QUARTERLY REPORT

Quarterly Report

Three months ending
30 June, 2002

Cibaliung Project - Banten, Indonesia

• A Preliminary Feasibility Study commenced in mid-April and results are expected in August;
• Detailed mapping of MMI anomalies adjacent to the Cikoneng-Cibitung trend has provided encouraging results;
• At three prospects, Cikamancing, Rorah Kadal & Cikeni further work with the objective of defining drill targets is planned.

Corporate

• Mt. Alexander Goldfields, which holds prospective tenements in Victoria was acquired on 4 June 2002 for A$300,000.
• The Company held its Annual General Meeting on 28 May 2002 in North Sydney.

Expenditure

• Total exploration expenditure for the quarter was A$ 236,250.

John C. Carlile
Managing Director & CEO
10^th July, 2002

EXPLORATION

CIBALIUNG PROJECT

Preliminary Feasibility Study

The Preliminary Feasibility Study commenced in mid-April with the appointment of a project manager based in Indonesia and lead consultant's Australian Mining Consultants. This study aims to review and work up:

• An underground mine design and associated development and operating strategies for the Cikoneng and Cibitung epithermal gold-silver deposits;
• Process flowsheets and preliminary plant design;
• Requirements and preliminary designs for surface infrastructure and services including tailings storage facility, road access, power and water supply and supporting infrastructure such as fuel storage, office, workshop and camp;
• Requirements and strategies for the non-production areas being land acquisition, environment, security and community affairs;
• Capital and operating cost estimates to within approximately a 15% level of accuracy; and
• A conceptual development and life-of-mine production schedule and budget including feasibility and permitting aspects.

Results are expected by late July, two weeks later than originally planned. An assessment of alternatives will then be made in August to determine the appropriate next moves on the project.

Exploration

Detailed mapping was completed over the Cikamancing, Rorah Kadal and Cikeni prospects (see Figure 1) all of which display Au-Ag Mobile Metal Ion (MMI) anomalies. MMI is a technique that selectively detects the mobile ions present in soils. The mobile ions travel upward from a mineralised source and allow detection of mineralisation through post-mineral cover rocks.

Cikamancing is located 600 metres southwest of Cikoneng in an area comprising rice paddies with no outcrop. Float samples collected in the rice fields assay up to 1.31g/t Au. A 30-50cm wide vein outcropping over a strike length of 30 metres was mapped in the nearby Cikamancing creek. This vein has a similar trend to the MMI anomaly with assays up to 6.94g/t Au & 10g/t Ag. Further work including trenching to better define structure and orientation will be undertaken prior to scout drilling.

Rorah Kadal occurs 900 metres SSW of Cibitung where a previous sample returned an assay of 14.4g/t Au from an exposed quartz vein. Mapping has identified another 0.85-0.95cm wide vein exposed by local miners in a nearby adit. Channel sampling in the adit returned an assay of 8.06g/t Au & 54g/t Ag. There is evidence in the adit that the vein width varies markedly over vertical distances of 1-2 metres. This bulging nature of veins is characteristic at Cibaliung. Further work including trenching is to be undertaken to better determine orientation prior to scout drilling.

Cikeni is approximately 300 metres east of Rorah Kadal and 1km south of Cibitung. Two MMI anomalies (termed East & West) have been mapped. Cikeni-West is entirely covered by rice paddies with no vein outcrop or float. Cikeni-East has two abandoned mine workings and a dump sample returned an assay of 6.09g/t Au. Further work will require access to the cocoa plantation, where the bulk of the prospect appears to be located.

CORPORATE

Mt. Alexander Goldfields (MAG)

The Company announced the acquisition of all of the outstanding shares in Mt. Alexander Goldfields (MAG) on 4 June 2002 for a cash consideration of A$300,000. This acquisition realises the previously stated objective of Austindo to diversify project and geographic risk.

MAG is an Australian company with an extensive exploration and mining tenement position (see Figure 2) that encompasses the whole of the Mt. Alexander goldfield in the Castlemaine district of Victoria. This historic goldfield produced more than 5.6 million ounces of gold of which 25% was derived from high-grade lode deposits. The MAG tenements cover the southern stratigraphic extension of the Bendigo goldfield and are considered highly prospective for Bendigo style, high-grade quartz-reef mineralisation targets.

In addition to holding 213 km² of exploration licences, MAG holds 225ha of mining licences and also owns an 80,000 tonne per annum CIP plant, which is currently under care & maintenance.

A work program comprising field mapping, sampling, and compilation and interpretation of historic and recent data is planned in order to develop known and additional targets. The project will provide the opportunity for the Company to focus its experience in exploration for high-grade gold mineralisation on the extensions of the Bendigo Goldfield.

Annual General Meeting

The Company held its Annual General Meeting of Shareholders at the North Sydney Harbourview Hotel, on Tuesday 28 May 2002. Mr. George Tahija was re-elected as a Director of the company.

The Chairman's and Managing Director's addresses to the meeting may be viewed on the Company's website: www.austindoresources.com.au

EXPENDITURE

Exploration expenditure in Indonesia during the quarter amounted to A$ 236,250.


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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