QUARTERLY REPORT

Quarterly Report

Three months ending
31 December, 2000

Cibaliung Project - West Java, Indonesia

• Eight holes were drilled during the quarter for a total of 2,560 metres.
• Significant vein intercepts (3 g/t cut-off) include at:

  Cibitung Shoot	Cikoneng Shoot
  AC-018 : 7.90m @ 7.63 g/t Au,	AC-020 : 3.90m @ 21.52 g/t Au,
  AC-019 : 6.25m @ 6.94 g/t Au,	AC-021 : 7.20m @ 5.64 g/t Au.

  
  
• Drilling continues to extend the Cibitung & Cikoneng shoots at depth.
• Scout drilling has commenced in the Melinjo / Cibeber area.

Corporate - Australia

• The rights issue was completed, with 545 new shareholders introduced.
• A total of 172,650,575 new shares were issued, raising A$ 9.5 million.

Expenditure

• Total exploration expenditure for the quarter was A$ 995,089.

John C. Carlile
Managing Director & CEO
16^th January, 2001

Exploration

Cibaliung Project - West Java, Indonesia

Cibitung Shoot - Diamond Core Drilling

Drilling at Cibitung continues to extend the shoot at depth. Four holes (AC-016 to AC-019) were drilled during the quarter for a total of 1,384.35 metres (see plan in Figure 1 & cross sections in Figure 2). Assay values from the high-grade zones intersected are shown in Table 1. Average grades have been calculated using a 3.0 g/t Au cut-off with no top-cut applied to the raw assay data.

Hole AC-018 intersected significant mineralisation 330 metres below surface. Hole AC-017 did not intersect the projected shoot position as it was stopped short of the target due to drilling difficulties. However, hole AC-019 did intersect the mineralised vein 60 metres above the target position for AC-017 indicating that the shoot is still open at this depth and supporting the need for a re-drill of hole AC-017 in due course.

Cibitung Shoot - Drill Sections

FIGURE 2: Cross Section Lines at Cibitung Prospect

Figure 3 is a schematic longitudinal projection that illustrates the extent of current drilling below the existing Cibitung & Cikoneng Shoot resource blocks.

Cikoneng Shoot - Diamond Core Drilling

Drilling recommenced at Cikoneng during the quarter with three holes being completed (AC-020 to AC-022) before the Christmas break for a total of 975.20 metres (see plan in Figure 4 & cross sections in Figure 5). Assay values from the high-grade zones intersected are shown in Table 2.

Hole AC-020 intersected the down-dip extension of the vein, 130 metres below CDDH_006 or 330 metres below surface. It intersected a high-grade zone comprising well-developed clay-rich breccias indicating that the mineralising system was active at this depth. Further drilling is now warranted to test for extensions at depth.

Hole AC-021 was designed to re-drill an early drill hole (CDDH_003) as poor recovery in the previous hole was considered unreliable and could not be used in resource calculations. Hole AC-022 was planned to intersect the vein below AC-004 at -20 metre RL or 240 metres below surface. Preliminary assay results indicate only minor mineralisation.

Cikoneng Shoot - Drill Sections

FIGURE 5: Cross Section Lines at Cikoneng Prospect

Other Prospect Drilling

Scout hole AC-023 was completed at Melinjo before the Christmas break for a total of 200.40 metres. It was sited to intersect the vein 60m below CDDH_047 or 100 metres below surface. Two narrow veins were encountered, but assay results are still awaited.

Additional Exploration

A program of exploration has now commenced at Bangkondol, approximately 4km east of Cikoneng (see Figure 6). Mapping has highlighted the presence of a diatreme breccia approximately 1km in diameter.

The diatreme is composed of polymict breccias strongly altered to smectite-illite and supergene kaolin. Disseminated pyrite and native sulphur have also been noted throughout the occurrence.

A quartz-pyrite stockwork also occurs on the southern margin of the diatreme breccia. The stockwork is 2-3 metres wide and is associated with silicification. No results are yet available from sampling.

Corporate

Rights Issue

The rights issue closed on 13^th December 2000 with subscriptions totaling A$9.496 million for 172,650,575 new shares in the company. The company's largest shareholders, Austindo Group and Lion Selection Group, each took up their rights in full. Additionally, 329 smaller shareholders also subscribed for the rights issue with the combined applications amounting to 118,985,631 shares. A portion of the issue was underwritten by ABN AMRO Morgans Corporate Limited. That underwriting introduced 545 new shareholders to the share register and accounted for A$3 million of the capital raised.

Following the completion of the rights issue, the Austindo Group holds 46.63% of the share capital of the company compared with 43.68% prior to the issue. The holding of Lion Selection Group in the company has increased to 15.61% from 13.93%.

Changes of Directors

Mr. Kingston Lee and Ms. Anna Cheng tendered their resignation as Directors of the Company effective 9^th January 2001 due to commitments in Hong Kong. Concurrently, the Company welcomed the appointment of Mr. Chris Melloy as a Director and Mr. Robert Barton as an Alternate Director to Mr. George Tahija.


Mr. Melloy, a mining engineer and former analyst with J.B. Were & Son, joined the Lion Selection Group in 1997. Lion and its associates currently hold 15.61% of the Company. Mr. Barton is a senior adviser to the Austindo Group of Indonesia, and a non-executive director of the Singapore listed financial services group, Vickers Ballas Holdings Limited.

Cibaliung - JV Partner Dilution

The Company has advised International Antam Resources Limited (IAR) that its sole funding of the Cibaliung project amounting to US$ 1.425 million would be achieved in December 2000. IAR has reviewed the planned exploration programme for 2001 but elected not to contribute. If the Company fully funds the planned programme for 2001, IAR's interest in Cibaliung will be diluted from 37% to approximately 24%.

Expenditure

Exploration expenditure in Indonesia during the quarter amounted to A$ 995,089.

For further information please contact:
Mr. Andrew J. Cooke,
Company Secretary,
Austindo Resources Corporation N.L.
Tel: (02) 9252-0400 Fax: (02) 9241 6714

In accordance with Australian Stock Exchange Listing Rule 5.10, this report is based on information compiled by Mr. Drew D. Henry as Consultant Geologist for the Company. Mr. Henry has consented in writing to the inclusion of such information in this report in the form and context in which it appears. Mr. Henry is a Fellow of the Australasian Institute of Mining and Metallurgy and a Member of the Australian Institute of Geoscientists and holds the relevant qualifications as a "competent person" as defined by the Australasian Code for Reporting of Identified Mineral Resources and Ore Reserves.

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