QUARTERLY REPORT

Quarterly Report

Three months ending
31 March, 2003

Cibaliung Project - Banten, Indonesia

• The resource has been significantly increased in size following updating as a consequence of recent infill and extension drilling. Contained gold and silver is up by 31%.
  
  
• Confidence in the resource has increased with more material in the higher categories of Measured (now 38% compared to nil previously) and Indicated (now 29% compared to 36 % previously).
  
  
• The new increased resource estimate will underpin the revised Pre-feasibility Study which is anticipated to be completed in June 2003.

Mt Alexander Goldfields - Victoria, Australia

• Compilation and interpretation of data continued for both project areas.

Corporate

• 47% shareholder, the ANJ Group, agreed to accept deferred payment and revised terms for convertible notes.

Expenditure

• Exploration expenditure during the quarter was A$381,794.

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). The Company presently holds a 74% interest in the joint venture.

Resources Update- Cikoneng and Cibitung Shoots

The resources estimated for the Company's Indonesian Cibaliung gold project have been updated following additional infill and extension drilling, comprising 14 new drill holes, the last of which were completed in early 2003.

The new resources amount to 610,200 equivalent gold ounces and contain 31% more gold and silver than the previous (July 2001) estimate.

The previously estimated resources were classified under the JORC Code as 36% Indicated and 64% Inferred. The new resources estimates have improved in confidence with 38% now classified as Measured, 30% Indicated and 32% as Inferred.

Notes to the Estimated Resources:

(1) Gold equivalence of silver is calculated based on a gold price of US$325/oz, a silver price of US$4.50/oz, metallurgical recovery of gold of 92% and metallurgical recovery of silver of 80%.
(2) The resources have been estimated using a cut off grade of 3 g/t for gold (same as July 2001 estimate). No top cut on gold grades.
(3) The estimated resources are based on 21,418 metres of triple tube diamond core drilling in 88 holes.
(4) The resources estimates have been prepared and reported by Mr. Dmitry Pertel of Micromine Consulting, a division of Micromine Proprietary Limited, in accordance with the requirements of the Australasian Code for Reporting of Identified Mineral Resources and Ore Reserves 1999 and he is a Member of Australian Institute of Geoscientists and a competent person as required by the code. Mr. Pertel has consented in writing to the inclusion of the estimated resource information in the form and context in which it appears herein.
(5) Values have been rounded in the above table.

Pre-feasibility Study - Cikoneng & Cibitung Shoots

The Company has previously advised that it is undertaking an updating of its 2002 Pre-feasibility Study. That study showed the project's economics might be improved through increased resources and further exploration was required. As noted above, that drilling has now been done and has resulted in the new increased resource.

Work is now proceeding on the revised PFS using the newly estimated resources to develop a new mining plan and to revise the project's costs. This work should be completed by June 2003 and will enable the Board of Directors to make a decision on whether to proceed to full feasibility study.

Prospect Exploration

Rorah Kadal Prospect

Scout exploration continued at the Rorah Kadal prospect located 800m southwest of the Cibitung shoot. Two additional trenches were completed. In trench TR-06 a sheared quartz breccia vein (2.1m wide) was exposed which assayed 1.4 g/t Au and 47 g/t Ag. This trench extended the strike length by 25m to 190m on surface. Trench TR-07, 40m north of TR-06 did not expose a vein or shear zones and this may be due to structural offsets. Interpretation is underway to plan further trenching. A second diamond drill hole, AC-054, was completed and intersected the main vein from 113.80m to 118.80m (5m). Preliminary interpretation shows that the vein appears to be dipping to the west, which is opposite to that previously interpreted. Significant results for both holes drilled to date are shown in Table 2.

The scout exploration carried out to date at Rorah Kadal has defined a vein-fault system striking over 190m with moderate gold grades (1 to 15 g/t) and over widths of 0.5 to 3.5m. There are also structural similarities with the Cikoneng and Cibitung vein systems. The results of exploration to date, whilst not indicating an economic shoot, are assessed to be encouraging. For example the Cibitung shoot is similar to Rorah Kadal near surface and by inference an economic shoot could occur at depth for Rorah Kadal. A full structural assessment will be carried out as the next step to define follow-up drill targets.

Regional Exploration

Land Access

A systematic grid soil sampling program totalling 4,363 samples covering an area of 820 Ha east and south of Cibitung was completed. This program has revealed several prominent gold anomalies along and adjacent to the fault system extending 4 km south east from Cibitung.

Follow up mapping and trenching of these areas commenced late in the Quarter and several narrow quartz veins have been located to date.

This phase of field exploration is planned to continue until mid Q3-2003 when all results will be assessed and plans for further work will be established.

Equity in Cibaliung Project

In accordance with the terms of the Joint Venture Agreement the Company's interest in the Cibaliung Project increased to 74.73% at the end of the March 2003 quarter due to sole funding of joint venture expenditure.

MT ALEXANDER GOLDFIELDS

Mount Alexander Goldfields & Sebastian/Raywood Projects

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's project areas are the Mount Alexander Goldfield, in the southern portion and the Sebastian/Raywood Goldfield in the northern portion of the Bendigo goldfields.

During the quarter, data review and compilation work continued within the two project areas held by Mt Alexander Goldfields N.L. in the central Victorian Gold Belt.

The work to review and compile the large amount of available data is well advanced and will be completed in mid 2003. The study will provide 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 sued to target exploration in the northern and southern leases. These models will be used to select and prioritise targets for exploration drilling. At Bendigo this style of mineralization is known to extend rhythmically to depths in excess of 1500 metres.

During the Quarter the Company reached agreement, subject to shareholder approval, with PT Austindo Nusantara Jaya ("ANJ") regarding the 8,181,818 convertible notes held by ANJ which were due for redemption in cash in the sum of A$900,000 on 28 February 2003. ARX did not redeem these Convertible Notes on 28 February 2003 and ANJ will accept deferred payment of the amount owing until 30 June 2003. Shareholder approval will be sought at the Company's next Annual General Meeting, to be held on 27 May 2003, to grant new convertible notes to ANJ to extinguish the deferred payment of A$900,000 due 30 June 2003. The remaining 1,084,216 Convertible Notes issued to China Land Group Limited were redeemed for cash (A$119,264) in March.

In March 2003, the company announced the election of Mr. Pieter Greeff as non-executive Chairman of the Board of Directors of the Company. Mr. Greeff's election follows the resignation of Mr. George Tahija as Chairman due to commitments in Indonesia and in recognition of the new phase of the development that the Company is entering into. The Directors acknowledge with gratitude the many contributions Mr. Tahija has made as Chairman of the Company since 1998. Mr. Tahija will continue as a non-executive Director of the Company and has reaffirmed the commitment of ANJ, as a major shareholder, in support of the direction of the Company and its projects in both Indonesia and Australia.

EXPENDITURE

Exploration expenditure during the quarter was A$381,794 made up of A$290,050 for the Cibaliung Project and A$91,744 for the Mount Alexander Goldfields Project.

Ian Price
Managing Director & CEO
30^th April 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.

* It was agreed that ARX would not redeem these Convertible Notes on 28 February 2003 and ANJ accepted deferred payment of the amount owing (A$900,000) until 30 June 2003. Further ARX will seek shareholder approval to grant new Convertible Notes to ANJ at the Company's next Annual General Meeting to be held on 27 May 2003.

** Convertible Note (HKM series) Certificate No. 1 issued to China Land Group Limited was redeemed for cash on 6 March 2003 in the amount of A$119,263.76.

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.