Resolute Mining Limited — Interim / Quarterly Report 2008

Jan 28, 2008

For the quarter to 31 December 2007

A.C.N. 097 088 689 ASX CODE – RSG

OVERVIEW

OPERATIONS

Quarterly Production

• Gold production for the quarter of 65,735 (74,053) ounces of gold was achieved at a cash cost of A$674 per ounce (A$600).
• Production at Golden Pride in Tanzania for the quarter was 32,647 (39,563) ounces of gold at a cash cost of A$548 (A$499) (US$493: US$425) per ounce.
• Gold production at Ravenswood generated 33,088 (34,490) ounces at a cash cost of A$798 (A$716) per ounce.

DEVELOPMENT

Syama

• Re-development of Syama was 62% complete overall at the end of December with the oxide plant 88% complete.
• US$87.5m has been spent on the re-development project and power station and a further US$28.4m of expenditure committed.
• Mining activities commenced.
• Feasibility Study instigated into an expansion of the Syama Gold Mine in Mali to exploit the free milling resources located near the existing plant.

EXPLORATION

• Exploration drilling continued at regional prospects near Syama in Mali, Golden Pride in Tanzania and Ravenswood in Queensland.
• In Mali, a new resource was announced for the Tabakoroni deposit (Finkolo Joint Venture). At a cut off grade of 1g/t the updated Tabakoroni gold resource amounts to 9.2Mt @ 2.53g/t for 745,000ozs representing an increase of 53% contained gold over the previous estimation.
• North of Syama follow up reverse circulation drilling on the 'A21 North' trend continued to return solid intercepts including 22m @ 6.56g/t Au, 5m @ 36.12g/t Au and 28m @ 4.61g/t Au.
• 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.
• 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.

CORPORATE

• Group cash and bullion at the end of the quarter was A$43m (A$21m).
• Gross cash outflow from operations for the quarter was A$1.6m (A$9m inflow).
• Decision to cease hedge effectiveness testing for accounting purposes.
• Successfully completed a renounceable rights issue to raise $50.1m.
• Debt facility funding package to enable Company to continue growth initiatives, advanced.

PR SULLIVAN

Chief Executive Officer 29 January 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, 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.

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
December Quarter	502,862	554,244	2.10	87.3	87.8	32,647	548	601
September Quarter	534,161	680,412	2.05	88.4	91.0	39,563	499	551
Ravenswood
December Quarter	1,133,512	1,303,282	1.00	79.3	97.3	33,088	798	899
September Quarter	826,192	1,209,627	1.08	82.1	98.6	34,490	716	804
Total
December Quarter	1,636,374	1,857,526	1.33	83.1	92.5	65,735	674	751
September Quarter	1,360,353	1,890,039	1.43	85.3	94.8	74,053	600	669
*Total Cost includes cash costs, depreciation and amortisation, royalties and in-country operational support costs

OPERATIONS

Golden Pride, Tanzania (Resolute 100%)

The Project had no lost time injuries for the quarter. The twelve-month moving average Lost Time Injury Frequency Rate at the end of the quarter is 0.4 (1.5).

Golden Pride produced 32,647 (39,563) ounces of gold from 554,244 (680,412) tonnes of ore at a head grade of 2.10 (2.05) grams per tonne at a cash cost of US$493 (US$425) for the quarter.

Mining rates continued to be affected by the low mechanical availability of mining equipment. Delivery of new equipment during the quarter has seen this problem rectified and mine production in the latter part of the quarter has achieved planned levels.

Mining was split between the base of the main pit (for ore supply) and the

cutback on the south wall of the central pit area (for pit development). The base of the main pit was deepened during the quarter through the high grade western ore shoot.

Ore mined was from the main pit with very small quantities of oxide ore being identified in the central cutback areas. Material mined from the main-pit was all fresh material.

The Ball Mill was shut down in late November due to mechanical problems experienced with both feed and discharge end trunnion bearings. This required the Ball Mill to be down for repairs until late December. The SAG mill grate change out was conducted during this period and then bought on line in single circuit. Ore milled, and consequently gold production, for the period was directly affected by the downtime on the Ball Mill.

Gold recoveries for the quarter were

below plan due to a problematic small pod of reactive sulphide ore. This material had been previously encountered in metallurgical test work and is confined to a pod of limited strike length in the western end of the pit. Two new leach tanks were bought on line early in the quarter, increasing circuit residence time and assisting with recoveries of the problematic ore. An expansion of the oxygen supply system to include a two tonne plant, which allows all oxygen addition to be concentrated in the new tanks and improve leach kinetics, was also completed.

An increase in gold production is expected during the next quarter after a shutdown in January to replace the drive line of the SAG mill. 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.

Ravenswood, Australia (Resolute 100%)

The Ravenswood Operation had no lost time injuries during the quarter. The twelve-month moving average Lost Time Injury Frequency Rate at the end of the quarter decreased to 3.2 (4.2).

Gold produced during the quarter was 33,088 (34,490) ounces from 1,303,282 (1,209,627) tonnes at a head grade of 1.00 (1.08) grams per tonne. Gold recovery was 79.3 (82.1) percent. Cash cost per ounce of gold was A$798 (A$716).

The quarter saw higher throughput and reduced recovery with the head grade milled slightly lower than the previous quarter. The lower recovery can be attributed to slow leaching ore treated during October and the average lower head grade.

The low-grade beneficiation circuit produced 208,702 (216,267) tonnes of mill feed from 498,067 (520,360) tonnes for the quarter, screening product gold grade was 1.00 (0.83) grams per tonne. The upgrade factor of 1.75 (1.43) improved from the previous quarter.

Mining activities in the Sarsfield open pit were again affected by constrained mining areas associated with the narrow eastern wall. Broken stocks where also an issue at times, due in part to the wet weather, but mainly associated with blast hole drilling issues. The drilling contractor was replaced at the end of November and the drilling issues were essentially resolved by the end of the quarter. Mining grades performed slightly below resource model expectations, averaging 1.09g/t Au and the total ore tonnes were slightly below expectation due mainly to slightly lower tonnages

being defined on the remnant Eastern wall.

The Mt Wright underground project increased development to 972m (801m) for the quarter. Stope ore production was 126,800t @ 2.2g/t (142,692 @ 2.0g/t). The first (L7) stope was completed during December and production has commenced from the second (O8) stope. This stope will provide the bulk of the production tonnes for the next quarter.

The haul road from Mt Wright to the Sarsfield crushing plant is virtually complete with only final trim operations to be finalised. Power line construction commenced during the quarter. The Mt Wright development remains on track with development and operating costs in line with expectations.

DEVELOPMENT

Syama, Mali (Resolute 80%)

Work continued on the redevelopment of the six million ounce Syama gold mine in Mali. Completion is scheduled for the second half of 2008.

Principal project activities during the quarter included:

Process Plant and Infrastructure

The erection of the new crushing plant is well underway with most new equipment in place and conveyor sections erected. Electrical installation work has commenced.

Refurbishment of mills is being performed by a crew from Outotec. This work is 50% complete.

All steel work for the completion of the oxide circuit has been erected, mechanical equipment is being installed, electrical installation has commenced.

All equipment and refractories from Outotec for the roaster have been

delivered in Europe and are in transit to Mali.

The dismantling of the existing roaster is well underway, and the replacement sections are en route to site from South Africa.

The existing powerhouse building has been modified to fit the Caterpillar generating sets. Eleven of the fourteen generating sets have arrived at site, and installation of them and the switchgear has commenced. Rolls Royce have been contracted to provide two generating sets each giving 5MW of base power supply.

The construction of the tails dam has been completed, and installation of tails lines has commenced.

Water supply lines from Syama Pit & Syama Extension Pit have been completed and await mechanical equipment for installation. Erection of pumping stations for the pipeline from the Bagoe River is to commence in January 2008. An Antonov 124 was chartered in December to deliver various

electrical equipment allowing the current schedule to be maintained.

Project Progress and Schedule

Current overall progress is 62%, with the oxide plant 88% complete. The current schedule for oxide circuit commissioning is in 2nd quarter 2008.

Project Expenditure to 31 December 2007 was US$87.5m.

Commitments to date on the project total US$115.9m.

Forecast total capital costs remain at US$3m above the budget of US$118m, plus the revised cost of US$20m relating to the decision to purchase and operate the power station.

Operations

Syama Operations recorded 40 LTI free days at the end of the quarter.

The Environmental Impact Study was approved during the quarter and following this site operations commenced.

The earthmoving contractor, PW Mining, commenced refurbishment of facilities and mobilisation of personnel and equipment. The majority of the mining fleet has been received on site and is being progressively assembled.

Sufficient dump trucks and ancillary fleet have been commissioned to enable mining activities to commence utilising both excavators. One machine has made good progress relocating stockpiles from the ROM area in readiness for expansion of the ROM area. The second excavator has commenced free digging material from the north end of the pit. Work in the pit is concentrating on preparatory work to establish the pit benches for both excavators to commence in the pit next quarter.

Sub-contracts for grade control and explosives supply have been made and mobilisation is underway. The site laboratory is nearly complete and is expected to be commissioned in the next quarter.

Deliveries of mill reagents have commenced and preparations are being made for relining the mills.

Good progress has been made, in a difficult employment market, to fill a number of key senior positions through each department. The Purchasing, Supply, Mining and

Environment departments are close to planned expatriate manning levels. Processing, Occupational Health, Safety and Training will be substantially manned in January.

Recruitment of additional Malian staff commenced late in the quarter for all areas of operation, in readiness for pre-operations training to commence next quarter.

The Labour Agreement for Malian employees was presented, negotiated and signed in December and has been presented to the labour authorities for approval.

Feasibility Study on Syama Free Milling Ore

A Feasibility Study into an expansion of the Syama Gold Mine in Mali to exploit the free milling resources located near the existing plant was announced recently.

Initial scoping studies indicate a modest capital, high return project, which has the potential to add up to 100,000 ounces per annum to gold production at Syama.

Exploration work on the Syama tenure over the last two years has defined a potential free milling resource of 260,000 ounces (1.5g/t cut-off grade, see Table 1 appended) at the A21 area, approximately

seven kilometres to the north of the Syama pit.

The A21, inferred category, resource estimate for various cut-off grades is also summarised in the Table 1 appended.

In addition, recent reconnaissance drill results over unexplored strike immediately to the south of the Syama pit have been very encouraging, indicating the potential for further discoveries of free milling material on the Syama tenure.

The Syama plant has an established, but idle, free milling circuit of approximately 1.0 million tonne per annum capacity. This circuit requires some modification and refurbishment before it could become operational.

The Feasibility Study will consider the mining and treatment of free milling ore, in parallel with the sulphide circuit, based on exploitation of the A21 resource and the recommissioning of the idle plant. Key issues to be examined in the study are the impact of the additional ore treatment on existing water, power and tailings infrastructure.

The Feasibility Study is expected to take nine months to complete and has a budget cost of US$900,000.

EXPLORATION

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

MALI

Syama Regional Exploration (Resolute 80%)

Syama Near Mine

Regional air core drilling was carried out on wide spaced lines immediately to the south of Syama. The programme was aimed at testing the Syama Shear and Syama volcanic formation over some 10km

of strike, particularly in areas where subtle but distinct surface geochemical anomalies were interpreted in areas of shallow cover.

Preliminary results from the programme have been very encouraging with widespread intercepts including 19m @ 16.0g/t Au from 88m and 20m @ 1.9g/t Au along the target zone (refer Figure 1 appended).

These results are remarkable in that this area has never had any effective drilling and therefore remains wide open for new oxide resource potential. Follow up air core and reverse circulation drilling is now in

progress to better define the targets.

Quartz Vein Hill / A21 Area (Resolute 80%)

After long laboratory delays, results for reverse circulation drilling on the A21 North trend were received during the quarter. This drilling consisting of forty four drill holes for 5,409m was designed to infill and extend drill coverage to 50m x 25m spacing prior to updating the resource estimate. A small area of 25m x 25m spaced drill holes in the central portion of the resource was completed as part of a predevelopment programme.

Geological logging confirmed the current interpretation of the area with mineralisation focused along a sheared sediment/basalt contact. Significant intercepts reported this quarter included: 22m @ 6.56g/t Au from 9m, 5m @ 36.12g/t Au from 69m and 28m @ 4.61g/t Au from 35m. A summary of these results are included in Table 2 appended.

Results were returned for ten reverse circulation drill holes that were drilled south of A21 last quarter. The drilling was designed to close up drill spacing over the two mineralised trends joining the A21 and Chert ridge pits to a 50m x 100m grid. In addition, the drilling was designed to assess the further potential of a third mineralised trend that has been previously exploited (Quartz Vein Hill Pit Trend). Results include: 7m @ 5.55g/t Au from 14m, 7m @ 2.21g/t Au from 42m and 6m @ 3.58g/t Au from 59m. A summary of these results are included in Table 3 appended.

The drilling successfully tested the low angle mineralised structures interpreted as faulted offset extensions of the 1.2km strike length of mineralisation already established for A21 and A21 North. The area holds good potential for building shallow oxide resources.

Initial modelling for the A21 North deposit has been completed and an inferred category resource calculated (see Table 1 appended) and referred to in the Development Section of this report.

Work is ongoing on the A21 and A21 South areas. These results are now being incorporated into the A21 resource model which will be completed as part of the free milling feasibility study.

Finkolo - Etruscan Resources JV (Resolute 60%)

Final results were received for resource drilling completed in the previous quarter (refer Table 4 appended).

Results reported during the period included: TAC-234: 9m @ 3.57g/t Au from 96m. TAC-235: 23m @ 10.89g/t Au from 43m. TAC-237: 6m @ 4.14g/t Au from 41m. TAC-239: 8m @ 4.29g/t Au from 1m.

Resolute has completed an in-house resource estimation of the Tabakoroni deposit on behalf of the Finkolo JV. The estimation and classification of the resources are accordance with the 'JORC' Australasian Code for Reporting of Mineral Resources and Ore Reserves (December 2004). The resource update was published in an announcement to the ASX on 7 January 2008.

At a cut -off grade of 1g/t Au the updated Tabakoroni gold resource amounts to 9.2Mt @ 2.53g/t for 745,000ozs representing an increase of 53% contained gold over the previous estimation in June 2006 (6.4Mt @ 2.33g/t for 485,000ozs). The updated resource includes 4.62Mt @ 2.57g/t for 382,000ozs in the measured and indicated categories. A detailed classification of the resource is included in Tables 5 and 6 appended.

The resource was estimated using the method of Multiple Indicator Kriging (MIK) with block support adjustment. The model estimates resources into panels with dimensions of 25m (east) by 50m (north) by 5m (elevation), which approximates the drill hole spacing in the deposit. The model is based on the drilling undertaken to date. The recoverable resources have been estimated using GS3© , the MIK software developed by Hellman and Schofield Pty Ltd, and these are suitable for mine planning purposes.

The Finkolo Joint Venture partners have recently agreed to funding arrangements for immediate commencement of a new drilling programme to test the further potential of the Tabakoroni deposit at vertical depths of approximately 150 to 300m below surface. The proposed programme totals approximately 6,100m of drilling and includes ten diamond core drill holes designed to test the depth continuation of high grade shoots identified over more than 1km of strike in the centre of the deposit (refer Figure 2 appended).

The programme also includes infill and extension drilling on the near surface resource, especially at the junction of the Tabakoroni Main Shear Zone and adjacent "Porphyry Zone" where there is poor coverage in existing drilling.

TANZANIA

Golden Pride (Resolute 100%)

Golden Pride Near Mine

At the Kavsav prospect 8km northeast of Golden Pride follow up drilling was completed to test the large induced polarisation resistivitychargeability target modelled beneath an extensive surface geochemical anomaly.

Four reverse circulation drill holes, three with diamond tails, were completed during the quarter on 400m spaced sections with a maximum depth of 394m. The drill holes intersected a sequence of sandstone and conglomerates variably sericite-sulphide altered with the occasional mafic intrusive. The western hole, MSR0012D, returned a very encouraging intercept of 30m @ 2.94g/t Au from 95m, including 21m @ 4.05g/t Au from 102m (refer Table 7 appended). Five follow up reverse circulation drill holes have recently been drilled. Results have only been received for the first two holes, MSR0015 and MSR0016, but these show broad intercepts of low grade including 49m @ 0.58g/t Au from 51m to the end of hole in MSR0015.

The reverse circulation and diamond core results confirm the prospectivity of the Kavsav target which now demonstrates potential as a large mineralising system with good grades and widths of mineralisation. The prospect now requires systematic drill testing over the 1.5km strike length highlighted to date.

Golden Pride Regional

A significant new Joint Venture has been finalised with Barrick Exploration covering the area east of Golden Pride. The "Golden Pride East Joint Venture" (GPEJV) includes a series of prospecting licences covering 350km2 in the Nzega Greenstone belt including the eastward continuation of the Golden Pride Shear Zone (GPSZ) and two other significant regional structures. Resolute may earn an initial 51% of Barrick's equity in the GPEJV by spending US$3m over 5 years. Work on the area is already well advanced with mapping, soil sampling, air core

drilling and ground geophysics in progress.

A major air core drilling programme testing the eastern extensions of the Golden Pride and Choma shear zones has been completed. This drilling is on a wide 1km by 100m spacing using the 'Golden Pride Footprint' model from which it is hoped to be able to identify major mineralising systems using multielement geochemistry and portable infrared mineral analyser (PIMA) spectrometry on end of hole samples.

The programme has been successful in locating the extension of the GPSZ under cover with several drill lines showing areas of alteration including sericite, silicification and chlorite and disseminated pyrite. In particular two areas of anomalous results have been reported, one on the interpreted extension of the GPSZ and one on an east-west trend between the GPSZ and Choma shear. The targets are supported by regional scale surface geochemistry anomalies. Both areas require infill air core drilling to define reverse circulation /diamond drilling targets.

Regional multi-element soil samples continue to be collected over the entire Nzega belt. During the period

results were received for the Kahama area and show some localised anomalies that require follow up.

Induced polarisation surveys were completed over the Canuck Gold Mine area and the Bakkav/Choma prospects east of Golden Pride.

Ground magnetic surveys continued on the Kahama and Mwashimba ground during the month for the REDOX diamond exploration joint venture.

Nyakafuru (Iamgold JV) (Resolute 66%)

An illegal artisanal gold rush at Nyaksaluma (a Sub-Sahara JV tenement) was reported to the District Commissioner, Minerals Commissioner and Regional Mines Officer. A notice was served by the Shinyanga Regional Commissioner in December for the miners to vacate the area within thirty days.

AUSTRALIA

Ravenswood (Resolute 100%)

Follow up on the coincident magnetic/ EM and geochemical target at 'Devils Elbow' prospect near Mt. Wright located strongly altered float and rock chip samples with 'Mt Wright style" pathfinder suite elements including highly enriched values for Ag, As, Cd, Cu, Pb and Zn. These encouraging results support the proposal for drilling to test for mineralisation at depth. Drill sites for three 140m reverse circulation drill holes have been prepared. It is hoped to drill this and other targets as soon as a drill rig can be obtained.

A number of reconnaissance targets were investigated during the quarter including Spring Creek, Summers and Haigh Breccia. Follow up soil and rock chip sampling on the 'Spring Creek' prospect adjacent to the Ravenswood Mine Village returned five rock chip values >1.7g/t Au with a maximum of 13.3g/t Au. Soil results are awaited.

Wide spaced regional multi-element soil sampling continued during the period. Results received to date include several new areas for follow up investigation.

GHANA

Existing Resolute projects in Ghana are being offered for divestment. Several new opportunities in West Africa are currently being evaluated.

CORPORATE

Cash Balances and Movements

As at 31 December 2007, the Resolute Group had A$42.6m in cash (September 2007: A$21.1m).

In addition to the cash balance above, Resolute held listed investments with a market value of A$7.9m at month end. The majority of this balance relates to Resolute's investments in Uranium Equities Limited and Liontown Resources Ltd.

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

Operating Cash flows

• gross cash outflows from operations of A$1.6m
• cash outflows for royalty payments, operational capital expenditure, rehabilitation, insurance, overhead and operational support costs of A$4.5m
• Syama preproduction operating costs of A$3.3m
• Negative movements in working capital of A$11.7m

Investing Cash flows

• exploration expenditure of $3.1m

• Mt Wright development expenditure of A$5.2m
• Syama mine re-development and pre-production capital equipment expenditure of A$29.9m
• Syama power station purchase costs of A$4.4m
• reimbursement receipt of the Syama mining fleet purchase costs from PW Mining of A$28.1m
• other development expenditure of A$1.5m
• sale proceeds of Golden Pride mining fleet from Caspian Mining of A$8.2m

Financing Cash flows

• net repayment of debt and facility fees of A$0.3m
• interest income of A$0.8m
• proceeds received from the Rights Issue and exercise of share options of A$50.1m
• foreign exchange losses on cash balances of A$0.4m

Borrowings

At 31 December 2007, Resolute's total borrowings were A$7.4m (compared to A$7.3m at 30 September 2007) and comprised 2,775 ounces of gold (equivalent to A$2.6m) owing on the Ravenswood credit facilities and hire purchase/finance leases totalling A$4.8m.

Group Hedging Profile at 31 December 2007

Gold	Forward Sales		Put Options Bought
Y/E	Ounces	$	Ounces$
AUD's
30/06/08	64,667	696	80,000	653
30/06/09	84,333	697	55,000	673
30/06/10	88,334	699	-	-
	237,334		697 135,000	661
USD's
30/06/08	44,250	542	60,000	439
30/06/09	99,750	540	30,000	446
	144,000	541	90,000	441
Total	381,334		225,000

Using the 31 December 2007 USD spot gold price of US$837/oz and the USD/AUD foreign exchange rate of 0.8779, the mark to market of the Resolute hedge book at period end was a negative amount of approximately A$126m (September 2007 : A$97m).

The quantity of hedging commitments continued to decrease and was reduced by 51,333 ounces during the quarter. At 31 December

2007 approximately 15% of Resolute's gold reserves are committed to hedging contracts.

Resolute does not propose to increase its committed gold hedging positions.

The average cash price received per ounce of gold sold during the quarter was A$677/oz. Approximately 67% of the Golden Pride and 99% of the Ravenswood gold shipped during the quarter were delivered into existing forward sales contracts and the balance sold into the spot market.

Impact of Hedge Accounting on Income Statement

In the year ended 30 June 2007, Resolute Mining's financial instruments satisfied the strict criteria to be classified as "effective hedges" and as a result, the movements during the year ended 30 June 2007 in the fair value of these financial instruments reported to a hedge reserve on the Balance Sheet, and not to the Income Statement.

Due to the increased difficulty associated with passing the strict criteria to be classified an "effective hedge", a decision has been made to account for all financial instruments in a fashion that will see all future movements in their fair value report to the Income Statement. This will create greater Income statement volatility, but will have the advantage of simplifying the reporting of results to clearly show the underlying operating results of the Company apart from the unrealised treasury gains and losses. This move puts Resolute into line with the majority of other mid-tier gold producers.

This change in accounting treatment will have a negative impact on Resolute Mining's Income Statement for the six month period ended 31 December 2007 and will result in the Company reporting net unrealised treasury losses of approximately A$45m. It is important to understand that this is simply a change to the accounting treatment of these instruments and the unrealised loss in this period will be fully reversed in future periods through the reporting

of higher than realised profits in those periods.

The unrealised treasury loss has been caused by the significant increase in the gold price between 1 July 2007 and 31 December 2007, from US$650/oz (or A$765/oz) to US$837/oz (or A$953/oz).

Unfortunately, the Australian equivalents of International Financial Reporting Standards do not in this case allow the increased value of Resolute Mining's gold reserves to be accounted for using a similar methodology to the financial instruments to provide some balance to the overall position.

Resolute Mining considers its gold price risk management to be prudent, conservative and sensible for its gold assets.

Capital Management

During the quarter, the Company successfully completed a renounceable rights issue to raise $50.1m. The issue was strongly supported by the Company's shareholders with just over 98% of them participating in this capital raising. The funds raised are being used for the ongoing development of both the Syama gold mine in Mali and the Mt Wright underground gold mine in Queensland, Australia. As a result of the rights issue offer, the Company issued and allotted 45,637,398 fully paid ordinary shares and it now has 277,739,457 ordinary shares on issue.

To complete the funding package required by the Company to enable it to continue all of its growth initiatives, it is currently negotiating a new debt facility that will allow the Company to borrow in the vicinity of A$50m. Considerable progress has been made over the last quarter in relation to the implementation of a new debt facility. Due to the proposed borrowing level being modest (relative to the Company's Balance Sheet and low gearing levels), progress to date on this debt raising has been relatively smooth. Indicative term sheets have been received from a number of potential financiers.

Figure 1: Syama Permit Exploration Results

Figure 2: Tabakoroni Long Section showing results and planned drill intercepts at depth

Table 1: A21 Inferred category, resource estimate for various cut off grades

Cutoff	Oxidised			Sulphide			TOTAL
g/t	Tonnes	Grade	Ounces	Tonnes	Grade	Ounces	Tonnes	Grade	Ounces
0.5	6,000,000	1.9	370,000	2,900,000	1.9	180,000	8,900,000	1.9	550,000
1.0	3,800,000	2.5	310,000	1,900,000	2.5	150,000	5,700,000	2.5	460,000
1.5	2,500,000	3.2	260,000	1,200,000	3.2	120,000	3,700,000	3.2	380,000

Table 2: A21 North - Reverse Circulation / Diamond drilling - significant results

	Coordinates		Dip	Azi		Intercept (m)	Intercept	Grade
Hole ID.	m North*	m East*	(°)	(°)	From	To	width m	(g/t Au)
QVC-181	1202325	823100	-60	96	42	49	7	4.24 #
And					59	60	1	>10.00 #
QVC-183	1202325	823075	-60	96	55	62	7	3.56
QVC-184	1202300	823050	-60	96	67	72	5	2.04
And					88	90	2	5.16
QVC-185	1202300	823075	-60	96	61	68	7	2.15
QVC-186	1202250	823145	-60	96	12	15	3	1.96
QVC-188	1202175	823100	-60	96	9	12	3	15.42**
QVC-189	1202175	823075	-60	96	16	28	12	4.37
QVC-190	1202175	823050	-60	96	26	32	6	1.51
And					35	37	2	4.59
QVC-192	1202130	823035	-60	96	15	23	8	2.03
QVC-193	1202125	823000	-60	96	20	21	1	25.00**
And					44	48	4	1.15
QVC-194	1202125	822975	-60	96	56	60	4	6.82
QVC-195	1202125	822950	-60	96	62	65	3	1.15
And					69	74	5	36.12 1
QVC-196	1202075	823000	-60	96	3	4	1	4.62
And					18	22	5	1.94
QVC-197	1202075	822975	-60	96	19	22	3	2.86
And					33	34	1	9.20
And					37	39	2	4.12
QVC-198	1202075	822950	-60	96	41	48	7	1.59
And					50	57	7	7.09**
QVC-199	1202175	823025	-60	96	39	44	5	2.01

And					52	59	7	3.95
QVC-201	1202175	822975	-60	96	67	75	8	4.64
QVC-202	1202025	822975	-60	96	9	31	22	6.56
QVC-203	1202025	822950	-60	96	29	46	17	2.11
New					57	59	2	5.56
QVC-204	1202025	822925	-60	96	35	63	28	4.61
QVC-206	1201875	822900	-60	96	7	9	2	2.55
QVC-207	1201875	822875	-60	96	24	30	6	1.82
QVC-209	1201875	822825	-60	96	60	68	8	2.17
QVC-210	1201700	822875	-60	96	28	29	1	6.67
QVC-211	1201650	822875	-60	96	18	23	5	4.57
QVC-212	1201550	822825	-60	96	20	29	9	2.26
QVC-220	1202025	822875	-60	96	81	90	9	3.04
QVCD-133	1202245	823053	-60	96	50	55	5	1.32
And					66	67	1	20.15
QVCD-134	1202147	822975	-60	96	58	65	7	2.76
QVCD-138	1201952	822874	-60	96	59	63	4	6.73
QVCD-139	1201848	822873	-60	96	23	25	2	314.52
And					40	44	4	1.38

*UTM WGS84 Zone 29N **Includes some SFA results 1 includes 1m @ 130g/t from 70m #Includes results ">10g/t" awaiting re-analysis by Gravimetric finish

Results in this table are preliminary in nature and subject to further QAQC and check assay confirmation. Some intercepts include wet samples that require drying and riffle splitting confirmation sampling. All gold analyses were performed by Abilabs (ALS) Laboratories in Bamako, Mali using standard fire assay procedures with screen fire assay checks. All assays numbers are reported as un-cut and all intercepts are reported as drill width and are not to be interpreted as true widths.

Table 3: A21 South – Reverse Circulation drilling - Significant results

		Coordinates	Dip	Azi	Intercept (m)		Intercept	Grade
Hole ID.	m North*	m East*	(°)	(°)	From	To	width (m)	(g/t Au)
QVC-214	1200800	822650	-60	96	0	1	1	>10#
QVC-215	1200700	822625	-60	96	0	1	1	>10#
QVC-217	1200600	822700	-60	93	14	21	7	5.55**
QVC-218	1200650	822750	-60	96	16	21	5	2.35
QVC-219	1200650	822700		90	66	67	1	25.7
QVC-221	1200650	822650	-60	96	99	101	2	3.84
QVC-223	1200500	822525	-60	96	30	35	5	1.7
And					42	49	7	2.21
And					69	71	2	3.01

DECEMBER 2007 QUARTERLY REPORT

QVC-224	1200600	822525	-60	96	59	65	6	3.58
And					68	73	5	2.01
QVC-225	1200598	822601	-60	96	73	76	3	1.48
And					82	85	3	1.42

*UTM WGS84 Zone 29N #Preliminary Result subject to check assay **Includes some SFA results

Table 4: Finkolo JV: Tabakoroni Prospect - Reverse Circulation/Diamond drilling - Significant results

		Coordinates	Dip	Azi	Intercept (m)		Intercept	Grade
Hole ID.	m North*	m East*	(°)	(°)	From	To	width (m)	(g/t Au)
TAC-234	11640622	810448	-56	80	92	94	2	2.43
And					96	105	9	3.57
And1					113	126	13	1.25
TAC-2352	1164075	810476	-56	68	43	66	23	10.89
TAC-236	1164150	810401	-57	74	0	5	5	1.25
TAC-237	1164014	810517	-55	73	41	47	6	4.14
TAC-238	1164046	810536	-57	70	4	7	3	3.73
TAC-239	1163980	810569	-57	79	1	9	8	4.29
And					37	38	1	4.59
TAC-240	1164472	810258	-57	73	99	107	8	1.15
TACD-218	1163338	810668	-56	72	119	125	6	2.17

*UTM WGS84 Zone 29N 1

to end of hole 2 Includes 1m @ 146.95g/t Au from 61m.

Results in these tables are preliminary in nature and subject to further QAQC and check assay confirmation. Some intercepts include wet samples that require drying and riffle splitting confirmation sampling. All gold analyses were performed by SGS Analabs Laboratories at Morila, Mali using standard screen fire assay procedures. All assays numbers are reported as un-cut and all intercepts are reported as drill width and are not to be interpreted as true widths.

Table 5 Finkolo JV - Tabakoroni Resource Estimation (by category) – December 2007

Cut-Off	Measured			Indicated		Measured & Indicated		Inferred			Total
G/t	ton (M)	g/t	Oz (K)	ton (M)	g/t	Oz (K)	ton (M)	g/t	Oz (K)	ton (M)	g/t	Oz (K)	ton (M)	g/t	Oz (K)
0.50	4.58	1.96	289	2.34	1.96	147	6.92	1.96	436	9.11	1.60	468	16.02	1.75	904
0.70	3.97	2.17	277	1.95	2.24	140	5.91	2.19	417	6.66	1.97	421	12.57	2.07	838
0.90	3.40	2.40	262	1.62	2.53	132	5.02	2.44	394	5.12	2.32	381	10.14	2.38	775
1.00	3.14	2.52	254	1.48	2.68	127	4.62	2.57	382	4.54	2.49	364	9.16	2.53	745
1.10	2.90	2.64	246	1.35	2.83	123	4.25	2.70	369	4.06	2.66	347	8.31	2.68	716
1.20	2.68	2.76	238	1.24	2.99	119	3.91	2.83	357	3.64	2.84	332	7.55	2.84	688
1.50	2.10	3.16	213	0.96	3.46	107	3.06	3.25	320	2.70	3.36	291	5.76	3.30	611

	Measured & Indicated
Cut-Off		Oxide			Transition			Fresh
G/t	ton (M)	g/t	Oz (K)	ton (M)	g/t	Oz (K)	ton (M)	g/t	Oz (K)
0.50	1.55	2.22	110	2.38	1.79	137	2.99	1.97	189
0.70	1.34	2.47	106	2.07	1.97	131	2.51	2.23	180
0.90	1.16	2.73	101	1.77	2.17	123	2.10	2.51	169
1.00	1.07	2.86	99	1.63	2.27	119	1.92	2.65	164
1.10	1.00	3.00	96	1.49	2.38	114	1.76	2.80	158
1.20	0.93	3.14	94	1.37	2.50	110	1.62	2.95	153
1.50	0.75	3.56	86	1.04	2.86	96	1.27	3.39	138

Table 6 Finkolo JV – Tabakoroni Resource Estimation – (by ore type) – December 2007

		Inferred
Cut-Off		Oxide			Transition		Fresh
G/t	ton (M)	g/t	Oz (K)	ton (M)	g/t	Oz (K)	ton (M)	g/t	Oz (K)
0.50	2.05	1.41	93	2.19	1.26	89	4.87	1.83	286
0.70	1.42	1.77	81	1.55	1.54	77	3.69	2.22	264
0.90	1.06	2.10	71	1.13	1.81	66	2.93	2.59	244
1.00	0.93	2.26	67	0.98	1.95	61	2.64	2.77	235
1.10	0.82	2.42	64	0.85	2.08	57	2.39	2.95	227
1.20	0.73	2.58	60	0.74	2.22	53	2.17	3.13	219
1.50	0.53	3.05	52	0.50	2.65	42	1.67	3.67	197

Cut-OffG/t	Total
	Oxide			Transition			Fresh
	ton (M)	g/t	Oz (K)	ton (M)	g/t	Oz (K)	ton (M)	g/t	Oz (K)
0.50	3.59	1.76	203	4.57	1.54	226	7.86	1.88	475
0.70	2.76	2.11	187	3.62	1.79	207	6.20	2.22	443
0.90	2.21	2.43	173	2.90	2.03	189	5.03	2.56	413
1.00	2.00	2.58	166	2.60	2.15	180	4.56	2.72	399
1.10	1.82	2.74	160	2.34	2.27	171	4.15	2.89	385
1.20	1.66	2.89	154	2.10	2.40	162	3.79	3.05	372
1.50	1.28	3.35	138	1.54	2.79	138	2.94	3.55	335

Table 7: Kavsav Prospect (Golden Pride, Tanzania): Reverse Circulation/Diamond drilling results.

	Coordinates		Dip	Azi	Intercept (m)		Intercept	Grade
Hole ID.	m North*	m East*	(°)	(°)	From	To	width (m)	(g/t Au)
MSR0012D	9550070	530009	-55	320	95	125	30	2.94
				including	102	123	21	4.05
MSR0013D	9550394	530330	-55	320	148	152	4	0.92
MSR0013D	9550394	530330	-55	320	337	348	11	0.51
MSR0015#	9549801	530079	-55	320	51	100	49	0.58
				including	69	100	31	0.76
MSR0016	9549877	530145	-55	320	32	72	40	0.41

*UTM Arc60 #Ended in mineralisation

Results in this table are preliminary in nature and subject to further QAQC and check assay confirmation. Some intercepts include wet samples that require drying and riffle splitting confirmation sampling. All gold analyses were performed by ALS Laboratories in Mwanza Tanzania using standard fire assay procedures. All assays numbers are reported as un-cut and all intercepts are reported as drill width and are not to be interpreted as true widths.

CORPORATE DIRECTORY

P.R. Sullivan Chief Executive Officer

M.B. Turner Operations

M.H.D. Christie Exploration

Golden Pride, Tanzania

Ravenswood, Queensland

Syama, Mali

G.W. Fitzgerald Finance/Admin and Company Secretary

L. Taylor Operations Manager

R. McLellan Operations Manager

W. Foote Operations Manager

Senior Management

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

Shareholder Enquiries

Enquiries concerning shareholdings should be addressed to

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

Fax: 61 8 9315 2233

Email: registrar@securitytransfer.com.au