QUARTERLY REPORT

Quarterly Report

Three months ending December 2003

Cibaliung Project - west Java, Indonesia

• Bankable Feasibility Study continues on schedule for completion in the first half of 2004.
• Resources infill drilling completed. Exploration drilling to start next Quarter.
• The Company's share of the project increased to 80.38% during the Quarter.

Mt Alexander Goldfields - central Victoria, Australia

• Exploration targets defined.

Expenditure

• Total Exploration expenditure (including Cibaliung feasibility study expenditure) during the quarter was $1,144,000.

CIBALIUNG PROJECT

The Cibaliung Gold Project is located in the Province of Banten in west Java, Indonesia, approximately 150 kilometres south west of Jakarta. The Company's joint venture partner in the project is the Indonesian Government's mining company PT Aneka Tambang (Persero). The Company presently holds a % interest in the joint venture.

Cibaliung - Bankable Feasibility Study

The Bankable Feasibility Study (BFS) is progressing on schedule and is expected to be completed in the first half of 2004. All key consultants have been appointed. The Study is based on a project with:

• Mine life of 6 years on current resources with a production rate of 220,000 tonnes of ore per annum;
• Recovery of gold and silver by a conventional gravity - CIL processing plant;
• Annual production of approximately 70,000 ounces gold equivalent;
• Initial capital estimated at some US$30 million;
• Average life of mine cash operating costs of less than US$200 per ounce.

Cibaliung - Resources Infill Drilling

As part of the BFS a program of delineation drilling of the resources at the Cikoneng and Cibitung shoots commenced in late August and was completed in December 2003. A total of 3,310 m of drilling in 18 holes comprising 1,258 m of RC percussion pre-collars and 2,052 m of HQ diamond drilling has been completed.

The delineation drilling program was designed specifically to improve confidence in continuity, width and grade of the resource by closing-up drill-spacing to a pattern of approximately 20 x 20m in the central and peripheral segments of the two shoots.

Significant drill assay results received by the Company since the previous reporting in December 2003 are shown below. The results continue to confirm previous drill results in the areas tested and improve structural definition of the shoots.

Significant drill assay results reported by the Company in December 2003 are shown below.

Exploration

Exploration has continued during the Quarter and it is expected that reconnaissance drilling of new targets will commence in the New Year.

Corporate

Early in 2004 the Company's Joint Venture partner in the Cibaliung Project, International Antam Resources Ltd sold its interest in the project to its major shareholder, PT Antam Tbk., the Indonesian Government's Mining Company.

In accordance with the terms of the joint Venture Agreement the Company's interest in the Cibaliung project increased to 80.38% at the end of the Quarter due to the sole funding of the joint venture expenditure.

MT ALEXANDER GOLDFIELDS NL

Mount Alexander (100%) & Sebastian/Raywood Projects (earning up to 80%)

Through its acquisitions and joint venture agreements put in place in 2002 the Company has built itself a geologically and geographically focussed land position in the historic gold producing area around Bendigo in central Victoria, Australia

The Company is undertaking exploration at its Mount Alexander Project, in the southern portion and the Sebastian/Raywood Project JV in the northern portion of the Bendigo goldfields.

The Company is targeting repeats of the Bendigo type mineralization that historically yielded over 30 million ounces from this world class goldfield. The exploration is combining historical data with modern geological information to provide a modern synthesis and interpretation to build structural and predictive models for the goldfield. It has defined major structural trends that may be related to the mineralization and which will be used to target exploration in the northern and southern leases.

By the end of the Quarter, data review and compilation work within the two project areas held by Mt Alexander Goldfields N.L. was completed and targets for drill testing have been identified.

Exploration expenditure during the quarter was $1,144,000 made up of $1,071,000 for the Cibaliung Project and $73,000 for the Mount Alexander and Sebastian/Raywood Projects.



Ian Price
Managing Director & CEO
29th January 2004

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