Resolute Mining Limited — Interim / Quarterly Report 2010

Feb 24, 2010

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APPENDIX 4D
HALF YEAR REPORT
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HIGHLIGHTS

DEVELOPMENT

• Strong underlying profit before unrealised treasury and tax of $26.4m

Syama:

• Feasibility study relating to the installation of a free milling oxide circuit progressed

• Total gold production of over 180,000 ounces

• Production up and cash costs per ounce down compared to the corresponding period

• Draft feasibility studies have been completed for the Tabakoroni deposit with the review process underway.

• Syama ramp up progressing with plant optimisation over the next 12 months

Mt Wright:

• Cash and bullion of $39.2m

• Strong results from infill drilling below the current production levels continued, including 32m @ 10.8g/t Au, 83m @ 6.8g/t Au and 108m @ 6.8g/t Au. This confirms the orebody model of higher grade with depth.

• 2009/10 forecast group production of 370,000 ounces

RESULTS

Golden Pride:

• Revenues from gold sales increased by 2% to $154.3m (2008 HY: $151.7m).

• Feasibility studies continued at Nyakafuru with work commencing in January 2010 on the social impact study.

• Profit before unrealised treasury and tax was $26.4m (2008 HY: $3.6m).

EXPLORATION

• Profit after tax of $8.6m (2008 HY: $8.1m) includes unrealised treasury losses of $14.7m (2008 HY: $5.5m gains).

• Exploration drilling recommenced on near mine and regional targets in Tanzania, Queensland and Mali while regional soil sampling and target definition work continued in Cote d’Ivoire.

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OPERATIONS

• The Group gold production for the half year was 182,069 ounces (2008 HY: 154,710 oz) of gold at an average cash cost of A$667/oz (2008 HY: A$698/oz).

• In Mali, reverse circulation drilling at Tellem designed to increase the near surface resource returned numerous significant intercepts including 14m @ 2.17g/t Au from 6m, 3m @ 4.19g/t Au from 22m, 28m @ 1.11g/t Au from 12m, and 3m @ 5.89g/t Au from 23m.

• Golden Pride gold mine in Tanzania, Africa, produced 78,326 ounces (2008 HY: 63,562 oz) at a cash cost of A$603/oz (or US$525/oz) (2008 HY: A$632/oz or US$478/oz).

• In Tanzania, a preliminary inferred resource of 1.85mt @ 1.2g/t Au for 71,000oz was estimated for the Kavsav deposit.

• Ravenswood gold mine in Queensland, Australia, produced 67,457 ounces (2008 HY: 84,359 oz) at a cash cost of A$743/oz (2008 HY: A$747/oz).

• Reverse circulation drilling in Tanzania returned several significant intercepts including 12m @ 1.84g/t Au from 40m, 12m @ 1.49g/t Au from 14m, and 7m @ 2.12g/t Au from 43m from the Kilabili prospect, and 10m @ 4.77g/t Au from 24m from the China prospect.

• Syama gold mine, although still in ramp-up phase at 31 December 2009, produced 36,286 ounces (2008 HY: 6,789 oz). Costs and gold sale proceeds have been capitalised. Syama preproduction operating costs of $56.5m were significantly offset by pre-production sales revenue from gold shipped of $38.8m.

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APPENDIX 4D FOR THE HALF YEAR ENDED 31 DECEMBER 2009 2
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OUTLOOK

CASH & BORROWINGS

Forecast gold production for the Group for the year ending 30 June 2010 is 370,000 ounces at a cash cost of approximately A$740 per ounce. This forecast is sensitive to the timing of the ongoing ramp up and optimisation of the Syama project and the USD/AUD exchange rate.

• Group cash and bullion at 31 December 2009 was $39.2m (June 2009: $13.0m).

• Net operating cash inflows during the half year were $28.0m (2008 HY: $41.3m). This does not include the $12.0m of bullion on hand at 31 December 2009.

From 1 January 2010 onwards, Syama’s operating expenditure (including depreciation and amortisation charges) and revenue will be recorded in the Income Statement and is expected to reduce group profitability in the second half.

• Net investing cash outflows of $41.0m (2008 HY: $81.3m) include expenditure on evaluation and development areas of $36.8m (2008 HY: $70.9m).

• Fund raising activities during the half year ended 31 December 2009, by way of issuing shares, convertible notes and options, provided gross proceeds of $44.0m. Costs associated with the fund raisings were $2.4m.

Golden Pride:

Ore production will increase during the second half as mining focuses on the completion of the central pit which provides access to high ore tonnages on low strip ratios.

• At 31 December 2009, Resolute’s total face value of borrowings were A$132m (June 2009: A$137.3m) and comprised US$34.9m (or A$38.8m) owing on the Barclays senior debt facility, US$8.3m (or A$9.2m) of loans from Barclays used to purchase gold put options, A$75.9m owing to holders of Resolute Convertible Notes, hire purchase / finance leases totalling A$4.8m, and a A$3.7m bank overdraft facility. The borrowings amounts stated here differ to those shown on the balance sheet as these amounts exclude sunk-cost establishment fees and apportionments between debt and equity as required by accounting standards.

The processing plant throughput will remain steady with the increase in fresh ore being maintained in the circuit.

Gold production and cash costs for the second half are expected to be similar to the first half.

Ravenswood:

Sarsfield low grade ore stockpiles will continue to be treated with Mt Wright ore for the remainder of 2009/10 financial year.

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At Mt Wright, a decision was recently made to change the mining method from long hole open stoping to sub level shrinkage. As a result the following 6 months will result in slower decline and level development.

• Repayments of borrowings during the period totalled $11.6m (2008 HY: $19.3m).

• Interest of A$4.5m owing on the Resolute Convertible Notes for the 6 months ended 31 December 2009 was paid on 6 January 2010 by way of an issue of Resolute ordinary shares.

Gold production is expected to be marginally lower than the first six months and cash costs slightly higher.

Syama:

• The quantity of hedging commitments decreased during the half year ending 31 December 2009 by 40,396 ounces of gold, and as at 31 December 2009, approximately 10% of Resolute’s attributable gold reserve is committed to hedging contracts.

Material movement is expected to increase in the coming six months, with additional equipment and resources being mobilised to site with a focus on direct leach ore.

Plant throughput is improving as rectification work is completed and maintenance systems are stepped up.

• The average cash price received per ounce of gold sold during the half year was A$1,040/oz (2008 HY: A$987/oz).

The plant is temporarily reconfigured to allow direct leaching and will continue while direct leach ore is available before the normal treatment process will be reinstated.

Operational ramp up continues and plant performance and gold production is expected to improve further in the second half.

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PR SULLIVAN

Chief Executive Officer 25 February 2010

APPENDIX 4D

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REPORTING PERIOD

The reporting period is for the half year ended 31 December 2009 with the corresponding reporting period being for the half year ended 31 December 2008.

RESULTS FOR ANNOUNCEMENT TO THE MARKET

Results Revenue from gold sales Profit before unrealised treasury and tax Profit attributable to members	A$'000 up 2% to 154,341 up 638% to 26,447 up 5% to 8,567

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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.

HALF YEAR REPORT

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FOR THE SIX MONTHS ENDED 31 DECEMBER 2009
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RESOLUTE MINING LIMITED HALF YEAR REPORT For the six months ended 31 December 2009

TABLE OF CONTENTS

Corporate Directory	4
Directors’ Report	5
Auditor’s Independence Declaration	7
Consolidated Statement of Comprehensive Income	8
Consolidated Statement of Financial Position	9
Consolidated Statement of Changes in Equity	10
Consolidated Cash Flow Statement	11
Notes to the Financial Statements	12
Directors’ Declaration	26
Independent Review Report	27

RESOLUTE MINING LIMITED HALF YEAR REPORT For the six months ended 31 December 2009

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” ASX Listed Convertible Notes Code: “RSGG” ASX Listed Options Code: “RSGO”

Securities on Issue (31/12/2009)

Secretary

GW Fitzgerald

Ordinary Shares 382,414,490 Listed Options 95,982,838 Convertible Notes 151,735,826

Registered Office and Business Address

Legal Advisor

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

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

Postal

PO Box 7232 Cloisters Square Perth, Western Australia 6850

Telephone: + 61 8 9261 6100 Facsimile: + 61 8 9322 7597 Email: contact@rml.com.au

ABN 39 097 088 689

Website

RML maintains a website where all major announcements to the ASX are available www.rml.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 Email: registrar@securitytransfer.com.au

Home Exchange

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

Auditor

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

Investec Bank (Australia) Limited Level 31, 2 Chifley Square Sydney, New South Wales 2000

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@rml.com.au

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RESOLUTE MINING LIMITED HALF YEAR REPORT For the six months ended 31 December 2009

DIRECTORS’ REPORT

Your directors present their half year 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 2009.

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 182,069 (2008: 154,710) ounces at an average cash cost of A$667/oz (2008: A$698/oz).

Golden Pride Mine

The Golden Pride mine in Tanzania produced 78,326 ounces of gold in the 6 months ended 31 December 2009 at a cash cost of A$603/oz (or US$525/oz), compared to gold production of 63,562 ounces at a cash cost of A$632/oz (or US$478/oz) in the half year ended 31 December 2008.

Ravenswood Gold Mine

The Ravenswood mine in Queensland, Australia, produced 67,457 ounces of gold in the 6 months ended 31 December 2009 at a cash cost of A$743/oz, compared to gold production of 84,359 ounces at a cash cost of A$747/oz in the half year ended 31 December 2008.

Syama Gold Mine

The Syama mine in Mali produced 36,286 ounces of gold in the 6 months ended 31 December 2009, compared to gold production of 6,789 ounces in the half year ended 31 December 2008. Costs and gold sales proceeds related to this production have been capitalised, as the project is still deemed to be in development as at 31 December 2009.

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RESOLUTE MINING LIMITED HALF YEAR REPORT For the six months ended 31 December 2009

DIRECTORS’ REPORT

Exploration and Development

Exploration and development programs undertaken during the half year ended 31 December 2009 concentrated on advancing the Group’s range of exploration and development properties located in Australia, Tanzania, Mali and Côte d'Ivoire.

Corporate

During the half year ended 31 December 2009, Resolute Mining Limited issued 34,090,911 convertible notes and 11,363,636 options. $25.0m was raised as a result of these issues.

On 22 October 2009, the $10m standby loan facility plus accrued fees and interest was converted to 14,201,475 convertible notes and 4,733,825 options.

On 24 October 2009, Resolute Mining Limited issued 30,000,000 shares to M&G Investments to raise $18.9m.

The quantity of hedging commitments decreased during the half year ended 31 December 2009 by 40,396 ounces of gold, and as at 31 December 2009, approximately 10% of Resolute’s attributable gold reserve is committed to hedging contracts.

Results of Operation

The Group’s profit after income tax for the six months ended 31 December 2009 was $8.6m (2008: $8.1m).

Subsequent Events

On 6 January 2010, Resolute Mining Limited issued 4,818,911 shares to the value of $4.5m to convertible note holders in lieu of interest payable.

Auditor’s Independence

Refer to page 7 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 24 February 2010

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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 2009, 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

24 February 2010

Liability limited by a scheme approved under Professional Standards Legislation

GB:MB:RESOLUTE:171

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RESOLUTE MINING LIMITED HALF YEAR REPORT For the six months ended 31 December 2009

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

Note Continuing Operations Revenue from gold sales 4(a) Costs of production relating to gold sales 4(b) Gross profit before depreciation, amortisation and other operating costs Depreciation and amortisation relating to gold sales 4(c) Other operating costs relating to gold sales 4(d) Gross profit Other revenue 4(e) Other income 4(f) Exploration expenditure 4(g) Administration and other expenses 4(h) Profit before unrealised treasury, tax and finance costs Finance costs 4(i) Profit before unrealised treasury and tax Treasury - unrealised (losses)/gains 4(j) Profit before income tax Income tax expense 4(k) Profit after income tax Other comprehensive (loss)/income Exchange differences on translation of foreign operations Cash flow hedges: Transfer to statement of comprehensive income Changes in the fair value of available for sale financial assets, net of tax Other comprehensive (loss)/income for the period, net of tax Total comprehensive (loss)/income for the period attributable to members of the parent Earnings per share for profit attributable to the ordinary equity holders of the parent:	For the half For the half year ended year ended 31-Dec-09 31-Dec-08 $'000 $'000 154,341 151,703 (100,225) (104,613) 54,116 47,090 (13,131) (11,262) (6,662) (6,237) 34,323 29,591 158 1,365 2,498 523 (3,708) (5,725) (5,140) (20,417) 28,131 5,337 (1,684) (1,755) 26,447 3,582 (14,714) 5,459 11,733 9,041 (3,166) (916) 8,567 8,125 (8,181) 30,484 (2,755) (1,662) 376 (63) (10,560) 28,759 (1,993) 36,884
Basic earnings per share Diluted earnings per share	2.36 2.89 2.00 2.34

The above statement of comprehensive income 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 2009

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

Note Current assets Cash Receivables - gold bullion sales Receivables - other Inventories Available for sale financial assets Financial derivative assets Other Total current assets Non current assets Receivables Financial derivative assets Exploration and evaluation expenditure Development expenditure Property, plant and equipment Deferred mining costs Other Total non current assets Total assets Current liabilities Payables Interest bearing liabilities 6 Tax liabilities Financial derivative liabilities Provisions Total current liabilities Non current liabilities Interest bearing liabilities 6 Financial derivative liabilities Provisions Deferred tax liabilities Other liabilities Total non current liabilities Total liabilities Net assets Equity Contributed equity 7 Reserves Retained earnings Total equity

As at As at 31-Dec-09 30-Jun-09 $'000 $'000 27,213 12,701 11,987 257 12,413 4,396 72,222 75,265 1,643 1,107 484 - 7,842 6,258 133,804 99,984 4,039 5,557 3,490 6,457 8,906 8,928 411,360 399,416 93,002 100,135 13,672 17,188 477 1,408 534,946 539,089 668,750 639,073 69,373 56,135 8,466 24,277 2,152 2,160 62,891 52,949 7,489 6,936 150,371 142,457 109,130 100,738 44,880 62,358 30,798 30,021 1,323 - 104 193 186,235 193,310 336,606 335,767 332,144 303,306 227,624 209,680 17,722 15,395 86,798 78,231 332,144 303,306

The above statement of financial position 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 2009

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

At 1 July 2009	Ordinary shares Net unrealised gains/losses reserve Hedge reserve forwards gain/(loss) Convertible notes equity reserve Share options equity reserve Employee equity benefits reserve Foreign currency translation reserve Retained earnings Total $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 209,680 364 5,343 3,492 4,064 1,499 633 78,231 303,306
Total comprehensive profit/(loss) for the period, net of tax	- 376 (2,755) - - - (8,181) 8,567 (1,993)
Transactions with owners Shares issued Share issue costs Options issued to convertible note holders and shareholders, net of tax Equity portion of compound financial instruments, net of tax and transaction costs Share-based payments to employees	18,960 - - - - - - - 18,960 (1,016) - - - - - - - (1,016) - - - - 1,923 - - - 1,923 - - - 10,760 - - - - 10,760 - - - - - 204 - - 204
At 31 December 2009	227,624 740 2,588 14,252 5,987 1,703 (7,548) 86,798 332,144
At 1 July 2008 Total comprehensive profit/(loss) for the period, net of tax Transactions with owners Shares issued Share issue costs Options issued to convertible note holders and shareholders, net of tax Equity portion of compound financial instruments, net of tax and transaction costs Share-based payments to employees	Ordinary shares Net unrealised gains/losses reserve Hedge reserve put options gain/(loss) Hedge reserve forwards gain/(loss) Convertible notes equity reserve Share options equity reserve Employee equity benefits reserve Foreign currency translation reserve Retained earnings Total $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000
	171,867 63 (42) 9,490 - - 1,103 (9,183) 47,555 220,853
	- (63) 42 (1,704) - - - 30,484 8,125 36,884 2,109 - - - - - - - - 2,109 (532) - - - - - - - - (532) - - - - - 5,190 - - - 5,190 - - - - 3,869 - - - - 3,869 - - - - - - 195 - - 195
At 31 December 2008	173,444 - - 7,786 3,869 5,190 1,298 21,301 55,680 268,568

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 2009

CONSOLIDATED CASH FLOW STATEMENT

Cash flows from operating activities Receipts from customers Payments to suppliers and employees Interest received Interest and other costs of finance paid Proceeds from the sale of gold call options Net operating cash flows Cash flows from investing activities Payments for property, plant and equipment Proceeds from sale of property, plant and equipment Expenditure on exploration, evaluation and development areas Royalties received Other Net investing cash flows Cash flows from financing activities Proceeds from issues of ordinary shares Cost of issuing ordinary shares Proceeds from issues of convertible notes Cost of issuing of convertible notes Proceeds from issues of options Cost of issuing options Proceeds from borrowings Repayment of borrowings Repayment of lease liability Net financing cash flows Net increase in cash and cash equivalents Cash and cash equivalents at beginning of period Exchange rate adjustment Cash and cash equivalents at end of period Cash and cash equivalents comprise the following: Cash Bank overdraft

For the half For the half year ended year ended 31-Dec-09 31-Dec-08 $'000 $'000 138,676 148,361 (108,903) (107,031) 158 318 (1,978) (1,845) - 1,543 27,953 41,346 (4,097) (12,555) 45 - (36,826) (70,946) - 2,187 (150) - (41,028) (81,314) 18,960 2,109 (1,016) (532) 23,864 41,853 (1,332) - 1,136 - (63) - - 21,565 (10,224) (17,974) (1,394) (1,291) 29,931 45,730 16,856 5,762 6,880 29,731 (211) 1,490 23,525 36,983 27,213 36,983 (3,688) - 23,525 36,983

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 2009

NOTES TO THE FINANCIAL STATEMENTS

NOTE 1: CORPORATE INFORMATION

The financial report of Resolute Mining Limited (the “Group” or “RML”) for the half year ended 31 December 2009 was authorised for issue in accordance with a resolution of directors on 24 February 2010.

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 half year ended 31 December 2009 has been prepared in accordance with AASB 134 Interim Financial Reporting and the Corporations Act 2001 .

The half year financial report does not include all notes of the type normally included within the annual financial report and therefore cannot be expected to provide as full an understanding of the financial performance, financial position and financing and investing activities of the Group as the full financial report.

It is recommended that the half year financial report be read in conjunction with the annual report for the year ended 30 June 2009 and considered together with any public announcements made by RML during the half year ended 31 December 2009 in accordance with the continuous disclosure obligations of the ASX listing rules.

The accounting policies and methods of computation are the same as those adopted in the most recent annual financial report.

Syama Gold Mine

As at the date of signing the financial statements, the Syama Gold Mine is in the process of being ramped up to commercial production. The Group’s working capital requirements are sensitive to the ramp up of the Syama Gold Mine and ultimately the assumed ounces of gold to be produced on a monthly basis. Any material delays in the ramp up process could adversely impact the Group’s forecast cash requirements and ultimately require additional funding to be raised to enable the Group to meet its working capital requirements.

New accounting standards and UIG interpretations

From 1 July 2009 the group has adopted all new and revised Australian Accounting Standards and Interpretations mandatory for reporting periods beginning on or after 1 July 2009, including:

• AASB 8 Operating segments

AASB 8 is a disclosure standard that has resulted in a redesignation of the Group’s reportable segments as detailed in Note 3. Additional disclosures about each reportable segment are shown in Note 3, including revised comparative information.

Impact: AASB 8 is a disclosure standard and had no impact on the amounts included in the Group’s financial statements.

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RESOLUTE MINING LIMITED HALF YEAR REPORT For the six months ended 31 December 2009

NOTES TO THE FINANCIAL STATEMENTS

NOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

• AASB 101 Presentation of Financial Statements (revised 2007)

The revised standard introduces a number of terminology changes, including revised titles for the financial statements, and has resulted in a number of changes in presentation and disclosure. In addition the revised standard introduces the requirement to produce a statement of comprehensive income that presents all items of recognised income and expense.

Impact: AASB 101 is a disclosure standard and had no direct impact on the measurement of amounts included in the Group’s financial statements.

• AASB 123 Borrowing Costs (Revised)

The amendments to AASB 123 require that all borrowing costs associated with a qualifying asset be capitalised.

Impact: Under the Group's existing policy borrowing costs relating to qualifying assets are capitalised. Therefore this revision does not result in any change in policy for the Group.

• AASB 2008-1 Amendments to Australian Accounting Standards - Share-Based Payments: Vesting Conditions and Cancellations

The amendments clarify the definition of 'vesting conditions', introducing the term 'non-vesting conditions' for conditions other than vesting conditions as specifically defined and prescribe the accounting treatment of an award that is effectively cancelled because a non-vesting condition is not satisfied.

Impact: The Group has share-based payment arrangements, although there are no significant changes effect by these amendments.

• AASB 2008-2 Amendments to Australian Accounting Standards - Puttable Financial Instruments and Obligations arising on Liquidation

Amendments to AASB 7, AASB 101, AASB 132, AASB 139 & Interpretation 2, applicable to annual reporting periods beginning on or after 1 January 2009.

Impact: The Group has not been affected by these amendments.

• AASB 2008-5 /AASB 2008-6 Amendments to Australian Accounting Standards arising from the Annual Improvements project

Further Amendments to Australian Accounting Standards arising from the Annual Improvements Project [AASB 1 & AASB 5] effective 1 July 2009.

Impact: The Group has not been affected by these amendments.

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RESOLUTE MINING LIMITED HALF YEAR REPORT For the six months ended 31 December 2009

NOTES TO THE FINANCIAL STATEMENTS

NOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

• AASB 2008-7 Amendments to Australian Accounting Standards - Cost of an Investment in a Subsidiary, Jointly controlled entity or Associate

The main amendments of relevance to Australian entities are those made to AASB 127 deleting the ‘cost method’ and requiring all dividends from a subsidiary, jointly controlled entity or associate to be recognised in profit or loss in an entity's separate financial statements (i.e., parent company accounts). The distinction between pre- and post-acquisition profits is no longer required. However, the payment of such dividends requires the entity to consider whether there is an indicator of impairment. AASB 127 has also been amended to effectively allow the cost of an investment in a subsidiary, in limited reorganisations, to be based on the previous carrying amount of the subsidiary (that is, share of equity) rather than its fair value.

Impact: The Group has not been affected by these amendments.

• AASB 2009-2 Amendments to Australian Accounting Standards - Improving Disclosures about Financial Instruments

Instruments [AASB 4, 7, 1023 & 1038] - applicable to annual reporting periods beginning on or after 1 January 2009

Impact: These amendments deal with disclosure requirements so will have no direct impact on the amounts included in the Group’s annual financial report.

• AASB 2009-3 Amendments to Australian Accounting Standards - Embedded Derivatives [AASB 139 and Interpretation 9] effective 30 June 2009

These amendments to AASB Interpretation 9 require an entity to assess whether an embedded derivative must be separated from a host contract when the entity reclassifies a hybrid financial asset out of the fair value through profit or loss category. This assessment is to be made based on circumstances that existed on the later of the date the entity first became a party to the contract and the date of any contract amendments that significantly change the cash flows of the contract. AASB 139 now states that if an embedded derivative cannot be reliably measured, the entire hybrid instrument must remain classified as at fair value through profit or loss.

Impact: The Group has not been affected by these amendments.

• AASB 2009-6 Amendments to Australian Accounting Standards

Further Amendments to Australian Accounting Standards arising from the Annual Improvements Project operative for periods beginning on or after 1 January 2009 that end on or after 30 June 2009.

Impact: The Group has not been affected by these amendments.

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RESOLUTE MINING LIMITED HALF YEAR REPORT For the six months ended 31 December 2009

NOTES TO THE FINANCIAL STATEMENTS

NOTE 3: SEGMENT INFORMATION

The Group has identified three operating segments based on the internal reports that are reviewed and used by the chief executive officer and his management team (the chief operating decision makers) in assessing performance and in determining the allocation of resources.

The operating segments are indentified by management as being operating mine sites. Each of the mine sites are managed separately and they operate in different regulatory and economic environments.

The principal activities of each operating segment are gold mining and prospecting and exploration for minerals.

Information regarding the operations of each reportable segment is included below. Performance is measured based on ounces delivered and cost of production per ounce. Management believe that such information is the most relevant in evaluating the results of certain segments relative to other entities that operate within the gold mining industry.

The accounting policies used by the Group in reporting segments are the same as those used in the preparation of financial statements.

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RESOLUTE MINING LIMITED HALF YEAR REPORT For the six months ended 31 December 2009

NOTES TO THE FINANCIAL STATEMENTS

NOTE 3: SEGMENT INFORMATION (continued)

		UNALLOCATED
2009 Revenue Gold sales at spot to external customers Total segment gold sales revenue Cash costs Depreciation and amortisation Other operating costs (a) Other corporate/admin costs (a) Segment operating result before treasury, other income/(expenses) and tax Finance costs Other realised treasury Segment operating result before unrealised treasury, other income/(expenses) and tax Other income	RAVENSWOOD GOLDEN PRIDE SYAMA CORP/OTHER TREASURY TOTAL $'000 $'000 $'000 $'000 $'000 $'000 ( c ) ( c ) 84,370 92,893 - - - 177,263
	84,370 92,893 - - - 177,263 (50,095) (47,209) - - - (97,304) (10,461) (2,670) - - - (13,131) (5,313) (1,893) (1,183) - - (8,389) (28) - - (3,753) - (3,781)
	18,473 41,121 (1,183) (3,753) - 54,658
	- - - - (1,684) (1,684) - - - - (22,065) (22,065)
	18,473 41,121 (1,183) (3,753) (23,749) 30,909
	9 - - 124 - 133
Other revenue	- - - - 158 158
Loss on sale of assets Exploration expenditure Other Unrealised treasury Income tax (expense)/benefit Net profit/(loss) after tax	13 9 - (1,015) - (993) (560) (1,152) (1,044) (952) - (3,708) - - - (52) - (52) - - - - (14,714) (14,714) (1,180) (3,554) - 1,568 - (3,166)
	16,755 36,424 (2,227) (4,080) (38,305) 8,567

16

RESOLUTE MINING LIMITED HALF YEAR REPORT For the six months ended 31 December 2009

NOTES TO THE FINANCIAL STATEMENTS

NOTE 3: SEGMENT INFORMATION (continued)

		UNALLOCATED	TOTAL $'000
2009	RAVENSWOOD GOLDEN PRIDE SYAMA CORP/OTHER TREASURY $'000 $'000 $'000 $'000 $'000 ( c ) ( c )
Reconciliation of total segment revenue to statement of comprehensive income: Total segment gold sales revenue to external customers Realised loss on gold forward contracts Amortisation of gold hedge reserve Total revenue per statement of comprehensive income Cash flow by segment, including bullion on hand Reconciliation of cash flow by segment to the cash flow statement: Movement in gold bullion Movement in bank overdraft Exchange rate adjustment Movement in cash and cash equivalents per cash flow statement Capital expenditure Segment assets Segment liabilities	25,694 39,296 (34,740) (3,117) (891) 9,496 1,275 25,849 9,036 -		177,263 (26,857) 3,935
			154,341
			26,242 (11,730) 2,133 211
			16,856
			45,656
	124,768 84,958 425,676 22,017 11,331		668,750
	30,838 26,539 43,842 11,381 224,006		336,606

17

RESOLUTE MINING LIMITED HALF YEAR REPORT For the six months ended 31 December 2009

NOTES TO THE FINANCIAL STATEMENTS

NOTE 3: SEGMENT INFORMATION (continued)

		UNALLOCATED
2008 Revenue Gold sales at spot to external customers Total segment gold sales revenue Cash costs Depreciation and amortisation Other operating costs (a) Other corporate/admin costs (a) Segment operating result before treasury, other income/(expenses) and tax Finance costs Other realised treasury Segment operating result before unrealised treasury, other income/(expenses) and tax Other income Other revenue Loss on sale of assets Exploration expenditure Asset impairment Unrealised treasury Income tax expense Net profit/(loss) after tax	RAVENSWOOD GOLDEN PRIDE SYAMA CORP/OTHER TREASURY TOTAL $A'000 $A'000 $A'000 $A'000 $A'000 $A'000 ( c ) ( c ) 91,968 70,566 - - - 162,534
	91,968 70,566 - - - 162,534 (63,065) (40,190) - - - (103,255) (8,949) (2,313) - - - (11,262) (2,874) (4,749) (1,054) - - (8,677) (25) (2) - (2,021) - (2,048)
	17,055 23,312 (1,054) (2,021) - 37,292
	- - - - (1,755) (1,755) - - - - (13,566) (13,566)
	17,055 23,312 (1,054) (2,021) (15,321) 21,971
	23 - 44 144 - 211 29 - - 1,336 - 1,365 (148) - - (2) - (150) (803) (1,616) (1,324) (1,982) - (5,725) (8,632) (2,376) - (3,082) - (14,090) - - - - 5,459 5,459 (712) - - (204) - (916)
	6,812 19,320 (2,334) (5,811) (9,862) 8,125

18

RESOLUTE MINING LIMITED HALF YEAR REPORT For the six months ended 31 December 2009

NOTES TO THE FINANCIAL STATEMENTS

NOTE 3: SEGMENT INFORMATION (continued)

		UNALLOCATED
2008	RAVENSWOOD GOLDEN PRIDE SYAMA CORP/OTHER TREASURY $A'000 $A'000 $A'000 $A'000 $A'000 ( c ) ( c )		TOTAL $A'000
Reconciliation of total segment revenue to statement of comprehensive income: Total segment gold sales revenue to external customers Realised loss on gold forward contracts Amortisation of gold hedge reserve Total revenue per statement of comprehensive income Cash flow by segment, including bullion on hand Reconciliation of cash flow by segment to the cash flow statement: Movement in gold bullion Exchange rate adjustment Movement in cash and cash equivalents per cash flow statement Capital expenditure Segment assets (b) Segment liabilities (b)	25,795 20,208 (66,566) (3,713) 35,983 18,456 3,271 75,149 2,757 -		162,534 (13,275) 2,444
			151,703
			11,707 (4,455) (1,490)
			5,762
			99,633
	119,944 81,111 422,169 9,392 6,457		639,073
	32,121 21,097 39,363 2,864 240,322		335,767

( a ) Includes inter segment revenue and expenses.

( b ) As at 30 June.

( c ) This information does not represent an operating segment as defined by AASB 8, however this information is analysed in this format by the Chief Operating Decision Makers, and forms part of the reconciliation of the results and positions of the operating segments to the financial statements.

19

RESOLUTE MINING LIMITED HALF YEAR REPORT For the six months ended 31 December 2009

NOTES TO THE FINANCIAL STATEMENTS

NOTE 3: SEGMENT INFORMATION (continued)

The operational segments have three principal geographical areas, Australia, Tanzania and Mali. In Australia, the Ravenswood mine is located 65km east of Charters Towers in north east Queensland. The Golden Pride mine in Tanzania is located approximately 200km south of Lake Victoria and the mine in Syama, Mali, is located approximately 300km south east of Bamako.

NOTE 4: PROFIT FROM CONTINUING OPERATIONS

(a) Revenue from gold sales Gold sales at spot price Realised loss on gold forward contracts Amortisation of the gold forward contract hedge reserve	For the half year ended 31-Dec-09 $'000 177,263 (26,857)
	150,406 3,935
	154,341
During the half year ended 31 December 2009, the Group has delivered 50,396 (2008: 35,091) ounces into gold forward contracts at an average price of A$647/oz (2008: A$691/oz).
(b) Costs of production relating to gold sales Costs of production (excluding gold in circuit inventories movement) Gold in circuit inventories movement	97,304 2,921 100,225			103,255 1,358
				104,613
				4,061 7,201 11,262
(c) Depreciation and amortisation relating to gold sales Amortisation of evaluation, development & rehabilitation costs Depreciation of mine site properties, plant & equipment	6,935 6,196
	13,131
(d) Other operating costs relating to gold sales Royalty expense Operational support costs	4,926 1,736			4,603 1,634
	6,662			6,237

20

RESOLUTE MINING LIMITED HALF YEAR REPORT For the six months ended 31 December 2009

NOTES TO THE FINANCIAL STATEMENTS

NOTE 4: PROFIT FROM CONTINUING OPERATIONS (continued)

	For the half For the half year ended year ended 31-Dec-09 31-Dec-08 $'000 $'000 Consolidated	For the half For the half year ended year ended 31-Dec-09 31-Dec-08 $'000 $'000 Consolidated
	For the half year ended 31-Dec-09 $'000
(e) Other revenue Interest income - other persons/corporations Royalty income	158 - 158	274 1,091
		1,365
(f) Other income Rehabilitation provision adjustment from non operating mine sites Foreign exchange gain Realised gain on gold options Profit on sale of property, plant and equipment Other (g) Exploration expenditure Mineral exploration costs (h) Administration and other expenses Other management and administration expenses Insurance costs Operating lease expense Loss on sale of property, plant and equipment Share based payments expense Rehabilitation provision adjustment from non operating mine sites Depreciation of non mine site assets Realised loss on gold options Foreign exchange loss Impairment of accounts receivable Impairment of available for sale financial assets (i) Impairment of acquired exploration and evaluation assets (ii) Other	822 - 1,522 21 133 2,498 3,708 3,708 2,423 385 251 - 204 - 137 - 665 - - - 1,075 5,140	- 312 - - 211
		523
		5,725
		5,725
		1,834 268 270 150 195 278 73 3,047 - 2,376 3,082 8,632 212
		20,417

21

RESOLUTE MINING LIMITED HALF YEAR REPORT For the six months ended 31 December 2009

NOTES TO THE FINANCIAL STATEMENTS

NOTE 4: PROFIT FROM CONTINUING OPERATIONS (continued)

(h) Administration and other expenses (continued)

• (i) The amounts previously charged to the reserve relating to available for sale financial assets had been impaired in the half year ended 31 December 2008 and recognised in the consolidated statement of comprehensive income.

• (ii) The acquired exploration asset resulting from the acquisition of Carpentaria Gold Pty Ltd (a 100% owned subsidiary of RML) had been impaired in the half year ended 31 December 2008 and recognised in the consolidated statement of comprehensive income, as the foreseeable exploration expenditure program in that area of interest reduced.

	Consolidated	Consolidated
	For the half year ended 31-Dec-09 $'000	For the half year ended 31-Dec-08 $'000
		1,185 570 1,755 (27,389) 8,103 (337) 25,082 5,459
(i) Finance costs Interest and fees paid/payable to other entities Rehabilitation provision discount adjustment	1,442 242 1,684
In addition to these amounts, $7.903m (2008: $1.702m) of borrowing costs associated with qualifying assets have been capitalised and included in Development expenditure in the consolidated entity.
(j) Treasury - unrealised (losses)/gains Unrealised gain/(loss) on gold forward contracts Unrealised (loss)/gain on gold put options Unrealised loss on gold call options Unrealised foreign exchange (loss)/gain	7,406 (2,483) (1,393) (18,244) (14,714)

(k) Income tax expense

Income tax expense for the half year ended 31 December 2009 includes the amount of A$2.242m (2008: Nil) of withholding taxes payable on the repatriation of funds from Tanzania to Australia.

NOTE 5: DIVIDENDS

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

22

RESOLUTE MINING LIMITED HALF YEAR REPORT For the six months ended 31 December 2009

NOTES TO THE FINANCIAL STATEMENTS

NOTE 6: INTEREST BEARING LIABILITIES

• a) During the quarter ended September 2009, an existing financier of the Group confirmed an increase of an existing overdraft facility by a further A$6.3m (approximate equivalent). This facility is in place indefinitely, is subject to an annual revision in September 2010, and has an interest rate of 8% p.a. calculated on the basis of usage.

• b) The Group issued 34,090,911 convertible notes and 11,363,636 options. $25.0m was raised as a result of these issues. The convertible notes have a coupon rate of 12% and are convertible into ordinary shares on a one for one basis on or before 31 December 2012. The options have an exercise price of $0.60 and an expiry date of 31 December 2011.

The terms of the convertible notes also allow for the Group to determine at a future date whether interest will be paid 6 monthly in arrears in the form of cash or shares.

• c) During the six months ended 31 December 2009, the $10m standby loan facility plus accrued fees and interest was converted to 14,201,475 convertible notes and 4,733,825 listed options.

• d) During the six months ended 31 December 2009, a restructure of the Company’s senior debt facility with Barclays Bank Plc took place. Repayments totalling US$9.1m were made in line with the new terms, and the new repayment schedule (including repayments on both the debt facility and the deferred put option premium facility) is as follows:

Date	Amount Repayable US$’000	Remaining Balance US$’000
30-Jun-10	1,375	41,803
31-Dec-10	3,143	38,660
30-Jun-11	15,475	23,185
31-Dec-11	15,795	7,390
30-Jun-12	4,640	2,750
10-Dec-12	2,750	-

NOTE 7: CONTRIBUTED EQUITY

	Total	Number	Issue Price	Amount Paid
	Number	Quoted	Per Security	Up Per Security
Ordinary securities
As at 31 December 2009	382,414,490	382,414,490
Changes during current period
Conversion of convertible notes	237	237	$0.50	$0.50
Shares issued	30,000,000	30,000,000	$0.63	$0.63
Exercise of listed options	100,697	100,697	$0.60	$0.60

23

RESOLUTE MINING LIMITED HALF YEAR REPORT For the six months ended 31 December 2009

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 2009		55,000	-	$1.13	23/03/11
		295,000	-	$1.32	24/10/11
		237,000	-	$2.12	22/05/13
		75,000	-	$1.62	28/08/13
		1,550,000	-	$0.42	31/01/14
		1,250,000	-	$1.63	1/10/11
		500,000	-	$1.00	31/03/12
		500,000	-	$0.74	30/06/12
		3,000,000	-	$0.72	24/10/12
		95,982,838	95,982,838	$0.60	31/12/11
Changes during current period
Lapsing of unlisted options		40,000	-	$1.41	21/12/09
Lapsing of unlisted options		40,000	-	$1.32	24/10/11
Lapsing of unlisted options		24,000	-	$1.62	28/08/13
Lapsing of unlisted options		255,000	-	$0.42	31/01/14
Issue of unlisted options	(i)	500,000	-	$0.74	30/06/12
Issue of unlisted options	(ii)	3,000,000	-	$0.72	24/10/12
Issue of listed options	(iii)	16,097,461	16,097,461	$0.60	31/12/12
Exercise of listed options		100,697	100,697	$0.60	31/12/12
		Total	Number	Exercise	Expiry
		Number	Quoted	Price	Date
Convertible notes on issue
As at 31 December 2009		151,735,826	151,735,826	$0.50	31/12/12
Changes during current period
Conversion to shares		237	237	$0.50	31/12/12
Issue of convertible notes	(iii)	48,292,386	48,292,386	$0.50	31/12/12

• (i) On 31 July 2009, 500,000 unlisted options were issued to a standby credit facility provider as payment of facility fees. These options have a strike price of $0.74 and an expiry date of 30 June 2012. These options are available to be exercised immediately.

• (ii) On 24 October 2009, 3,000,000 options were issued to the Group’s Senior Debt provider. These options have a strike price of $0.72 and an expiry date of 24 October 2012. These options are available to be exercised immediately.

• (iii) During September 2009 and October 2009 the Group completed a capital raising (refer to note 6(b)) where investor’s were invited to take up convertible notes and options on the basis of one option at a price of 10c per option for every 3 convertible notes at a price of 70c per convertible note. The convertible notes have a conversion price of 50c per convertible note and are convertible into shares on a one for one basis; they have an interest rate of 12% per annum and an expiry date of 31 December 2012. The options have an exercise price of 60c per option and an expiry date of 31 December 2011.

24

RESOLUTE MINING LIMITED HALF YEAR REPORT For the six months ended 31 December 2009

NOTES TO THE FINANCIAL STATEMENTS

NOTE 8: CONTINGENT LIABILITIES AND CONTINGENT ASSETS

Except for the below mentioned changes to the contingent liability status, there have been no other changes to the contingent liabilities or contingent assets of the Group from those disclosed in the financial report for the year ended 30 June 2009.

Summit Resources (Aust) Pty Ltd, Paladin Energy Limited and Areva NC (Australia) Pty Ltd

In October 2009, RML, Areva NC (Australia) Pty Ltd, Paladin Energy Limited (“Paladin”), Mt Isa Uranium Pty Ltd (a subsidiary of Paladin) and Summit Resources Limited entered into a conditional Deed of Settlement, Release and Assignment (“Settlement Agreement”) to settle a number of outstanding matters, including litigation, between the various parties. Included in this Settlement Agreement is the termination of the Deed of Indemnity provided by RML to Paladin in 2006 (at the time RML sold its uranium assets to Paladin). The estimated cost associated with settling this conditional Settlement Agreement has been provided for in RML’s accounts at 31 December 2009.

NOTE 9: EVENTS OCCURRING AFTER BALANCE DATE

On 6 January 2010, Resolute Mining Limited issued 4,818,911 shares to the value of $4.5m to convertible note holders in lieu of interest payable.

25

RESOLUTE MINING LIMITED HALF YEAR REPORT For the six months ended 31 December 2009

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

(ii) giving a true and fair view of the Group’s financial position as at 31 December 2009 and of its performance, as required by Accounting Standards, 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.

==> picture [58 x 29] intentionally omitted <==

P.R. Sullivan Director

Perth, Western Australia 24 February 2010

26

==> picture [103 x 61] intentionally omitted <==

To the members of Resolute Mining Limited

Report on the Half-Year Financial Report

We have reviewed the accompanying half year financial report of Resolute Mining Limited which comprises the statement of financial position as at 31 December 2009, and the statement of comprehensive income, 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 Interim and Other Financial Reports 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 2009 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 . As the auditor of Resolute Mining Limited and the entities it controlled during the half year, ASRE 2410 requires that we comply with the ethical requirements relevant to the audit of the annual financial report.

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

Independence

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

Liability limited by a scheme approved under Professional Standards Legislation

GB:MB:RESOLUTE:172

27

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 2009 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.

==> picture [146 x 42] intentionally omitted <==

Ernst & Young

==> picture [171 x 49] intentionally omitted <==

Gavin A. Buckingham Partner Perth

24 February 2010

GB:MB:RESOLUTE:172

28