TIVAN LIMITED — Interim / Quarterly Report 2003

Apr 29, 2003

LE HALLMARK

OUARTERLY REPORT March 2003

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

HIGHLIGHTS

Menzies Gold

This report details a series of transactions, which subject to various approvals will achieve the following results:

• $\Box$ Hallmark will sponsor the reconstruction of Menzies Gold which is to be renamed Batavia Mining Ltd (Batavia);
• □ Hallmark to sell the Deflector and Paynes Find projects into Batavia;
• □ Hallmark shareholders to receive a TAX FREE issue of shares in Batavia on a 1 for 1 basis as a return of Hallmark capital;
• □ Hallmark shareholders to receive a FURTHER ENTITLEMENT to take up a share rights issue in Batavia, together with a free attaching option;
• $\Box$ BATAVIA to seek re listing as a well funded exploration company with a strong portfolio of assets:
• $\Box$ Hallmark to retain a strong financial position and free carried interest in its remaining exploration assets.

Deflector Drilling

During the quarter a successful round of drilling was completed at Deflector, which confirmed strong continuity of high-grade mineralisation at depth and along strike to the north.

	From	To	Interval	$Au(g/t)$ uncut/	$Cu$ (%)
Hole ID	(metres)	(metres)		$30g/t$ Cut
HDRC003	112	113	I	32.35/30.00	1.60
HDRC005	85	88	3	5.92	0.73
HDRC006	94	96	2	16.69/12.19	0.43
	103	106	3	8.08	1.81
HDRC009	104	108	4	10.53	5.45
HDRC010	92	99	7	7.80	2.95
HDRC011	118	120	2	18.50/17.82	5.52
HDRC014	79	82	3	5.32	7.33
HDRC015	108	111	3	6.32	1.11
	87	91	4	8.91	2.33

Significant results at Deflector included;

MENZIES GOLD DEED OF COMPANY ARRANGEMENT & SHAREHOLDER'S MEETING

In 2002 Hallmark advanced to King Solomon Mines Limited (KSM), a wholly owned subsidiary of Menzies Gold Limited (Menzies), the amount of \$871,000. The Loan was secured by a charge over the assets and undertakings of KSM, and a guarantee from Menzies, which was secured by a charge over the assets and undertakings of Menzies.

In January 2003 Menzies and KSM experienced financial difficulties and consequently administrators where appointed.

Creditors of Menzies approved a Deed of Company Arrangement (DOCA) on 11 April 2003, and KSM was placed into liquidation on the same day.

A Menzies' shareholder's meeting will be called shortly to consider resolutions including:

• 1. A change of name to Batavia Mining Limited;
• 1. Adopting a new Constitution:
• 1. Appointing JW Barr, NG Biddle and AJ Downie as directors;
• 1. An initial share placement to raise \$500,000;
• 1. Acquisition of Hallmark's wholly owned subsidiary, South Murchison Mines ("SMM") and the Paynes Find tenements (and options) from Hallmark for a consideration of \$3,000,000 satisfied by the issue of shares;
• 1. The issue of a convertible note for the replacement of the debt owing to Hallmark, which presently stands at \$1,060,000;
• 1. An employee share option scheme; and
• 1. A share consolidation.

Distribution of Batavia Mining (Menzies) shares to Hallmark Shareholders

A meeting of Hallmark shareholders will also be called shortly. This meeting will be held after the Menzies shareholders meeting and the purpose of the meeting will be to seek shareholder approval for a reduction of Hallmark's capital.

The proposed capital reduction will be satisfied by a one for one pro-rata distribution to Hallmark shareholders of shares in Batavia that Hallmark will receive as a result of the share placement, the sale of SMM and the sale of Paynes Find.

Re-listing of Batavia Mining

Subsequent to approval of the resolutions at both shareholder meetings Batavia Mining will have on issue approximately 82,387,000 shares of which Hallmark and its shareholders will own 60 million shares.

In order for Batavia Mining to carry out effective exploration and exploitation of the mining tenements additional funds will be needed. It is proposed that these funds will be raised by way of a rights issue to Batavia Mining shareholders on a 1 for 4 basis, together with a free attached option, at a price not greater than 10 cents.

Following the successful completion of the rights issue Batavia Mining will have approximately 102,983,750 shares on issue and 20,596,750 options on issue.

An application for the recommencement of trading of Batavia Mining shares will be sought from the ASX prior to the shareholders meetings. At this stage it is envisaged that relisting will occur subsequent to the Menzies shareholder meeting and the successful completion of the rights entitlement issue.

What does this mean for Hallmark shareholders?

The proposed capital reduction in Hallmark will be satisfied by a one for one pro-rata distribution of Batavia Mining shares to Hallmark shareholders.

In addition, because of the pro rata distribution, Hallmark shareholders will be entitled to participate in the proposed rights issue to Batavia Mining shareholders, on a 1 for 4 basis, together with a free attaching option, at a price not greater than 10 cents.

Hallmark itself will pass a majority of the Batavia Mining shares to its shareholders, but will retain a convertible note, which secures the original ban. Hallmark will also retain its strong financial position, and its interest in other mining tenements as detailed in this report.

DEFLECTOR TENEMENT

In 2002 Hallmark acquired the Deflector Tenement, which is located approximately 8 kilometres from the Menzies treatment plant. It is proposed that the tenement is sold to Batavia Mining as referred to above.

The Deflector lodes are covered by alluvium on a flat, mulga covered plain. The deposit is made up of three steeply dipping lodes, West Lode, Central Lode and the Contact Lode. The lodes all strike northeast and parallel the enclosing rock structure. The West Lode dips vertically to steeply west. The Central Lode is near vertical, ranging from steep east to steep west. The Contact Lode dips at 70° parallel to the basalt/siltstone contact. The lodes are regularly spaced with 60m to 80m between the West Lode and Central Lode and Central Lode to the Contact Lode. Mineralisation can be traced for at least 500m in strike on all three lodes.

During the quarter Hallmark completed a Reverse Circulation (RC) drilling program at the Deflector Mine area. A total of 17 holes for 1,956 metres were completed around the Deflector West and Deflector Central pits. Drilling was primarily designed to step out below previous drilling to test for mineralisation continuity at depth.

The primary gold mineralisation is contained within a 1 - 4 metre wide shear zone, hosted within metamorphosed basalt. The shear zone hosts quartz veins up to 30cm wide. The main mineralogy assemblage is pyrite, chalcopyrite and chalcocite.

Hole ID	From	Tо	Interval	$Au(g/t)$ uncut	$Cu$ (%)
	(metre)	(metre)		$/30g/t$ Cut
HDRC002	128	129		5.77	0.41
HDRC003	112	113		32.35 / 30.00	1.60
HDRC004	112	114	$\overline{2}$	2.89	1.89
HDRC005	85	88	3	5.92	0.73
HDRC006	94	96	2	16.69 / 12.19	0.43
	103	106	3	8.08	1.81
HDRC009	104	108	4	10.53	5.45
HDRC010	92	99	7	7.80	2.95
HDRC011	118	120	$\overline{2}$	18.50 / 17.82	5.52
HDRC012	78	83	5	1.78	0.89
HDRC013	74	80	6	2.62	1.44
HDRC014	79	82	3	5.32	7.33
HDRC015	108	111	3	6.32	1.11
HDRC016	75	77	2	3.47	0.71
	87	91	4	8.91	2.33
	101	103	$\overline{2}$	3.09	1.18

Significant drill intersections, using a $1 \frac{g}{t}$ Au threshold are tabulated below

Drilling has confirmed previous drilling results by Gullewa Gold (1996) and Menzies Gold (2002) whereby high grade steeply dipping Au-Cu veins of 1-4 metres width comprise the Deflector West and Deflector Central lodes

Drilling has been concentrated at depth below previous drill intercepts and has returned positive results. The ore bodies remain open at depth and along strike to the north.

Further drilling is being planned for commencement in May to extend known mineralisation.

A new ore resource estimation is currently being calculated to include this latest round of drilling.

Hallmark has also undertaken a thorough review of Deflector metallurgy and has commissioned further test work designed to optimize gold and copper recoveries.

Hallmark has also applied for 1 exploration and 9 prospecting licenses in the immediate Gullewa area closing off narrow gaps in the tenements due to the recent datum change.

PAYNES FIND PROJECT

Hallmark owns tenements and also has an option to acquire other tenements at Paynes Find. It is proposed that the tenements and the option are sold to Batavia Mining as referred to above. Combined, these tenements cover most of the historic mines in the Paynes Find gold mining centre and are considered to have the potential to contain high-grade ore.

During the quarter further drilling was completed at the Paynes Find Project.

A total of 5 holes for 356 metres of Reverse Circulation (RC) drilling were completed at the Carnation, Scaddens and Lakeview prospects. This drilling was designed to follow up previous Hallmark drill intersections.

In the Carnation area, drilling was completed to the south along strike to test for continuity of mineralisation. The Scaddens area was targeted because previous drilling had identified possible shoot development in this area. A further 20 m step out to the south-east was completed to test for the down dip extension of this shoot. In the Lakeview area drilling also confirmed previous Hallmark high-grade intersections, which have outlined a possible shoot.

Gold mineralisation is located in moderate plunging quartz – pyrite shoots within continuous shear zones. Drilling has demonstrated the continuity of 3 ore shoots.

Further evaluation work is currently being undertaken.

The significant intersections using a 0.50 $g/t$ Au threshold are tabulated below.

Hole ID	From	Tо	Interval	Au(ppm)	Prospect
	(metres)	(metres)
HPFRC031	34	35		2.21	Carnation South
	38	39		8.07	Carnation South
HPFRC033	35	36		5.47
	چس ویس	78		2.35	Scaddens
	64	66	́	2.08	Lakeview

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. Hallmark's current resource estimate on the Cawse Extended Project (Using a cut off grade of 0.5% Nickel) is 84.1 million tonnes $\hat{\omega}$ 0.84 % Ni equivalent.

No activities occurred during the quarter.

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 and the project is subject to a 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 withdraw from the exploration licence, and retains the right to purchase the PLA's for \$60,000.

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

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 enements 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. Barmineo is manager of the joint venture. Barmineo 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.

HALLMARK CONSOLIDATED LIMITED

John W Barr Chairman 30 April 2003

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.

The Hallmark Group holds interests in the following 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 M40/157 P40/1001-02 MLA40/194		Diluting to a 3% gross royalty (third party retains a 25% interest in Hallmark's residual interest). Current percentage interest is 10.1%.
Paynes Find	M59/10 M59/235 M59/244	J Ĩ	Option to acquire 100%. 100%.
	PLA59/1638 PLA59/1639	J J	Application 100%.

SOUTH MURCHISON MINES PTY LTD (wholly owned subsidiary)

Deflector	M59/442	100%.
	ELA59/1126	100%.
	ELA59/1129	100%
	PLA59/1659	100%
	PLA59/1660	100%
	PLA59/1661	100%
	PLA59/1662	100%
	PLA59/1663	100%
	PLA59/1664	100%
	PLA59/1665	100%
	PLA59/1666	100%
	PLA59/1667	100%

CONNAUGHT MINING NL (wholly owned subsidiary)

Duplex Hill South	F.26/64	100% under option for sale.
	PLA26/2899-901	100% under contract of sale

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")

31 March 2003

Consolidated statement of cash flows

				Current quarter	Year to date
	Cash flows related to operating activities			\$A'000	9 months \$A'000
1.1	Receipts from customers
1.2	Payments for	(a) (b) $\left( c \right)$ (d)	exploration and evaluation acquisition - mining tenement development production	(30)	(250) (732)
			administration (e)	(79)	(584)
1.3	Royalties received
1.4			Interest and other items of a similar nature received	60	173
1.5	Interest and other costs of finance paid
1.6	Income taxes paid			(9)	(28)
1.7	Other				(5)
	Net Operating Cash Flows			(58)	(1, 426)
			Cash flows related to investing activities
1.8	Payment for purchases of:		(a) prospects
			(b) equity investments	(20)	(20)
			(c) other fixed assets	(24)	(50)
1.9	Proceeds from sale of:		(a) prospects
			(b) equity investments		1,300
			(c) other assets
1.10	Loans to other entities			(166)	(1037)
1.11	Loans repaid by other entities			100	753
1.12	Other
	Net investing cash flows			(110)	946
1.13			Total operating and investing cash flows (carried forward)	(168)	(480)

• See chapter 19 for defined terms.

1.13	Total operating and investing cash flows (brought
	forward)	(168)	(480)
	Cash flows related to financing activities
1.14	Proceeds from issues of shares, options, etc.	$\overline{a}$
1.15	Payment for shares (buy-back)	$\overline{a}$
1.16	Proceeds from borrowings	$\overline{a}$
1.17	Repayment of borrowings	$\overline{a}$
1.18	Dividends paid
1.19	Other	$\overline{r}$
	Net financing cash flows	$\overline{a}$
	Net increase (decrease) in cash held	(168)	(480)
1.20	Cash at beginning of quarterlyear to date	4,081	4,393
1.21	Exchange rate adjustments to item 1.20
1.22	Cash at end of quarter	3,913	3,913

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 SA'000
1.23	Aggregate amount of payments to the parties included in item 1.2	94
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

Νi

Nil

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

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	$\overline{r}$

Estimated cash outflows for next quarter

		\$A'000
4.1	Exploration and evaluation	150
4.2	Development	$\overline{ }$
	Total	$\overline{ }$

Reconciliation of cash

$\blacksquare$

	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	57	43
5.2	Deposits at call	3,786	3,968
5.3	Bank overdraft
5.4	Other – security deposits	70	70
	Total: cash at end of quarter (item 1.22)	3,913	4,081

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	Νi
6.2	Interests in mining	ELA59/1129	Application	0%	0%
	tenements acquired or	P59/1659	Application	0%	0%
	increased	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%

⁺ 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 (Options exercisable at 25 cents expiring on 30 June 2004)	3,280,000	Nil	25c	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

• 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.

`≰4

Sign here:

(Company Secretary)

Date: 30 April 2003

Print name: CHRISTOPHER BATH

⁺ See chapter 19 for defined terms.