Beaconsfield Gold - Australia's Richest Gold Resource.

High Grade, Low Cost Gold Producer

APPENDIX 4E

PRELIMINARY FINAL REPORT
FINANCIAL YEAR ENDED 30 JUNE 2005

Review of Results
Refer to discussion of results on page 2.

Audit Report
The preliminary report is based on accounts which are in the process of being audited.


REVIEW OF RESULTS

The financial results for the 2004/05 year for Beaconsfield Gold are summarised in the following table:

Earnings before interest, tax, depreciation and amortisation (EBITDA) for the year ended 30 June 2005 was $15.7 million (2004: $17.8 million). The consolidated net profit after tax for the year was $7.5 million (2004: $11.7 million)

Gold and silver sales revenue for the 2005 year of $34.2 million was 14% below the 2004 figure. Despite record mill throughput and improved gold recovery, gold production for the year was lower because of an 18% reduction in average head grade from 20.8 g/t gold to 17.0 g/t gold. The lower grade mainly impacted in the second half of the year when sequencing constraints underground restricted access to high grade, high tonnage stopes, consistent with the variable nature of the Tasmania Reef.

Higher mine operating costs also impacted the result, reflecting the trend of increased cost pressure throughout the mining industry, combined with deeper mining.

In June 2005, the Beaconsfield Mine Joint Venture (BMJV) participants and the professional indemnity insurer of Bateman, Brown & Root (BBR) reached an in-principle settlement as part recovery of the BMJV's claims in respect of losses associated with the design, construction and commissioning of the treatment plant at Beaconsfield by BBR. The insurer will pay $13 million to the BMJV participants, of which the Company's share is $6.304 million. Under the terms of a continuing agreement with the Company's former banker covering unpaid loan interest from previous years, 50% of this amount ($3.152 million) is payable to the former banker. The maximum amount payable to the former banker under this agreement is $4.0 million.

Since 30 June 2004, net Company assets have increased by $8.0 million (41%). The main impacts on the balance sheet during the year, apart from the operating result, were:

• repayment of $3.2 million outstanding bank debt from cash flow, reducing net interest from $2.2 million paid in 2004 to $0.2 million earned in 2005;
• pay-out from cash flow of the Company's remaining share, $2.3 million, of pre-Allstate administration BMJV trade creditors;
• conversion of $1.9 million of convertible notes, leaving a balance of $0.2 million;
• payment to shareholders of the inaugural interim dividend of $2.3 million.

1. INTRODUCTION

The Beaconsfield Gold group has a 48.49% direct interest in the unincorporated Beaconsfield Mine Joint Venture (BMJV) which operates the Beaconsfield Mine at Beaconsfield in north-east Tasmania. The other participant is the Allstate group with a 51.51% 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.

Beaconsfield Gold and Allstate separately sell their pro-rata share of gold production and contribute pro-rata to cash calls which cover operating and capital expenditure at the Beaconsfield Mine.

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 became Joint Deed Administrators when Allstate creditors approved a Deed of Company Arrangement in late 2001.

2. BEACONSFIELD MINE PERFORMANCE

239,373 tonnes of ore were mined (hoisted) for the year, a 3% improvement on 2004, and a record for the operation. Ore production at the end of the 2005 year was available from over 10 levels throughout the mine, down to the 990 metre level, allowing significant flexibility in mine scheduling. The improved decline / waste development layout and modified ½ Upper / Avoca mining method continued to provide operating benefits and efficiencies during the year. The face of the decline was 1,070 metres below surface at 30 June 2005.

Production Summary

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

240,685 tonnes of ore were milled for the year, a 3% improvement on 2004, and 20% higher than the feasibility target for average annual throughput. Average mill reconciled head grade for the year, 17.0 g/t gold, was 18% lower than 2004. Gold recovery in the ore treatment plant, excluding changes in gold in circuit, averaged 95.8% for the 2005 year, a 2% improvement on 2004.

Total BMJV gold production for the 2005 year of 125,795 ounces was 14% below the 2004 figure but 23% greater than the feasibility target for average annual production.

3. BMJV EXPENDITURE PER OUNCE

Operating, Capital and Total Cash Expenditure

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

BMJV direct operating expenditure for the 2005 year was $43.876 million (2004: $38.024 million) or $349 per ounce of production (2004: $258 per ounce) or $182 per tonne milled (2004: $162 per tonne).

BMJV capital expenditure for the 2005 year was $8.980 million (2004: $7.349 million) or $71 per ounce of production (2004: $50 per ounce) or $37 per tonne milled (2004: $31 per tonne). The main abnormal capital expenditure activity was the extensive ore resources diamond drilling program.

BMJV direct operating plus capital expenditure for the 2005 year was $52.856 million (2004: $45.373 million) or $420 per ounce of production (2004: $308 per ounce) or $220 per tonne milled (2004: $194 per tonne).

Beaconsfield Gold's 48.49% share of direct operating plus capital expenditure for the 2005 year was $25.630 million (2004: $22.001 million).

4. BEACONSFIELD GOLD REVENUE

Beaconsfield Gold's total revenue from gold and by-product silver sales for the 2005 year was $34.193 million, 13% below the 2004 year figure of $39.589 million.

5. BMJV ORE RESERVES / RESOURCES AS AT 30 JUNE 2005

The BMJV commenced an extensive ore resources underground diamond drilling program mid way through the 2004 year. The program is planned to be completed in October 2005.

The reserves and resources for the Tasmania Reef as at 30 June 2005 have been calculated by Allstate as Manager of the BMJV.

The updated BMJV reserves and resources are as follows:

Ore Reserve

Identified Mineral Resource (including Ore Reserve)

The Proved and Probable Reserves were estimated from the Measured and Indicated Resources, but exclude 158,000 tonnes at 17.0 g/t gold (86,000 ounces contained gold) contained in the F21 Zone. Completion of drilling in the F21 Zone has led to the Tasmania Reef and Eastern Hangingwall Reef in this zone being reported in the Indicated Resource category. However, the level of mine planning and economic consideration necessary to allow these resources to be elevated to the Ore Reserve category has not been completed.

After allowances had been made for mine design parameters and cut-off grade (6 g/t gold), the in-situ ore grade was reduced from 20.6 g/t gold to the diluted reserve grade of 14.7 g/t gold (a reduction of 5.9 g/t or 29%).

5.1 Reconciliation between 31 December 2004 and 30 June 2005 Ore Reserves

Total gold milled in the six months to 30 June 2005 was estimated to be 58,534 ounces. Subtracting this total from the ore reserves at 31 December 2004 (377,000 ounces) gives 318,466 ounces.

As the ore reserves at 30 June 2005 were 285,000 ounces, there was a net decrease in ore reserves over the six months, allowing for mining depletion, of approximately 33,466 ounces. As noted above, the updated reserves contain no allowance for the F21 Zone which has been estimated by Allstate to currently have an Indicated Resource of 86,000 ounces contained gold.

5.2 Resources Additional to Reserves

At 31 December 2004, resources additional to reserves for the Tasmania Reef were 296,000 tonnes at 12.8 g/t gold, containing 121,000 ounces of gold. At 30 June 2005, resources additional to reserves were 458,000 tonnes at 12.2 g/t gold, containing 179,000 ounces.


6. GOLD HEDGING FOR BEACONSFIELD GOLD

At 30 June 2005, the Company's hedge book was 60,000 ounces of flat forwards and spot deferreds, with deliveries out to February 2007, at an average price of $586 per ounce.

The marked-to-market value of the hedge book at 30 June 2005, when the spot price of gold was A$572.63 per ounce, was negative $764,000.

6.1 Gold Hedging as a Percentage of Ore Reserves/Resources

BMJV ore reserves at 30 June 2005 were approximately 285,000 ounces, of which Beaconsfield Gold's 48.49% direct interest was approximately 138,200 ounces. As a percentage of those ore reserves, therefore, Beaconsfield Gold at 30 June 2005 was approximately 43% hedged.

Total BMJV resources at 30 June 2005 were approximately 495,000 ounces, of which Beaconsfield Gold's 48.49% direct interest was approximately 240,000 ounces. As a percentage of those total resources, therefore, Beaconsfield Gold at 30 June 2005 was approximately 25% hedged.


7. NEW BANKING ARRANGEMENTS WITH CBA

On 25 January 2005, the Company completed arrangements for new banking facilities with CBA.

The new CBA facilities comprise:

(a) A $3 million overdraft facility to fund short term working capital requirements. Based on present cash balances and projected cash flows, it is anticipated that in normal circumstances this facility will not need to be drawn upon.

(b) A $3.35 million performance bond facility to support existing guarantee obligations without the requirement for cash collateral.

(c) A gold hedging facility providing the Company with the ability to forward sell up to a maximum of 75% of the Company's gold reserves. This gives the Company the flexibility to lock in a percentage of its future gold production at attractive Australian dollar per ounce forward prices.

In 2004 $4.0 million of interest expense was reversed in accordance with the Company's banking facility agreement with a former banker.

That agreement provided that $4.0 million of interest accrued prior to 2004 would be payable only from the Company's share of proceeds from the Beaconsfield Mine Joint Venture (BMJV) claims in respect of losses suffered by the BMJV participants associated with the design, procurement, construction and commissioning of the treatment plant at Beaconsfield by Bateman, Brown & Root (BBR).

In June 2005 the BMJV participants and the professional indemnity insurer of BBR reached an in-principle settlement whereby the insurer will pay $13 million to the BMJV participants.

The Company's share of this settlement is $6.304 million and under the terms of the Company's previous banking facility agreement, 50% of this amount ($3.152 million) is payable to the former banker.

The financial accounts will record a contingent liability of $0.848 million, being the balance payable to the former banker from future recoveries of the BBR claim. This will partly offset the contingent asset relating to the BBR claim.

[1] The financial effect of this dividend has not been brought to account in the financial statements for the year ended 30 June 2005 and will be recognised in subsequent financial reports.

The following reflects the income and share data used in the calculations of basic and diluted earnings per share:

15. IMPACT OF ADOPTING AUSTRALIAN EQUIVALENTS TO IFRS

Beaconsfield Gold NL is in the process of transitioning its accounting policies and financial reporting from current Australian Accounting Standards (AGAAP) to Australian equivalents of International Financial Reporting Standards (A-IFRS) which will be applicable for the financial year ending 30 June 2006. In 2005 the Company conducted a review of the potential impacts of transitioning to A-IFRS. Priority has been given to the preparation of an opening balance sheet in accordance with A-IFRS as at 1 July 2004, Beaconsfield Gold's transition date to A-IFRS. This will form the basis of accounting for A-IFRS in the future, and is required when Beaconsfield Gold prepares its first fully compliant financial report for the year ended 30 June 2006.

Set out below are the key areas where accounting policies are expected to change on adoption of A-IFRS and our best estimate of the quantitative impact of the changes on total equity as at the date of transition and 30 June 2005 and on net profit for the year ended 30 June 2005.

The figures disclosed are management's best estimates of the quantitative impact of the changes as at the date of preparing the 30 June 2005 financial report. The actual effects of transition to A-IFRS may differ from the estimates disclosed due to:

(a) ongoing work being undertaken by internal resources;
(b) potential amendments to A-IFRS and interpretations thereof being issued by the standard-setters and International Financial Reporting Interpretations Committee; and
(c) emerging accepted practice in the interpretation and application of A-IFRS and Urgent Issues Group Interpretations.

The following reconciliations outline the likely impacts on the current year result and financial position of the consolidated entity had the financial statements been prepared under A-IFRS, based on the accounting policy decisions current at the date of this financial report.

As described above, readers of the financial report should note that further developments in A-IFRS may result in changes to the accounting policy decisions and, consequently, the likely impacts outlined in the following reconciliations.