Beaconsfield Gold - Australia's Richest Gold Resource.

High Grade, Low Cost Gold Producer

September 2003 Quarterly Report

BEACONSFIELD GOLD NL (RECEIVER AND MANAGER APPOINTED)
Report on Activities for the Quarter ended 30 September 2003

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

HEAD GRADE

Production Summary

Graph 2 shows the trend for head grade to date in comparison to the reserve grade. While the trend for quarterly head grade is continuing upwards, head grade is only now exceeding the reserve grade, which has not been increased over time as much as one would expect from a mathematical point of view, and therefore future head grades may well continue to exceed the current reserve grade.

GOLD PRODUCTION / RECOVERY

Ore treatment plant gold recovery for the September 2003 quarter was 95.1% (June 2003 quarter 94.0%).

Graph 3 shows gold recovery since production commenced in 1999.

Gold production for the September 2003 quarter was a quarterly record at 38,578 ounces (153,054 ounces per year rate) compared with the June 2003 quarter result of 31,656 ounces (126,972 ounces per year rate). The percentage of gold production recovered by gravity processes during the quarter was 56%, still well above the feasibility target of 42.6%.

Graph 4 shows actual quarterly gold production since start up compared with the feasibility target and the percentage of gold production recovered by gravity processes.

Gold Production

BMJV EXPENDITURE PER OUNCE

Total expenditure (operating plus capital) for the September 2003 quarter was $10.634 million (June 2003 quarter $10.498 million). Total expenditure per ounce of gold production was a record low at A$276 per ounce (June 2003 quarter A$332 per ounce).

Graph 5 shows BMJV quarterly total expenditure (operating plus capital) per ounce since start up in comparison to the feasibility target figure of approximately A$300 per ounce.

EXPLORATION JOINT VENTURE BETWEEN DDV AND THE BMJV

The exploration joint venture between Diamond Ventures NL (DDV) and the BMJV (represented by the Allstate Joint Administrators and the Receiver and Manager for Beaconsfield Gold) has been outlined in previous quarterly reports based on ASX releases by DDV.

In the DDV report for the September 2003 quarter, DDV's highlights for the Beaconsfield exploration were as follows:

• Follow-up RC drilling completed in late October (2003) on the Salisbury prospect intersects sheared, quartz-veined and altered sandstones (Beaconsfield Mine host rocks) and shales. Assays are awaited; and

• The first year's expenditure commitment ($350,000) under the terms of the Exploration Agreement with the BMJV has been met.

BEACONSFIELD GOLD CORPORATE

While the flat forward price is A$537 per ounce after arrangement costs and assumed 1.5% per annum gold leasing costs, Beaconsfield Gold has received higher prices on average as a result of generally favourable gold lease rates and selling spot when the spot price is favourable. In 1999 and 2000, when gold production was well below anticipated levels, Beaconsfield Gold also took advantage of low spot prices by purchasing gold at spot and delivering the purchased gold into the hedge book at a profit. Total net gold book proceeds and effective average received price per ounce of production are estimated in the preceding table.

BEACONSFIELD GOLD DEBT SERVICE

Debt service to 30 September 2003 is summarised in the following table.

Beaconsfield Gold Net Secured Debt

Net secured debt equals the total due under the secured debt facilities with BankWest (debt plus accrued interest including penalty interest) less the cash held by the Receiver and Manager (R&M). Net secured debt at various points in time is shown in the following table. Net secured debt on 25 June 2001, when the Receiver and Manager was appointed, was approximately $32.8 million.

BBR CLAIMS

In August 2000, Allstate (as Manager of the BMJV) lodged claims in respect of losses suffered by the BMJV participants associated with the design, procurement, construction and commissioning of the ore treatment plant at Beaconsfield by Bateman Brown & Root (BBR).

The final arbitration hearing was scheduled to commence on 12 May 2003. On 30 April 2003, the solicitors for BBR notified Allstate that QBE, the professional indemnity insurer, was considering withdrawing indemnity over the claims. Subsequently, the solicitors for BBR advised that neither QBE nor BBR were prepared to continue funding the defence of the arbitration. Furthermore, the solicitors advised that BBR no longer trades nor has any assets.

After a short delay, the arbitration commenced on 13 May 2003 and proceeded on 20 May 2003 on an ex parte basis. The BMJV participants tendered their final submission to the arbitrator and are currently awaiting the award of the arbitrator.

The claims are in excess of $50 million. The professional indemnity insurance policy has a cap of $20 million. The strategy going forward is to await judgement against BBR and then to pursue QBE on a number of legal bases to pay the amount due under the award in accordance with its obligations under the insurance policy. It should be noted, however, that QBE currently denies that it has any liability under the policy.

ASIC INVESTIGATION OF ALLSTATE

Beaconsfield Gold is aware that numerous complaints have been made to the Australian Securities & Investments Commission (ASIC) regarding the administration of the Allstate group of companies. The majority of the complaints are understood to concern an Allstate creditors' meeting held on 19 March 2002. Beaconsfield Gold will monitor the results of the ASIC investigation for any impact on the company's investment in Allstate Explorations NL and the future operation of the BMJV.

BEACONSFIELD GOLD BOARD

Appointment of Tony Greenwood as the new Chairman

On 18 December 2003, Mr Tony Greenwood was appointed by the Board as the new Chairman of Beaconsfield Gold and he will lead the company as it restructures its debt with BankWest and comes out of receivership.

Tony Greenwood is a partner of law firm Blake Dawson Waldron, practising in company law, and is a Fellow of the Australian Institute of Management and a Member of the Australian Institute of Company Directors. He chaired the Companies and Business Organisations Committee of the Law Institute of Victoria for 10 years. He was a founding Commissioner of the National Companies and Securities Commission (NCSC), the predecessor body of ASIC, an office he held for 7 years. He was also a member of the Companies and Securities Law Review Committee of the Ministerial Council responsible for the NCSC.

Mr Greenwood is a director of First Samuel Limited, a licensed financial services adviser that manages share portfolios for high net worth individuals, a member of the Audit Sub-Committee of the Council of Victoria University of Technology, and was a member of the board of management of Fairfield Infectious Diseases Hospital. He is actively committed to church life and is a trustee of the Anglican General Synod Trust Corporation and a trustee or committee member of a number of other church bodies.

Appointment of Mike Trumbull as the first Managing Director

On 18 December 2003, Mike Trumbull was appointed by the Board as the first Managing Director of Beaconsfield Gold.

Mike Trumbull has a degree in mining engineering (first class honours) and has completed a master of business administration (MBA) program. A fellow of the AusIMM, he has over 30 years of broad mining industry experience with companies including MIM, Renison, WMC, CRA, Amax, and ACM. From 1983 to 1992, he worked with ACM and ACM Gold as, progressively, Senior Mining Engineer, Project Manager / Resident Manager - Westonia Gold Mine and General Manager - Investments. In 1979, while working for Amax Exploration (Australia), he recommended that company's involvement in resurrecting the historic Beaconsfield mine workings.

Mr Trumbull was one of the founding directors of Beaconsfield Gold NL when it listed on the ASX in 1993 and has operated as the only executive director of the company. He is a member of the company's Audit Committee.

EQUITY FUNDING AGREEMENT

On 15 July 2003, the company announced that Beaconsfield Gold and Tolhurst Noall Limited had signed a Subscription Agreement under which equity funding is to be provided to Beaconsfield Gold, subject to certain conditions.

The agreement allows for the subscription of $5.5 million in two tranches, the first tranche being $0.5 million and the second tranche being $5 million - the funds to be provided by clients of Tolhurst Noall who are sophisticated or institutional investors.

The first $0.5 million was placed in a Tolhurst Noall trust account and is being drawn down as required to pay for all the corporate costs necessarily incurred by the Beaconsfield Gold board until the Receiver and Manager retires. The total of the costs paid will be converted into Beaconsfield Gold fully-paid ordinary shares at $0.10 per share. This conversion price is considered reasonable in the circumstances, reflecting the considerable risk for the Tolhurst Noall clients ahead of the retirement of the Receiver and Manager.

The second tranche will be subscribed at $0.23 per Beaconsfield Gold fully-paid ordinary share to facilitate the necessary restructuring of the company's finances. This additional funding is subject to approval by shareholders at a general meeting and subject to the retirement of the Receiver and Manager. Any amount left unspent from the first $0.5 million in the trust account will also be converted into Beaconsfield Gold shares, upon the retirement of the Receiver and Manager, at $0.23 per share.

CONVERTIBLE NOTES FUNDING AGREEMENT

On 18 December 2003, the Company advised shareholders that Beaconsfield Gold and Gold Investors Pty Ltd had, that day, signed a Convertible Notes Agreement under which $9.0 million of convertible debt funding is to be provided to Beaconsfield Gold.

Subject to the approval of shareholders at the Annual General Meeting and the retirement of the Receiver and Manager, Beaconsfield Gold will issue 30 million convertible notes to Gold Investors Pty Ltd, each note convertible into a fully paid Beaconsfield Gold share for $0.30 by 30 June 2006.

The $9.0 million to be subscribed has been deposited in a solicitor's trust account and will be released upon the retirement of the Receiver and Manager.

Principal terms of the notes include the following:

• Interest of 9.0% per annum, interest payable each six months in arrears until conversion or redemption;
• Notes to be 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;

1. Re-election of Director - Antony Greenwood
2. Re-election of Director - John Miedecke
3. Ratification of Agreement to Issue Shares to Clients of Tolhurst Noall
4. Ratification of Agreement to Issue Convertible Notes to Gold Investors Pty Ltd
5. Issue of Options to Bank of Western Australia
6. Issue of Partly Paid Shares to Michael Trumbull
7. Issue of Partly Paid Shares to Antony Greenwood
8. Issue of Partly Paid Shares to Jeffrey Williams
9. Issue of Partly Paid Shares to John Miedecke

INTERNET

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


Yours faithfully


Mike Trumbull
B.E. (Mining, First Class Honours), M.B.A., F.AusIMM
Managing Director

This report has been prepared by Mike Trumbull, the Managing Director of Beaconsfield Gold NL (Receiver and Manager Appointed). It is not a statement made by the Receiver and Manager of Beaconsfield Gold NL, who may hold different opinions on some of the issues reported on.