QUARTERLY REPORT

Quarterly Report

Three months ending
30 September, 2002

Cibaliung Project - Banten, Indonesia

• Pre-feasibility study (PFS) indicates that additional resources and reduction in capital and operating costs are required for the Project to meet the Company's economic hurdles.
• To improve PFS outcomes, exploration is focusing on defining additional resources in extensions to known deposits and in defining new deposits.
• Drill-testing for extensions of Cikoneng and Cibitung deposits started in early October.
• Regional exploration encouragement with high grade channel sample, 3.3m @ 11.4 g/t Au and 51 g/t Ag, from trenching at Rorah Kadal prospect.

Mt Alexander Goldfields - Victoria, Australia

• Land position expanded to include the Sebastian and Raywood tenements located northwest of Bendigo.
• The Company now controls a significant package of highly prospective exploration ground both north and south of the historic Bendigo goldfield.
• Compilation of all historical and previous exploration data, covering the Mt Alexander Tenements and the Sebastian and Raywood Tenements, commenced.

Expenditure

• Exploration expenditure during the quarter was A$308,207

EXPLORATION

CIBALIUNG PROJECT

Preliminary Feasibility Study (PFS)

During the quarter the company released the results of the PFS, further details are available in the ASX release dated 21 August 2002. The PFS, based on a gold price of US$300 per ounce, concluded that the current Project does not meet the Company's economic hurdles and identified a number of areas where further work could provide improvements in project revenues.

To this end and reflecting the potential of the Cibaliung Project, the Board decided to allocate US$ 720,000 to be spent over the next 12 months at Cibaliung. This program will include drilling to define extensions to the Cikoneng and Cibitung deposits with the aim of increasing the size of the resource. Surface exploration to locate and drill additional targets in the adjacent areas will also be undertaken. Studies will also be conducted to review project parameters and costings.


Exploration

The most important finding of the PFS was the need to increase the size of the resource. Therefore exploration will be focused towards defining extensions to the Cikoneng and Cibitung shoots and towards defining new targets for drilling elsewhere in the tenement.
A drilling contract was awarded to PT Maxidrill Indonesia at the end of September and drilling commenced in early October to test for strike and plunge extensions of Cikoneng and Cibitung. Initially 5 holes are planned for a total of 1800m, results from this program should be available by the end of January 2003.

At Rorah Kadal, 900m SSW of Cibitung, geological mapping and trenching continued where encouraging rock chip sample results were reported in the June quarter (0.85cm at 8g/t Au & 54g/t Ag.). Four trenches (TR- 01 to 04) were completed during the quarter and a fifth (TR - 05) is in progress (Figure 2).

Trench TR-01 returned a channel result of 3.5 g/t Au over 0.4m. Trench TR-02 exposed a narrow vein in the footwall of the main vein. Trench TR - 03 returned a channel result of 11.4 g/t Au and 51 g/t Ag over 3.3m. Trench TR-04 in the hanging-wall did not intersect the main vein, which is suspected to lie in the creek just to the west of the trench.

The Rorah Kadal veins strike NNW and have now been traced over a strike length of 165m with individual vein widths varying from 0.2 to 2.5m. The veins mapped to date are contained within an MMI gold-in-soil anomaly 400m long and 50m wide.

Reconnaissance mapping along the Citeluk Barat river southeast of Cibitung located a vein striking northwest in an old adit at Muara Cikeni (Figure 2). The vein width varies from 0.3 to 1m and returned an assay of 0.3 g/t Au. The vein grade is low but suggests that the major fault that hosts the Cibitung shoot extends a further 2km to the southwest.

Further exploration in this area will resume when access can be gained to the cocoa plantation that covers most of the area between Cibitung and Muara Cikeni.

MT ALEXANDER GOLDFIELDS (MAG)

Austindo has been seeking to broaden its exploration portfolio and achieve a spread of geographic risk. On 4 June 2002, as part of this program, Austindo acquired MAG. MAG holds 213 km² of exploration licences and 225 ha of mining licences in the Castlemaine district of Victoria, Australia. MAG also owns an 800,000tpa CIP plant at Wattle Gully, which is currently under care and maintenance.

During the quarter, the Company further strengthened its land position in this district and announced the signing of agreements to farm-in to tenements held by Horizon Energy and Resources Pty Ltd ("Horizon") and Greater Bendigo Goldmines N.L ("GBG").

Horizon is the holder of EL 4536 ("Raywood") located 30 km northwest of Bendigo (refer Figure 3). GBG is the holder of EL 3105 ("Sebastian") located 20 km northwest of Bendigo (refer Figure 3). These agreements give MAG (100% owned by ARX) a 12 month option period during or at the end of which period MAG may elect to enter into Joint Venture with Horizon and GBG. Further details regarding these potential JV agreements are available in an announcement released to the ASX on 28 August 2002.

MAG now has access to a strategic package of highly prospective ground covering the northern and southern extensions of the Bendigo Goldfield.

Much of the Sebastian - Raywood area is covered by younger sediments and has not been subjected to modern exploration excepting discovery of gold-bearing quarter veining at Mopoke under 20m of cover just to the northeast of the Sebastian Mine by Metex Resources in the 1990's.

Work has commenced to compile and evaluate the substantial database comprising historic production and mining records and more recent geological and exploration data. Several geological features similar to those demonstrated recently at Bendigo occur in the MAG tenements. These will be investigated once analysis of the literature survey allows a proper prioritisation of these targets.

EXPENDITURE

Exploration expenditure during the quarter was A$ 308,207.

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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