HALF-YEAR REPORT

Consolidated Financial Report
Half -Year Ended 30 June 2001

Mr. George S. Tahija
Mr. Robert J. Barton (alternate for Mr. George S. Tahija)
Mr. John C. Carlile
Mr. Pieter W. Greeff
Mr. Chris P. Melloy
Mr. Bruce J. Paterson
Mr. Bruce J. Watson (resigned 9/4/01)
Mr. Kingston K.Y. Lee (resigned 9/1/01)
Ms. Anna Y.C. Cheng (resigned 9/1/01)

Review of Operations

During the six-month period to 30 June 2001, the economic entity continued exploration activities at the Cibaliung project in Banten. A total of 6,626m of diamond core drilling were undertaken at Cibaliung during the period. Total drilling by the Company to June 30, 2001 now stands at 13,200m. Total project expenditure by the Company to date is US$ 2.3 Million.

The Company has received an approval for its application to terminate the CoW held by P.T. Eastara Melawi Mineral (effective from October 2000) from the Ministry of Energy and Mineral Resources. Currently P.T. Eastara Melawi Mineral is in the process of being liquidated.

The prospect of prolonged social, political and economic uncertainty in Indonesia remains of some concern to the Company. With senior management based in Indonesia and the involvement of PT Austindo Mining Corporation in the management of all operations, the Board of Directors is satisfied that the Company is as well placed as any to deal effectively with this situation. The bulk of the Company's cash reserves are maintained on deposit within Australia.

The consolidated loss of the economic entity for the period was $147,223 after income tax.

This report is signed in accordance with a resolution of the Board of Directors.

Dated at Sydney, New South Wales, this 11^th day of September 2001

* In accordance with the Joint Venture Agreement, Austindo Resources Corporation NL contributed the first US$1,425,000 of joint venture expenditure. As such, on consolidation, goodwill arose which was referable to the other joint venturer's interest in the contributions by Austindo Resources Corporation NL. The directors have resolved not to recognise the goodwill on consolidation. Accordingly a provision has been created in respect of the other joint venturer's interest in the contributions , to date, of Austindo Resources Corporation NL (refer Note 4).

The Company met its obligation to contribute US$1,425,000 in December 2000. The other joint venturer elected not to contribute to joint venture expenditure in 2001 and accordingly the Company's interest in the joint venture has increased to 69.35% as at 30 June 2001 in accordance with the terms of the joint venture agreement.

7. PT CIBALIUNG SUMBERDAYA

On 2 November, 1999 Austindo Resources Corporation N.L. entered into a Joint Venture (JV) agreement with International Antam Resources Limited ("IAR"), PT Aneka Tambang (Persero) Tbk and PT Antam Resourcindo (a subsidiary of IAR) to jointly explore and develop the Cibaliung Gold Project in West Java, Indonesia. Initially, the Company and IAR hold a 63% and 37% interest in the Cibaliung joint venture respectively.

In accordance with the joint venture agreement, each party is liable to contribute to the joint venture on an equity basis after Austindo Resources Corporation NL has solely funded $2,375,000 (US$1,425,000). The Company met its sole funding obligation in December 2000.

IAR has elected not to contribute to the Cibaliung work programme for the year 2001, and as a consequence its interest in Cibaliung has been diluted. The current JV interests are the Company 69.35% (up from 63%) and IAR 30.65% (down from 37%). The Company has effected JV expenditure of $1,339,000 (US$683,000) in the half year ended 30 June 2001.

8. PT EASTARA MELAWI MINERAL - LIQUIDATION

PT Eastara Melawi Mineral (a controlled entity), ceased exploration activities in October 1999, as a commercially viable gold deposit had not been located.

On 9 June 2000 it was resolved that PT Eastara Melawi Mineral be dissolved and that the appropriate steps be taken to terminate the Contract of Work with the Government of the Republic of Indonesia.

On October 24, 2000 the Company applied for the termination of the Contract of Work with the Government of the Republic of Indonesia. The Minister of Mines and Energy approved the termination in his decision letter No. 542 K/20/MEM/2001 dated April 24, 2001 effective from October 24, 2000.

Based on the resolution of the shareholders of PT Eastara Melawi Mineral dated June 8, 2001 the Company will increase the authorized and subscribed capital from US$ 100,000 to US$ 14,536,642 with US$1 par value per shares, through conversion of US$ 14,306,276 of the long-term loan to the Company and the subscription for 130,366 shares for cash. The Minister of Mines and Energy of the Republic of Indonesia has also approved this amendment. Once the legal requirements for the increase in capital are completed, the Company will hold 14,391,276 shares in PT Eastara Melawi Mineral. PT Eastara Melawi Mineral will then proceed to liquidation.

9. CONTINGENT LIABILITIES

The Directors are aware of a debenture charge registered under the Corporations Law, in favour of PT Austindo Mining Corporation, securing financial accommodation of $900,000 provided by way of Convertible Notes. The debenture charge is in respect of the whole of the undertaking and all of the assets, present and future, of Austindo Resources Corporation NL.

As set out in Note 8, PT Eastara Melawi Mineral (a controlled entity) will proceed into liquidation. The Directors intend to continue further funding sufficient to enable PT Eastara Melawi Mineral to meet its liabilities until the completion of its liquidation. It is not presently possible to reliably estimate the amount of future funding that may be required.


10. INDONESIAN ECONOMY

Since the middle of 1997, many Asia Pacific countries including Indonesia are experiencing difficulties including liquidity problems, volatility in prices, and significant slowdowns in business activity. The prospect of prolonged social, political and economic uncertainty in Indonesia remains of some concern to the Company. With senior management based in

Indonesia and the involvement of PT Austindo Mining Corporation in the management of all operations, the Board of Directors is satisfied that the Company is as well placed as any to deal effectively with this situation. The bulk of the Company's cash reserves are maintained on deposit within Australia.

11. MATTERS SUBSEQUENT TO END OF THE FINANCIAL PERIOD

There are no matters subsequent, not otherwise reported herein, which would have a material effect on the financial position of the Company.

DIRECTORS' DECLARATION

The directors of Austindo Resources Corporation N.L. hereby declare that:

1. The financial statements and notes thereto:
   
   (a) Comply with accounting standard AASB1029: Half-year accounts and consolidated accounts and the Corporations Regulations; and
   
   (b) Give a true and fair view of the consolidated entity's financial position as at 30 June 2001 and of its performance for the period ended on that date;
   
   
2. In the directors' opinion, there are reasonable grounds to believe that the parent entity will be able to pay its debts as and when they become due and payable.

Signed in accordance with a resolution of the directors this 11^th day of September 2001.

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