QUARTERLY REPORT

Quarterly Report

June 30 2000

Cibaliung Project - West Java, Indonesia

The Company is carrying out diamond drilling at the Cibaliung Project to confirm and extend the previously announced Inferred Resource of 993,000 tonnes @ 9.78 g/t Au and 57.4 g/t Ag containing 312,230 ounces of gold and 1.83 million ounces of silver. Results to date, from 7 drill holes (1,760m), are encouraging.

Saran Project - West Kalimantan, Indonesia

The Saran project received only one expression of interest during its offer period up to 30-Jun-00. Following a subsequent decision not to proceed, the ARX Board of Directors has elected to terminate the PT. Eastara Melawi Mineral Contract of Work and liquidate the company in due course.

Corporate

ARX exercised its right on 30-Jun-00 to purchase the Cibaliung gold royalty from Palmer Minerals Resources Ltd. for C$55,000 following a 14-Jun-00 offer from CAMFLO Resources Ltd., of Vancouver, Canada.

Expenditure

Total exploration expenditure for the quarter was A$ 380,000.

John C. Carlile
Managing Director & CEO
24 July, 2000

Exploration

Cibaliung Project - West Java, Indonesia

Cibaliung - Diamond Drilling

The main activity for the quarter has been diamond drilling to confirm the vein geometry and grade within the Cikoneng Shoot, and to probe for extensions to both the Cikoneng and Cibitung Shoots. Seven holes have been drilled to date for an aggregate of 1,760 metres.

Holes AC-1 to AC-3 were drilled into the central part of the Cikoneng Shoot. All three holes intersected the vein as expected and returned grades of similar tenor to the previous drilling, thus increasing the confidence in this part of the resource.

Holes AC-4 and AC-5 were drilled to test for extensions of the Cikoneng Shoot at depth. AC-4 has confirmed the northerly down-plunge extension of the mineralised system. AC-5 has demonstrated that the vein system continues at depth, however the gold grades have diminished in this hole.

The first two scout holes into the Cibitung Shoot, intersected vein and stockwork material on the northern upper edge of the projected shoot position. Hole AC-6 is mineralised but, hole AC-7 only encountered barren stockwork and appears to have missed the modeled target zone.

*Note: All assay results are reported to 3g/t Au cut-off except AC-5 (1g/t Au cut-off).

AC-8 is currently being drilled on the southern lower edge of the projected shoot position at Cibitung to the south-east of AC-07.

The drill plan below illustrates the location of the first 5 (AC-1 to AC-5) confirmatory holes at the Cikoneng shoot and the next 3 scout holes (AC-6 to AC-8) at the Cibitung shoot.

The longitudinal section below is a schematic representation of the modeled ore shoots. The Cikoneng zone is confirmed by the recent drilling but appears to be limited to the north at depth. The Cibitung zone remains open, as the initial holes have not tested the down plunge area sufficiently to form a definite opinion.

Deeper scout holes are also planned in the near future to probe between the known mineralised zones at depth, as previous drill holes only tested the near surface potential.

The diagram below is a series of schematic cross-sections of the first 5 drill holes at Cikoneng and the first 2 drill holes at Cibitung. They compare the location and results of the Austindo drill holes (AC-1 to AC-7) in relation to the previous drilling conducted by Palmer Resources (CDDH-x). Of particular note in holes AC-1 to AC-4, is the confirmation and repeatability of gold grade and distribution of mineralisation down the vein at Cikoneng.

See Adobe Acrobat download for diagrams

Drilling is now underway to identify new mineralisation and extend existing ore shoot geometry at Cibitung. Drill Rig #2 is due to start in August with this specific objective in mind, thus allowing Rig #1 to concentrate on resource delineation at Cikoneng.

Two consultants have visited the site to assist in this task. Dr. Roger Marjoribanks conducted a litho-structural review with emphasis on air-photo interpretation and structural geology to locate new ore shoots. Similarly, petrologist Terry Leach performed an initial study of the drill-core to try and develop conceptual hydrothermal models for their formation as an exploration pathfinder to locating further ore.

Cibaliung - Land Title

Preliminary Scoping Study

Australian Mining Consultants Pty Ltd was engaged to provide advice on mining and resource aspects of the project by way of a Preliminary Scoping Study. The purpose of this study was twofold. Firstly to determine if a project of this style and potential size could be economically viable and secondly to identify those critical issues that needed to be addressed in the 2000 work program.

Cibaliung - Land Acquisition

The main KP (Kuasa Pertambangan) KW96PP0019 (15,710 hectares) expired on 13-May-00 at the end of the 2nd year of exploration. On 05-May-00, PT. Aneka Tambang (as the KP holder) lodged an application for a 3-year extension. It is expected that an extension of at least 1-year will be granted which will provide sufficient time to complete the current stage of exploration.

The Huni area to the south-west of the main KP is prospective for possible extensions of the Cibeber vein. At the request of the joint venture, PT. Aneka Tambang lodged an application for a KP covering the Huni area on 25-May-00.

Cibaliung - Land Acquisition

The surface rights to ~30ha of state land at Cibaliung have been acquired. This is to counter land speculation that occurred over the main Cikoneng vein zone in May. Plans to acquire some additional land are now underway.

Cibaliung - Environmental Studies

URS Corporation (formerly Dames & Moore) completed a 2-week site visit in April as part of the preliminary environmental study. A positive final report was issued on 17-Jun-00. URS have subsequently been commissioned to order and set up a weather station at Cibaliung as soon as possible. Flora & fauna inventory work plus sampling of water quality monitoring stations are now in progress. It should be noted that the AMDAL study requires that measurements be taken for a period covering at least 1 wet and 1 dry season, prior to the commencement of operations.

Saran Project - West Kalimantan, Indonesia

The Saran project received only one expression of interest during its offer period up to 30-Jun-00. Following a subsequent decision not to proceed, the ARX Board of Directors has elected to terminate the PT. Eastara Melawi Mineral Contract of Work and liquidate the company in due course.

Corporate

Cibaliung - Gold Royalty

ARX exercised its right on 30-Jun-00 to purchase the Cibaliung gold royalty from Palmer Minerals Resources Ltd. for C$55,000 following a 14-Jun-00 offer from CAMFLO Resources Ltd., of Vancouver, Canada. The royalty was 4 US$/oz for 54% of the first 400,000oz and 3 US$/oz for 54% for the next 600,000oz. Assuming a total resource of 500,000oz the royalty would have a value of US$ 1.026 million paid over a 5-10 year period commencing in 2003.

Expenditure

Exploration expenditure in Indonesia during the quarter amounted to A$380,000.

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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