Beaconsfield Gold - Australia's Richest Gold Resource.

High Grade, Low Cost Gold Producer

Half Yearly Report
For the Half Year Ended 31 December 2003

Explanation of information reported
Profit from ordinary activities after tax attributable to members for the six months ended 31 December 2002 was negative $1,420,000 and therefore the percentage increase cannot be calculated.

DIRECTORS’ REPORT FOR HALF YEAR ENDED 31 DECEMBER 2003

Your directors submit their report for the half-year ended 31 December 2003.

DIRECTORS
The names of the company's directors in office during the half-year and until the date of this report are
as below. Directors were in office for this entire period unless otherwise stated.

A B Greenwood (appointed 18 December 2003)
M W Trumbull
J W Williams
J G Miedecke (resigned 10 March 2004)
B G Noonan (appointed 10 March 2004)
W Tsingos (appointed 12 March 2004)


PRINCIPAL ACTIVITIES

The principal activity of the company during the half year was to produce gold through its participation in the Beaconsfield Mine Joint Venture (BMJV) which operates the Beaconsfield Gold Mine in north east Tasmania.

The participants in the unincorporated BMJV are Allstate Explorations NL (Allstate) with a 51.51% interest and Beaconsfield Gold with a 48.49% interest. Allstate, with the higher interest, is Manager of the BMJV and the BMJV Mine Manager and all the personnel reporting to him are employed by Allstate. Beaconsfield Gold in turn owns 30% of the fully paid shares in Allstate.

Joint Administrators (Michael Ryan and Tony Woodings of chartered accounting firm, Taylor Woodings, based in Perth, Western Australia) were appointed to Allstate on 8 June 2001 and a Receiver and Manager (Garry Trevor of Ferrier Hodgson, Perth office) was appointed to Beaconsfield Gold on 25 June 2001.

CONSOLIDATED RESULT

The consolidated profit for the half year after income tax was $4,874,000 (2002 December half year: loss of $1,420,000). The profit of $4,874,000 was after providing $3,327,000 for depreciation and amortisation, $1,383,000 for interest costs and $1,373,000 for receivership administration costs.

Net assets at 31 December 2003 were negative $4,562,000.

REVIEW OF OPERATIONS

Quarterly production for the BMJV since gold production commenced in September 1999 is summarised in the following table.

For the half year ending 31 December 2003, ore mined and milled was 117,025 tonnes and 121,365 tonnes respectively. Head grade averaged 21.5 g/t gold for the half year. Gold recovery in the ore treatment plant averaged 94.0% for the half year.

The mine decline face was 930 metres vertically below surface at 31 December 2003. Ore production at the end of the half year was available from 10 levels throughout the mine, allowing increased flexibility in mine scheduling. Adoption of an improved mining method during the year contributed to the mine's improved performance. The modified Avoca stoping system utilises blind uphole stope drilling, in-stope ramping and Avoca stoping / backfilling. Waste development requirements have been reduced and unit costs have also decreased with this more productive mining method. Waste rock dilution is targeted for further reduction.

BMJV gold production for the half year was 78,682 ounces so that Beaconsfield Gold's 48.49% direct interest was 38,153 ounces.

BMJV ore reserves at 31 December 2003, calculated at a nominal cut-off grade of 6 g/t gold, totalled 352,000 ounces of gold. Beaconsfield Gold's 48.49% direct interest was 170,685 ounces.

Production Summary

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

SUBSEQUENT EVENTS

Claims Against the Construction Contractor for the Ore Treatment Plant

On 27 January 2004, the ASX released the following announcement by Allstate Explorations NL (subject to deed of company arrangement):

"Interim Arbitration Award in Favour of the Beaconsfield Mine Joint Venturers

"Allstate Explorations NL (subject to deed of company arrangement) ("ALX"), as manager of the Beaconsfield Mine Joint Venture, today announces that an interim arbitration award was made in favour of the Beaconsfield Mine Joint Venturers (ALX, Beaconsfield Operations Pty Limited, Beaconsfield Tasmania Pty Limited, Beaconsfield Gold NL, Allstate Prospecting Pty Limited and ACN 070 164 653 Pty Limited) on 22 January 2004.

"As reported in ALX's financial report for the year ended 30 June 2003 (released to ASX on 22 October 2003), arbitration proceedings were brought by the Beaconsfield Mine Joint Venturers ("Claimants") in relation to a dispute with Batepro Australia Pty Limited and Brown & Root Engineering & Construction Pty Limited (now renamed A.C.N. 005 585 795 Pty Ltd) ("Respondents"). The dispute arose in connection with a contract between the Claimants and the Respondents under which the Respondents undertook to design, supply, construct and commission a gold treatment plant and backfill plant at the Beaconsfield Mine, Tasmania. The Claimants alleged amongst other things, delay, unsatisfactory design and construction, major defects and omissions in the works and failure to satisfy performance tests.

"The arbitrator, Mr J Tyrill, found that the Respondents are jointly and severally liable to the Claimants for $60,366,785 together with interest after 17 January 2004 at the rate of $29,292 per week. The Arbitrator also found that Respondents' cross claims against the Claimants fail. The Arbitrator reserved his award on the question of costs and has invited the parties' submissions on this.

"As reported in ALX's 2003 financial report, the Respondents have asserted that they have no funds to meet the cost of any award. The Respondents' professional indemnity insurer has withdrawn coverage with respect to the claim. The insurer has also indicated that, in any event, any claim would be capped at $20 million.

"It is currently unclear the extent to which the award will be able to be successfully enforced. ALX will seek legal advice on its position and will then determine the appropriate course of action in consultation with the other Beaconsfield Mine Joint Venturers."

Fund Raisings Completed

On 20 August 2003, the Company issued 1 million shares at $0.10 per share to clients of Tolhurst Noall Limited as consideration for the first tranche of funding provided by them.

The Company on 12 March 2004 completed $5.5 million of equity funding provided by "sophisticated investor" clients of Tolhurst Noall Limited. The first $0.431 million of funding had been provided to pay for all the corporate costs necessarily incurred by the Beaconsfield Gold board up until the retirement of the Receiver and Manager and this high-risk funding was converted into Beaconsfield Gold fully-paid ordinary shares at $0.10 per share. A further 3.312 million shares were issued taking the total to approximately 4.312 million shares issued to cover this initial funding.

The balance of the agreed funding, $5.069 million, was subscribed at $0.23 per Beaconsfield Gold fully-paid ordinary share to facilitate the necessary restructuring of the company's finances with BankWest. A total of approximately 22.038 million shares were issued to cover this secondary funding. For the total agreed equity funding of $5.5 million, approximately 26.350 million shares were issued.

The Company on 12 March 2004 also raised $9 million through the issue of 30 million unlisted convertible notes to Gold Investors Pty Ltd, each note convertible into a fully paid Beaconsfield Gold share for $0.30 by 30 June 2006.

Principal terms of the convertible notes include the following:

• Interest of 9.0% per annum, interest payable each six months in arrears until conversion or redemption;
• Notes secured by a second ranking charge (behind BankWest) over the fixed and floating assets of Beaconsfield Gold;
• Beaconsfield Gold must redeem the notes in full at 30 June 2006 unless the notes have been converted; and
• Notes can be converted at any time during their life.

Restructuring of Debt Facilities with BankWest

Net secured debt for Beaconsfield Gold (BankWest secured debt plus accrued interest less cash held by the Receiver and Manager) had been reduced to $22.7 million at 31 December 2003, having been $32.8 million on 25 June 2001, when the Receiver and Manager was appointed, and having peaked at around $35.0 million in October 2002. $4.5 million of the secured debt was in the form of a convertible note which could be converted into a maximum of 9.0 million fully paid Beaconsfield Gold shares at $0.50 per share by 31 December 2004.

Following the fund raisings and the restructure of the BankWest facililities, Beaconsfield Gold was holding a total of approximately $3.6 million in cash (of which approximately $1.1 million was earmarked to cover near-term expenses and secured debt with BankWest was dramatically reduced to approximately $8.3 million.

Under the restructuring, the $4.5 million convertible note with BankWest was cancelled and Beaconsfield Gold issued 6.5 million unlisted options to BankWest with an exercise price of $0.30 each on or before 30 June 2006. If BankWest exercises all of the options in the future, the additional funds raised by Beaconsfield Gold would be $1.95 million.

Retirement of the Receiver and Manager

Following the completion of the fund raisings and the restructure of the debt facilities with BankWest, the Receiver and Manager for Beaconsfield Gold, Mr Garry Trevor of Ferrier Hodgson, who was appointed on 25 June 2001, retired on 12 March 2004.

ROUNDING

The amounts contained in this report and in the half-year financial report have been rounded to the nearest $1,000 (where rounding is applicable) under the option available to the company under ASIC Class Order 98/0100. The company is an entity to which the Class Order applies.

Signed in accordance with a resolution of the directors.


M W Trumbull
Director
15 March 2004

Condensed Statement of Financial Performance

Condensed Statement of Financial Position

Condensed Statement of Cash Flows

Notes to the Half-Year Financial Statements
31 DECEMBER 2003

1. BASIS OF PREPARATION OF THE HALF-YEAR FINANCIAL REPORT

The half-year financial report does not include all notes of the type normally included within the annual financial report and therefore cannot be expected to provide as full an understanding of the financial performance, financial position and financing and investing activities of the consolidated entity as the full financial report.

The half-year financial report should be read in conjunction with the Annual Financial Report of Beaconsfield Gold NL (Receiver & Manager Appointed) as at 30 June 2003. It is also recommended that the half-year financial report be considered together with any public announcements made by Beaconsfield Gold NL (Receiver & Manager Appointed) and its controlled entities during the half-year ended 31 December 2003 in accordance with the continuous disclosure obligations arising under the Corporations Act 2001.

Basis of accounting

The half-year financial report is a general-purpose financial report, which has been prepared in accordance with the requirements of the Corporations Act 2001, applicable Accounting Standards including AASB 1029 "Interim Financial Reporting" and other mandatory professional reporting requirements (Urgent Issues Group Consensus Views).

The half-year financial report has been prepared in accordance with the historical cost convention.

For the purpose of preparing the half-year financial report, the half-year has been treated as a discrete reporting period.

Accounting policies have been consistently applied by each entity in the consolidated entity and are consistent with those applied in the 30 June 2003 Annual Financial Report.

Going concern

The financial statements have been prepared on a going concern basis. The consolidated entity achieved a profit of $4,874,000 for the 6 months ended 31 December 2003. At 31 December 2003, the consolidated entity was in a net asset deficiency position of $4,562,000 and has had an event of default under the terms of certain finance agreements.

On 18 June 2001, the company's financier, BankWest, served notices of default and demand for outstanding monies under the finance facilities on the Beaconsfield Group (comprising Beaconsfield Gold NL and its controlled entities).

On 25 June 2001, the company's financier appointed a Receiver and Manager to the Beaconsfield Group. On that date, the net debt owed to the financier was $32.816 million.

Subsequent to this date the Beaconsfield Mine Joint Venture has continued to operate and is now generating positive cash flow. On 12 March 2004, following the retirement of the Receiver and Manager and capital raisings referred to in Note 7, the secured debt owing to BankWest reduced to approximately $8.3 million and the consolidated entity is now in a positive net asset position.

Unsecured creditors as at the date of appointment of the Receiver and Manager rank behind the secured creditors and will be paid over time.

4. DIVIDENDS PAID OR PROVIDED FOR ON ORDINARY SHARES

During the reporting period the consolidated entity has not paid any dividends.

5. CONTINGENT ASSETS AND LIABILITIES

Since the last annual reporting date, there has been no material change of any contingent liabilities or contingent assets.

6. SEGMENT RESULTS

The consolidated entity operates in the gold exploration, development and mining industry. The consolidated entity operates in Australia.

7. SUBSEQUENT EVENTS

The Receiver and Manager for Beaconsfield Gold, Mr Garry Trevor of Ferrier Hodgson, who was appointed on 25 June 2001, retired on 12 March 2004.

On 12 March 2004, the Company completed $5.5 million of equity funding provided by "sophisticated investor" clients of Tolhurst Noall Limited. The first $0.431 million of funding had been provided to pay for all the corporate costs necessarily incurred by the Beaconsfield Gold board up until the retirement of the Receiver and Manager and this high-risk funding was converted into Beaconsfield Gold fully-paid ordinary shares at $0.10 per share. A further 3.312 million shares were issued taking the total to approximately 4.312 million shares issued to cover this initial funding.

The balance of the agreed funding, $5.069 million was subscribed at $0.23 per Beaconsfield Gold fully-paid ordinary share to facilitate the necessary restructuring of the company's finances with BankWest. A total of approximately 22.038 million shares were issued to cover this secondary funding. For the total agreed equity funding of $5.5 million, approximately 26.350 million shares were issued.

On 12 March 2004, the Company also raised $9 million through the issue of 30 million unlisted convertible notes to Gold Investors Pty Ltd, each note convertible into a fully paid Beaconsfield Gold share for $0.30 by 30 June 2006.

Principal terms of the convertible notes include the following:

• Interest of 9.0% per annum, interest payable each six months in arrears until conversion or redemption;
• Notes secured by a second ranking charge (behind BankWest) over the fixed and floating assets of Beaconsfield Gold;
• Beaconsfield Gold must redeem the notes in full at 30 June 2006 unless the notes have been converted; and
• Notes can be converted at any time during their life.

On 12 March 2004, the BankWest facilities were restructured. Under the restructuring, the $4.5 million convertible note with BankWest was cancelled and Beaconsfield Gold issued 6.5 million unlisted options to BankWest with an exercise price of $0.30 each on or before 30 June 2006. If BankWest exercises all of the options in the future, the additional funds raised by Beaconsfield Gold would be $1.95 million.

Following the fund raisings of 12 March 2004 and the restructure of the BankWest facililities, Beaconsfield Gold is holding a total of approximately $2.5 million in cash and secured debt with BankWest has been dramatically reduced to approximately $8.3 million.

Directors' Declaration

In accordance with a resolution of the directors of Beaconsfield Gold NL, I state that:

In the opinion of the directors:

(a) the financial statements and notes of the consolidated entity:

(i) give a true and fair view of the financial position as at 31 December 2003 and the performance for the half-year ended on that date of the consolidated entity; and

(ii) comply with Accounting Standard AASB 1029 "Interim Financial Reporting" and the Corporations Regulations 2001; and

(b) there are reasonable grounds to believe that the company will be able to pay its debts as and when they become due and payable.

On behalf of the Board


M W Trumbull
Director

15 March 2004