QUARTERLY REPORT

QUARTERLY REPORT: Three months ending 31 March 2006

HIGHLIGHTS

Construction at the Cibaliung Gold Project marks an important milestone for Austindo with gold production scheduled to begin in the 1st Quarter of 2007.

Cibaliung Gold Project - Indonesia

• Dismantling of the Mount Olympus gold processing plant in Western Australia was completed during the quarter.

• A transportation contract with Westlink Logistics Pty Ltd was finalised for the shipping of the processing plant to Indonesia and the majority of the processing plant was transported to Port Hedland.

• Preparation of the Box Cut is substantially completed in anticipation of arrival of road header to commence decline development.

• Upgrading of public access roads was undertaken in the quarter and Project Camp facilities were commissioned.

• Bulk earthworks were initiated on site during the quarter.

• Aker Kvaerner substantially completed pre-engineering for the relocation of the gold processing plant to Indonesia and PT Petrosea were engaged to provide detailed engineering in respect of the re-erection of processing plant on site.

CIBALIUNG GOLD PROJECT - INDONESIA (89.75% as at 31 Dec 2005)

The Company's development focus in Indonesia is the Cibaliung Gold Project which is operated by PT. Cibaliung Sumberdaya, a joint venture company established between the Company and PT. Antam Tbk.

Cibaliung is located in Banten Province near the western tip of the island of Java, 150km south west of Jakarta. In accordance with the terms of the joint venture agreement, the Company's interest in the Cibaliung Project as at 31 December 2005 stood at 89.75%.

During the quarter PT Antam Tbk confirmed its intention to contribute to the 2006 expenditure budget in respect of the Cibaliung Gold Project in order to maintain its 10.25% interest in the project.

The Company completed the dismantling of the gold processing plant at the Mount Olympus Mine in Western Australia and the majority of the plant was transported to Port Hedland during the quarter ready for shipping to site in Indonesia.

Aker Kvaerner substantially completed engineering services associated with the dismantling, transportation, re-erection and plant modifications (including the addition of an elution circuit, detox unit, gold room and backfill plant).

PT Petrosea was engaged to provide pre-engineering services for the re-erection of the processing plant and construction of the project.

Preparation of the Box Cut was substantially completed in anticipation of the arrival of a road header to commence decline development.

Upgrade of public access roads was undertaken during the quarter and the first stage of the Project Camp facilities were completed and are now occupied. Bulk earthworks were also initiated on site during the quarter.

Cibaliung Exploration

Exploration activity at Cibaliung continued during the quarter with a program undertaken to overlay previous MMI results with updated structural models. This work identified some correlations which are being used to further refine drill targets.
Further trenching and mapping of locations defined by updated structural models was also undertaken to ascertain whether more detailed site specific investigations were warranted.

An extensive diamond drilling program is proposed which will commence late in the current quarter to test new target areas within the existing mine project area. This program will seek to identify additional reserves and resources with the aim of increasing annual production and mine life at Cibaliung.

Expenditure

Expenditure in relation to the development of the Cibaliung Gold Project totalled A$8,112,000. Expenditure in relation to Cibaliung Exploration totalled A$38,000.

PROJECT GENERATION - INDONESIA

Total Expenditure on exploration and evaluation (excluding Cibaliung) in respect of new project generation in Indonesia totalled A$36,000 during the quarter.


Java

Pekalongan Project, Central Java (ARX - 95%)
 
Exposure mapping and geochemical sampling were undertaken at Pekalongan during the quarter.  Multiple prospects have been identified and a drilling program is expected to commence in the near future to test for high grade epithermal gold/silver deposits similar to the Cibaliung Gold Project.

Trenggalek Project, East Java (ARX - 95%)

The Trenggalek exploration area in East Java, Indonesia was granted during the quarter. The project area covers 17,586 Ha and is prospective for low sulphidation epithermal gold/silver deposits similar to the Company's developing gold project at Cibaliung.

Several potential gold bearing areas have been delineated in the first stage of exploration at Trenggalek.

Sampling from surface outcrops at three prospects within the project area provided very encouraging results including the following:

• Dalang Turu Prospect is characterized by mineralized quartz-adularia veins and veinlets (or stockwork) covering an area of 300m x 500m; and hydrothermal eruption breccias. Both contain some high grades of gold with values from rock chip sampling ranging from less than 1 g/t Au to 12.7 g/t Au.

• Sentul Prospect, where two main NNE trending quartz veins over a total length of 4 km and 1 to 8 m thick have been defined. Grades from rock chip sampling in the southern part of Sentul West Vein vary from 2.0 - 4.5 g/t Au over widths up to 8m.

• Paces Prospect is the possible source of several high grade rock float samples identified downstream. Three rock float samples collected along Duren River, which drains to the north, yielded very encouraging results; i.e. 14g/t Ag, 15.7 g/t Au and 30.1 g/t Au.

Papua

Aisasjur Project - Anglo Strategic Alliance (ARX - 20%)

The Company has a strategic alliance with the Anglo American Group to explore for large copper/gold porphyry deposits in Papua. The Company has a 20% joint venture interest in the Aisasjur Project while the Anglo American Group has the obligation to fund all exploration activities pursuant to the terms of the strategic alliance.

The Aisasjur Project covers an area of 9,486 hectares in the Kepala Burung area of Papua. Geologically, the project area lies within one of the Indonesia's young Tertiary volcano- plutonic arcs which are prospective for both porphyry copper-gold and epithermal gold mineralisation styles.

A drilling supply contract has been negotiated and a 4000m drilling programme is planned to commence at the Aisasjur Project in June 2006.


Ian Price
Managing Director & CEO
28 April 2006

ABOUT AUSTINDO RESOURCES CORPORATION NL (ARX)

Formed in 1983, Austindo Resources Corporation NL is an Australian listed gold company focused on developing projects in Indonesia. The company's key project is Cibaliung, a high-grade epithermal gold/silver vein system located southwest of Jakarta in Banten Province, western Java. Cibaliung is expected to produce at an annual rate of 70,000 oz (gold equivalent) with an average life of mine cash operating costs of approximately US$200 per ounce.

Two key strategic alliances in Indonesia are taking Austindo closer to achieving its growth objective. In association with Anglo American Group, the Company is exploring for large porphyry copper/gold deposits in Papua. In addition the Company has a 95% joint venture interest with PT Sumber Mineral Nusantara in the Pekalongan and Trenggalek tenements located in Central and East Java respectively, areas prospective for low sulphidation epithermal gold/silver deposits similar to the Cibaliung project.

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

Notes: 1. Development and project implementation expenditure in relation to the Cibaliung Gold Project in Banten Province, Indonesia.
2. Funds invested in a Foreign Currency Term Deposit account which are available to fund the Cibaliung Gold Project. ANZ Banking Group Limited has a secured charge over the funds in this account.

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

* Permit granted during the current quarter.

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.

*During 2005 the Company issued Convertible Notes for $4.0M which are convertible into ordinary fully paid shares at any time at a price of 6 cents per share.

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 2006
(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 6: Exploration for and Evaluation of Mineral Resources and AASB 107: Cash Flow Statements 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.

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