NML is due its interrim results now, last year it was the 28th of this month.

They are setting up a new site to explore/research/analyse and all the equipment to do this should be on site now, and drilling should start soon, all this extra news should be covered in the interims.

does anyone have any further positive views on this company ??

Eric,

Sorry to hear about your breakdown, hope all is well now.

I think Shane Healy was here to raise funds, and that may account for the small drop this week, although to be fair, most AIM miners were down too.

Interesting that you mention EPD, a stock I hold. I feel EPD will commence mining before NML, and my current plan is to rotate out some profit from EPD into NML around the time NML commence mining, provided of course both companies keep to the current timescale, which they may not!

Interestingly, I bought NML last July, when they said they were due to "hit the ground running" in September, and I had planned to rotate out profit from this into EPD when they commenced! Now we have a complete reversal of that scenario.

Rumours regarding a possible bid for AFD by FDI abound on other BB's tonight!

Eric
As ever, good advice. I hope EPD will snuggle up with NML without too much snarling.

Yes, I have a large spread - too large - of 25 stocks which is hard work keeping up. But, jumping in from a standing start late last year, I took the view I would a) learn faster and b) risk less by having so many with each stock holding at a level where 100% loss would not affect my lifestyle. Having had some good luck and some rather more modest good judgement, I now have a 15% profit cushion where I am am happy for each holding to rise to 50% of that cushion - i.e. I now can't lose more than half my realised profits on any one stock, still preserving capital. Apart from some minor ins and outs of trial stocks, I've only had one major tank - DEMG and that was well within above limits.

Over the remainder of this year, I should plan to reduce to about 15 stocks, building up more concentrated holdings in those with surest prospects (e.g. SEO where I am fourfold overweight) as I realise (or abandon!) the more capricious choices. But I'm such a tart I can't let new ideas (like EPD) pass me by!

I am currently into five sectors - oil, goldmines (might switch into pure gold, GBS is very interesting), other mines, E. Europe and the rest which in retrospect all have a common theme across a wide diversity of actual sectors which is companies that have a winning innovative product applied to an existing essential market with hopefully other applications potential - SEO, ARX, PSG etc.

I also (like you I believe) have a tuck away and forget dividend fund in my wife's name which I intend to feed with profits from my own fund for the long term.

I've had such a lot of fun researching stocks and meeting dog-lovers on line (with or without the offer of a bejewelled collar), I am seriously tempted into a life of full-time trading. Just think, capital of 25k traded for 200 days p.a at a profit margin of 1% each deal tax free is not a bad way to net 50k pa for 3-4 hours work a day.

Do I talk too much for a dog?

SD

Don't forget SD you can be rung up on the golf course to top up your trades and that can seriously put you off your stroke!! Like you I have far too many stocks which I can't resist buying but then find I'm forced to hold as I buy in too late such as ASC. Not that I worry too much as it's only a loss if you sell it but I couldn't stand the strain of trading!!
perhaps we should have a new thread--all the stocks we hold including the dogs!
cheers hope you had a good Easter MP

MP, I guess a thread called dogstocks would be a novelty. But seriously, a thread devoted to portfolio structure could be interesting. Sectors, weighting, total number, balance, risk management, capital protection, stopping losers, running winners etc. on a truth or dare basis - no concealment allowed.

SD

Interesting chat, SD and MP. My own view is, if you formalise it to a set of rules or portfolio structure, your performance will probably deteriorate. You are better off swimming against the tide or, probably better, beating the tide to the shore! I am aware that my own trading is too active; if you jumpt in when you are first attracted to a share, your timing is often far from the best. Some of my best trades have come from watching a share for some time, researching it and getting to know its characteristics really well. I know that both of you do that, too. But I am then likely to build the position because I start to compare the prospects for the stock with some of my other holdings and decide to switch. When you say, SD, that you have four times the weight in SEO, I assume that means the equivalent of 4 stocks out of 35, or some 12%. I was up to 50% in ASC last year and am up there again with SEO this year. OK, the risk is higher, buit if you have much greater confidence in that share than many of your other holdings, why not go seriously overweight.

Not being DOGmatic, or DOGtrinaire, or DOGdgy, or DOGged! Made a new year resolution to time the purchase on the charts; have done that occasionally but not often enough. My most frequent expletive when timing is wrong yet again is DOGgone!

Eric, DDL.

Eric

Agreed being too rule-bound results in an average performance, but even your brief comments above make interesting food for thought for those of us less experienced - I also try to be patient on when to buy into a new prospect - I also fail! (Write five hundred times - buy low, sell high; buy low, sell high . . .)

Glad to see you using your honorary degree after your name - DOGtor of Letters (or is it Litter of Dogs or simply Dedicated Dog Lover?)

SD

SD: Doting DL so you pretty well got it - BAT! Not sure about the Honorary though - I do a lot of work for the pleasure. Not sure about the experience either. You, as MP and Di, do your homework thoroughly: essentially, determining for yourselves the value of the company and then comparing the actual value on the market. NML is an interesting case. The geologists have proven the diamond resources by appropriate sampling techniques; the risk all seems to be around the management of the extraction process, together with an appropriate level of funding. There's a bit of a gamble there (noting your post on GMC!). A mimimum upside of 4 times against a potential loss of funds - compare SEO where the downside is marginal against a similar upside. Its not an argument against the NML investment because you are spreading the risk over many stocks: like you my holding is around 4% of portfolio; the superior SEO scenario is reflected in my weighting there being more like 50%.

May we all prosper together! Eric

Agreed Eric. SD I'll dig out the papers and list my dogs and losses but it's not a pretty sight! After following this BB I sold many I had sat on since the dotcom bubble and took my losses of 27000 -ouch and that's just this year!
Now I'm pleased to say I'm back to losses of 14000 which I'll carry over to next year and if all the helpful advice continues on this site I hope to break even. If I sold my NLR I could be in profit this year but I feel they could be my pot of gold and also GMC and SEO! no sales there! Hindsight is a wonderful thing too---I sold 4000 SBT at 25p for a big loss and 3000 MMG also at a big loss---look where they are today!

MP hang in there girl...it's gotta get better. NML may not be making us a profit at the mo but the potential is huge ...you just need patience :-)
I suppose I am lucky that I did not get into this game until way after the dotcom bubble; well except for a FTSE tracker fund I still have but that is now well in profit again.I have lots of goodies in my portfolio including SEO, GMC, KMR, NOP, GFM, YOO and NML, NML, NML oh did I mention NML. I still have two dogs, PTG ( so few I don';t bother with them)and TGN which needs patience and will come good again. I did have DDD and was sitting on a 70% loss and then one day mad buying for no reason, I bought more averaged down and got out at breakeven; it's gone back down since so I was well happy.
I firmly believe that NML will make us all a packet but as to when that is another story so I try not to worry about the price and spread too much.
Di

Glad to see such courage MP - don't give up, you're in good company listening to Eric and Di. (Used to be Hugh and I in the old days, didn't it!)

V. interesting Di - no comment from you on EPD (yet).

Is it a legitimate strategy to "straddle" two very similar shares as a hedge or is this just a cop out? e.g. I hold BFC and DOO as a pair equal weight. They have pretty well trakced each other with mild difference in timing. I see NML and EPD as another pair, also EEN and SEY in the oil sector. So that one has a stock spread within a sector spread - which probably accounts for why I have more holdings than most.

Any views?

SD

Well SD EPD looks very interesting...I could be tempted if I had any spare cash; which I don't at the mo. It's a good idea to have more than one stock in a sector and I have three miners, NML, KMR and GFM It is difficult to do this in all sectors as I usually only carry 10 stocks or there abouts.
Di

Thanks Di, very helpful. I'm getting used to the idea that my 25 stocks need a bit of a prune (spring for the early flowerers and autumn for the late ones, isn't it?).

SD

Well SD I started off putting 10% of my portfolio into each share or therabouts...5% if I thought they were really risky. As my portfolio has risen I had still kept to this pretty much although at one stage SEO was 40% of it due to going up so much. NML currently has 13% of my portfolio and KMR has 25% as I think it is a sure bet in the long term ( well as much as any share can be)plus it has gone up alot.
Di

Good dialogue, friends. 'Clever dog' again, SD. A good argument for holding parallel shares, apart from spreading the risk, is that one acts as a benchmark for the other. Recall Andy's debate; he's playing a nicce little game that should appeal to dogs: held out a carrot, sorry bone, and then decided that EPD had beaten NML to the dig and will then use some profits from EPD to but his tranche of NML. Great theory. Problem is when everyone else is thinking the same way and you would be better with a 'contra' policy.

Number of holdings is a key point. I agree a 10% norm, which may be irrespective of size of portfolio. Some will become overweight by growth in sp as others will become underweight. Run the profits; cut the losses is the maxim. Not always, but here you need to be careful, I kept buying CFP to keep it at 10% which gives a real whack (sorry, SD) when the share recovers. The argument is, I think, that if the price falls you should either be selling or buying more and not just holding; no real point in keeping a share underweight. Mind, I have done that also, before everyone embarrasses me by saying 'well done', with ASC and YOO; sensible - we'll wait and see! But it is worth repeating the maxim that profits should be run until momentum has gone (or is going); the most important maxim in the game?

Eric

Counting 5 "pairs" as single holdings, I have 20 holdings ranging from 2% (VTI) to 13% (SEO of course) of current value. As I get more acquainted with the more successful shares (or ones in whose future I am more confident), I find I am naturally adding to those whilst leaving others behind. Gradually the laggards start to look out of place in my portfolio and thence in my affections too - so they will probably be going at the right moment, which is not this week of gloom all round. So I am working round to your portfolio pattern, but an probably inclined towards 13 rather than 7 (both lucky numbers, of course) against a good average of 10.

Am also contemplating separating off a portion (10%?) of capital from my core holdings to do a bit of shorter term trading - quick 20-25% profit and out turned over 4 or 5 times a year. This could equally well be in core holdings which develop a well defined periodic volatility as in purely opportunistic stock picks.

Interesting discussion, thanks to all contributors.

Off home for marrowbone stew with biscuits - bootiful.

SD

New Millennium Resources Ltd
31 March 2005



New Millennium Resources Limited
('NML' or the 'Company')

Financial Report For The Half-Year ended 31 December 2004

Directors' report

The directors submit the financial report of the economic entity for the
half-year ended 31December 2004.

Directors

The names of directors who held office during or since the end of the half-year:

Senator David Johnston

Datuk Fung-Chee Lim

Dato' Azizi Yom Ahmad

Chong-Kiat Lim

Nikolajs Zuks (ceased being a director on 29 November 2004)

John M Cross

Shane M Healy

Principal activities

The principal activities of the entity during the course of the half year were
diamond mining via the controlled entity, Angola Resources Pty Ltd, in Angola
and diamond exploration via the controlled entity Greenland Minerals Pty Ltd in
Greenland in JV with Hudson Resources Inc.

Results of operations

The loss after tax for the half year ended 31 December 2004 was $2,282,879
(2003:$308,196).

Review of Operations

Angola

Through its wholly owned subsidiary, Angola Resources Pty Ltd, the Company is in
a joint venture with Endiama (51%) the Angolan Government owned diamond monopoly
and Mombo Lda (15%), to explore and extract alluvial diamonds at Lapi in Lunda
Norde province. Final exploration activities have commenced in Angola for
diamonds after a three month delay due to heavy seasonal rains in the area. A
full complement of mining plant and equipment has now arrived on site. Base camp
has been established and infrastructure including roads and bridges have been
built in preparation for production.

Greenland

During the year the Company incorporated a separate and wholly owned entity,
Greenland Minerals Pty Ltd, into which all Greenland assets were transferred.
The Company has entered into a joint venture with Hudson Resources Inc of Canada
to explore for kimberlite diamonds on its concession at Sarfartoq. The terms of
the JV include a 20% free carry for the Company. Hudson to date has been
successful in discovering encouraging signs of diamonds in the area and is
continuing to carry out further exploration.

Subsequent events

Other than as disclosed in note 6 to the financial statements, no other matters
or circumstances have arisen since the end of the half year which significantly
affected or may significantly affect the operations of the economic entity, the
results of those operations, or the state of affairs of the economic entity in
future financial years.

Directors' report

Likely future events

The Angolan diamond project will move from exploration phase to production phase
by June 2005. Heavy rains in the area of Angola have severely set back the
production schedule. By June 2005 the Company will be in a position to make
medium to long term forecasts as to cash flows and profits. The Company is also
confident that its asset in Greenland and its JV with Hudson Resources will be
of benefit and is encouraged by the work carried out to date.
It is the Company's policy to acquire further diamond concessions in the near
future should opportunities present themselves.

Director
----------------------------------------
John Michael Cross - Managing Director



CONSOLIDATED STATEMENT OF FINANCIAL PERFORMANCE
FOR THE HALF-YEAR ENDED 31 DECEMBER 2004
Economic Entity
Note 31.12.04 31.12.03
$ $

Revenues from ordinary activities 116,611 414,138
Administration (142,421) (80,184)
Cost of sale of freehold land and buildings - (407,271)
Exploration expenditure (274,827) -
Borrowing costs (35,190) (3,960)
Insurance (34,109) (17,201)
Depreciation (208,735) (32,177)
Consultancy and professional fees (427,129) -
Directors' remuneration and benefits (660,834) (130,800)
Travelling expenses (242,651) -
Employee benefits (32,290) (33,187)
Security and related costs (210,678) -
Other expenses from ordinary activities (130,626) (17,554)
------- -------
Loss from ordinary activities before income
tax expense 2 (2,282,879) (308,196)
Income tax expense relating to ordinary - -
activities ------- -------
Loss from ordinary activities after income
tax expense 10 (2,282,879) (308,196)
------- -------
Basic loss per share (cents per share) 11 (0.02) (0.48)

Diluted loss per share has not been disclosed as the notional exercise of options
over ordinary shares would not show an inferior view of the basic loss per share
and as such they are not considered dilutive.

The statement of financial performance is to be read in conjunction with the
attached notes to the half-year financial statements.


CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER 2004

Economic Entity
Note 31.12.04 30.6.04
$ $

CURRENT ASSETS
Cash assets 6 154,371 53,372
Receivables 14,905 9,314
Other 54,299 34,109
-------- --------
TOTAL CURRENT ASSETS 223,575 96,795
-------- --------
NON-CURRENT ASSETS
Exploration, evaluation and development
expenditure 2,640,451 2,170,984
Property, plant and equipment 2,470,045 428,579
Other 10,125 10,125
-------- --------
TOTAL NON-CURRENT ASSETS 5,120,621 2,609,688
-------- --------
TOTAL ASSETS 5,344,196 2,706,483
-------- --------
CURRENT LIABILITIES
Payables 7 2,550,295 1,055,340
Interest bearing liabilities - 28,136
Provisions 3,370 9,370
-------- --------
TOTAL CURRENT LIABILITIES 2,553,665 1,092,846
-------- --------
TOTAL LIABILITIES 2,553,665 1,092,846
-------- --------
NET ASSETS 2,790,531 1,613,637
-------- --------
EQUITY
Contributed equity 8 17,414,252 14,595,358
Options reserve 9 640,879 -
Accumulated losses 10 (15,264,600) (12,981,721)
-------- --------
TOTAL EQUITY 2,790,531 1,613,637
-------- --------

The statement of financial position is to be read in conjunction with the
attached notes to the half-year financial statements.




CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE HALF-YEAR ENDED 31 DECEMBER 2004

Economic Entity
31.12.04 31.12.03
$ $

CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from customers - 3,626
Payments to suppliers and employees (1,351,635) (188,879)
Interest received 5,187 5,512
Borrowing costs - interest paid (35,190) (2,729)
Borrowing costs - other - (1,231)
------- -------
Net cash (used in) operating activities (1,381,638) (183,701)
------- -------
CASH FLOWS FROM INVESTING ACTIVITIES
Proceeds from sale of non-current assets - 392,859
Purchase of non-current assets (634,637) (104,886)
Payment for exploration expenditure (104,167) (24,563)
Loan to Angola Resources Pty Ltd - (378,065)
------- -------
Net cash (used in) investing activities (738,804) (114,655)
------- -------
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from borrowings - 390,700
Proceeds from share issues 2,254,000 -
Payment of costs related to capital raising (9,530) -
Repayment of borrowings (23,029) (266,000)
------- -------
Net cash provided by financing activities 2,221,441 124,700
------- -------
Net increase (decrease) in cash held 100,999 (173,656)
Cash at 1 July 2004 53,372 307,732
------- -------
Cash at 31 December 2004 154,371 134,076
------- -------

The statement of cash flows is to be read in conjunction with the attached notes
to the half-year financial statements.


Notes to the financial statements for the
half-year ended 31 December 2004

NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES

(a) BASIS OF PREPARATION

The half-year consolidated financial statements are a general purpose
financial report prepared in accordance with the requirements of the
Corporations Act 2001, Accounting Standard AASB 1029: Interim Financial
Reporting, Urgent Issues Group Consensus Views and other authoritative
pronouncements of the Australian Accounting Standards Board.

The financial report covers the economic entity of New Millennium Resources
Limited and its controlled entities Angola Resources Pty Ltd and Greenland
Minerals Pty Ltd. New Millennium Resources Limited is a company incorporated
and domiciled in Australia and listed on the Alternative Investment Market
('AIM') in the United Kingdom. Unless otherwise stated, all figures are in
Australian dollars.

It is recommended that this financial report be read in conjunction with the
annual financial report for the year ended 30 June 2004 and any public
announcements made by New Millennium Resources Ltd and its controlled entities
during the half-year in accordance with continuous disclosure requirements
arising under the Corporations Act 2001.

The accounting policies have been consistently applied by the entities in the
economic entity and are consistent with those applied in the 30 June 2004
annual report except as disclosed in note 12.

The half-year report does not include full disclosures of the type normally
included in an annual financial report.

(b) GOING CONCERN

The financial report has been prepared on the going concern basis, which
contemplates continuity of normal business activities and realisation of
assets and settlement of liabilities in the ordinary course of business. The
going concern of the economic entity is dependant upon the economic entity
obtaining additional funds through successful capital raising and/or the
future profitability from successful exploitation of its mineral projects.
The directors continue to monitor the ongoing funding requirements of the
economic entity and are at present considering various funding alternatives to
bring its mineral projects to successful exploitation.

The directors are confident that sufficient funding will be secured to enable
the consolidated entity to continue as a going concern and as such are of the
opinion that the financial report has been appropriately prepared on a going
concern basis.

Status of company

On 29 November 2004 the company changed its status from a no liability company
to that of a public limited company.

Economic Entity
NOTE 2: LOSS FROM ORDINARY ACTIVITIES 31.12.04 31.12.03
$ $

The following revenue and expense items are relevant in
explaining the financial performance for the interim
period:

Proceeds on sale of freehold land and buildings - 405,000
Carrying amount of freehold land and buildings sold - (407,271)
-------- --------
Net loss on disposal of non-current assets - (2,271)
-------- --------

Interest received 5,187 5,512
Write back of accrual no longer required 25,274 -
Net exchange gain 86,150 -


Notes to the financial statements
for the half-year ended 31 December 2004

NOTE 3: ACQUISITION AND DISPOSAL OF SUBSIDIARIES

On 4 August 2004, the Company incorporated a new wholly owned subsidiary
'Greenland Minerals Pty Ltd' to hold all of the group's assets and operations in
Greenland.

NOTE 4: SEGMENT REPORTING

Business segments

The economic entity operates in only one business segment being the mineral
exploration industry. Therefore, the statement of financial performance and
statement of financial position as reported on pages 3 and 4 cover the business
segment of the Company.

The economic entity's business segments operate geographically as follows:

Australia Mineral exploration industry

Greenland Mineral exploration industry

Angola Mineral exploration industry


Geographical segments

Geographical
location Segment Revenue Segment Result Segment Assets Segment Liabilities
31 31 31 December 31 31 30 June 31 December 30 June
December December 2004 December December 2004 $ 2004 2004
2004 2003 $ 2003 2004 $ $
$ $ $ $

Australia 116,611 414,138 (1,046,614) (274,909) 234,615 128,735 1,018,796 743,535

Angola - - (1,162,547) - 4,821,230 2,289,397 1,188,958 57,953

Greenland - - (73,718) (33,287) 288,351 288,351 345,911 291,358

116,611 414,138 (2,282,879) (308,196) 5,344,196 2,706,483 2,553,665 1,092,846


NOTE 5: CONTINGENT LIABILITIES

The Government of Greenland Bureau of Minerals and Petroleum will conduct a
comprehensive evaluation and assessment on the cost to clean up the Company's
exploration areas in Greenland. In the directors' opinion, no cash outlay will
arise for the Company as these costs will be settled in lieu by way of
surrendering the Company's campsite and equipment. In the event that the
authority demands cash compensation or any rehabilitation work to be performed,
a liability for rehabilitation will then come into existence. At this stage, no
quantification is made as the cost can not be reliably measured.

In the event that a successful take over of the Company or a change in the
control of the company occurs, the employment contracts with John Cross and
Shane Healy will immediately terminate and the Company will pay out the balance
of any remuneration payable under both contracts up to and including 19 April
2007. As at 31 December 2004, the Company has remuneration commitments of
$936,700 payable to both executive directors.

In the opinion of the Directors, other than the above, there were no contingent
liabilities at 31 December 2004 and subsequent to the date of this report.

Notes to the financial statements
for the half-year ended 31 December 2004

NOTE 6: EVENTS SUBSEQUENT TO REPORTING DATE

Subsequent to reporting date the following events had occurred:-

The economic entity has received a draw down of US$1.25m (A$1.67m) in the form
of a convertible note which has been converted into 16,666,667 shares.
The debt payable to Badenhorst amounting to $825,300 in regard to the
acquisition of assets in Angola has been settled by way of issue 8,253,000
ordinary shares at A$0.10 each in the Company.

Directors' fees and loans amounting to $386,527 have been satisfied by way of
issue 3,865,270 ordinary shares at A$0.10 each in the Company.
Other than the above, there has not been in the interval between 31 December
2004 and the date of this report any item, transaction or event of a material
and unusual nature likely, in the opinion of the directors of the Company, to
affect significantly the operations of the economic entity, the results of those
operations, or the state of affairs of the economic entity in future financial
years.

NOTE 7: PAYABLES

31 December 30 June
2004 2004
$ $

Trade and other payables 1,164,356 668,813
Accrued directors' fees (i) 466,527 386,527
Payable to Badenhost Combine (ii) 825,300 -
Capital raising costs payable 94,112 -
--------- --------
2,550,295 1,055,340
--------- --------

(i) Subsequent to 31 December 2004 directors' fees payable
amounting to $386,527 have been satisfied by way of an issue of 3,865,270
ordinary shares in the company.

(ii) Subsequent to 31 December 2004 the debt payable to
Badenhorst Combine amounting to $825,300 has been satisfied by way of an issue
of 8,253,000 ordinary shares in the company.

Notes to the financial statements
for the half-year ended 31 December 2004

NOTE 8: CONTRIBUTED EQUITY

31 December 30 June
2004 2004
$ $
136,571,762 (2003: 107,679,495) fully paid ordinary
shares 17,414,252 14,595,358
--------- ---------

Contributed equity at the beginning of the period 14,595,358 11,186,980

7,814,000 shares issued at $0.05 per share in
settlement of loans from directors - 390,700

21,043,327 shares issued at $0.07 per share on 4
February 2004 by way of placement - 1,473,033

18,000,000 shares issued at $0.089 per share on 17
January 2004 as part of the consideration for

acquisition of the issued capital of Angola
Resources Pty Ltd - 1,602,249

5,040,000 shares issued at $0.14 per share on 4
August 2004 re acquisition of mining equipment from
Badenhorst Combine 710,640 -

7,352,267 shares issued at $0.096 per share on 11
August 2004 for working capital 704,000 -

16,028,214 shares issued at $0.097 per share on 5
October 2004 for working capital 1,550,000 -

471,786 shares issued at $0.10 per share on 5
October 2004 in lieu of placement fees 47,178

Less: Capital raising costs arising from issues (192,924) (57,604)
--------- ---------
17,414,252 14,595,358
--------- ---------

Notes to the financial statements
for the half-year ended 31 December 2004

NOTE 9: OPTIONS RESERVE

Option-based payment

During the period ended 31 December 2004, the company made six option based
payments:

Type of Directors Executive Directors Payment of Acquisition Payment of
Arrangement Incentive Employment Remuneration Consulting Fees Cost of Capital Raising
Options Plan Agreement Controlled Costs
Entity

Date of 29 November 29 November 12 January 2004 29 November 17 January 29 November
grant 2004 2004 2004 2004 2004

Number 11,000,000 4,000,000 8,000,000 1,500,000 10,000,000 1,445,929
granted

Exercise 4 pence 8 pence A$0.20 12 - 33 pence A$0.20 A$0.20
price

Last vesting 19 April 2007 19 April 2007 N/A 18 November N/A N/A
date 2006

Expiry date 3 years after 19 April 2009 11 January 2007 18 November 11 January 2007 28 February
vesting 2006 2006

Vesting
conditions (1) (2) Vested during (3) Vested during Vested during
the period the period the period

(1) The following options will be vested if the company's share price on the
London Stock Exchange Alternative Investment Market ('AIM') has reached a
certain minimum base price in any three month period up to 19 April 2007:

NUMBER OF OPTIONS BASE PRICE

2,000,000 40 pence
2,000,000 45 pence
2,000,000 50 pence
5,000,000 55 pence

(2) The following options will be vested if the company's share price on the
London Stock Exchange Alternative Investment Market ('AIM') has reached a
certain minimum base price in any three month period up to 19 April 2007:

NUMBER OF OPTIONS BASE PRICE

1,000,000 Vested during the year
1,000,000 16 pence
1,000,000 24 pence
1,000,000 32 pence

(3) The following options will be vested if the company's share price on the
London Stock Exchange Alternative Investment Market ('AIM') has reached a
certain minimum base price in any three months during the exercise period:

NUMBER OF OPTIONS BASE PRICE EXERCISE PRICE

400,000 16 pence 12 pence
300,000 24 pence 18 pence
300,000 32 pence 24 pence
500,000 45 pence 45 pence

Notes to the financial statements
for the half-year ended 31 December 2004

NOTE 9: OPTIONS RESERVE (CONT'D)

Option Amount Recognised During the Period Unamortised Amount Fair Value
Reserve
$ $ $

Directors Share Option
Plan 340 8,920 9,260

Executive Employment
Plan 72,118 32,538 104,656

Directors' Remuneration 240,824 - 240,824

Payment of Consulting Fees 292 6,248 6,540

Acquisition Cost of
Controlled Entity 285,200 - 285,200

Payment of Capital
Raising Costs 42,105 - 42,105
------------ ------------------------------------------------ --------------
640,879 47,706 688,585
------------ ------------------------------------------------ --------------

NOTE 10: ACCUMULATED 31 December 31 December
LOSSES 2004 2003
$ $

Accumulated losses at the beginning of the half-year (12,981,721) (5,162,998)

Losses from ordinary activities during the period (2,282,879) (308,196)
------------------------------------------------------ ----------
Accumulated losses at the end of the half year (15,264,600) (5,471,194)
------------------------------------------------------ ----------

NOTE 11: LOSS PER SHARE

Basic loss per share (cents per share) (0.02) (0.48)

Weighted average number of ordinary shares outstanding during the half year used
in calculation of basic loss-per share 125,236,463 66,709,950
------------------------------------------------------ -------

NOTE 12: CHANGE IN ACCOUNTING POLICY

During the half year ended 31 December 2004, the economic entity changed its
accounting policy with regard to accounting for the issue of options. In terms
of the new accounting policy, the economic entity now expenses over the vesting
period the fair value of options issued to employees and for services rendered.
Options used for the acquisition of assets are valued at fair value and
capitalised as part of the acquisition cost of the asset. This policy complies
in all material respects with the requirements of IFRS 2 'Share Based Payments'.


Notes to the financial statements
for the half-year ended 31 December 2004

NOTE 12: CHANGE IN ACCOUNTING POLICY (CONT'D)

The restatement of the economic entity's accumulated losses, option reserve,
current statement of financial performance and other affected financial items is
set out below showing the information that would have been disclosed had the new
accounting policy always applied:

Accumulated Current half Option Exploration Contributed
losses year loss reserve and equities
evaluation
expenditure
(share raising
costs)

31 30 31 31 31 30 31 30 31 30
December June December December December June December June December June
2004 2004 2004 2003 2004 2004 2004 2004 2004 2004
$ $ $ $ $ $ $ $ $ $


Before the effect of
the change in
accounting
policy at the
end of financial
period (14,951,026) (12,981,721) (2,210,129) (308,196) - - 2,355,251 2,170,984 17,456,357 14,595,358

Effect of the
change in accounting
policy (313,574) (240,824) (72,750) - 640,879 526,024 285,200 285,200 (42,105) -

After the effect of
the change in
accounting policy at
the end of the
financial
period (15,264,600) (13,222,545) (2,282,879) (308,196)640,879 526,024 2,640,451 2,456,184 17,414,252 14,595,358

Directors' declaration

The directors of the company declare that:

1. The financial statements and notes, as set out on pages 3 to 12:

a. comply with Accounting Standard AASB 1029: Interim Financial
Reporting and the Corporations Regulations; and

b. give a true and fair view of the economic entity's financial
position as at 31 December 2004 and of its performance for the half
year ended on that date.

2. as set out in Note 1(b), there are reasonable grounds to believe that the
Company will be able to pay its debts as when they become due and
payable.

This declaration is made in accordance with a resolution of the Board of
Directors.

Director

SHANE M HEALY
FINANCE DIRECTOR AND CHIEF FINANCIAL OFFICER


Contact:

New Millennium Resources Limited

John M. Cross (Managing Director)

Tel: +61 414 375 758 Tel:


jcross@new-millennium.com.au

Shane M. Healy (Finance Director)

Tel: +61 414 809 010


shealy@new-millennium.com.au

Daniel Stewart & Company Plc

Marc Young

Tel: +44 (0)207 374 6789

St. Swithin's PR

Gary Middleton

Tel: +44 (0)795 160 3289

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

The world has been struck dumb by the news that they are 3 months behind - just a single sell of 95,000 at 3.50p!! Although the marked price is still 4.00/5.00. Must say I am concerned by the mere Aus$154k cash on the BS compared to the annual operating expenses of Aus$2.2m (don't all those directors do well!). So they are certainly going to need to raise cash very soon - unless they pay all their creditors with shares in our company, which I don't suppose makes much difference to us in the end who gets to share future profits.

So I have not topped up on NML today, but am looking to pick up a few of its its twin EPD which also published interims today saying they were about to start production end of April. It's totally blue today - both trades so far that is!

I get the feeling we've finished book-squaring amongst the professionals for this quarter - maybe leaves just a few CGT planners amongst the amateur brethren to place their sells by 5th April.

SD

stockdog,

I agree, these results are diappointing, they clearly will need to raise cash quickly IMHO, (I couldn't believe the BS figure!) and thay have again failed to deliver on a commitment to commence mining "by March 2005", buy a couple of months,

Interesting that none of the regulars on ADVFN have posted this morning, so they either knew in advance, or are indeed "struck dumb" as you suggest.

One poster has said he has sold 100,000 @ 4p, which is not showing yet, so there MAY be more sales to come. The 3.5p figure for the 95,000 sell does not inspire confidence!

I think they will announce a placing or fundraising very soon.

If it's a placing, probably at 3p, no more IMHO.

EPD as you rightly say are due to comence mining soon, and I expect the price in the 70's IF they commence on time, more if any dwecent news from Finland.

And Firestone are reporting today, only interims, but they will be updating the market on their latest news, another one to watch IMHO! (I hold FDI and EPD)

SD and Andy...we all knew that NML would be late because of the rains. It is no suprise to see that NML are delayed. At least they are getting started though. I think hold on and wait. There is no point in selling at the current price. Although if it goes lower or there is a low placing I will buy more even though I don't have spare cash...I will find some somehow.
Di

Di, I agree that certainty for the end of June start is very helpful to calm jitters. But we do need an announcement soon as to how they will pay the wages between now and then. That second bit of news will then firmly underpin the base price from which it can only go up in due course. No intention of selling this side of the U-tube.

I haven't checked (sorry) but am I right that NML's kimberlite has a higher grade than EFD's rather meagre 0.69 carats per tonne on the Satellite and only 0.16 carats per tonne on the Main Pipe. So it may do better in the long run.

Andy - you'll have to carry the load on Firestone for me, I don't have the resources to include that one too. Maybe if I could, I could spend my year cross-trading between them at different stages of their cycles going ever upwards at each turn. I imagine three stocks gives you the edge over just two for that game.

SD