TIVAN LIMITED — Interim / Quarterly Report 2003

Jan 12, 2003

LE HALLMARK

OUARTERLY REPORT December 2002

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

HALLMARK - MENZIES GOLD STRATEGIC ALLIANCE

In December 2002, a strategic alliance was entered into between Hallmark and Menzies Gold Limited ("Menzies").

Under the alliance, Hallmark has expended a total of \$1.5 Million to acquire the currently producing Deflector tenement and provide funds to Menzies as a secured loan. Hallmark will receive a royalty on Deflector production and will investigate opportunities to fast track exploration at Paynes Find where it is anticipated the alliance may assist in bringing forward production.

MENZIES

Menzies owns the King Solomon Mines Project ("the Project"), which is located approximately 100 kilometres from Paynes Find. A global resource of 226,900 ounces of gold and 11,832 tonnes of copper has been defined at the Project which includes a 300,000 tpa CPI processing plant.

DEFLECTOR TENEMENT

Hallmark acquired the Deflector Tenement (ML59/442) for \$629,000, and has granted Menzies the right to continue its current mining operations. This right ceases on the earlier of 30 June 2003, or mining reaching the RL 235 level.

Hallmark has also granted Menzies the conditional right to continue mining at Deflector after completion of the current mining operations on the basis that Hallmark must approve the expanded mining plan.

The rights granted to Menzies by Hallmark are conditional on a number of factors including;

• Hallmark is to receive a royalty of \$10 per ounce of gold (equivalent) recovered on all $\bullet$ production after a further 6000 ounces of gold (equivalent) is produced;
• Menzies pays the 1% royalty due to a third party, and all other mining and processing costs, including state government royalties;
• Hallmark has the right to enter and explore the tenement;
• Menzies must mine in accordance with generally accepted mining industry practice, and maintain the tenement in good standing; and
• $\bullet$ No occurrence of an event of default.

Deflector Resource

At Deflector, Menzies has identified the following resource;

Category	Tonnes	Gold Grade	Gold Ounces	Copper Grade	Copper Tonnes
		(g/t)		$($ %)
Indicated Resource	477,656	4.8	73,832	1.7	8,300
Inferred Resource	176,700	4.3	24,428	2.0	3,532

Deflector Geology

The Deflector lodes are covered by alluvium on a flat, mulga covered plain and are linked to the Project CIP treatment plant by an 8 kilometre haul road.

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.

Menzies believes the mineralisation is open at depth and along strike.

SECURED LOAN

Hallmark group has also advanced the Menzies group a secured loan of \$871,000.

Terms of the loan include:

• The loan is repayable on or before 30 June 2003;
• Interest is payable monthly; and $\bullet$
• The loan is secured by a charge over all of the assets of Menzies and its operating $\bullet$ subsidiary King Solomon Mines Ltd.

PAYNES FIND PROJECT

During the quarter a wholly owned subsidiary, Hallmark Mining Limited ("HMI") exercised the option to acquire M 59/244.

HMI also has an option to acquire other tenements at Paynes Find, on or before 31 May 2003, for a consideration of \$450,000.

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.

Interpretation of reverse circulation drilling completed during the quarter at the Paynes Find project has been completed.

Narrow high-grade gold shoots have been intersected in the Lakeview and Carnation areas. Drilling in the Lakeview area returned 3m at 11.0 g/t Au with a peak of 1m at 23.90 g/t Au (previously reported). In the Carnation area, several intersections were returned with the best being 3m at 10.97 g/t Au (previously reported). Both the Carnation and the Cracker shoots were intersected with two or more holes. The possible southern extension of the Marigold shoot was also intersected in one hole.

Drilling at the Scaddens lode has intersected the shoot position with drilling returning an intersection of 2m $(a)$ 4.00 g/t Au (previously reported) which interprets well with earlier Hallmark RC drilling (2m at 20.20 g/t Au).

Future exploration on this project will consist of closely spaced RC drilling to help define the geometry of these shoots.

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 @ 0.84 %Ni equivalent.

During the quarter the parties continued discussions in respect to the Joint Venture.

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 has withdrawn 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 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. 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.

CONSOLIDATED FINANCIAL POSITION AND TOP 20 SHAREHOLDERS

An unaudited consolidated statement of financial position as at 31 December 2002 reflecting the Hallmark Group's asset base incorporating the Menzies transaction is shown at Attachment 1.

The twenty largest shareholders and distribution of ordinary shares as at 10 January 2002 is shown at Attachment 2.

Further information on Hallmark's activities and projects is available by contacting the Directors at the Company's office.

HALLMARK CONSOLIDATED LIMITED

John W Barr Chairman 13 January 2003

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. I 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 1 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	ML59/10 ML59/235 ML59/244	Option to acquire 100%. I l 100%.
	PLA59/1638 PLA59/1639	Application 100%. J ľ
EAGLEMIST PTY LTD (wholly owned subsidiary)
Deflector	ML59/442 ELA59/1126	100%. Application 100%.
CONNAUGHT MINING NL (wholly owned subsidiary)
Duplex Hill South	E26/64 PLA26/2899-901	100% under option for sale. 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 he field of activity being reported on. This report accurately reflects the information compiled by this member.

ATTACHMENT 1

Unaudited Consolidated Statement of Financial Position As at 31 December 2002

	\$
Current Assets
Cash assets	4,080,426
Receivables	1,011,449
Other	16,886
Total Current Assets	5,108,761
Non-Current Assets
Other financial assets	149,061
Plant and equipment	51,348
Exploration expenditure	6,251,694
Total Non-Current Assets	6,452,103
Total Assets	11,560,864
Current Liabilities
Payables	53,006
Current tax liabilities	19,003
Provisions	25,172
Total Current Liabilities	97,181
Total Liabilities	97,181
Net Assets	11,463,683
Equity
Contributed Equity	6,706,650
Reserves	4,653,656
Retained profits	103,377
Total Equity	11,463,683

Disclaimer

The Consolidated Statement of Financial Position is based on internal management accounts and has not been audited.

ATTACHMENT 2

Twenty Largest Shareholders

Name	No. of Shares
Cavendish Corporation Ltd	5,880,000
Biddle Partners Pty Ltd	4,989,372
Claw Pty Ltd	4,309,950
Flea Pty Ltd	3,690,050
Mr Gary Alan Snow	3,000,000
Kensington Consulting Pty Ltd	2,689,100
Lomp Pty Ltd	2,352,387
Corvo Enterprises Inc.	1,989,391
Exchange Finance Ltd	1,859,073
Willvest Pty Ltd	989,000
Mr Neil Gregory Biddle	500,000
Hillcrest Resources Ltd	500,000
Lanzerac Nominees Pty Ltd	500,000
Colbern Fiduciary Nominees Pty Ltd	450,666
HSBC Custody Nominees (Australia) Ltd	408,500
Ms Robin Lyn Rimes	400,000
Dilkara Nominees Pty Ltd	390,000
Stanley Nominees Pty Ltd	302,000
Balfes (QLD) Pty Ltd	300,000
Mr Scott Christopher Goodheart	300,000
TOTAL	35,799,489

Distribution of Ordinary Shares

Category	Number
1 to $1,000$	44
1,001 to $5,000$	166
5,001 to 10,000	135
10,001 to 100,000	243
$100,001$ to Max	58
Total	646

$Rule 5.3$

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")

Year to date

31 December 2002

Current quarter

Consolidated statement of cash flows

	Cash flows related to operating activities				\$A'000	6 months \$A'000
1.1	Receipts from customers
1.2	Payments for	(a)		exploration and evaluation	(172)	(220)
		(b)		acquisition - mining tenement	(707)	(732)
		(c)	development
		(d)	production
		(e)	administration		(271)	(505)
1.3	Royalties received
1.4	Interest and other items of a similar nature received				70	113
1.5	Interest and other costs of finance paid
1.6	Income taxes paid				(9)	(19)
1.7	Other				31	(5)
	Net Operating Cash Flows				(1,058)	(1, 368)
	Cash flows related to investing activities
1.8	Payment for purchases of:		(a)	prospects
			(b)	equity
	investments			(c) other fixed assets	(1)	(26)
1.9	Proceeds from sale of:		(a)	prospects
			(b)	equity		1,300
	investments
			(c)	other assets
1.10	Loans to other entities				(871)	(871)
1.11	Loans repaid by other entities					653
1.12	Other
	Net investing cash flows				(872)	1,056
1.13	forward)			Total operating and investing cash flows (carried	(1,930)	(312)

⁺ See chapter 19 for defined terms.

1.13	Total operating and investing cash flows (brought forward)	(1,930)	(312)
	Cash flows related to financing activities
1.14	Proceeds from issues of shares, options, etc.
1.15	Payment for shares (buy-back)
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	(1,930)	(312)
1.20 1.21	Cash at beginning of quarter/year to date	6,011	4,393
	Exchange rate adjustments to item 1.20
1.22	Cash at end of quarter	4,081	4,081

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
a ne	fficialmente e una conseguida e un condestable en la calidad inconsegue en la consegue de la consegue de la co

Explanation necessary for an understanding of the transactions 1.25

Nil

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

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

Estimated cash outflows for next quarter

	Total	$\overline{\phantom{a}}$
4.2	Development	$\overline{\phantom{a}}$
4.1	Exploration and evaluation	150
		\$A'000
	covining the store of the core in the set of the core

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	43	34
5.2	Deposits at call	3,968	5,907
5.3	Bank overdraft
5.4	Other – security deposits	70	70
	Total: cash at end of quarter (item 1.22)	4,081	6,011

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	Νiί
6.2	Interests in mining tenements acquired or increased	ML59/244 ML59/442 EL59/1126	Holder Holder Application	0% 0% 0%	100% 100% 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 accounting $\mathbf{I}$ standards as defined in the Corporations Lawor 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: 13 January 2003

Print name: CHRISTOPHER BATH

• See chapter 19 for defined terms.