TIVAN LIMITED — Interim / Quarterly Report 2003

Oct 23, 2003

HALLMARK

QUARTERLY REPORT September 2003

PHONE: 08 9327 0900 FAX: 08 9327 0901 WEB PAGE: www.hallmarkconsolidated.com

HIGHLIGHTS FOR THE QUARTER

Batavia Mining Limited

During the quarter the restructuring of Batavia was completed, and following completion of that Company's rights issue its shares were reinstated to trading by ASX. Batavia shares (ASX Code: BTV) and options (ASX Code: BTVO) last traded at 12.5 cents and 4.7 cents respectively.

Hallmark converted its convertible note during the quarter and now owns approximately 28.15 million Batavia shares.

During the quarter Batavia completed an addition capital raising of \$980,000 which will enable the acceleration of current exploration programmes and the expansion of the current and proposed drilling programmes.

Cawse Extended

During the quarter Hallmark reached an in principal Agreement with OMG to commence mining the Unicorn Pit located on the Cawse Extended tenements which will result in a cashflow to Hallmark of approximately \$500,000 pa commencing first quarter of 2004.

GENERAL

Hallmark is in a strong financial position with cash and liquid assets of approximately \$7 million and a cash flow from Cawse Extended.

BATAVIA MINING LIMITED

During the quarter the restructuring of Batavia was completed, and following completion of that Company's rights issue its shares were reinstated to trading by ASX. Batavia shares (ASX Code: BTV) and options (ASX Code: BTVO) last traded at 12.5 cents and 4.7 cents respectively.

Hallmark converted its convertible note during the quarter and now owns approximately 28.1 million Batavia shares.

During the quarter Batavia completed an addition capital raising of \$980,000 which will enable the acceleration of current exploration programmes and the expansion of the current and proposed drilling programmes.

Batavia announced a new resource estimate for its Deflector deposit. On a gold equivalent basis where $1\%$ Cu = $1.4q/t$ Au, the resource estimate is:

556,000 tonnes @ 9.5g/t Au, equivalent for approximately 170,000 gold equivalent oz's.

Batavia also announced 10,000 metre drilling programme has commenced targeting the depth extensions of known mineralisations at the Monarch pit, testing the continuity of the ore resource at depth between 150 metres to 200 metres below the surface at the Deflector deposit and undertaking new deep RC drilling at the Gullewa Project.

Shareholders are encouraged to visit the Batavia web page, which is located at www.bataviamining.com.au.

CAWSE EXTENDED PROJECT

The OM Group Inc. ("OMG") owns and manages the Cawse Nickel-Cobalt Operation. OMG and Hallmark jointly own the Cawse Extended Project, which is located adjacent to the Cawse Nickel-Cobalt Operation. Hallmark's 20% interest is free-carried to production, and is convertible to a 2% net smelter return, at Hallmark's election.

During the quarter Hallmark announced that it has reached an in principal Agreement with OMG to commence mining the Unicorn Pit located on the Cawse Extended tenements.

Agreement was reached on a wet tonne royalty payment, which will replace the current agreement only for ore mined from the Unicorn Pit and transported to the Cawse ROM pad prior to processing.

Initial pre stripping was been completed and mining of ore has commenced.

The base case of the Unicorn Agreement is a royalty of AU\$0.70/wt.

The Agreement has been structured to allow for variations in the nickel price and the AUD/USD exchange rate such that the wet tonne payment is variable within the range AU\$0.50/wt and AU\$0.90/wt.

Using the base case of AU\$0.70 per wet tonne and mining production of 735,000 tonnes Hallmark expects to receive gross royalty income of \$514,000 through to the March 2005 quarter.

OMG have further advised that infill drilling of Jedbob and Yowie Resources is planned over the next twelve months with the view to extend mining reserves within the Cawse Extended Project.

OTHER EXPLORATION PROJECTS

Hallmark holds an interest in three other tenement groups in Western Australia. In each case Hallmark is not contributing towards exploration expenditure, the projects being subject to joint venture, or options for sale.

Duplex Hill South

Hallmark previously entered into an agreement in relation to one exploration licence, and two prospecting licence applications. The purchaser withdrew from the exploration licence but retains the right to purchase the prospecting licence applications for \$60,000.

Hallmark subsequently granted an option to purchase the exploration licence for \$50,000. plus a further royalty of \$100,000 to another party.

Kintore East

Hallmark holds tenements covering an area of 789 hectares north west of Kalgoorlie. Joint Venture partner, Mines and Resources Australia Pty Ltd (MRA) manage the project. MRA are not currently undertaking any significant exploration on this project. Hallmark's interest in the tenements is 23.75%, diluting to 20%, at which stage it reverts to a 2% gold return interest calculated on production.

McTavish

Hallmark holds tenements covering an area of 664 hectares located west of Kookynie. The tenements are joint ventured with Barminco Pty Ltd and its subsidiary Kookynie Resources NL. Barminco is manager of the joint venture. Barminco and Kookynie Resources have earned an 89.9% interest in the project. Hallmark's interest in the tenements is 10.1%, diluting to a 3% gross royalty, with 25% of Hallmark's interest held in trust for another party.

GENERAL

Hallmark has a strong financial position with cash of approximately \$3M; in excess of 27 million shares in Batavia, and the prospect of cash flow from Cawse Extended.

HALLMARK CONSOLIDATED LIMITED

john w barr

Chairman

The Hallmark Group holds interests in the following mining tenements:

Prospect	Tenements		Equity
HALLMARK CONSOLIDATED LIMITED
Kintore East	MLA16/281 MLA16/282 P16/1416-20		Diluting from 49% to 2% gold return interest on production. Current percentage interest is 23.75%.
HALLMARK MINING LIMITED (wholly owned subsidiary)
Cawse Extended Project	E24/71 M24/547-48 MLA24/549-550		20% free carried to production, or can be converted to a 2% net smelter return on ore mined. Unicorn Pit is now excised and a wet tonne royalty applies.
McTavish	M40/77 M40/119		Diluting to a 3% gross royalty (third party retains a 25% interest in Hallmark's residual interest).
	M40/157 P40/1001-02 MLA40/194		Current percentage interest is 10.1%.

CONNAUGHT MINING NL (wholly owned subsidiary)

Duplex Hill South	E26/64	100% under option for sale.
	PLA26/2899-901	100% under contract of sale.

So far as it relates to ore and mineralisation this report is based on information compiled by Mr Neil G Biddle who is a Director of Hallmark Consolidated Limited and a corporate member of the Australasian Institute of Mining and Metallurgy and who has had more than five years experience in the field of activity being reported on. This report accurately reflects the information compiled by this member.

Appendix 5B

$Rule 5.3$

Mining exploration entity quarterly report

Introduced 1/7/96. Origin: Appendix 8. Amended 1/7/97, 1/7/98.

Name of entity

HALLMARK CONSOLIDATED LIMITED

ACN or ARBN

000 817 023

Quarter ended ("current quarter") 30 September 2003

Consolidated statement of cash flows

		Current quarter	Year to date 3 months \$A'000
	Cash flows related to operating activities
1.1	Receipts from customers
1.2	Payments for (a)	exploration and evaluation	(1)	(1)
	(b)	acquisition - mining tenement
	(c)	development
	(d)	production
	(e)	administration	(175)	(175)
1.3	Royalties received
1.4	Interest and other items of a similar nature received		29	29
1.5	Interest and other costs of finance paid
1.6	Income taxes paid
1.7	Other
	Net Operating Cash Flows		(147)	(147)
	Cash flows related to investing activities
1.8	Payment for purchases of:	(a) prospects
		(b) equity investments
		(c) other fixed assets	(19)	(19)
1.9	Proceeds from sale of:	(a) prospects
		(b) equity investments	7	$\overline{7}$
		(c) other assets
1.10	Loans to other entities		(613)	(613)
1.11	Loans repaid by other entities		1,526	1,526
1.12	Other
	Net investing cash flows		901	901
1.13		Total operating and investing cash flows (carried forward)	754	754

⁺ See chapter 19 for defined terms.

1.13	Total operating and investing cash flows (brought forward)	754	754.
	Cash flows related to financing activities
1.14	Proceeds from issues of shares, options, etc.
1.15	Payment for shares
1.16	Proceeds from borrowings
1.17	Repayment of borrowings
1.18	Dividends paid
1.19	Other
	Net financing cash flows
	Net increase (decrease) in cash held	754	754
1.20	Cash at beginning of quarter/year to date	2,303	2,303
1.21	Exchange rate adjustments to item 1.20
1.22	Cash at end of quarter	3,057	3,057

Payments to directors of the entity and associates of the directors Payments to related entities of the entity and associates of the related entities

		Current quarter \$A'000
1.23	Aggregate amount of payments to the parties included in item 1.2	55
1.24	Aggregate amount of loans to the parties included in item 1.10

1.25 Explanation necessary for an understanding of the transactions

Hallmark had sponsored the re-listing of Batavia Mining Limited (BTV) and provided loan funds as part of this process. During the quarter BTV repaid in full the outstanding loan.

Non-cash financing and investing activities

$2.1$ Details of financing and investing transactions which have had a material effect on consolidated assets and liabilities but did not involve cash flows

On 5 September 2003 the Company lodged a notice of conversion to convert its 10.6 million convertible notes to 21.2 million BTV shares. The notes were converted at a conversion price of five (5) cents.

$2.2₂$ Details of outlays made by other entities to establish or increase their share in projects in which the reporting entity has an interest

Nil

$+$ See chapter 19 for defined terms.

Financing facilities available
Add notes as necessary for an understanding of the position.

		Amount available \$A'000	Amount used \$A'000
3.1	Loan facilities	mm
3.2	Credit standby arrangements	mm

Estimated cash outflows for next quarter

	Total
4.2	Development	$\overline{\phantom{a}}$
4.1 Exploration and evaluation	۱n
		\$A'000

Reconciliation of cash

Reconciliation of cash at the end of the quarter (as shown in the consolidated statement of cash flows) to the related items in the accounts is as follows.		Current quarter \$A'000	Previous quarter \$A'000
5.1	Cash on hand and at bank	45	45.
5.2 Deposits at call		2,942	2,942
5.3	Bank overdraft	WWW
5.4	Other - security deposits	70	70
	Total: cash at end of quarter (item 1.22)	3,057	3,057

Changes in interests in mining tenements

		Tenement reference	Nature of interest (note (2))	Interest at beginning of quarter	Interest at end of quarter
6.1	Interests in mining tenements relinquished, reduced or lapsed	Extended.	Refer to the 30/9/03 Quarterly Activity Report in respect to the interest in Cawse
6.2	Interests in mining tenements acquired or increased

⁺ See chapter 19 for defined terms.

Issued and quoted securities at end of current quarter Description includes rate of interest and any redemption or conversion rights together with prices and dates.

		Total number	Number quoted	price issue per security (see note $3)$ (cents)	Amount paid up per security (see note 3) (cents)
7.1	Preference +securities (description)
7.2	Changes during quarter (a) Increases through issues (b) Decreases through
	returns of capital, buy- backs, redemptions
7.3	+ Ordinary securities	53,478,270	53,478,270
7.4	Changes during quarter (a) Increases through issues (b) Decreases through
	returns of capital, buy- backs
7.5	+ Convertible debt securities (description)
7.6	Changes during quarter (a) Increases through issues
	(b) Decreases through securities matured, converted
7.7	Options Directors, Employees and Consultants Option Plan 2000	4,280,000 180,000	Nil Nil	Exercise Price 19c 14c	Expiry Date 30 June 2004 30 June 2004
7.8	Issued during quarter
7.9	Exercised during quarter
7.10	Expired during quarter
7.11	Debentures (totals only)
7.12	Unsecured notes (totals only)

$+$ See chapter 19 for defined terms.

Compliance statement

• $\mathbbm{1}$ This statement has been prepared under accounting policies, which comply with accounting standards as defined in the Corporations Law or other standards acceptable to ASX.
• $\overline{2}$ This statement does give a true and fair view of the matters disclosed.

Sign here:

(Company Secretary)

Date: 24 October 2003

Print name:

CHRISTOPHER BATH

⁺ See chapter 19 for defined terms.