Beaconsfield Gold - Australia's Richest Gold Resource.

High Grade, Low Cost Gold Producer

APPENDIX 4E

PRELIMINARY FINAL REPORT
FINANCIAL YEAR ENDED 30 JUNE 2006

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BEACONSFIELD GOLD NL
(ACN 057 793 834)

APPENDIX 4E

PRELIMINARY FINAL REPORT
FINANCIAL YEAR ENDED 30 JUNE 2006

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 2005/06 year for Beaconsfield Gold are summarised in the following table:

** The 2004/05 results have been adjusted as a result of the transition to Australian equivalents to International Financial Reporting Standards (AIFRS).

The Company's financial results for the year were severely impacted by the suspension of mining activity at the Beaconsfield mine on 25 April following a significant seismic event that led to several falls of ground, resulting in the death of one miner and the entrapment of two others. Mining activity remains suspended pending the completion of work necessary to seek approval from the Chief Inspector of Mines to re-open the mine.

Earnings before interest, tax, depreciation and amortisation (EBITDA) from ordinary activities for the year ended 30 June 2006 was $3.1 million (2005: $16.3 million). The consolidated net loss after tax for the year was $14.3 million (2005: $7.8 million profit).

Gold and silver sales revenue for the 2006 year of $24.2 million was 29% below the 2005 figure. Gold production and revenue were significantly reduced in the first half of the year following a seismic event in October 2005 which resulted in the deferral of production from high grade stopes in the mine. Following the introduction of a revised mining method and additional ground support, gold production was returning to normal levels prior to the Anzac Day incident.

Since Anzac Day there has been no mining production, and mill production has been limited to treatment of remaining surface ore stocks and recovery of remnant gold from the circuits in the treatment plant.

Significant progress has been made towards completing the work necessary to seek approval from the Chief Inspector of Mines to re-open the mine. Geotechnical studies are nearing completion and will form the basis of a case for safety that is required by the Inspector. On 6 September 2006 the Manager of the Beaconsfield Mine Joint Venture announced the initial findings of a geotechnical assessment of the Beaconsfield Mine by Coffey Mining which said in part "at this stage we do not foresee any geotechnical reasons relating to ground control that could not be managed such that they would prevent the Beaconsfield Mine recommencing operations".

Following the Anzac Day incident and consequent cessation of mining production and gold deliveries, Beaconsfield Gold's gold hedging no longer meets the strict criteria of effective hedging under the new AIFRS accounting standards. As a result movements in the Company's hedge book marked-to-market value are now required to be brought to account through the income statement. The result for the year includes a cost of $6.5 million relating to the fair value of ineffective gold hedge contracts maturing after 30 June 2006.

In addition, the lack of gold deliveries in the latter part of the year necessitated the close-out of a number of gold hedge contracts, resulting in a loss of $1.9 million.

On 3 May 2006, the Company announced that it would defer payment of the 2006 interim dividend until further notice, pending determination of cash requirements going forward. In light of the extended suspension of mining operations, and the severe impact that has had on the Company's financial position, the Board has now resolved to cancel the interim dividend for the year ended 30 June 2006. It is the intention of the Board to recommence distributing a proportion of free cash flow to shareholders in the form of dividends as soon as financial circumstances permit.

REVIEW OF OPERATIONS

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

Mining activity was suspended on 25 April 2006 following a significant seismic event that led to several falls of ground. As a consequence, one miner was killed and two more trapped before being rescued on 9 May 2006. As mining activity currently remains suspended, production and other physical statistics are not directly comparable to previous years.

196,249 tonnes of ore were mined (hoisted) for the year, 18% lower than the previous year. In addition to the effect of the Anzac Day incident, ore production in the first half year was negatively impacted by the suspension of production from certain high grade stopes which resulted from a seismic event on 26 October 2005. Production was returning to more normal levels prior to the Anzac Day seismic event. The face of the decline was approximately 1,090 metres below surface at 30 June 2006.

Whilst mining is suspended, care and maintenance activities are being undertaken underground to ensure that the mine remains in good condition.

Production Summary

(1) Mill reconciled head grade.
(2) Gold recovery excluding changes in gold in circuit.
(3) June 2006 production includes gold recovered from storage ponds and other sources.

Mill throughput, head grade and gold production for the year were 16%, 22% and 35% respectively below 2005 performance. Production volume and grade were adversely affected by the closure of high grade stopes following the 26 October 2005 seismic event, and by the Anzac Day incident.

The mill has been placed in a care and maintenance mode with particular emphasis placed on ensuring the bacterial leaching circuit is kept in a suitable condition to resume treatment with minimal delay. An inoculum of bacteria is being held in a heated tank and tested regularly to ensure the dormancy is reversible.


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.

Direct operating costs of $451 per ounce for the year during the production period were significantly impacted by lower gold production, particularly during the December quarter.

BMJV capital expenditure for the 2006 year fell to $3.90 million (2005: $8.98 million) with completion of the ore reserve diamond drilling program during the September 2005 quarter, limited progress in the mine access decline, the deferral of projects to mitigate the impact of the October 2005 seismic event and the cessation of capital projects following the Anzac Day incident.


4. BEACONSFIELD GOLD REVENUE

Beaconsfield Gold's total revenue from gold and by-product silver sales for the 2006 year was $24.23 million, 29% below the 2005 year figure of $34.19 million.


5. BMJV ORE RESERVES / RESOURCES

Allstate, as Manager of the BMJV, has reported that the Identified Mineral Resource for the Tasmania Reef at Beaconsfield, Tasmania as at 31 March 2006 was:

* Beaconsfield Gold's equity share of the above Resource is 215,000 ounces

A Reserve Statement for the Tasmania Reef at Beaconsfield is expected to be released following the completion of current studies, including the additional F21 Zone reserves announced in April 2006.


6. GOLD HEDGING FOR BEACONSFIELD GOLD

At 30 June 2006, the Company's hedge book was 30,000 ounces of flat forward and spot deferred contracts, with deliveries out to April 2007, at an average price of $608 per ounce.
The marked-to-market value of the hedge book at 30 June 2006, when the spot price of gold was A$810 per ounce, was negative $6.5 million.

Following the Anzac Day incident and consequent cessation of mining production at the Beaconsfield mine, Beaconsfield Gold's gold hedging contracts no longer meet the strict criteria of effective hedging under the new AIFRS accounting standards. As a result, movements in the Company's hedge book marked-to-market value are now required to be brought to account through profit and loss.

Based on the BMJV identified mineral resource at 31 March 2006, it is estimated that Beaconsfield Gold's 30,000 ounces of hedge contracts at 30 June 2006 represents approximately 14 % of gold resources.


7. ARBITRATION AWARD

In May 2006, Beaconsfield Gold received its $6.3 million share of the $13 million in-principle settlement agreed with the insurer in relation to the plant design and construction contract.

50% of any proceeds received by Beaconsfield Gold were required to be applied against a $4 million contingent liability in respect of interest set aside by a former secured creditor. As a result, net cash proceeds to Beaconsfield Gold were $3.15 million and the contingent liability was reduced to $0.85 million.


8. CLAIM AGAINST ALLSTATE'S PREVIOUS LEGAL ADVISOR

Allstate, on its own behalf and as Manager of the BMJV, has been seeking damages for professional negligence arising from legal services provided to Allstate in relation to certain insurance and risk management issues associated with the contract for construction of the treatment plant at the Beaconsfield mine.

Beaconsfield Gold's application to the Supreme Court of Western Australia to be joined as plaintiffs in those proceedings was successful.


9. INSURANCE CLAIM RELATING TO ANZAC DAY INCIDENT

The BMJV has submitted an initial claim under its business interruption insurance policy following the Anzac Day incident. The policy covers costs and loss of profits. The insurer has not yet responded to the claim, and no provision has been made in the financial results for a payment under the policy.


10. FEDERAL GOVERNMENT FUNDING

The BMJV's application for a grant under the Beaconsfield Community Fund, established by the Federal Government, was accepted on 21 July 2006. The grant of $4.9 million will assist the BMJV to meet supernumerary payroll costs, to develop the decline on to access the F21 ore zone and to conduct deep drilling below current reserves. No provision has been made in the financial report for receipt of this grant.


11. DEBT DUE TO TASMANIAN STATE GOVERNMENT

The Tasmanian State Government has announced its intention to waive approximately $0.7 million owing to it by the BMJV participants if mining operations recommence.


12. POTENTIAL ACQUISITION OF ALLSTATE INTEREST

On 28 June 2006, the Company received shareholder approval for the placement of up to 60 million new shares at not less than 34 cents to sophisticated and professional investors. This approval positions the Company so that it can acquire, at short notice, the Allstate group's 51.51% interest in the Beaconsfield Mine, if that interest becomes available, via a direct purchase or via Beaconsfield Gold's comprehensive pre-emptive rights under the Beaconsfield Mine Joint Venture Agreement. As this approval expires on 28 September 2006 a renewal of the approval will be sought at a general meeting of the Company to be held on 4 October 2006.

The Allstate Deed Administrators have announced an attempt to restructure the ownership of the Beaconsfield Gold Mine and have called for expressions of interest for a possible transaction, with the Deed Administrators' clear preference being to place shares in Allstate.

The Allstate group‘s interest in the BMJV is held by two 100% owned subsidiaries of Allstate, ACN 070 164 653 Pty. Ltd. and Allstate Prospecting Pty. Ltd. ("Allstate Subsidiaries"). The Allstate Subsidiaries are subsidiaries of Otter Gold Mines Pty. Ltd. ("Otter") through Otter's majority ownership of Allstate.

Beaconsfield Gold's view is that if, as a result of a placement of shares in Allstate, the Allstate Subsidiaries cease to be subsidiaries of Otter, the Beaconsfield Gold group's pre-emptive rights over the Allstate group‘s 51.51% interest in the BMJV would be triggered.

The relevant pre-emptive rights clause of the BMJV Agreement states, in effect, that where a joint venturer is, at any time, a subsidiary of another company and, by reason of any transaction or event, ceases to be a subsidiary of that company, pre-emptive rights over that joint venturer's interest would be triggered. The pre-emption price to be paid for the interest would be determined by an expert to be fair consideration as between a willing seller and a willing purchaser.

On 3 August 2006, the Beaconsfield Gold group initiated an action in the Supreme Court of Victoria seeking confirmation of the group's comprehensive pre-emptive rights under the BMJV Agreement. The case was heard on 4 September 2006, and on 7 September 2006 Justice Hargrave handed down his decision in favour of Beaconsfield Gold.

CONSOLIDATED CONDENSED INCOME STATEMENT

# The $3.152 million in 2005 represents a repayment of interest, previously reversed, from the settlement proceeds of the BBR claim ($6.304 million) in accordance with the Company's banking arrangement with a former banker.

CONSOLIDATED CONDENSED BALANCE SHEET

CONSOLIDATED CONDENSED STATEMENT OF CHANGES IN EQUITY

CONSOLIDATED CONDENSED STATEMENT OF CASH FLOWS

NOTES TO THE FINANCIAL STATEMENTS

[1] On 16 March 2006 the Directors declared an interim dividend for the year ended 30 June 2006 of 1.5 cents payable on 31 May 2006. Due to the Anzac Day incident this dividend was deferred. Since year end the dividend has now been cancelled.

The following income and share data were used in the calculations of basic and diluted earnings/ (loss) per share:

14. Transition to AIFRS

The group has made its election in relation to the transitional exemptions allowed by AASB 1 "First-time adoption of Australian Equivalents to International Financial Reporting Standards' as follows:

Share-based payment transactions

AASB 2 ‘Share-Based Payments' is applied only to equity instruments granted after 7 November 2002 that had not vested on or before 1 January 2005.

Exemption from the requirement to restate comparative information for AASB 132 and AASB 139

Beaconsfield Gold NL has elected to adopt this exemption and has not applied AASB 132 "Financial Instruments: Disclosure and Presentation" and AASB 139 "Financial Instruments: Recognition and Measurement" to its comparative information. Accordingly, at 1 July 2005 Beaconsfield Gold recognised the fair value of hedges as a liability in its balance sheet, and a like amount was recognised in the cash flow hedge reserve. The corresponding tax effect was also recognised directly in equity.

15. Impact of adoption of AIFRS

The impacts of adopting AIFRS on the total equity and profit after tax as reported under Australian Accounting Standards applicable before 1 January 2005 ("AGAAP") are illustrated below.

i) Reconciliation of total equity as presented under AGAAP to that under AIFRS