Beaconsfield Gold - Australia's Richest Gold Resource.

High Grade, Low Cost Gold Producer

December 2005 Quarterly Report

Report on Activities for the Quarter ended 31 December 2005

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HIGHLIGHTS FOR THE QUARTER BEACONSFIELD MINE JOINT VENTURE (Beaconsfield Gold NL direct interest 48.49%) Gold production was 19,675 ounces at a direct operating cost of $519 per ounce. As previously announced, production was negatively impacted when certain high-grade stopes were temporarily suspended following a seismic event on 26 October 2005. Recommendations from independent geotechnical reviews have been successfully implemented and production for the March 2006 quarter is anticipated to return to more normal levels. Work is ongoing to optimise mining of resources in the 840E and F21 zones and, subject to this, the mine site will extend the decline to the F21 zone and prepare drill access for a deep diamond drilling program later in the year. BEACONSFIELD GOLD NL As part of the Company’s exploration initiative, rights to the Stavely Project in western Victoria were acquired in late-July 2005. A detailed soil sampling programme in the December quarter at the Fair View Prospect located a major gold anomaly. The strength, sharp definition, excellent continuity of high gold values and large dimensions of the 4.8 km plus long gold-in-soil anomaly mark it as an exceptional, large scale exploration target. The anomaly is yet to be drill tested; two rigs have been booked to commence drilling in March. The Company has expanded the area under its control in the Stavely Project region from 370 to 1,180 sq km.

SUMMARY OF KEY PERFORMANCE INDICATORS FOR THE QUARTER BEACONSFIELD MINE JOINT VENTURE (Beaconsfield Gold NL direct interest 48.49%) Ore Milled 53,445 tonnes Head Grade 11.8 g/t gold Gold Recovery (excluding changes in gold in circuit) 95.0 % Gold Produced 19,675 ounces Direct Operating Expenditure $519/ounce produced Capital Expenditure (including ore reserve drilling) $52/ounce produced Direct Operating plus Capital Expenditure $571/ounce produced Effective BMJV Cash at 31 December 2005 $3.7 million BEACONSFIELD GOLD NL Share of BMJV Gold Production 9,540 ounces Revenue from Gold Sales $5.8 million $610/ounce produced Cash Flow before Corporate Costs $0.4 million $39/ounce produced Total Effective Cash at 31 December 2005 (excluding pending net $3.15 million insurance settlement) $3.7 million

1. BEACONSFIELD MINE JOINT VENTURE (BMJV) (Beaconsfield Gold Direct Interest 48.49%)

1.1 OPERATING PERFORMANCE

As previously announced, gold production from the Beaconsfield Mine was disrupted following a seismic event on 26th October. Production of 19,675 ounces was consequently lower than for the September 2005 quarter (28,083 ounces). Immediately following the event, mine management suspended production from certain high grade stopes and implemented independent geotechnical and mining reviews. Grade dropped to 11.8g/t compared to 15.7g/t in the previous quarter because of the lack of access to high grade stopes. Stoping activities were gradually recommenced as ground support was upgraded where required, but a significant number of high grade stopes remained inaccessible throughout the quarter. The availability of low grade stopes in areas not significantly affected by seismicity, and increased sill driving, allowed ore hoisted to improve to 60,567 tonnes (September 2005 quarter: 55,593 tonnes).

Late in the quarter, the geotechnical and mining reviews were completed. A revised mining method, known as “checkerboarding”, is being introduced and additional ground support is being used in seismically prone areas. This mining method is a variation on the previously employed half-upper method but follows a different sequence to avoid the creation of narrow, highly stressed crownpillars. The new method is not expected to lead to material changes in either production rates or costs and most of the deferred high grade stopes are now available for mining. There has been no permanent loss of gold as a result of the seismic event.

Mill throughput was constrained by repeated secondary crusher failures and the troublesome unit was replaced in January2006. Spare mill capacity will now allow the ore stockpiles, which increased by7,121 tonnes during the quarter, to be reduced to more normal levels.

The mine access decline advanced by only 55 metres to a depth of 1,090 metres below surface. After October 26, the decline development crew was reallocated to ore mining activities to accelerate the resumption of normal production. 1,987 tonnes of waste rock were hoisted to surface early in the quarter. The balance was utilised underground as stope backfill, together with 1,552 tonnes of sand-fill.

The mine did not intersect any significant water inflows. Development and stoping advanced unimpeded by water inflows. The pumping rate decreased marginally to be at 60 litres per second in December

Production Summary

(1) Mill reconciled head grade.
(2) Gold recovery excluding changes in gold in circuit.

1.2 EXPENDITURE

Operating, Capital and Total Cash Expenditure

(1) Including underground diamond drilling costs.
(2) Direct operating expenditure (including management fee to Allstate) plus capital expenditure.

Direct operating costs of $519 per ounce were significantly impacted by the lower gold production resulting from the lower mined grade and the secondary crusher problems in the mill (September 2005 quarter $413 per ounce). Cost reduction and capital deferral measures implemented to mitigate the impact of the reduced production saw cash expenditure reduced by more than $2 million compared to the September 2005 quarter.

In terms of cost per tonne milled, the December 2005 quarter figure of $191 was lower than the previous quarter ($195 per tonne).

Capital expenditure fell to $1.0 million (September 2005 quarter: $2.0 million) with completion of the extensive ore reserve diamond drilling program, limited progress in the mine access decline and the deferral of projects to mitigate the impact of the seismic event.

1.3 UNDERGROUND DRILLING OF THE TASMANIA REEF

The F Series underground ore reserve drilling programme, which commenced in December 2003, was completed during the September 2005 quarter for a total of approximately 32,000 metres in 112 holes. Assays have been received for all holes. Onlyholes F110 and F112, for which assays were received subsequent to the release of the September 2005 Quarterly Report, are listed below.

Notes:

During the September 2005 quarter, Holes F110 and F112 hadbeen drilled but assayresults were not available.

(1)The co-ordinate system is defined such that the centre of the Hart Shaft has the co-ordinates 2600mE, 5000mN and the grid is orientedat AMG north plus 47.5º.
(2)Estimated depthbelow surface.
(3)Estimated horizontal thickness of the reef intersection.

1.4 ORE RESERVES/RESOURCES

1.4.1 As at 31 December 2005

The reserves and resources for the Tasmania Reef as at 31 December 2005 have been estimated by Allstate as Manager of the BMJV as follows:

The Proved and Probable Reserves were estimated from the Measured and Indicated Resources, but exclude Indicated Resources of 159,000 tonnes at 19.2 g/t gold (98,000 ounces contained gold) contained in the F21 Zone. Following the completion of diamond drilling in the 840E Zone, resources in this area have been upgraded from the Inferred category to the Indicated category,estimated at 305,000 tonnes at 9.8 g/t gold (96,000 ounces contained gold).

Work is ongoing to optimise the mining of the 840E and F21 zone resources. This detailed optimisation study is expected to be completed by April 2006.

1.4.2 Reconciliation between 30 June 2005 and 31 December 2005 Ore Reserves

Total gold milled in the six months to 31 December 2005 was estimated to be 50,458 ounces. Subtracting this total from the ore reserves at June 2005 (285,000 ounces) gives 234,542 ounces.

As the ore reserves at 31 December 2005 were 233,000 ounces, there was no material decrease in ore reserves over the six months, other than allowing for mining depletion. As noted above, the updated reserves contain no allowance for the F21 and 840E Zones which have been estimated by Allstate to currently have an Indicated Resource of 194,000 ounces of contained gold.

1.4.3 Resources Additional to Reserves

At 30 June 2005, resources additional to reserves were 458,000 tonnes at 12.2 g/t gold, containing179,000 ounces. At 31 December 2005, resources additional to reserves for the Tasmania Reef were 523,000 tonnes at 13.1 g/t gold, containing 220,000 ounces of gold.

1.5 BMJV UNDERGROUND EXPLORATION

Following the completion of the F Series resource diamond drilling programme in September 2005, two holes were drilled from the hangingwall drill drive on the 870mL to investigate the possibility of an economic Southern Reef paralleling the Tasmania Reef in the hangingwall. Evidence for the Southern Reef had previously been seen in development on the 375mL and in Hole C13 drilled from the 300mL and several surface drill holes. Holes F113 and F114 totalling 677.6m were completed in the quarter, but no significant structures or mineralisation were encountered.

1.6 BMJV REGIONAL EXPLORATION

Surface diamond drilling commenced at Middle Arm Gorge late in the quarter and hole B52 reached a depth of 29m prior to the Christmas break. This six-month program aims to investigate a possible separate reef structure paralleling the Tasmania Reef. The target is conceptual based on a model of the Tasmania Reef, with a target depth in the first hole expected between 400 – 600m. An initial programme of 3 to 4 holes is planned. Middle Arm Gorge is located around 2 km south of the Tasmania Reef. Follow-up work on the historical Salisbury Gold Field is also planned.

1.7 ARBITRATION AWARD

As previously reported, Beaconsfield Gold is expecting to receive approximately $6.3 million, being its 48.49% share of a $13 million in-principle settlement agreed with the insurer of the plant design and construction contractor, subject to the insurer being provided with various releases. 50% of any proceeds received by Beaconsfield Gold in this matter are required to be applied against a contingent liability in respect of interest set aside by a former secured creditor.

Negotiations to obtain the required releases progressed throughout the quarter.

1.8 ALLSTATE EXPLORATIONS NL (“Allstate”) CLAIM AGAINST LEGAL ADVISER

The previously reported claim by Allstate, on its own behalf and as Manager of the BMJV, seeking damages for professional negligence against a legal firm continued to be progressed. There were no significant developments during the quarter.

2. EXPLORATION OF BEACONSFIELD GOLD’S TENEMENTS

2.1 STAVELY PROJECT, WESTERN VICTORIA

2.1.1 Fair View Gold Prospect

In mid-2005, Beaconsfield Gold commenced an initiative to broaden its exploration activities beyond the region of the Beaconsfield Mine by selectively pursuing other exploration interests.

In July 2005, Beaconsfield Gold acquired its first such interest when it secured an option to acquire 100% of Stavely Exploration Licence 4556 (370 sq km), located south of the Grampians in western Victoria, from New Challenge Resources Pty Ltd (refer Figure 1).

In the announcement of the acquisition on 28 July 2005 Beaconsfield Gold’s Chairman, Dr Denis Clarke, commented “…Stavely presents us with an exceptional, too-good-to-ignore opportunity to explore an advanced project with substantial potential for large-scale polymetallic mineralisation. …”

Beaconsfield Gold, on the basis of the exploration results of previous explorers, assessed the Stavely region as containing large scale hydrothermal/plutonic mineralising systems associated with gold and base metal mineralisation. A weak, ill-defined gold-in-soil anomaly located by a previous explorer at the Fair View Prospect, was selected as a prime target for early work (refer Figure 2).

During the December quarter, Beaconsfield Gold conducted detailed soil sampling over what it interpreted as the possible trend of gold mineralisation at Fair View. Some1,865 samples were collected at 20m spacings on 61 lines spaced at 80m covering a 4800m x 600m area over the NNW-SSE trend. Samples were analysed for gold using fire assay.

Assay results are still being finalised and compiled and certain high-grade results are in the process of being checked. Preliminary results show that 18% or 335 samples exceed 30 ppb gold (refer Figure 3). Of those +30 ppb gold results, 37% or 124 samples exceed 100 ppb gold. Several assay results exceed 1,000 ppb gold (1 g/t gold).

The results define a strong, very coherent anomaly over the full 4.8 km length tested with varying widths up to 280m. It remains open to the NNW and SSE. The most southerly line across the anomaly averages around 180 ppb gold over 7 consecutive samples (140m width).

The strength, sharp definition, excellent continuity of high gold values and large dimensions of the 4.8 km plus long Stavely gold-in-soil anomaly mark it as an exceptional large scale exploration target. The anomaly is yet to be drill tested; two rigs have been booked to commence drilling in March.

Subject to the grant of the exploration licence applications by the Department of Primary Industries, and completion of certain acquisition agreements, Beaconsfield Gold will have expanded the area it controls at Stavely from 370 to 1,180 sq km.

2.1.2 Copper Prospect

The Stavely Project also contains one of Australia’s larger copper anomalies associated with a copper-porphyry complex that has returned significant drill intersections such as 229m @ 0.22% copper. With prices for copper and gold at record levels the copper prospects at Stavely havebecome high priority targets.

The Thursday’s Gossan Prospect, located approximately 5km NNW of the Fair View Prospect, contains a 3km long bedrock copper anomaly with +2,000 ppm (0.2%) copper values. The deposit has been previously explored by major exploration companies interested primarily in very large scale porphyry-type mineralisation.

However, copper-gold mineralisation is also associated with a smaller scale secondary (supergene) chalcocite blanket at relatively shallow depths. Drill intersections range up to 6m at 3.0% copper and 1.1g/t gold from 22m depth, equivalent to approximately 9g/t gold at current prices. This relatively high-grade blanket will be the prime focus for Beaconsfield Gold’s exploration rather than the larger scale, but lower grade, porphyry-style mineralisation. Manyof the holes drilled previously at Thursday’s Gossan are interpreted to have stopped in the leached profile above the supergene blanket, and further deeper drill testing is warranted to test the full extent of the roughly horizontal blanket. Drilling is planned for the first half of 2006.

2.1.3 Other Prospects

The Stavely Project also contains interesting zinc prospects with volcanogenic massive sulphide potential and an interesting nickel prospect to the east of Thursday’s Gossan. These will be assessed in due course, but current focus is on the compelling Fair View gold prospect and the Thursday’s Gossan copper-gold prospect.

2.2 BEACONSFIELD PROJECT, TASMANIA

2.2.1 North Pease Creek Gold Prospect

The North Pease Creek property is around 4 km northwest of the Beaconsfield Mine. The "MineSequence" rocks that host the major Tasmania Reef at the Beaconsfield Mine (Ordovician conglomerate, sandstone and siltstone) occur between two well-defined, north-westerly trending thrust faults - the Cabbage Tree Thrust and the Cobblestone Creek Thrust. Beaconsfield Gold's geologists have confidently interpreted extensions of both the Mine Sequence rocks and of the two enclosing thrust faults northwest under a cover of Tertiary sediments into the North Pease Creek property. Some 2 km of prospective Mine Sequence rocks are interpreted to exist in the North Pease Creek property. The belt of prospective Mine Sequence rocks is only around 400 m wide and provides excellent focus for systematic exploration. Surface cover and lack of outcropping rocks prevented any historic prospecting, leaving the area lightly explored to date.

Previously reported drilling by Beaconsfield Gold during 2004/05 encountered significant gold mineralisation in several holes at the south-eastern end of the drill hole fence. The best intercept was NPC-7 which recorded 3.0m at 3.9 g/t gold from 163 metres including 1.0m at 8.6 g/t gold.Mineralisation is hosted in black carbonaceous quartz sandstone and granule sandstone/conglomerate and is associated with increased abundance of fine pyrite, arsenopyrite and ankeritic fine stockwork fracture and veinlet zones.

During the December quarter six combined RC percussion and diamond core drill holes were completed. All drilled through unconsolidated Tertiary sedimentary cover and into the Mine Sequence. The most significant intersection was 1.0m at 1.4 g/t gold and 0.15% zinc from 146m in hole NPC-23. Additional holes will be drilled in the March 2006 quarter.

2.3 EXPLORATION EXPENDITURE

Expenditure on Beaconsfield Gold’s 100% owned tenements at Beaconsfield during the quarter totalled $160,000. A further $35,000 was spent on the Stavely Project, principally at Fair View.

3. BEACONSFIELD GOLD NL CORPORATE

3.1 GOLD HEDGING AND GOLD PROCEEDS

At 31 December 2005, the Company’s hedge book was 51,000 ounces of flat forwards and spot deferreds, with deliveries out to April 2007, at 3,000 ounces per month, at an average price of $598 per ounce.

The marked-to-market value of the hedge book at 31 December 2005, when the spot price of gold was $707 per ounce, was negative $6.6 million. As Beaconsfield Gold’s gold hedging is all effective hedging under the new AIFRS accounting standards, movements in the Company’s hedge book marked-to-market value will not be brought to account in future reporting periods.

3.1.1 Gold Hedging as a Percentage of Ore Reserves/Resources

BMJV ore reserves at 31 December 2005 were 233,000 ounces, of which Beaconsfield Gold’s 48.49% direct interest was approximately 112,980 ounces. As a percentage of those ore reserves,therefore, Beaconsfield Gold at 31 December 2005 was approximately45% hedged.

On the same basis, approximately 23% of Beaconsfield Gold’s share of BMJV gold resources were hedged at 31 December 2005.

If the optimisation study currently underway results in resources in the F21 and 840E Zones being converted into reserves, the proportion of ore reserves presently hedged will decrease significantly.

3.1.2 Average Received Price per Ounce

Total net gold book proceeds and effective average received price per ounce of production are approximated in the following table. Average received price for the quarter of A$610 per ounce was A$46 per ounce higher than for the previous quarter.

Average Proceeds per Ounce of Production

3.1.3 Spot Gold Prices

In the first half of calendar 2005, the spot gold price was around A$550 per ounce. The spot price of gold has increased dramatically since that time and is currently (early calendar 2006) around A$740 per ounce, an increase of around A$190 per ounce.

Beaconsfield Gold’s share of BMJV gold resources at 31 December 2005 was approximately 223,500 ounces. The increase of around A$190 per ounce therefore has increased the potential value of Beaconsfield Gold’s gold resources by around A$42 million. This in turn improves the likelihood that the majority of the resources additional to reserves will be converted into reserves over time. Additionally,the higher spot gold price makes it more likely that the proposed deep drilling program for the Tasmania Reef (to test between 1200mand 1500m depth) will also result in increased reserves over time.

3.2 CASH POSITION

At 31 December 2005, total effective cash held by the Company was approximately $3.7 million, excluding the $3.15 million of pending cash from the in-principle settlement with the BBR insurer.

3.3 CLAIM AGAINST ALLSTATE

As previously reported, Beaconsfield Gold lodged a Proof of Debt (“POD”) with the Allstate Deed Administrators for $29,271,854 plus interest, representing 48.49 % of the damages awarded to the BMJV participants in the claim against the plant design and construction contractor. The Allstate Deed Administrators subsequently rejected the POD and Beaconsfield Gold has filed an application in the Supreme Court of Victoria appealing against the rejection. This matter continues to be progressed. A directions hearing is scheduled for February 2006.

3.4 BEACONSFIELD GOLD ISSUED SECURITIES AT 30 SEPTEMBER 2005

3.5 TENEMENTS

Beaconsfield Gold has interests in the following tenements.

(a) BCD has an option to acquire 100% interest, subject to a 3% net smelter return royalty.
(b) DPI has advised priority on these applications.
(c) BCD has agreed to purchase outright from New Holland Mining for $20,000.


3.6 INTERNET

Shareholders are invited to visit the Company's website to view all ASX releases (including all quarterly and annual reports), historical information relating to the Beaconsfield Mine, and Beaconsfield Gold NL corporate information: www.beaconsfieldgold.com.au

Shareholders who wish to receive Beaconsfield Gold ASX releases by e-mail are encouraged to contact the Company on: beaconsfieldgold@bigpond.com