Financial Statements

Your directors present their report on the consolidated Financial Report for the year ended 31 December 2000.

DIRECTORS

The Directors of Austindo Resources Corporation N.L. in office at the date of this report are as follows:

Mr. George S. Tahija - Non-Executive Chairman
Mr. John C. Carlile - Managing Director and Chief Executive Officer
Mr. Bruce J. Paterson - Non-Executive Director
Mr. Bruce J. Watson - Non-Executive Director
Mr. Christopher P. Melloy - Non-Executive Director
Mr. Robert J. Barton - Alternate Director for Mr. George S. Tahija

Information on directors' qualifications and experience appears herein as part of this 2000 Annual Report and should be considered as forming part of this report.

PRINCIPAL ACTIVITIES

The principal continuing activity during the year of the consolidated entity, constituted by Austindo Resources Corporation N.L. and the entities it controlled from time to time during the year was gold exploration in Indonesia.

CONSOLIDATED RESULTS

Note: the basic earnings/(loss) and the diluted earnings/(loss) per share are calculated based on the total earnings/(loss) (including abnormal items) attributable to the members of the Company.

DIVIDENDS

No dividend has been declared, or paid, by the Company since the end of the previous financial year.

SIGNIFICANT CHANGES IN THE STATE OF AFFAIRS

There were no significant changes of affairs of the consolidated entity during the year.

MATTERS SUBSEQUENT TO END OF THE FINANCIAL PERIOD

Since the end of the financial year the directors are not aware of any matter or circumstance not otherwise dealt with in the report or note 30 to the financial statements that has significantly or may significantly affect the operations of the consolidated entity, the results of those operations or the state of affairs of the consolidated entity in subsequent financial years.

The Company conducted a one for one renounceable rights issue in November/December 2000 at 5.5 cents per share. The issue closed on 13 December 2000 following which 172,650,575 new shares were allotted on 3 January 2001 raising $9,495,781.63 ($9,048,754 net of expenses of $477,028 associated with the issue). The increased issued capital of the Company following the issue is 370,317,262 shares. The affect of the issue is represented in the proforma balance sheet incorporated at note 30 of the financial statements.

LIKELY DEVELOPMENTS AND EXPECTED RESULTS OF OPERATIONS

Likely developments in the operations of the consolidated entity constituted by Austindo Resources Corporation N.L. and the entities it controls from time to time include the ongoing exploration of the Cibaliung Project in Banten, Indonesia. At the date of this report two drill rigs were operating on the site.

The Company will also continue with efforts to identify new project opportunities.

STATEMENT OF INTERESTS OF DIRECTORS

As at the date of this report, the interests of the directors and their associates in the issued shares/options of the Company were :

* Options granted pursuant to the Austindo Resources Corporation N.L. Employee Incentive Scheme. Each option is convertible into one ordinary share at any time prior to 20 May, 2003 at a fixed price of 20 cents per share.

Mr. George S. Tahija is a commissioner/director and indirectly a controlling shareholder in PT Austindo Mining Corporation ("AMC") and its associates, which together have a relevant interest in 177,411,530 shares representing 47.9% of the issued capital of the Company. Mr. John Carlile is Chief Operating Officer of AMC.

Mr. Christopher P. Melloy is a director of Selection (LSG) Management Pty Ltd which is the manager of Lion Selection Group Limited. Lion Selection Group Limited and its associates have a relevant interest in 57,813,113 shares representing 15.6% of the issued capital of the Company.

OPTIONS

Austindo Resources Corporation N.L. Employee Incentive Scheme Options

On 22 May 1998 shareholders granted approval to the granting of 6,500,000 options under the Austindo Resources Corporation N.L. Employee Incentive Scheme to 11 directors and senior executives of the Company and its controlled entities. Each option is convertible into one ordinary share at any time prior to 20 May, 2003 at a fixed price of 20 cents per share.

There were no options exercised during the year. In January 2001 1,000,000 (1,000,000 in 1999) of the options previously granted lapsed by reason of 2 option holders ceasing to be eligible participants. The number of unissued ordinary shares under remaining Employee Incentive Scheme options at the date of this report is 4,000,000.

The names of all persons who currently hold options granted under the Austindo Resources Corporation N.L. Employee Incentive Scheme are entered in the Register of Options kept by the Company and the Register may be inspected free of charge at the Company's principal administration office in Sydney. Particulars of options granted to directors of the Company are detailed above under the heading Statement of Interests of Directors.

No person entitled to exercise any option referred to above has or had, by virtue of the option, a right to participate in any share issue of any other body corporate.

INDEMNITIES AND INSURANCE OF DIRECTORS, OFFICERS AND AUDITORS

In accordance with the Constitution of the Company, to the extent permitted by law, the Company indemnifies every director, officer and employee of the Company against any liability incurred by that person:

(a) in his or her capacity as a director, officer or employee of the Company; and

(b) to a person other than the Company or a related body corporate of the Company.

During or since the financial year, the Company has paid insurance premiums in respect of Directors' and Officers' Liability and Company Reimbursement insurance to insure certain officers of the Company. As a condition of the policy, the Company is prohibited from disclosing the nature of the liabilities insured by the insurance contracts and the amount of the premiums.

The Company has not, since the end of the previous financial year, in respect of any person who is or has been an auditor of the Company, paid or agreed to pay a premium in respect of a contract insuring against a liability incurred as auditor for the costs or expenses to defend legal proceedings.

DIRECTORS AND SENIOR EXECUTIVES EMOLUMENTS

Note 1. Mr. John C. Carlile is entirely remunerated by PT Austindo Mining Corporation and/or its associates, which has been appointed to manage the affairs of the consolidated entity.

* Details of emoluments and options granted are provided only in respect of those senior executives who are involved in the management of the affairs of the Company.

No Director presently receives executive remuneration from the Company. Two non-executive Directors receive directors' fees of $3,000 per quarter in respect of their additional responsibilities as Chairman of the Corporate Governance and Audit committees respectively.
The Company's policy in respect directors' fees is to remunerate only those Directors who have additional responsibilities as Committee Chairpersons. The level of remuneration is based on an approximate time cost basis. The Board considers that this policy is appropriate while the Company is in the exploration phase.

The Company's policy in respect of senior executives is to remunerate them on the basis of their job function, taking into account their qualifications and experience. The level of remuneration for each senior executive is within a range that is considered to be applicable on an industry standard basis. The level of remuneration is determined by the Managing Director in consultation with the Corporate Governance Committee taking into account the position and responsibilities for which each senior executive is charged.

As the consolidated entity's operations are still at an exploration stage, the objective of the Board has been to minimise the number of senior executives it employs to maintain the total remuneration of such executives at a level commensurate with the resources of the consolidated entity and the level of exploration activity undertaken.

In Australia, the Company employs one senior executive who represents the Company whilst all of the exploration operations of the consolidated entity are conducted in Indonesia. Accordingly, the role of that executive in Australia encompasses a wide range of functions, including management responsibility for all activities within Australia, regulatory compliance, shareholder and investor relations and interaction with the Indonesian operations.

No Options were granted to Directors or senior executives during the year pursuant to the Austindo Resources Corporation N.L. Employee Incentive Scheme. From time to time the Board considers the issue options to Directors and senior executives as an additional incentive for them to generate shareholder wealth and for them to participate in the success of the Company. In the past options issued pursuant to this scheme have been priced at a level such that a benefit is only achieved where strong corporate performance is achieved.

ENVIRONMENTAL PERFORMANCE

The Company's exploration activities during the year were primarily confined to Banten, Indonesia and accordingly the Company is not subject to environmental regulation under Australian law.

In Indonesia the Company's exploration is carried out in accordance with environmental regulations as determined by the Ministry of Mines and Energy. All field operations in Indonesia are conducted on the premise of respect for the environment and a commitment to regeneration.

MEETING OF DIRECTORS

The following table sets out the number of meetings of the Company's Directors (including meetings of Committees of Directors) held during the year ended 31 December, 2000 and the number of meetings attended by each Director:

* Not a member of the relevant committee

This report is made on behalf of the Board of Directors pursuant to a resolution of directors.

Dated at Sydney, New South Wales, Australia this 9^th day of March 2001.

PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 DECEMBER 2000

The accompanying notes form part of these financial statements.

* Proceeds from the sale of shares in 1994, on behalf of shareholders holding an unmarketable parcel of shares, in accordance with the Constitution.

1. CORPORATE INFORMATION

Austindo Resources Corporation N.L. is a company limited by shares that is incorporated and domiciled in Australia. The directors believe its ultimate parent entity is P.T. Austindo mining Corporation and its associates. Austindo Resources Corporation N.L. has prepared a consolidated financial report incorporating entities that it controlled during the financial year .

The registered office of Austindo Resources Corporation N.L. is located at:

Level 9, Kyle House
27-31 Macquarie Place
Sydney NSW 2000
Australia

During the year, the principal activity of Austindo Resources Corporation N.L. and its controlled entities was gold exploration in Indonesia.

2. STATEMENT OF ACCOUNTING POLICIES

The financial statements are a general purpose financial report that have been prepared in accordance with applicable Accounting Standards, Urgent Issues Consensus Views and other authoritative pronouncements of the Australian Accounting Standards Board and the Corporations Law.

Except for certain assets which, as noted, are at valuation, the financial statements are prepared in accordance with the historical cost convention. The accounting policies have been consistently applied unless otherwise stated.

2.1 Principles of Consolidation
The consolidated financial statements incorporate the assets and liabilities of all entities controlled by Austindo Resources Corporation N.L. as at 31 December 2000, and the results of all controlled entities for the year then ended ("the consolidated entity").

Austindo Resources Corporation N.L. and its controlled entities together are referred to in this financial report as the consolidated entity. The effects of all transactions between entities in the consolidated entity are eliminated in full. Outside equity interests in the results and equity of controlled entities are shown separately in the consolidated profit and loss statement and balance sheet, respectively.

Where controlled entities have entered or left the consolidated entity during a financial year, their results have been included from the date control was obtained or until the date control ceased.

2.2 Acquisition of Assets
The cost method of accounting is used for all acquisitions of assets regardless of whether shares or other assets are acquired. Cost is determined as the fair value of the assets given up at the date of acquisition plus costs incidental to the acquisition.

2.3 Investments
Investments in controlled entities are carried in Austindo Resources Corporation N.L.'s accounts at the lower of cost or recoverable amount.

Dividend income is recognised in the profit and loss account when received.

2.4 Depreciation
Plant and equipment and office furniture and fittings are recorded at cost and are depreciated over their estimated useful economic lives using the straight line or diminishing value methods.

The depreciation rates used for each class of depreciable assets:-


Class of fixed assets		Depreciation Rate
Office equipment		25%-40%
Office furniture		15%-30%
Plant and equipment		25%

2.5 Mineral Exploration, Evaluation and Development Expenditure
Exploration and evaluation costs related to an area of interest are carried forward to the extent that:



(a) such costs are expected to be recouped through successful development and production of the area of interest or, alternatively by its sale; or

(b) exploration and/or evaluation activities in the area of interest have not reached a stage which permits a reasonable assessment of the existence of recoverable reserves.

Costs are amortised from the date of commencement of production on a production output basis.

Administration expenses not related to a particular area of interest have been written off as incurred.

Accumulated exploration costs in relation to an abandoned area are written off in full in the year in which the decision to abandon the area is made.

Each area is reviewed regularly to assess the recoverability of the carrying value and to the extent that such values exceed the recoverable amount, they are written down accordingly.

2.6 Restoration, rehabilitation and environmental expenditure
Restoration costs are provided for at the time of the activities which give rise to the need for restoration. If this occurs prior to commencement of production, the costs are included in capitalised tenement and infrastructure acquisition expenditure. If it occurs after commencement of production, restoration costs and provided for and charge to the profit and loss account.

2.7 Interest in Joint Ventures
The consolidated entity's share of assets, liabilities, revenue and expenses of joint venture operations are included in the consolidated financial statements.

2.8 Leases
Material finance leases of the consolidated entity are capitalised. Operating leases are not capitalised. Rental payments are charged against profits in equal installments over the term of the leases.

2.9 Income Tax
Future income tax benefits in relation to tax losses and other timing differences have not been brought to account as there is no virtual certainty of realisation of the benefit.

2.10 Employee Entitlements
(i) Wages, Salaries and Annual Leave
Liabilities for wages, salaries and annual leave are recognised and are measured as the amount unpaid at the reporting date at current pay rates in respect of employees' service up to that date.

(ii) Long Service Leave
A liability for long service leave is recognised, and is measured as the amount of expected future payments to be made in respect of services provided by employees up to the reporting date, at current pay rates. Consideration is given to expected future wage and salary levels, experience of employee departures and periods of service.

(iii) Superannuation Contributions
Contributions to employee superannuation funds are charged as an expense, against operating profit, as the contributions are paid or become payable.

Superannuation is payable for all Australian employees of Austindo Resources Corporation N.L. at a rate of 7% of ordinary times earnings for the period to 30 June 2000 and 8% thereafter.

2.11 Foreign Currencies
Trading transactions in foreign currency are converted at the rate of exchange ruling at the date of each transaction. Amounts payable and receivable in foreign currency at balance date are converted to Australian dollars at exchange rates ruling on that date.

As foreign controlled entities are reliant on Austindo Resources Corporation N.L. for funds, assets and liabilities of those entities have been translated using the temporal method, whereby monetary assets and liabilities are translated at the exchange rate current at balance date and non-monetary assets and liabilities are translated at historical rates. Revenue and expense items are translated at the exchange rates current at the transaction date.

Exchange gains and losses have been brought to account in determining the consolidated entity's result for the year.

2.12 Loans To Controlled Entities
Funds advanced by Austindo Resources Corporation N.L. to its controlled entity, P.T. Eastara Melawi Mineral, have been loaned pursuant to an agreement dated 18 October 1993.

Further advances to P.T. Eastara Melawi Mineral will be made pursuant to the loan agreement referred to above. The loan is repayable in US dollars.

The loan has been fully written off to reflect the write down of the underlying assets held by PT Eastara Melawi Mineral.

Provision for non-recovery has been made, where necessary, against other loans receivable by Austindo Resources Corporation N.L. from controlled entities in order to reflect the estimated net realisable value of those loans.

2.13 Earnings/(Loss) Per Share
Earnings/(loss) per share is calculated as the operating loss after income tax divided by the weighted average number of ordinary shares outstanding during the year.

2.14 Diluted Earnings/(Loss) Per Share
Diluted earnings/(loss) per share is calculated as the operating loss after income tax divided by the weighted average number of ordinary shares outstanding during the year, together with potential ordinary shares, in respect of all options and convertible notes on issue and remaining unconverted as at 31 December 2000.

2.15 Cash
For the purposes of the Statement of cash flows, cash includes cash on hand and on at call deposit with banks or financial institutions, net of overdrafts.

2.16 Comparative Amounts
Where required comparative figures have been adjusted to conform with changes in presentation for the current financial year.

2.17 Assessment of Recoverable Amounts
The assessment of recoverable amounts of non-current assets is calculated by reference to undiscounted cash flows.

2.18 Revenue
Interest revenue is recognised when received.
Profit from the disposal of non-current assets are recognised when derived.