directors’ report (continued) Review of Operations (a) Production Golden Pride Mine Ravenswood Gold Mine Obotan Mine (b) Exploration and Development (c) Corporate The total Resolute Mining Limited group gold production for the year was 230,095 ounces at an average cash cost of A$364/oz (or US$260/oz). In the 12 months ended 30 June 2003, the total gold production amounted to 200,146 ounces at an average cash cost of A$369/oz (or US$213/oz).  The Golden Pride mine in Tanzania produced 169,151 ounces of gold in the 12 months ended 30 June 2004 at a cash cost of A$320/oz (or US$228/oz) compared to gold production of 150,997 ounces at a cash cost of A$387/oz (or US$226/oz) in the 12 months ended 30 June 2003.  The Ravenswood mine in Queensland, Australia, produced 60,944 ounces of gold (since it was acquired on 1 March 2004) at a cash cost of A$484/oz (or US$350/oz). The Obotan mine in Ghana was decommissioned in December 2002 and placed on care and maintenance. As such there was no production from the mine in the year ended 30 June 2004 compared to 49,149 ounces of gold at a cash cost of A$311/oz (or US$172/oz) for the previous financial year (production until the date of decommissioning). The Obotan plant was sold to Golden Star Resources Limited for US$4.3m and the profit on this transaction is included within the year ended 30 June 2004 results. Resolute has retained the mining lease and rehabilitation obligations following the removal of the plant from the site. Exploration programs undertaken during the year under review concentrated on advancing Resolute’s range of exploration properties located in Australia, Tanzania, Ghana and Burkina Faso and a variety of encouraging results were generated. Further, a pre-feasibility study on the redevelopment of the 4.5 million ounce resource existing at the Syama Gold Project in Mali was completed early in the June 2004 quarter and concluded that a project was viable at current gold prices. The option to purchase an 80% interest in the Syama project was exercised during the year with the acquisition from Randgold Resources Limited completed in June 2004. The company has taken over the management of the Syama mine and an office has been established in Bamako. A bankable feasibility study on the project has commenced and is expected to be completed by the end of 2004.  The following significant activities occurred during the year ended 30 June 2004. 31 (i) On 1 March 2004, RML acquired 100% of the voting share capital of Carpentaria Gold Pty Ltd, the owner of the Ravenswood Gold Project from Xstrata Queensland Limited for US$45m cash. RML borrowed an equivalent of A$20m to partially fund the acquisition of the Ravenswood Gold Project. (xi) Completed a placement of approximately 12.3 million fully paid ordinary shares at an issue price of A$1.22 per share to raise A$15m to institutional clients of Euroz Securities Limited. (x) On 29 January 2004, Northern Mining Explorations Limited repaid Resolute their outstanding balance owing of US$5.5m. Resolute repaid a corresponding US$5.5m to RMB Resources Ltd (“RMB”), a unit of Rand Merchant Bank, which settles all outstanding obligations with RMB. (ix) In January 2004, Resolute reached agreement with Goldbelt Resources Limited (“Goldbelt”), a Toronto Stock Exchange (“TSX”) Venture Exchange listed company, to sell Resolute (West Africa) Limited, the owner of the Belahouro project and other exploration properties in Burkina Faso, to Goldbelt for cash and Goldbelt shares and warrants. This transaction is subject to a number of conditions, including due diligence and approval by the TSX Venture Exchange and Goldbelt shareholders. Under the agreement Resolute will receive cash of US$1.5m and Goldbelt shares and warrants to a value of CAD$5m. Following completion of the transaction Resolute will become a major shareholder of Goldbelt and will assist it in identifying other gold exploitation opportunities in West Africa where it does not conflict with Resolute’s activities. (viii)Dominion Mining Limited announced its decision to proceed with the underground mine development at the Challenger gold project in South Australia. This has significantly improved the likelihood of Resolute receiving its royalty entitlement. The royalty entitlement is A$20/oz for each ounce of gold produced in excess of 100,000 ounces. (vii) Resolute’s shareholding in Red Back Mining NL was liquidated. (vi) The Company sold its 12% stake in Gallery Gold Limited at a price of 30 cents per share, or A$13m in total. (v) Central Asia Gold Limited purchased Resolute’s AGR Limited shareholding by paying 28.5 cents per share, or A$11.3m in total. (iv) Resolute entered into an agreement with Bullion Minerals Limited (“Bullion”) whereby Resolute sold its nickel interests over certain tenure, the wholly owned Chalice tenement and its interest in the Indee joint venture to Bullion in exchange for A$750,000 cash, 10 million fully paid shares in Bullion, 2.5 million Bullion options with an exercise price of 25 cents and an expiry date of June 2005 and 2.5 million Bullion options with an exercise price of 30 cents and an expiry date of June 2006. This transaction was settled on 18 December 2003 and Resolute now holds 18.2% of Bullion’s expanded issued capital. (iii) Resolute Mining Limited and Etruscan Resources Inc. entered into an option and joint venture agreement granting Resolute the right to earn up to a 60% interest in Etruscan’s interest in the Finkolo gold exploration permit in Mali. Concurrent with the execution of the option agreement, Resolute completed a private placement in Etruscan for aggregate proceeds of US$500,000 at a subscription price of CAD$2.60 per common share. (ii) On 1 June 2004, RML acquired 100% of the voting share capital of Randgold Resources (Somisy) Limited, which owns 80% of Societe des Mines de Syama S.A. Societe des Mines de Syama is the owner of the Syama Gold Mine.  RESOLUTE MINING LIMITED 2004 ANNUAL REPORT