RNS Number:2341O
Reefton Mining N.L.
01 August 2003


                              REEFTON MINING N.L.

                          QUARTERLY ACTIVITIES REPORT
                       FOR THE PERIOD ENDED 30 JUNE 2003


SKELETON COAST DIAMOND PROJECT - NAMIBIA

Highlights

   *The Stage 2 programme of excavation and screening, is well advanced,
    targeting diamondiferous fossil beach gravels, conglomerate and sands. The
    basement in each trench has been vacuumed by the field crew to recover all
    diamondiferous material.

   *Acquisition and transportation from Australia to the Skeleton Coast,
    Namibia of additional plant and equipment, including an industrial unit to
    vacuum the bedrock (manufactured in Western Australia) and a 20 tonne wheel
    mounted excavator,

   *Commenced investigations with engineering consultants to assess the
    capital and operating costs of a one million tonne per annum operation to
    process the diamondiferous beach sand and gravels.

   *Preparation for the start-up of the Company's dense media separation
    (DMS) plant is complete, with the diamond recovery phase of the programme
    scheduled to commence with a second crew under the supervision of Bruce
    Michelly (specialist with 28 years experience in diamond deposit evaluation)
    in early August.

SKELETON COAST DIAMOND PROJECT - NAMIBIA
EPL's 2698 - 2700 (100%)

Stage 2 Bulk Sampling Programme

The Stage 2 programme started during the quarter following the success of the
first bulk sampling programme completed on the Company's Skeleton Coast leases,
which recovered a total of 264 high gem quality diamonds, averaging 0.24 carats
per stone with 14% of stones weighing greater than 0.99 carats. This programme
will determine diamond content in the areas where diamonds were previously
recovered as well as other identified target areas, in particular the 30 metre
elevated fossil beaches. Ten (10) metre wide trenches are being excavated, and
the material screened, generating a sized product of 2mm to 14mm, which is being
trucked to the DMS stockpile ore pad. Vacuuming of the gravels directly on the
bedrock surface is taking place as a separate sample.

Significant delays between the completion of Stage 1 and the commencement of
Stage 2 have occurred due to the inability of Charter Summit Investments
Limited, Mr Carlos da Cruz and Mr Manuel de Castro, to meet their contractural
obligation to settle on the purchase of 40% of the Reefton's Namibian
subsidiaries (Storm Diamond Mining Company (Pty) Ltd and Black Range Mining
(Pty) Ltd), and accordingly the Company terminated that agreement, reserved its
rights and pressed ahead in respect to the present exploration programme.

Equipment manufactured and acquired in Western Australia during the March 2003
quarter was shipped to Walvis Bay, Namibia in late April and was subsequently
transported some 500 kilometres north to site. This additional equipment,
consisting of a wheel mounted 20 tonne excavator and customised industrial
vacuum unit has enabled the Company to excavate 10 metre wide trenches which are
sampled in 20 metre long sections (termed "cells"), and fully excavate the
oldest "conglomerate" lying directly on the basement. This layer of oxidised
beach gravel contains abundant pebbles and heavy minerals with boulders and
cobbles. Potholes and depressions in the basement are being vacuumed to obtain a
representative sample of this material.

The Company's Australian contingent of personnel for trenching and screening,
consists of the operations manager, assistant operations manager and a field
geologist, whom were mobilised during the quarter to commence excavation and
trenching in mid May 2003. They are assisted by four local employees. At
present, in excess of half of the targeted diamondiferous gravel, conglomerate
and sand has been excavated and screened.

The DMS plant was re-commissioned toward the end of the quarter in preparation
for processing of the dry screened product, scheduled to commence in early
August 2003, with a second crew, under the supervision of Bruce Michelly. Mr
Michelly has 28 years of experience in diamond deposit evaluation and was with
Ashton Diamonds for 20 years. The two crews will continue for the remainder of
the programme with trenching and dry screening, and DMS processing.

Upon the completion of this programme the Company will have an indication of the
grades of various beach deposits from which it will be in a position to progress
toward the delineation of a resource, increase the knowledge on the presence of
diamonds in new target areas, and improve the understanding of the relationship
between gravel, conglomerate and sand profiles and the diamond content.


The Company's Objective

The Company has commenced the process of recruiting suitably qualified and
experienced professionals to plan for, and implement an evaluation and
development strategy aimed toward resource definition within the Skeleton Coast
leases, and the production of a conceptual mine development plan.

Investigations have commenced with engineering consultants to assess the capital
and operating costs of a one million tonne per annum operation to process the
diamondiferous beach sand and gravels.

The Company has recently engaged a geological consulting company, Riviere
Minerals Pty Ltd, the principal of which has over 18 years experience
specialising in fossil diamond beach deposits in South Africa and Namibia. He
will assist the Company's geological team in comparing the geology and fossil
assemblage of the Skeleton Coast leases with similar beaches being mined in the
south of Namibia, and will advise on the exploration and development plans of
the Company.

Further appointments are expected within the coming months.


ERONGO PROJECT - NAMIBIA
EPL's 2805 - 2811 (100%)

The project comprises of a group of exploration licenses in Central Namibia with
a 150 kilometre strike length and 50 kilometre width of multiple deep seated
mineralising geological structures. Resources of gold, tin and important
prospects for industrial minerals (rutile, tungsten) occur. Prospects for
precious and base metals exist in several geological environments.

Consistent with the scale of deep seated geological structures the tenements
have world class mines in close proximity, the world's largest open cut hard
rock tin mine (Uis), the world's largest Uranium mine (Rossing) and the Navachab
gold Mine (reserves 5.7 million tonnes grading 1.7 g/t Au, resources 81.6
million tonnes containing 2.8 million ounces of gold).

Work during the quarter continued an evaluation of the gold and base metal
targets and models within the extraordinary mineralised environment covered by
the licenses.

Gold

Landsat image studies and ground mapping, geochemical sampling, aeromagnetic
image interpretation and studies of surrounding mines is in progress. This is
detailing gold targets related to a Biotite-graphite association in specific
marble horizons, pyrrhotite-skarn mineralisation (often associated with magnetic
anomalies), shear zones (usually in Kuiseb schists) and sheeted quartz vein
arrays. The latter appear to be very important at the adjacent Navachab and were
not recognised during the early development and mining.

Rare Earths

During the quarter studies of the carbonatite hosted monazite (rare earth)
occurrence located at Eureka continued. Eureka monazite is also attractive
because of its low concentration of ThO2 (0.7%mass). The proximity of the road
and rail system are regarded as very positive aspects for potential mining
activity in the area.

Monazite is a primary ore of rare earth metals notably thorium, cerium,
lanthanum and neodymium. Of economic interest is the rather high concentration
of Eu2O3 at 0.073% mass in the monazite. During the separation and enrichment
process the other rare earths will report to the final product.

Tantalite

Exploration has delineated several zones of tantalite bearing rare metal
pegmatites including the Sandamap-Erongo belt of 50 kilometres length and 2
kilometres width containing numerous large rare metal pegmatite bodies. Grades
of up to 8 pounds per tonne Ta2O5 have been returned during exploration
sampling. Joint venture partners for the project are being sourced.


COOLGARDIE GOLD PROJECT (100%) - WESTERN AUSTRALIA
E15/284 (Bonnievale)
P16/1410-1412, P15/3037 (Star of Fremantle)

The Company is seeking a joint venture partner to evaluate the potential for
gold and nickel targets within the Bonnievale tenement.

Placer Dome Asia Pacific have reported on exploration activities on Star of
Fremantle during the quarter. "A geological assessment of the project was
undertaken duing the quarter. No further work is planned."


For and on behalf of
REEFTON MINING N.L.

B S MOORE
Chairman



This report accurately reflects information compiled by Mr G.R. Hemming,
MAusIMM.,MAIG., a Director of Roscoria Pty Ltd, who is a competent person as
defined by the Australasian Code for Reporting of Identified Minerals Resources
and Ore Reserves and accurately reflects the information compiled by the
competent person.




                      This information is provided by RNS
            The company news service from the London Stock Exchange

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