QUARTERLY REPORT

Quarterly Report

Three months ending
30 June, 2003

Cibaliung Project - west Java, Indonesia

• The updated pre-feasibility study was completed.
• Bankable Feasibility Study has commenced.

Mt Alexander Goldfields - central Victoria, Australia

• Exploration target definition on schedule and nearing completion.

Corporate

• Annual General Meeting held in Melbourne on 27 May 2003.

Expenditure

• Exploration expenditure during the quarter was A$544,926.

EXPLORATION

CIBALIUNG PROJECT

The Cibaliung Gold Project is located in the Province of Banten in west Java, Indonesia, approximately 150 kilometres south west of Jakarta. The Company's joint venture partner in the project is International Antam Resources Ltd, a majority owned subsidiary of the Indonesian Government's mining company PT Aneka Tambang (Persero) Tbk. The Company presently holds a 75% interest in the joint venture.

Pre-feasibility Study - Cikoneng & Cibitung Shoots

The updating of the Pre-feasibility Study was completed as planned in May 2003. The key findings of that study were:

• Mine life of 6 years on current resources with an increased production rate of 220,000 tonnes of ore per annum;
• Recovery of gold and silver by a conventional gravity - CIL processing plant;
• Annual production of approximately 70,000 ounces gold equivalent;
• Initial capital estimated at some US$30 million;
• Average life of mine cash operating costs of less than US$200 per ounce.

Bankable Feasibility Study

Following the positive outcome of the pre-feasibility study update the Joint Venture partners decided to immediately commence the Bankable Feasibility Study which will be completed in the first half of 2004.

Exploration

Exploration is continuing as planned and in mid Q3-2003 all results will be assessed and plans for further work will be established to run concurrently with the bankable feasibility study.

Tenement Renewal

The Cibaliung KP has been renewed in the Feasibility Stage for a further 2 years through to May 2005. The renewal incorporates an extended prospective area to the SW of the Cikoneng and Cibitung Shoots.

MT ALEXANDER GOLDFIELDS NL

Mount Alexander (100%) & Sebastian/Raywood Projects (earning up to 80%)

Through its acquisitions and joint venture agreements put in place in 2002 the Company has built itself a geologically and geographically focussed land position in the historic gold producing area around Bendigo in central Victoria, Australia
The Company is undertaking exploration at its Mount Alexander Project, in the southern portion and the Sebastian/Raywood Project JV in the northern portion of the Bendigo goldfields.

The Company is targeting repeats of the Bendigo type mineralization that historically yielded over 30 million ounces from this world class goldfield.

By the end of the Quarter, data review and compilation work within the two project areas held by Mt Alexander Goldfields N.L. in the central Victorian Gold Belt was nearing completion.

The study is providing a modern synthesis and interpretation to build structural and predictive models for the goldfield. It will define major structural trends that may be related to the mineralization and which may be used to target exploration in the northern and southern leases. These models will be used to select and prioritise targets for exploration drilling.

In accordance with the terms of the Joint Venture Agreement the Company's interest in the Cibaliung Project increased to 75% at the end of the first quarter 2003 due to sole funding of joint venture expenditure.

The Company's focus is to complete the Feasibility Study for the Cibaliung Project and obtain development approvals and finance to construct the project. Discussions have commenced with possible lenders who have indicated their interest in the project.

EXPENDITURE

Exploration expenditure during the quarter was A$544,926 made up of A$395,307 for the Cibaliung Project and A$ 149,619 for the Mount Alexander and Sebastian/Raywood Projects.

Ian Price
Managing Director & CEO
8 July 2003

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

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.

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.