QUARTERLY REPORT

Quarterly Report

Three months ending March 2004

Cibaliung Project - west Java, Indonesia

• Bankable Feasibility Study continues on schedule for completion in the first half of 2004.
• Resources infill drilling completed. Exploration drilling to start next Quarter.
• The Company's share of the project increased to 80.38% during the Quarter.

Mt Alexander Goldfields - central Victoria, Australia

• Exploration targets defined.

Expenditure

• Total Exploration expenditure (including Cibaliung feasibility study expenditure) during the quarter was $1,144,000.

CIBALIUNG GOLD PROJECT - INDONESIA (82.25%)

The Company's development focus in Indonesia is the Cibaliung Gold Project which is controlled through PT. Cibaliung Sumberdaya, a joint venture company established between the Company and a wholly owned subsidiary of PT. Aneka Tambang (Persero) Tbk. Cibaliung is located in Banten Province in the Pandeglang Kabupaten (Regency) near the western tip of the island of Java 150km south west of Jakarta.

Bankable Feasibility Study (BFS)

The Cibaliung resource comprises the Cikoneng and Cibitung shoots where 1.8 Million tonnes @ 9.6g/t Au & 80g/t Ag (at 3g/t Au lower cut-off with no top cut) containing 554,500 oz gold & 4.62 Moz silver has been identified. Of these Resources, 45% are classified as Measured and 27% are classified as Indicated (based on contained metal).

During the quarter the BFS proceeded according to schedule and is expected to be completed by mid 2004.

New Exploration Model

In mid-2003 the exploration team was charged with two key objectives; to discover a third economic shoot and to increase the project resource base by the end of 2004. Substantial progress has been made towards those objectives culminating with the expression in Q1-2004 of a coherent exploration model:

• Comprehensive data analysis and orientation work has been completed over the past year on the south-west quadrant of the existing KP where structural control is evident and the cover rocks do not mask all of the underlying geology.

• A more detailed focus on the Mine Project Area (in the immediate vicinity of the known shoots at Cikoneng & Cibitung) was also undertaken.

• The review work involved the re-interpretation of all regional geophysical data (including airborne magnetics & radiometrics with ground IP-resistivity & magnetics) using more modern and advanced techniques to assist in targeting new deposits.

• All regional stream and rock geochemistry was re-assessed and correlated with down-hole geochemical signatures related to gold mineralization to develop a pathfinder element suite to complement the MMI (Mobile Metal Ion) database.
• This was supplemented by a review of mineralization characteristics (petrography) and its relationship to geological structure and the preferred emplacement mechanisms and directions of such mineralization systems.

The updated low-sulphidation epithermal exploration model is characterised by preferential NNW-SSE structures, retrograde vein textures, anomalous surface arsenic, antimony and/or mercury signatures, an IP/resistivity response, and a smectite-illite alteration envelope.
Based on the above model the project area, and in particular the area immediately adjacent to the Cikoneng and Cibitung Shoots - which make up the current resources for the Bankable Feasibility Study - has been ranked as highly prospective for further economic shoots. Key targets in this area for immediate follow-up are Rorah Kadal vein, the Central Zone (between Cikoneng & Cibitung shoots), Cibeber and Cikeni veins.

Rorah Kadal is less than 700 metres from Cikoneng/Cibitung Shoots and drilling is underway in a two-hole program to be followed by scout drilling of the Central Zone. In addition IP surveys will be conducted on selected targets to assist interpretation and extended where cover rocks preclude direct observation but where MMI and/or stream sediment anomalies exist and remain untested

Rorah Kadal Prospect

New exploration drilling at Rorah Kadal has provided encouraging results (see table below). Holes AC-79 and AC-80, completed during the Quarter, have returned significant intercepts sufficient to conduct further drill testing of the prospect (holes AC-53 and AC-54 have previously been reported). Cover rocks to the south may mask the true extent of the known vein where "pinch & swell" features of the target are predicted both along strike and at depth. During April 2004 two additional holes have been completed (AC-81 & AC-82) and intersected similar vein widths. Assays results are not yet available.

Rorah Kadal fits the rationale of the new exploration model as it occupies a favourable NNW-SSE structural trend, has key pathfinder element signatures, and an MMI anomaly above the target.

PROJECT GENERATION - INDONESIA

The Company intends to capitalize on its Indonesian capabilities and is actively seeking new gold projects to add to its portfolio. The Company is in a unique position in that it has more than ten years experience in Indonesia, it is the majority joint venture partner in the advanced Cibaliung Gold Project, its major shareholder is the highly respected Indonesian family company PT. Austindo Nusantara Jaya and it has a geological team that has experience in exploring for and discovering new gold deposits in Indonesia.

The Company's initiative to acquire additional project areas in Indonesia is at an advanced stage and a number of targets are under consideration.

CENTRAL VICTORIAN GOLDFIELDS - AUSTRALIA

The Company's exploration focus in Australia is controlled through Alexander Resources NL (formerly Mt Alexander Goldfields NL), a wholly owned subsidiary of the Company.

Chewton Gold Project (100%) & Sebastian Gold Project (earning up to 80%)

The Company has an attractive and consolidated set of tenements holdings located within the Bendigo Goldfield, which is one of the world's largest gold provinces that have produced about 2% of the world's gold.

The Company's Victorian based geological team has spent the past year developing a powerful predictive ore occurrence model (the Corridor Stacked Reef Model) to define key prospective locations. This breakthrough has been achieved by using state of the art high technology computer modelling of the historical Wattle Gully database and incorporating it with newly acquired geophysical and geological data from the Victorian Government's Initiative for Minerals and Petroleum (VIMP) that commenced in 1994 and has cost about $25 M.

The geophysical data interpreted by the Company's geologists and its consultants has resulted in a new insight into the regional and detailed structural settings of the goldfields, especially for the Bendigo ore occurrence model.

The interpretation of the gravity, magnetics, historical mine and exploration data and structural lineaments by the Company's geologists proposes new drill targets in quite different locations from those tested without success by earlier explorers.

The discovery in 1934 at the shallow depth of 150 metres (which was relatively late by Victorian standards) of the Wattle Gully ore body in the Chewton Goldfield, confirms the field's potential for large shallow high-grade ore bodies that are yet to be discovered. This mine ceased production in 1984 having produced some 415,000 ounces of gold from 1.23 M tonnes of ore at a grade of 10.5g/t of gold.

The application of the Company's exploration strategy and the newly developed Corridor Reef Stacked Model to its Chewton and Sebastian project areas has resulted in the recognition of six potential new gold systems that are now ready for diamond drill testing.

Exploration expenditure during the quarter was $1,135,860. This comprised:

• Indonesia (Cibaliung Project): $1,047,213
• Australia (Central Victorian Goldfields): $88,647.

Ian Price
Managing Director & CEO
28th April 2004

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Rule 5.3

Appendix 5B

Mining exploration entity quarterly report

Introduced 1/7/96. Origin: Appendix 8. Amended 1/7/97, 1/7/98, 30/9/2001.

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

* 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.
   
   
   Sign here:.........................................................Date: 28 April 2004
   (Company secretary)
   
   
   
   Print name: Andrew J Cooke
   
   

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.