 207 240 268 174 273 - 41 729 72 77 3,916 879 126 448 - 722 5,680 - 85 640 12,477 5,922 205 696 312 211 517 907 Consolidated
		95,122
		1,606 1,006
		2,612
		82,670 1,838 5,921 3,103 719
		94,251
		19 25,784 155,093 - 218
		181,114
		2,013 240 174 - 729 77 879 448 722 - 640
		5,922
		696 211
		907

17

RESOLUTE MINING LIMITED HALF YEAR REPORT For the six months ended 31 December 2007

NOTES TO THE FINANCIAL STATEMENTS

NOTE 4: (LOSS)/PROFIT FROM CONTINUING OPERATIONS (continued)

(g) Unrealised treasury

As at 31 December 2007, the Group had 381,334 (2006: 505,387) ounces outstanding in gold forward contracts at an average price of A$667/oz (2006: A$669/oz), gold put option contracts of 225,000 (2006: 440,000 ounces) at an average price of A$598/oz (2006: A$615/oz) and nil gold call options (2006: 51,214 ounces) at an average price of nil (2006: A$663/oz) .

The Group has entered into no new gold forward, gold put or gold call option contracts in the 6 months to December 2007. The Group has delivered 99,269 (2006: 65,412) ounces into gold forward contracts at an average price of A$630/oz (2006: A$585/oz).

NOTE 5: DIVIDENDS

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

NOTE 6: CASH AND CASH EQUIVALENTS

At 31 December 2007, the Group’s cash and cash equivalents balance included a short term deposit of $6.0 million which is subject to certain restrictions pursuant to the Group’s performance bond credit facility agreement. The restrictions involve the Group maintaining a retention account requiring a minimum balance.

NOTE 7: CONTRIBUTED EQUITY

	Total	Number	Issue Price	Amount Paid
	Number	Quoted	Per Security	Up Per Security
Ordinary securities
As at 31 December 2007	277,739,457	277,739,457
Changes during current period
Increases through exercise of unlisted options	787,500	-	$0.81	$0.81
Increases through exercise of unlisted options	30,000	-	$1.28	$1.28
Increases through exercise of unlisted options	70,000	-	$1.48	$1.48
Increases through exercise of unlisted options	30,000	-	$1.57	$1.57
Increases through exercise of unlisted options	40,000	-	$1.33	$1.33
Increases through subscription of rights issue (i)	45,637,398	-	$1.10	$1.10

18

RESOLUTE MINING LIMITED HALF YEAR REPORT For the six months ended 31 December 2007

NOTES TO THE FINANCIAL STATEMENTS

NOTE 7: CONTRIBUTED EQUITY (continued)

	Total	Number		Exercise	Expiry
	Number	Quoted		Price	Date
Options on issue
As at 31 December 2007	445,000		-	$1.42	21/12/09
	375,000		-	$1.13	23/03/11
	355,000		-	$1.33	24/10/11

(i) On 1 October 2007, the company invited its shareholders to subscribe to a rights issue of up to 46.4 million ordinary shares at an issue price of $1.10 per share on the basis of 1 share for every 5 fully paid ordinary shares held, with such shares issued on 5 November 2007. The issue was not fully subscribed or underwritten.

In addition, as a result of the above mentioned rights issue, from 1 October 2007, the exercise price of all remaining employee share options was reduced by 15 cents per share in accordance with the requirements of the Resolute Mining Employee Share Option Plan.

NOTE 8: CONTINGENT LIABILITIES AND CONTINGENT ASSETS

There have been no changes to the contingent liabilities or contingent assets of the Group from those items disclosed in the financial report for the year ended 30 June 2007.

NOTE 9: EVENTS OCCURRING AFTER BALANCE DATE

(i) On 18 February 2008, Barclays Capital Plc was mandated by RML to provide an approximately A$60 million credit facility to the Company. The new credit facility will be a first ranking secured revolving corporate facility that amortises approximately evenly each 6 months from the first repayment date of 31 December 2008 to the last repayment date of 31 December 2012. Financial closure of this debt raising is anticipated to occur in March 2008, and the proceeds will be used to fund capital expenditure and working capital costs of the Syama and Mt Wright developments.

(ii) On 27 February 2008, the Group entered into a Sale and Purchase Agreement with Iamgold Limited to purchase their 34% interest in the Nyakafuru Gold Project in Tanzania. The purchase price is US$6.0 million or the issue to Iamgold of the equivalent value in RML shares. In addition, the Group shall pay a royalty of US$10 per ounce for each additional resource ounce, attributable to the former Iamgold interest, that is proven up on the project, up to a total cap of US$3.75 million. The Nyakafuru Project is located approximately 120 kilometres from the Golden Pride Mine in Tanzania and at 30 June 2007 had indicated resources of 545,000 ounces and inferred resources of 527,000 ounces.

19

RESOLUTE MINING LIMITED HALF YEAR REPORT For the six months ended 31 December 2007

NOTES TO THE FINANCIAL STATEMENTS

NOTE 10: COMMITMENTS

Syama gold mine redevelopment

As at 31 December 2007 the Group had development expenditure commitments of US$27.6 million with respect to the Syama gold mine redevelopment in Mali, Africa.

20

RESOLUTE MINING LIMITED HALF YEAR REPORT For the six months ended 31 December 2007

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 Standard AASB 134 Interim Financial Reporting , the Corporations Regulations 2001 and other mandatory professional reporting requirements; and

(ii) giving a true and fair view of the Group’s financial position as at 31 December 2007 and of its performance as required by Accounting Standards, and as represented by the results of its performance for the half year ended on that date.

b) there are reasonable grounds to believe that the Group will be able to pay its debts as and when they become due and payable.

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

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P.R. Sullivan Director

Perth, Western Australia 28 February 2008

21

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To the members of Resolute Mining Limited

Report on the Condensed Interim Financial Report

We have reviewed the accompanying half year financial report of Resolute Mining Limited, which comprises the balance sheet as at 31 December 2007, and the income statement, statement of changes in equity and cash flow statement for the half year ended on that date, other selected explanatory notes and the directors’ declaration of the consolidated entity comprising the company and the entities it controlled at the half year end or from time to time during the half year.

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 establishing 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 2007 and its performance for the half year 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.

Liability limited by a scheme approved under Professional Standards Legislation.

GAB:KT:RESOLUTE:123

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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.

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 is not in accordance with the Corporations Act 2001 , including:

• (i) giving a true and fair view of the consolidated entity’s financial position as at 31 December 2007 and of its performance for the half year ended on that date; and

• (ii) complying with Accounting Standard AASB 134 Interim Financial Reporting and the Corporations Regulations 2001 .

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Ernst & Young

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Gavin A Buckingham Partner Perth 28 February 2008

GAB:KT:RESOLUTE:123