Resolute Mining Limited — Interim / Quarterly Report 2017

Feb 27, 2017

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Monday, 27 February 2017

Appendix 4D

Half Year Report for the six months ended 31 December 2016

Reporting Period

The reporting period is for the half year ended 31 December 2016 with the corresponding reporting period being for the half year ended 31 December 2015.

Results for announcement to the market

Results for announcement to the market
Profit after tax attributable to members Revenue from ordinary activities Profit before tax attributable to members Profit for the half year	A$'000 down -32% to 168,167 down -37% to 64,265 down -39% to 55,362 down -39% to 55,362
Dividends Interim dividend (per share) Record date for determining entitlements to the final dividend	security Amount per	persecurity Franked amount
	n/a	n/a
	n/a

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

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Half Year Report for the six months ended 31 December 2016

Corporate Directory

Directors

Chairman PE Huston Chief Executive Officer JP Welborn Non-Executive Director MJ Botha Non-Executive Director HTS Price Non-Executive Director PR Sullivan

Secretary

Home Exchange

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

Quoted on the official lists of the Australian Securities Exchange

ASX Ordinary Share Code: “RSG”

GW Fitzgerald

Securities on Issue (31/12/2016)

Registered Office and Business Address

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

Postal

PO Box 7232 Cloisters Square Perth, Western Australia 6850

Telephone: + 61 8 9261 6100 Facsimile: + 61 8 9322 7597 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

Ordinary Shares 736,982,768 Unlisted Options 500,400 Performance Rights 17,530,528

Auditor

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

Bankers

BDM-SA Avenue Modibo-Keita BP 94 Bamako, Mali Africa

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

Shareholders wishing to receive copies of Resolute’s ASX announcements by e-mail should register their interest by contacting the Company at contact@rml.com.au

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2

Half Year Report for the six months ended 31 December 2016

Table of Contents

Directors’ Report ............................................................................................................................................... 4 Auditors’ Independence Declaration ................................................................................................................. 9 Consolidated Statement of Comprehensive Income ....................................................................................... 10 Consolidated Statement of Financial Position ................................................................................................. 12 Consolidated Statement of Changes in Equity ................................................................................................ 13 Consolidated Cash Flow Statement ................................................................................................................ 14 Notes to the Financial Statements .................................................................................................................. 15 Directors’ Declaration ...................................................................................................................................... 28 Independent Auditor’s Review Report ............................................................................................................. 29

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3

Half Year Report for the six months ended 31 December 2016

Directors’ Report

Your directors present their half year report on the consolidated entity (referred to hereafter as the “Group” or “Resolute”) consisting of Resolute Mining Limited and the entities it controlled at the end of or during the half year ended 31 December 2016.

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 follows. Directors were in office for this entire period.

PE Huston (Chairman)

JP Welborn (Chief Executive Officer)

MJ Botha (Non-Executive Director)

HTS Price (Non-Executive Director)

PR Sullivan (Non-Executive Director)

Company Secretary

GW Fitzgerald

Financial Position and Performance

• Cash, bullion and listed investments increased to a total market value of A$283m (June 2016: A$104m) and cash/bullion net of debt improved significantly from A$75m (June 2016) to A$253m. Cash, bullion and listed investments is represented as follows:

Asset type	Market value	Book Value
	A$'M	A$'M
Cash	142	142
Gold bullion on hand held in metal accounts*	133	84
Listed Investments	8	8
Total	283	234

*Market value is calculated on 83,379 ounces at a gold price of A$1,592/oz.

• Gross profit of $69m (1H 2015: $62m).

• Successful institutional placement completed, raising A$150 million to secure growth project funding.

• Final dividend for FY16 of 1.7c per share paid in cash and bullion through an innovative gold sales-linked dividend policy.

• Average cash price received on 94,080 ounces of gold sold (1H 2016: 158,540 ounces) was $1,784/oz (1H 2015: $1,561/oz).

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4

Half Year Report for the six months ended 31 December 2016

Directors’ Report

Financial Position and Performance (continued)

• Resolute actively manages the company’s currency exposure across AUD, USD and EUR and the company treats gold bullion as an alternative currency for treasury purposes. The decision to hold surplus liquid assets in a variety of currencies/forms provides currency flexibility to meet the group’s wide range of foreign currency obligations, and most importantly maintains shareholder exposure to the value of gold, rather than surplus exposure to the traditional currencies of AUD and USD. The decision to increase bullion on hand has in-turn temporarily reduced gold sales activity and hence temporarily reduced sales revenue, profit and operating cash flows recognised by the group for the half year ended 31 December 2016.

Had the gold bullion in metal accounts been sold by period end, the effect on earnings and cash flows would be as follows (note, this is unaudited information):

	Dec-16	Dec-15
	Increase by* From To	Decrease by* From To
	A$'000 A$'000 A$'000	A$'000 A$'000 A$'000
Revenue from continuing operations	112,642 168,167 280,809	(75) 248,592 248,517
Gross profit from operations	33,161 69,366 102,527	(728) 62,116 61,388
Profit for the period	33,161 64,265 97,426	(728) 57,180 56,452
Net cash flows from operating activities	106,265 (21,026) 85,239	(35) 70,487 70,452

• Using the period end gold price of US$1,145.90 (31 December 2015: US$1,060.00) and AUD:USD exchange rate of $0.72 (31 December 2015: $0.73).

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5

Half Year Report for the six months ended 31 December 2016

Directors’ Report (continued)

Review of Operations

Production

• FY17 year to date gold production of 170,558 ounces at an All-In Sustaining Cost of A$999 (US$753) per ounce, tracking ahead of guidance due mainly to higher than expected head grades at Syama.

•

December 2016 YTD	Units	Syama Sulphide	Syama Oxide	Syama Total	Ravenswood	GROUP Total
UG lateral development - capital m 611 - UG ore mined t - - UG grade mined g/t - -				611 - 611 - 551,198 551,198 - 2.56 2.56
OP operating waste BCM 370,896 1,298,343 OP ore mined BCM 312,349 414,974 OP grade mined g/t 2.55 2.48 Total ore mined t 848,241 777,215				1,669,239 641,507 2,310,746 727,323 164,031 891,354 2.51 0.66 2.17 1,625,456 953,025 2,578,481
Total tonnes processed t 1,047,902 638,600 Grade processed g/t 2.87 3.18 Recovery % 73.1 77.9				1,686,502 965,140 2,651,642 2.99 1.69 2.51 75.0 93.8 79.6
Gold produced oz 70,579 50,855				121,434 49,124 170,558
Gold in circuit drawdown/(addition) oz (1,207) (1,296) Gold shipped oz 69,372 49,559 Gold bullion in metal account (increase)/decrease oz (27,857) (18,874) Gold sold oz 41,515 30,685 Achieved gold price A$/oz 1,783 1,783 US$/oz 1,351 1,351				(2,503) (3,228) (5,731) 118,931 45,895 164,826 (46,731) (24,015) (70,746) 72,200 21,880 94,080 1,783 1,787 1,784 1,351 1,356 1,352
Cost Summary
Mining A$/oz 279 412 Processing A$/oz 432 272 Administration A$/oz 168 84				335 646 425 365 440 386 133 178 146
Stockpile Adjustments A$/oz (44) (198) Amortisation/(Deferral) of stripping costs A$/oz - 424 Transfer of underground development costs to development A$/oz (115) -				(109) (18) (83) 178 (65) 108 (67) - (48)
Cash Cost A$/oz 721 993 US$/oz 543 749				835 1,180 934 629 888 703
Royalties A$/oz 61 64				62 39 63
By-product credits A$/oz - - Amortisation/(Deferral) of stripping costs A$/oz - (424)				- (7) (2) (178) 65 (108)
Sustaining capital + others A$/oz 79 72 Overhead costs A$/oz 12 13				76 81 79 12 12 33
All-in Sustaining Cost A$/oz 874 718 US$/oz 658 542				808 1,370 999 610 1,031 753
Depreciation and amortisation A$/oz 57 23				43 141 71

1. Cash cost per ounce of gold produced is calculated as costs of production relating to gold sales excluding gold in circuit inventory movements divided by gold ounces produced.

2. All in Sustaining Costs (“AISC”) per ounce of gold produced is calculated in accordance with World Gold Council guidelines. These measures are included to assist investors to better understand the performance of the business. Cash cost per ounce of gold produced and AISC are non ‐ International Financial Reporting Standards financial information and where included in this Directors’ Report have not been subject to review by the Group’s external auditors.

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6

Half Year Report for the six months ended 31 December 2016

Directors’ Report (continued)

Review of Operations (continued)

Development

• Underground mine development commenced at the Syama underground project and is on schedule to deliver development ore in the first half of calendar year 2017 and first production ore in the second half of calendar year 2018.

• Ravenswood Expansion Project boosts mine-life at Ravenswood by 13 years until at least 2029. The project is underway with the re-commencement of open pit mining at Nolans East, and the first stage of processing plant re-configuration was successfully completed to increase mill throughput capacity from 1.5 to 2.8 million tonnes per annum.

• Total annual production at Ravenswood to increase to more than 130,000 ounces of gold with a Life of Mine All-In Sustaining Cost of A$1,166 per ounce (US$880 per ounce).

• Drilling commenced at Bibiani in the December 2016 quarter with the aim of extending the mine life beyond the current potential of five years and identifying further opportunities to reduce operating costs.

Exploration

• Drilling at Nafolo confirmed a major new gold discovery south of the Syama Gold Mine with intercepts showing mineralisation with similar width, grade, and characteristics to the 8 million ounce Syama orebody.

• Total Ravenswood Ore Reserves increased to 1.8 million ounces.

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7

Half Year Report for the six months ended 31 December 2016

Directors’ Report (continued)

Significant Events After Balance Date

No significant events have occurred since balance date on 31 December 2016 and the date of this Directors’ Report.

Auditor’s Independence

Refer to page 9 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 Corporations (Rounding in Financial Directors’ Reports) Instrument 2016/191. 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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J.P. Welborn

Director

Perth, Western Australia 27 February 2017

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8

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Ernst & Young Tel: +61 8 9429 2222 11 Mounts Bay Road Fax: +61 8 9429 2436 Perth WA 6000 Australia ey.com/au GPO Box M939 Perth WA 6843

Auditor’s Independence Declaration to the Directors of Resolute Mining Limited

As lead auditor for the review of Resolute Mining Limited for the half-year ended 31 December 2016, I declare to the best of my knowledge and belief, there have been:

• a) no contraventions of the auditor independence requirements of the Corporations Act 2001 in relation to the review; and

• b) no contraventions of any applicable code of professional conduct in relation to the review.

This declaration is in respect of Resolute Mining Limited and the entities it controlled during the financial period.

Ernst & Young

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Gavin Buckingham Partner Perth 27 February 2017

A member firm of Ernst & Young Global Limited Liability limited by a scheme approved under Professional Standards Legislation

GB:EH:RSG:230

Half Year Report for the six months ended 31 December 2016

Consolidated Statement of Comprehensive Income

	Restated
Note	For the half For the half year ended year ended
	31-Dec-16 31-Dec-15
	$'000 $'000
Continuing Operations
Revenue from gold and silver sales 3 Costs of production relating to gold sales 3 Gross profit before depreciation, amortisation and other operating costs Depreciation and amortisation relating to gold sales 3 Other operating costs relating to gold sales 3 Gross profit from operations Administration and other corporate expenses 3 Exploration and business development expenditure 3 Other income 3 Finance costs 3 Treasury - realised gains/(losses) 3 Fair value movements and unrealised treasury transactions 3 Other expenses 3	168,167 248,592 (74,675) (149,355)
	93,492 99,237 (12,111) (21,004) (12,015) (16,117)
	69,366 62,116 (4,865) (2,354) (3,111) (4,572) 591 64 (1,559) (4,303) 1,337 (6,282) 2,914 18,356 (177) (5,798)
Share of associates' losses 3	(188) -
Depreciation of non mine site assets 3 Profit before tax from continuing operations Tax expense Profit for the period from continuing operations Discontinued Operation Profit after tax for the discontinued operation 5	(43) (47)
	64,265 57,180 - -
	64,265 57,180 - 44,722
Profit for the period Profit attributable to: Members of the parent Non-controlling interest
	64,265 101,902
	55,363 91,452 8,903 10,450
	64,265 101,902

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10

Half Year Report for the six months ended 31 December 2016

Consolidated Statement of Comprehensive Income (continued)

(continued)
	Restated
	For the half For the half year ended year ended
	31-Dec-16 31-Dec-15
	$'000 $'000
Profit for the period (brought forward) Other comprehensive income/(loss) Items that may be reclassified subsequently to profit or loss Exchange differences on translation of foreign operations: - Members of the parent - Transferred to profit and loss - disposed subsidiaries Changes in the fair value/realisation of available for sale financial assets, net of tax Items that may not be reclassified subsequently to profit or loss Exchange differences on translation of foreign operations: - Non-controlling interest Other comprehensive income/(loss) for the period, net of tax Total comprehensive income for the period Total comprehensive income attributable to: Members of the parent Non-controlling interest	64,265 101,902
	5,950 181 - (42,488) (155) (57) 1,019 (2,639)
	6,814 (45,003)
	71,079 56,899
	61,157 49,088 9,922 7,811
	71,079 56,899
Earnings per share for net profit attributable to the ordinary equity holders of the parent: Basic earnings per share Diluted earnings per share Earnings per share for net profit from continuing operations attributable to the ordinary equity holders of the parent: Basic earnings per share Diluted earnings per share	7.96 cents 14.26 cents 7.77 cents 13.87 cents 7.96 cents 7.28 cents 7.77 cents 7.09 cents

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11

Half Year Report for the six months ended 31 December 2016

Consolidated Statement of Financial Position

Note	Restated As at As at 31-Dec-16 30-Jun-16 $'000 $'000
Current assets
Cash Receivables Inventories 7 Available for sale financial assets Financial derivative assets 8	142,065 79,873 16,302 7,005 277,434 174,022 525 427 5,783 -
Other current assets Total current assets Non current assets Other financial assets Exploration and evaluation Development Property, plant and equipment Investments in associates 9 Total non current assets Total assets Current liabilities Payables Interest bearing liabilities Provisions Financial derivative liabilities 8 Total current liabilities Non current liabilities Provisions Financial derivative liabilities 8 Total non current liabilities Total liabilities Net assets Equity attributable to equity holders of the parent Contributed equity 10 Reserves Retained earnings/(accumulated losses)	2,939 2,177
	445,048 263,504
	3,853 3,699 52,813 46,292 107,384 117,190 75,244 61,656 7,288 -
	246,582 228,837
	691,630 492,341
	36,224 33,367 22,698 26,678 19,075 28,328 - 151
	77,997 88,524
	64,306 65,139 - 264
	64,306 65,403
	142,303 153,927
	549,327 338,414
	544,987 395,198 40,469 33,427 2,324 (41,836)
Total equity attributable to equity holders of the parent Non-controlling interest Total equity	587,780 386,789
	(38,453) (48,375)
	549,327 338,414

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12

Half Year Report for the six months ended 31 December 2016

Consolidated Statement of Changes in Equity

At 1 July 2016 Restatement of comparatives (Note 12) At 1 July 2016 (restated) Profit for the period Other comprehensive loss, net of tax Total comprehensive (loss)/income for the period, net of tax Shares issued Share issue costs Dividend paid Share-based payments to employees At 31 December 2016 At 1 July 2015 Profit for the period Restatement of comparatives (Note 12) Restated profit for the period Other comprehensive loss, net of tax Total comprehensive (loss)/income for the period, net of tax Share-based payments to employees At 31 December 2015	Contributed equity Net unrealised gain/(loss) reserve Convertible notes equity reserve Share options equity reserve Employee equity benefits reserve Foreign currency translation reserve (Accumulated Losses)/Retained earnings Non-controlling interest Total $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000
	395,198 (68) 384 5,987 12,092 14,868 (32,080) (45,977) 350,404 - - - - - 164 (9,756) (2,398) (11,990)
	395,198 (68) 384 5,987 12,092 15,032 (41,836) (48,375) 338,414
	- - - - - - 55,362 8,903 64,265 - (155) - - - 5,950 - 1,019 6,814
	- (155) - - - 5,950 55,362 9,922 71,079
	152,697 - - - - - - - 152,697 (2,908) - - - - - - - (2,908) - - - - - - (11,202) - (11,202) - - - - 1,247 - - - 1,247
	544,987 (223) 384 5,987 13,339 20,982 2,324 (38,453) 549,327
	380,305 (127) 384 5,987 10,507 56,275 (213,793) (74,312) 165,226
	- - - - - - 95,450 11,449 106,899 - - - - - - (3,998) (999) (4,997)
	- - - - - - 91,452 10,450 101,902 - (57) - - - (42,307) - (2,639) (45,003)
	- (57) - - - (42,307) 91,452 7,811 56,899
	- - - - 906 - - - 906
	380,305 (184) 384 5,987 11,413 13,968 (122,341) (66,501) 223,031

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13

Half Year Report for the six months ended 31 December 2016

Consolidated Cash Flow Statement

Consolidated Cash Flow Statement
	For the half- For the half- year ended year ended 31-Dec-16 31-Dec-15
	$'000 $'000
Cash flows from operating activities Receipts from customers Payments to suppliers, employees and others Exploration expenditure Interest paid Interest received Net cash flows (used in)/from operating activities Cash flows from investing activities Payments for property, plant & equipment Payments for development activities Payments for evaluation activities Proceeds from sale of property, plant & equipment Payments for financial assets Other investing activities Net cash flows used in investing activities Cash flows from financing activities Proceeds from issuing ordinary shares Costs of issuing ordinary shares Dividend paid Repayment of lease liability Repayment of borrowings Net cash flows from/(used in) financing activities Net increase in cash and cash equivalents Cash and cash equivalents at the beginning of the financial year Exchange rate adjustment Cash and cash equivalents at the end of the period Cash and cash equivalents comprise the following: Cash at bank and on hand Bank overdraft	168,167 248,592 (185,514) (169,655) (3,111) (5,061) (1,120) (3,411) 552 22
	(21,026) 70,487
	(18,576) (8,789) (19,486) (7,971) (6,471) (5,392) 555 2,654 (4,509) - (1,285) (1,305)
	(49,772) (20,803)
	150,000 - (2,908) - (11,202) - (234) (2,522) - (25,365)
	135,656 (27,887)
	64,858 21,797 53,417 (19,735) 1,092 (1,483)
	119,367 579
	142,065 33,289 (22,698) (32,710)
	119,367 579

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14

Half Year Report for the six months ended 31 December 2016

Notes to the Financial Statements

Note 1: Corporate Information

The financial report of Resolute Mining Limited and its controlled entities (“Resolute”, the “Group” or “consolidated entity”) for the half year ended 31 December 2016 was authorised for issue in accordance with a resolution of directors on 27 February 2017.

Resolute Mining Limited (the parent) is a for profit company limited by shares incorporated and domiciled in Australia whose shares are publicly traded on the Australian Securities Exchange.

The principal activities of entities within the consolidated entity during the half year were:

• Gold mining; and,

• prospecting and exploration for minerals.

There has been no significant change in the nature of those activities during the half year.

Note 2: Basis of Preparation and Summary of Significant Accounting Practices

This interim financial report for the half year ended 31 December 2016 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 2016 and considered together with any public announcements made by Resolute Mining Limited during the half year ended 31 December 2016 in accordance with the continuous disclosure obligations of the Australian Securities Exchange listing rules.

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

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15

Half Year Report for the six months ended 31 December 2016

Notes to the Financial Statements

Note 3: Segment revenue and expenses

For the half-year ended 31 December 2016 Revenue Gold and silver sales at spot to external customers (a) Total segment gold and silver sales revenue Costs of production Gold in circuit inventories movement Costs of production relating to gold sales Royalty expense Operational support costs Other operating costs relating to gold sales Other management and administration expenses Share-based payments expense Administration and other corporate expenses Exploration and business development expenditure Earnings/(loss) before interest, tax, depreciation and amortisation Amortisation of evaluation, development and rehabilitation costs Depreciation of mine site properties, plant and equipment Depreciation and amortisation relating to gold sales Segment operating result before treasury, other income/(expenses) and tax	RAVENSWOOD SYAMA BIBIANI CORP/OTHER TREASURY TOTAL (AUSTRALIA) (MALI) (GHANA) $'000 $'000 $'000 $'000 $'000 $'000 38,627 126,482 - - 3,058 168,167 UNALLOCATED (b)
	38,627 126,482 - - 3,058 168,167
	(57,979) (101,378) - - - (159,357) 36,182 48,500 - - - 84,682
	(21,797) (52,878) - - - (74,675)
	(1,926) (8,850) - - - (10,776) (105) (1,134) - - - (1,239)
	(2,031) (9,984) - - - (12,015)
	(571) (866) - (2,659) - (4,096) - - - (769) - (769)
	(571) (866) - (3,428) - (4,865)
	(1,929) (163) (331) (688) - (3,111)
	12,299 62,591 (331) (4,116) 3,058 73,501
	(4,921) (1,868) - - - (6,789) (1,991) (3,331) - - - (5,322)
	(6,912) (5,199) - - - (12,111)
	5,387 57,392 (331) (4,116) 3,058 61,390

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16

Half Year Report for the six months ended 31 December 2016

Notes to the Financial Statements

Note 3: Segment revenue and expenses (continued)

Note 3: Segment revenue and expenses (continued)	Note 3: Segment revenue and expenses (continued)
For the half-year ended 31 December 2016 RAVENSWOOD SYAMA BIBIANI CORP/OTHER TREASURY TOTAL (AUSTRALIA) (MALI) (GHANA) $'000 $'000 $'000 $'000 $'000 $'000 UNALLOCATED (b)
Segment operating result before treasury, other income/(expenses) and tax (brought forward) Interest income Other income Total other income Interest and fees Rehabilitation and restoration provision accretion Finance costs Realised foreign exchange gain Realised gain on available for sale investments Treasury - realised gain Inventories net realisable value movements Unrealised foreign exchange gain Unrealised gain on gold forward sales contracts Unrealised foreign exchange loss on intercompany balances Fair value movements and unrealised treasury transactions Loss on sale of property, plant and equipment Other expenses Share of associates' losses Depreciation of non mine site assets Profit/(loss) for the period	5,387 57,392 (331) (4,116) 3,058 61,390
	- - - - 552 552 10 - - - 29 39
	10 - - - 581 591
	- - - - (1,054) (1,054) - - - - (505) (505)
	- - - - (1,559) (1,559)
	- - - - 826 826 - - - - 511 511
	- - - - 1,337 1,337
	1,083 5,607 - - - 6,690 - - - - 6 6 - - - - 6,199 6,199 - - - - (9,981) (9,981)
	1,083 5,607 - - (3,776) 2,914
	(76) - (101) - - (177)
	(76) - (101) - - (177)
	- - - - (188) (188) - - - (43) - (43)
	6,404 62,999 (432) (4,159) (547) 64,265

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17

Half Year Report for the six months ended 31 December 2016

Notes to the Financial Statements

Note 3: Segment revenue and expenses (continued)

For the half-year ended 31 December 2015 (restated) Revenue Gold and silver sales at spot to external customers (a) Total segment gold and silver sales revenue Costs of production Gold in circuit inventories movement Costs of production relating to gold sales Royalty expense Operational support costs Other operating costs relating to gold sales Other management and administration expenses Share-based payments expense Administration and other corporate expenses Exploration and business development expenditure Earnings/(loss) before interest, tax, depreciation and amortisation Amortisation of evaluation, development and rehabilitation costs Depreciation of mine site properties, plant and equipment Depreciation and amortisation relating to gold sales Segment operating result before treasury, other income/(expenses) and tax	RAVENSWOOD SYAMA BIBIANI CORP/OTHER TREASURY TOTAL (AUSTRALIA) (MALI) (GHANA) $'000 $'000 $'000 $'000 $'000 $'000 91,287 155,980 - - 1,325 248,592 UNALLOCATED (b)
	91,287 155,980 - - 1,325 248,592
	(54,593) (84,634) - - - (139,227) 9 (10,137) - - - (10,128)
	(54,584) (94,771) - - - (149,355)
	(4,557) (10,396) - - - (14,953) - (1,153) - (11) - (1,164)
	(4,557) (11,549) - (11) - (16,117)
	(570) (1,212) - 139 - (1,643) - - - (711) - (711)
	(570) (1,212) - (572) - (2,354)
	(1,637) (210) (1,089) (1,636) - (4,572)
	29,939 48,238 (1,089) (2,219) 1,325 76,194
	(9,017) (1,195) - - - (10,212) (6,268) (4,524) - - - (10,792)
	(15,285) (5,719) - - - (21,004)
	14,654 42,519 (1,089) (2,219) 1,325 55,190

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18

Half Year Report for the six months ended 31 December 2016

Notes to the Financial Statements

Note 3: Segment revenue and expenses (continued)

Note 3: Segment revenue and expenses (continued)
For the half-year ended 31 December 2015 (restated)	RAVENSWOOD SYAMA BIBIANI CORP/OTHER TREASURY TOTAL (AUSTRALIA) (MALI) (GHANA) $'000 $'000 $'000 $'000 $'000 $'000 UNALLOCATED (b)
Segment operating result before treasury, other income/(expenses) and tax (brought forward) Profit on sale of property, plant and equipment Interest income Other income Total other income Interest and fees Rehabilitation and restoration provision accretion Finance costs Realised foreign exchange loss Realised loss on repayment of gold prepay loan Treasury - realised losses Inventories net realisable value movements Other Unrealised foreign exchange gain Unrealised foreign exchange gain on intercompany balances Fair value movements and unrealised treasury transactions Withholding tax expenses Other expenses Depreciation of non mine site assets Profit for the period from discontinued operation, net of tax Profit/(loss) for the period	14,654 42,519 (1,089) (2,219) 1,325 55,190
	- - - 1 - 1 - - - 22 - 22 14 - - 27 - 41
	14 - - 50 - 64
	- - - - (3,749) (3,749) - - - - (554) (554)
	- - - - (4,303) (4,303)
	- - - - (5,769) (5,769) - - - - (513) (513)
	- - - - (6,282) (6,282)
	(499) 6,199 - - - 5,700 - 529 - - - 529 - - - - 3,100 3,100 - - - - 9,027 9,027
	(499) 6,728 - - 12,127 18,356
	- (5,734) - (64) - (5,798)
	- (5,734) - (64) - (5,798)
	- - - (47) - (47) - - - 44,722 - 44,722
	14,169 43,513 (1,089) 42,442 2,867 101,902

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19

Half Year Report for the six months ended 31 December 2016

Notes to the Financial Statements

Note 3: Operating Segments (continued)

• (a) Revenue from external sales for each reportable segment is derived from several customers.

• (b) 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 Maker, and forms part of the reconciliation of the results and positions of the operating segments to the financial statements.

Note 4: Segment cash flow, expenditure, assets and liabilities

For the half-year ended 31 December 2016	RAVENSWOOD SYAMA BIBIANI CORP/OTHER TREASURY (AUSTRALIA) (MALI) (GHANA) $'000 $'000 $'000 $'000 $'000 UNALLOCATED (b)	TOTAL $'000
Cash flow by segment, including gold bullion, and gold shipped but unsold and held in metal accounts Reconciliation of cash flow by segment to the cash flow statement: Movement in gold shipped but unsold and held in metal accounts Mark to market movement in gold unsold Movement in bank overdraft, including foreign exchange movements	(2,588) 59,536 (4,935) (10,834) 130,742	171,921 (110,172) (1,687) 3,758
Exchange rate adjustment in cash on hand		1,038
Movement in cash and cash equivalents per consolidated cash flow statement		64,858
Capital expenditure	6,335 31,326 5,045 396 -	43,102
Segment assets Segment liabilities	89,258 362,400 70,537 169,435 -	691,630
	43,151 77,862 16,795 4,495 -	142,303

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20

Half Year Report for the six months ended 31 December 2016

Notes to the Financial Statements

Note 4: Segment cash flow, expenditure, assets and liabilities (continued)

For the half-year ended 31 December 2015	RAVENSWOOD SYAMA BIBIANI CORP/OTHER TREASURY TOTAL (AUSTRALIA) (MALI) (GHANA) $'000 $'000 $'000 $'000 $'000 $'000 UNALLOCATED (b)	RAVENSWOOD SYAMA BIBIANI CORP/OTHER TREASURY TOTAL (AUSTRALIA) (MALI) (GHANA) $'000 $'000 $'000 $'000 $'000 $'000 UNALLOCATED (b)
Cash flow by segment, including gold bullion, and gold shipped but unsold and held in metal accounts Reconciliation of cash flow by segment to the cash flow statement: Movement in gold shipped but unsold and held in metal accounts	31,604 29,994 (6,923) (3,856) (26,689) 24,130 1,429
Mark to market movement in gold unsold		858
Movement in bank overdraft, including foreign exchange movements Exchange rate adjustment in cash on hand Cash flows from discontinued operation Movement in cash and cash equivalents per consolidated cash flow statement		(3,090) 844 (2,374)
		21,797
Capital expenditure	4,822 14,191 5,107 36 -	24,156
Segment assets as previously stated Restatement of comparatives (Note 12) Restated segment assets Segment liabilities	84,714 272,463 60,433 32,440 - - (4,997) - - -	450,050 (4,997)
	84,714 267,466 60,433 32,440 -	445,053
	44,909 88,469 16,549 9,879 62,216	222,022

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21

Half Year Report for the six months ended 31 December 2016

Notes to the Financial Statements

Note 5: Discontinued Operation

On 12 December 2014, the formal handover of the Golden Pride site and all remaining infrastructure to the Madini Institute to set up a mining institute of learning was completed, as agreed with the Government of Tanzania. This ended Resolute’s presence on site at Golden Pride after 15 years and production of over 2.2 million ounces of gold. This arm of the business, previously represented as the Golden Pride operating segment, has been classified as a discontinued operation and is no longer presented as a segment in Note 3.

In October 2015, Resolute completed the divestment of Resolute Pty Ltd, the company holding all of Resolute’s subsidiaries, assets, liabilities, contingent liabilities, and mineral rights in Tanzania (the “RPL group”). Resolute entered into an agreement with Cienega S.A.R.L. whereby Cienega S.A.R.L. acquired the RPL group for nominal initial consideration, with a potential deferred consideration equal to 50% of the proceeds of the sale of any mineral rights, related physical assets, and other specific legal actions.

The results for the period are presented below:

Revenue Expenses Gain on sale of the Resolute Pty Ltd group (i) Profit before tax from a discontinued operation Tax expense Profit for the period from a discontinued operation Earnings per share: Basic earnings per share of discontinued operation Diluted earnings per share of discontinued operation The net cash flows of the discontinued operation are as follows: Operating cash flows Net cash outflow	For the half For the half year ended year ended 31-Dec-16 31-Dec-15 $'000 $'000 - - - (1,381) - 46,103
	- 44,722 - -
	- 44,722
	N/A 6.97 cents N/A 6.79 cents - (2,374)
	- (2,374)

(i) The net liabilities of the RPL Group sold for nil consideration totalled $3.615 million. Additionally, the RPL Group’s accumulated foreign exchange gain recognised in equity was A$42.488m and was credited to profit and loss.

Note 6: Dividend paid

The 30 June 2016 final dividend declared and paid in the half year ended 31 December 2016 was $11.202m ($0.017 per share) (31 December 2015: nil). There were no interim dividends paid or provided for during the half year end up to the date of this report (half year ended 31 December 2015: nil).

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22

Half Year Report for the six months ended 31 December 2016

Notes to the Financial Statements

Note 7: Inventories

	Restated As at As at 31-Dec-16 30-Jun-16 $'000 $'000
Ore stockpiles -At cost -At net realisable value Total ore stockpiles Gold bullion on hand - at cost Gold in circuit - at cost Consumables at cost	61,822 30,699 12,534 14,972
	74,356 45,671 84,052 11,460 69,039 66,397 49,987 50,494
	277,434 174,022

Note 8: Financial assets and liabilities

Financial derivative assets Gold forwards at fair value - current	5,783 -
Financial derivative liabilities Gold forwards at fair value - current Gold forwards at fair value - non-current	- 151 - 264
	- 415

Gold forward sales are deliverable at an average price of A$1,800 an ounce for a total of 30,000 ounces between January 2017 and October 2017 inclusive at the rate of 3,000 ounces per month.

The gold forward contracts are valued using the valuation techniques with market observable inputs such as credit quality of counterparties, forward rate curves of the underlying commodity etc. The fair value methodology adopted is categorised as Level 2 in the fair value hierarchy.

Note 9: Investments in Associates

Kilo Goldmines Limited

During the period Resolute acquired a 27.4% interest in Kilo Goldmines Limited (“Kilo”) through an initial acquisition of 14.6% of Kilo via participation in a private placement in August 2016 and a subsequent 12.9% interest through a share swap agreement with Osisko Mining Incorporated (“Osisko”) in October 2016. The acquisition of the first tranche was accounted for as an available for sale financial asset, with the second tranche representing an interest in which Resolute gained significant influence and began equity accounting for the investment. The market value of Resolute’s investment in Kilo as at 31 December 2016 was $4.565m.

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23

Half Year Report for the six months ended 31 December 2016

Notes to the Financial Statements

Note 9: Investments in Associates (continued)

Manas Resources Limited

At 30 June 2016 Resolute owned 4.8% of Manas Resources Limited (“Manas”). During the period Resolute acquired an additional 14.2% interest in Manas, taking its overall investment in the company to 19.0% on 22 November 2016. The investment in Manas was accounted for as an available for sale financial asset until the appointment of a Resolute executive to the board of Manas on 22 November 2016, at which point it was deemed Resolute had significant influence and began accounting for its interest as an equity accounted investment. The market value of Resolute’s investment in Manas as at 31 December 2016 was $1.999m.

Note 10: Contributed Equity

Ordinary securities As at 1 July 2016 Changes during current period, net of issue costs Placement of shares to institutional investors (net of costs) Shares issued pursuant to the Osisko Share Purchase Agreement (net of costs) Increase through issue of shares to Level 1 and 2 employees Increase through exercise of unlisted options As at 31 December 2016 Options on issue As at 31 December 2016 Changes during current period Exercise of unlisted options Lapsing of unlisted options

$ per share Total Number $'000 Number Quoted 655,632,994 655,632,994 395,198 1.96 76,530,612 76,530,612 147,092 1.67 1,530,760 1,530,760 2,544 - 3,158,402 3,158,402 - 1.18 130,000 130,000 153 736,982,768 736,982,768 544,987 Total Number Exercise Expiry Number Quoted Price Date 500,400 - $1.85 26/01/2017 500,400 - $1.85 Total Number Exercise Date Number Quoted Price of Change (130,000) - $1.18 15/07/2016 (45,000) - $1.85 1/08/2016

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24

Half Year Report for the six months ended 31 December 2016

Notes to the Financial Statements

Note 10: Contributed Equity (continued)

Note 10: Contributed Equity (continued)
Issue Date Performance rights on issue Level 1 1/07/2014 Level 1 1/07/2015 Level 2 28/08/2015 Level 2 31/08/2016 Band 1 to 4 24/10/2016 Band 1 29/11/2016 Band 1 29/11/2016 Band 1 29/11/2016 As at 31 December 2016	Fair Value Total per Right Vesting Number at Grant Date Date 2,250,597 $0.50 30/06/2017 5,083,995 $0.25 30/06/2018 4,720,402 $0.25 30/06/2017 575,145 $1.89 30/06/2018 2,900,389 $1.27 30/06/2019 400,000 $1.21 30/06/2018 600,000 $1.20 30/06/2019 1,000,000 $1.18 30/06/2020 17,530,528 $0.62
Date of Change Changes during current period Increase through issue of performance rights to eligible employees (Level 2) 31/08/2016 Increase through issue of performance rights to eligible employees (Band 1 to 4) 24/10/2016 Increase through issue of performance rights to eligible employees (Band 1) 29/11/2016 Increase through issue of performance rights to eligible employees (Band 1) 29/11/2016 Increase through issue of performance rights to eligible employees (Band 1) 29/11/2016 Decrease through conversion of shares upon vesting of performance rights (Level 1) 31/08/2016 Decrease through lapsing of performance rights (Level 1) 31/08/2016 Decrease through conversion of shares upon vesting of performance rights (Level 2) 31/08/2016 Decrease through lapsing of performance rights (Level 2) 31/08/2016	Fair Value Total per Right Vesting Number at Grant Date Date 575,145 $1.89 30/06/2018 2,900,389 $1.27 30/06/2019 400,000 $1.21 30/06/2018 600,000 $1.20 30/06/2019 1,000,000 $1.18 30/06/2020 (1,655,638) $0.43 30/06/2016 (1,497,958) $0.43 30/06/2016 (1,502,764) $0.56 30/06/2016 (163,401) $0.25 30/06/2017

*The terms and conditions of the Remuneration Framework are consistent with those disclosed in the Annual Report for the year ended 30 June 2016 and the Notice of Annual General Meeting sent to shareholders on 28 October 2016.

Note 11: Net Tangible Assets

Note 11: Net Tangible Assets
		Restated
	As at	As at
	31-Dec-16	30-Jun-16
	$'000	$'000
Net tangible asset backing per share	0.75	0.52

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25

Half Year Report for the six months ended 31 December 2016

Notes to the Financial Statements

Note 12: Restatement of Comparative Information

During the preparation of the 31 December 2016 half year financial report it was noted that there was a misstatement in the Gold in Circuit and Gold Bullion (“GIC”) valuation model for the Syama gold mines sulphide GIC. The financial modelling caused the book value of GIC to be overstated at 31 December 2015 by $4.997m, and at 30 June 2016 by $11.990m.

It should be noted that all of the restatements are non-cash in nature, and do not affect reported cash flows. Furthermore, there is no change or impact on:

• the contained ounces of GIC, nor its market value at those balance dates;

• Resolute’s enterprise value;

• banking covenant ratios;

• the group’s liquidity position;

• reported gold production, cash costs per ounce of production¹, and all-in sustaining costs per ounce of production²; and,

• any of the information disclosed in the group’s quarterly reports.

Restatements for each of the affected 31 December 2015 and 30 June 2016 financial statement line items for the prior periods are as follows:

the prior periods are as follows:
	Restated	As previously stated
	For the half year ended	For the half year ended
	31-Dec-15	31-Dec-15
	$'000	$'000
Consolidated Statement of Comprehensive Income
Costs of production relating to gold sales	(149,355)	(144,358)
Gross profit before depreciation, amortisation and other operating costs	99,237	104,234
Gross profit from operations	62,116	67,113
Profit for the period from continuing operations	57,180	62,177
Profit for the period	101,902	106,899
Profit attributable to:
Members of the parent	91,452	95,450
Non-controlling interest	10,450	11,449
Total comprehensive income attributable to:
Members of the parent	49,088	53,086
Non-controlling interest	7,811	8,810
Earnings per share for net profit attributable to the ordinary equity holders of the
parent:
Basic earnings per share	14.26 cents	14.88 cents
Diluted earnings per share	13.87 cents	14.50 cents
Earnings per share for net profit from continuing operations attributable	to the
ordinary equity holders of the parent:
Basic earnings per share	7.28 cents	7.91 cents
Diluted earnings per share	7.09 cents	7.71 cents

1. Cash cost per ounce of gold produced is calculated as costs of production relating to gold sales excluding gold in circuit inventory movements divided by gold ounces produced.

2. All in Sustaining Costs (“AISC”) per ounce of gold produced is calculated in accordance with World Gold Council guidelines. These measures are included to assist investors to better understand the performance of the business. Cash cost per ounce of gold produced and AISC are non ‐ International Financial Reporting Standards financial information and where included in this Directors’ Report have not been subject to review by the Group’s external auditors.

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26

Half Year Report for the six months ended 31 December 2016

Notes to the Financial Statements

Note 12: Restatement of Comparative Information (continued)

	Restated	As previously stated
	For the year ended	For the year ended
	30-Jun-16	30-Jun-16
	$'000	$'000
Consolidated Statement of Financial Position
Inventories	174,022	186,012
Total current assets	263,504	275,494
Total assets	492,341	504,331
Net assets	338,414	350,404
Reserves	33,427	33,263
Accumulated losses	(41,836)	(32,080)
Total equity attributable to equity holders of the parent	386,789	396,381
Non-controlling interest	(48,375)	(45,977)
Total equity	338,414	350,404

Note 13: Events Occurring after Balance Date

No significant events have occurred since balance date on 31 December 2016 up to the date of this report.

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27

Half Year Report for the six months ended 31 December 2016

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 2016 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.

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J.P. Welborn

Director

Perth, Western Australia 27 February 2017

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28

Ernst & Young Tel: +61 8 9429 2222 11 Mounts Bay Road Fax: +61 8 9429 2436 Perth WA 6000 Australia ey.com/au GPO Box M939 Perth WA 6843

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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 consolidated statement of financial position as at 31 December 2016, the consolidated statement of comprehensive income, consolidated statement of changes in equity and consolidated cash flow statement for the half-year ended on that date, notes comprising a summary of significant accounting policies and other explanatory information, 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 of the half-year financial report that gives a true and fair view in accordance with Australian Accounting Standards and the Corporations Act 2001 and for such internal controls as the Directors determine are necessary to enable the preparation of the half-year financial report that is free from material misstatement, whether due to fraud or error.

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 a Financial Report Performed by the Independent Auditor of the Entity , in order to state whether, on the basis of the procedures described, we have become aware of any matter that makes us believe that the half-year 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 2016 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.

A member firm of Ernst & Young Global Limited Liability limited by a scheme approved under Professional Standards Legislation

GB:EH:RSG:231

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Conclusion

Based on our review, which is not an audit, we have not become aware of any matter that makes us believe that the half-year financial report of Resolute Mining Limited is not in accordance with the Corporations Act 2001 , including:

• a) giving a true and fair view of the consolidated entity’s financial position as at 31 December 2016 and of its performance for the half-year ended on that date; and

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

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Ernst & Young

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Gavin Buckingham Partner Perth 27 February 2017

A member firm of Ernst & Young Global Limited Liability limited by a scheme approved under Professional Standards Legislation

GB:EH:RSG:231