TIVAN LIMITED — Interim / Quarterly Report 2003

Jul 30, 2003

HALLMARK

QUARTERLY REPORT June 2003

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

HIGHLIGHTS FOR THE QUARTER

Batavia Mining Limited

During the quarter Hallmark and Batavia shareholders overwhelmingly approved a series of transactions, which result in;

• a Hallmark shareholders receiving 1 Batavia share for every 1 Hallmark share held.
• The sale of Deflector and Paynes Find projects to Batavia.
• The appointment of two Hallmark Directors to the Board of Batavia.
• The issue by Batavia of a convertible note to Hallmark for \$1,060,000.

Following completion of the current Batavia rights issue it is anticipated that ASX will remove the suspension from official trading on Batavia shares.

Cawse Extended

Hallmark was advised during the Quarter that OMG had lodged a Notice of Intent to mine Cawse Extended. Discussions between OMG and Hallmark are presently being undertaken to determine whether Hallmark should retain the 20% interest, convert to a 2% Net Smelter Return, or negotiate an alternative royalty. Hallmark is confident that an agreement will be reached with OMG in the near future.

BATAVIA MINING LIMITED

Hallmark has sponsored the reconstruction of Menzies Gold Limited, Creditors of Menzies approved a Deed of Company Arrangement in April and on 24 June Menzies' shareholder's passed a number of resolutions including:

• 1. A change of name to Batavia Mining Limited;
• 1. Appointing JW Barr, NG Biddle and AJ Downie as directors:
• 1. A share consolidation:
• 1. An initial share placement to raise \$500,000:
• 1. Acquisition of Hallmark's Deflector and Paynes Find projects;
• 1. The issue to Hallmark of a convertible note;

Batavia now has on issue 82,386,940 shares.

In order for Batavia Mining to carry out effective exploration and exploitation of its mining tenements additional funds will be raised by way of a rights issue on the basis of 1 share and option for every 3 shares held, at a price of 10 cents per share.

Following the successful completion of the rights issue Batavia will have approximately 109,849,253 shares and 27,462,313 listed options on issue.

An application for the recommencement of trading of Batavia shares has been sought from the ASX. Following the successful completion of the rights issue it is envisaged that Batavia will be in a position to satisfy all ASX requirements.

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

At a meeting of Hallmark shareholders on 24 June approval was given for a reduction of capital, satisfied by a one for one pro-rata distribution of the shares in Batavia that Hallmark has received.

Hallmark retains the convertible note and approximately 6.2 million Batavia shares. It intends to take up its entitlement in the rights issue.

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.

During the Quarter Hallmark was made aware that OMG had lodged a Notice of Intent to Mine the Unicorn Prospect located on Cawse Extended.

OMG have advised that they would prefer to re-negotiate the current joint venture arrangements in which Hallmark has a 20% interest that can be converted to a 2% net smelter return at Hallmark's election. Hallmark and OMG are presently discussing the alternatives, which will be resolved before the commencement of mining.

Hallmark remains of the opinion that Cawse Extended ore is integral to ongoing production at the Cawse Nickel-Cobalt Operation and is hopeful that a satisfactory outcome of present negotiations will be reached in the near future. This should result in a cash flow to Hallmark in the 2003/04 financial year.

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 rovalty 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 and secured receivables of approximately \$4M; in excess of 6 million shares in Batavia Mining Limited and the prospect of cash flow from Cawse Extended.

HALLMARK CONSOLIDATED LIMITED

John W Barr Chairman 31 July 2003

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.
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.

Rule 5.3

Appendix 5B

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 June 2003

Current quarter

Consolidated statement of cash flows

		Current quarter	Year to date
Cash flows related to operating activities		\$A'000	12 months \$A'000
1.1 Receipts from customers
1.2 Payments for (a)	exploration and evaluation	(417)	(668)
(b)	acquisition - mining tenement	(28)	(760)
(c)	development
production (d)
(e)	administration	(131)	(714)
1.3 Royalties received
1.4 Interest and other items of a similar nature received		50	223
1.5 Interest and other costs of finance paid
1.6 Income taxes paid		(9)	(38)
1.7 Other			(5)
Net Operating Cash Flows		(535)	(1,962)
Cash flows related to investing activities
1.8 Payment for purchases of:	(a) prospects
	(b) equity investments	(304)	(324)
	(c) other fixed assets	(7)	(57)
1.9 Proceeds from sale of:	(a) prospects
	(b) equity investments	(3)	1,297
1.10 Loans to other entities:	(c) other assets
Batavia Mining Ltd (Convertible Note)			(1,060)
Batavia Mining Ltd		(124) (705)	(760)
Other		(225)	(270)
1.11 Loans repaid by other entities			753
1.12 Other		287	287

• See chapter 19 for defined terms.

Appendix 5B Mining exploration entity quarterly report

1.13	Total operating and investing cash flows (carried forward)	(1,616)		(2096)
1.13	Total operating and investing cash flows (brought forward)		(1,616)	(2,096)
	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		(1,616)	(2,096)
1.20	Cash at beginning of quarter/year to date		3,913	4,393
1,21	Exchange rate adjustments to item 1.20
1.22	Cash at end of quarter		2,297	2,297

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
1.24	Aggregate amount of loans to the parties included in item 1.10

1.25 Explanation necessary for an understanding of the transactions

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 27 June 2003 the Company disposed of all its shares in South Murchison Mines Pty Ltd, a wholly owned subsidiary, to Batavia Mining Limited (BTV) for the issue of 25M shares in BTV. Hallmark Mining Limited, also a wholly owned subsidiary, disposed of its interests in the Paynes Find project to BTV for 5M shares in BTV. The total of 30M shares were distributed in specie to Hallmark shareholders as part of a capital reduction.

The Hallmark Group had provided a loan to a BTV subsidiary of \$1.06M. This loan has been replaced by 10.6M non-interest bearing secured convertible notes in BTV. These notes are convertible at 80% of the average sales price of a BTV share, are convertible at any time up to 31 July 2004 and expire on 30 September 2003.

$2.2$ Details of outlays made by other entities to establish or increase their share in projects in which the reporting entity has an interest

Νi

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	$\overline{ }$
3.2	Credit standby arrangements	$\overline{ }$

Estimated cash outflows for next quarter

	Total	$\overline{}$
4.2	Development	$\overline{ }$
		10
4.1	Exploration and evaluation
		\$A'000

Reconciliation of cash

		Total: cash at end of quarter (item 1.22)	2,297	3,913
	5.4	Other - security deposits	70	70.
	5.3	Bank overdraft
	5.2	Deposits at call	2,226	3,786
	5.1	Cash on hand and at bank		57
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

• See chapter 19 for defined terms.

Changes in interests in mining tenements

		Tenement	Nature of interest	Interest at	Interest at
		reference	(note (2))	beginning of	end of
				quarter	quarter
6.1	Interests in mining	ELA59/1129	Application	0%	0%
	tenements relinquished,	ELA59/1126	Application	0%	0%
	reduced or lapsed	P59/1659	Application	0%	0%
		P59/1660	Application	0%	0%
		P59/1661	Application	0%	0%
		P59/1662	Application	0%	0%
		P59/1663	Application	0%	0%
		P59/1664	Application	0%	0%
		P59/1665	Application	0%	0%
		P59/1666	Application	0%	0%
		P59/1667	Application	0%	0%
		M59/10	Mining Lease	0%	0%
		M59/235	Mining Lease	0%	0%
		M59/244	Mining Lease	100%	0%
		P59/1638	Application	0%	0%
		P59/1639	Application	0%	0%
6.2	Interests in mining tenements acquired or increased

$\div$ 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			Exercise Price	Expiry Date
	Directors, Employees and Consultants Option Plan 2000	4,280,000 180,000	Nil ΝiΙ	19.5c 14.5c	30 June 2004 30 June 2004
7.8	Issued during quarter
7.9	Exercised during quarter
7.10 7.11	Expired during quarter Debentures
	(totals only)
7.12	Unsecured notes (totals only)

• See chapter 19 for defined terms.

Compliance statement

• This statement has been prepared under accounting policies, which comply with $\overline{\phantom{a}}$ 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: 31 July 2003

Print name: CHRISTOPHER BATH

$\pm$ See chapter 19 for defined terms.