QUARTERLY REPORT

Quarterly Report
Three months ending December 2004

Cibaliung Gold Project - Indonesia

• Environmental permitting for project development progressed with provincial authorities.
• Further pre-development studies completed.
• Independent consultant for shortlisted banks completed technical due diligence for project debt finance.
• Shortlisted banks submitted firm project debt proposals for consideration by joint venture parties.
• Subject to completion of project financing and regulatory approvals, construction expected to commence in the first half of 2005 with first gold production in 2006.
  

Project Generation - Indonesia

• The Company continues to evaluate new exploration areas in Java.
  
  

Central Victorian Goldfields - Australia

• Alexander Resources Limited issued a prospectus for public investors, including Austindo shareholders, to raise up to $5 million.
  
  

Corporate

• $3.0 million placement to fund pre-development of Cibaliung Gold Project approved by shareholders and completed October 2004.

Expenditure

• Total project expenditure (including Cibaliung feasibility pre-development costs) during the quarter amounted to $1,069,000.

CIBALIUNG GOLD PROJECT - INDONESIA (83.75%)

The Company's development focus in Indonesia is the Cibaliung Gold Project which is controlled through PT. Cibaliung Sumberdaya, a joint venture company established between the Company and PT. AnTam Tbk ("Antam"). Cibaliung is located in Banten Province in the Pandeglang Kabupaten (Regency) near the western tip of the island of Java 150km south west of Jakarta.

In accordance with the terms of the joint venture agreement, the Company's interest in the Cibaliung Project stands at 83.75%. Antam elected to participate in funding of budgeted joint venture expenditure for the second half of 2004. Antam's exploration unit, Geomin, carried out the second half exploration program at Cibaliung.

Pre-engineering work for the construction of the project was undertaken and contract tendering commenced for major site projects.

Subject to completion of project financing and regulatory approvals, construction expected to commence in the first half of 2005 with first gold production in 2006.


Environmental Permitting

The environmental approvals process continued during the quarter.


Financing

An independent consultant completed technical due diligence on behalf of the two banking groups investigating the provision of project debt finance.

Based on the outcome of this independent due diligence the two banking groups submitted firm project debt finance proposals for consideration by the joint venture parties. It is anticipated that one of these banking groups will be mandated to provide project debt finance and hedging facilities which together with further equity funds will permit the joint venture to commence construction in the first half of 2005 as anticipated.


Exploration

The mineralization at Cibaliung is contained within structurally controlled gold and silver bearing epithermal quartz vein deposits. The veins are multi-stage and have formed as a result of progressive faulting and dilation. The mineralized vein structures vary sequentially from pre-mineralized fluidised breccias to quartz vein stockworks, massive veins, colloform-crustiform veins and clay-quartz milled matrix breccias.

Further exploration at Cibaliung was undertaken by Antam's Geomin division during the quarter. The primary aim of this program is to locate new high grade ore shoots to compliment the projects development. Geomin completed their field exploration works: mapping, geophysics (Induced Polarization and ground magnetic) and a diamond drilling program that had been commenced in the previous quarter to test targets at Cibeber, Ramada, West Cibitung, South Cibitung, and Cibengang.

In addition stream sediment re-sampling was undertaken over Cikoneng - Cibitung areas and the southern parts of the tenement area, where semi-detailed mapping has now been completed.


Cibeber Prospect

New exploration data analysing pathfinder elements (As and Sb) in rock grab samples and clay alteration in rocks combined with interpretation of detailed mapping has suggested a new north northwest-south southeast (NNW-SSE) veining and shearing structural concept at Cibeber.

Two drill holes (AC-86 and AC-87) testing the new NNW-SSE structural trends, respectively in the northern and southern parts have returned significant intercepts:

Notes: All intersections stated are based on triple tube HQ wireline diamond drilling
Maximum sampling interval is 1m length, therefore any intercepts in excess of 1m are weighted average

These results suggest that Cibeber has a higher degree of structural complexity and potential to host new shoots, in particular along the NNW-SSE trending structures.


Other Prospects

At Ramada, hole AC-88 was drilled to test the deep extension of a 2.2m @ 12.23 g/t Au quartz vein exposed in a trench, rock geochemical anomalies of Sb and As, and clay alteration patterns. This hole intercepted structural zones with low gold grade.

At South Cibitung, hole AC-89 was drilled to test the southern structural (vein) extension intercepted in AC-45 (southern part of main Cibitung Vein). The drill hole intercepted at least two structural zones, but recorded low gold grades.

At West Cibitung, hole AC-90 was drilled to test the northern extension of quartz veining previously intercepted in AC-84 (southern part of West Cibitung Vein). The hole intercepted a narrow quartz carbonate vein zone at 147.40 - 149.15m downhole and clay alteration and quartz veining at 255.45 - 258.60m however both zones recorded low gold grades.

In Cikamancing AC-91was targeted to test the deep extension of the Cikamancing vein below a structural inflection and to test the deeper source of MMI soil anomalies 100m to the southwest. A fault breccia (clay-rich with crushed quartz clasts) was intercepted at 242.80 - 244.70m downhole. This zone is interpreted to be the deeper extension of the Cikamancing vein. Assays are pending.

In Cibengang hole AC-92 was completed to test the NNW-SSE structures that were also supported by geophysical data. A fault breccia zone (clay-rich zone with some quartz-carbonate) at 188.55-202.95m downhole is interpreted to be NW trending. Assays are pending.

Drilling is in progress in Middle Ridge prospect.

Geomin also completed a 20 line (~20km & some 930 reading points) ground magnetic program over the areas of south Rorah Kadal, Muara Cikeni, North Dam, South Dam, Cikarae, Cingenge, and a part of Bukit Breksi. Data processing by Geomin is currently being finalised.

PROJECT GENERATION - INDONESIA

The regulatory approval process continues in respect of an application for a new exploration area in Java which was initiated in the previous quarter. In the meantime the Company continues to evaluate other new exploration areas in Java.

CENTRAL VICTORIAN GOLDFIELDS - AUSTRALIA

The Company's exploration in Australia is controlled through Alexander Resources Limited ("Alexander"). Alexander has an attractive and consolidated set of tenement holdings located within the Bendigo Goldfield.

Alexander issued a prospectus for public investors, including Austindo shareholders, to raise up to $5 million. The closing date for the IPO has been extended to 4 February 2005.

Exploration expenditure during the quarter was $1,069,000. This comprised:

• Indonesia (Cibaliung Project): $1,050,000
• Australia (Central Victorian Goldfields): $19,000.

Ian Price
Managing Director & CEO
31 January 2005

The information in this report that relates to Exploration Results is based on information compiled by Mr Sukmandaru Prihatmoko, who is a Member of the Australasian Institute of Mining and Metallurgy.

Mr Prihatmoko is a full-time employee of PT. Cibaliung Sumberdaya.

He has sufficient experience which is relevant to the style of mineralization and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the "Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves". Mr Prihatmoko consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

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Rule 5.3

Appendix 5B

Mining exploration entity quarterly report

Introduced 1/7/96. Origin: Appendix 8. Amended 1/7/97, 1/7/98, 30/9/2001.

Consolidated statement of cash flows

* Expenditure in relation to Cibaliung Joint Venture in Banten-Java and MAG in the Castlemaine district of Victoria

Payments to directors of the entity and associates of the directors
Payments to related entities of the entity and associates of the related entities

Non-cash financing and investing activities

Financing facilities available
Add notes as necessary for an understanding of the position.

Estimated cash outflows for next quarter

Reconciliation of cash

Changes in interests in mining tenements

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.

* These notes bear interest at an interest rate equal to the 180 day bank bill swap reference rate plus 1%. The principal amount plus any interest accrued but unpaid may be converted into ordinary shares in the capital of the company at a rate of 5.5 cents per share at any time up to and including 30 June, 2005.

Compliance statement

1. This statement has been prepared under accounting policies which comply with accounting standards as defined in the Corporations Law or other standards acceptable to ASX (see note 4).
   
   
2. This statement does give a true and fair view of the matters disclosed.

Sign here: Date: 31 January 2005
(Company secretary)



Print name: Andrew J Cooke

Notes

1. The quarterly report provides a basis for informing the market how the entity's activities have been financed for the past quarter and the effect on its cash position. An entity wanting to disclose additional information is encouraged to do so, in a note or notes attached to this report.
   
   
2. The "Nature of interest" (items 6.1 and 6.2) includes options in respect of interests in mining tenements acquired, exercised or lapsed during the reporting period. If the entity is involved in a joint venture agreement and there are conditions precedent which will change its percentage interest in a mining tenement, it should disclose the change of percentage interest and conditions precedent in the list required for items 6.1 and 6.2.
   
   
3. Issued and quoted securities The issue price and amount paid up is not required in items 7.1 and 7.3 for fully paid securities.
   
   
4. The definitions in, and provisions of, AASB 1022: Accounting for Extractive Industries and AASB 1026: Statement of Cash Flows apply to this report.
   
   
5. Accounting Standards ASX will accept, for example, the use of International Accounting Standards for foreign entities. If the standards used do not address a topic, the Australian standard on that topic (if any) must be complied with.