Beaconsfield Gold - Australia's Richest Gold Resource.

High Grade, Low Cost Gold Producer

September 2004 Quarterly Report

Report on Activities for the Quarter ended 30 September 2004

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HIGHLIGHTS BMJV gold production for the September 2004 quarter was 34,045 ounces (June 2004 quarter 30,848 ounces). 55,549 tonnes of ore (56,226 tonnes previous quarter) were milled at an average head grade of 19.4 g/t gold (18.4 g/t previous quarter) and an average gold recovery of 98.0% (92.6% previous quarter), excluding changes in gold in circuit. BMJV direct operating expenditure per ounce for the quarter was A$325 per ounce (A$314 previous quarter) versus gold revenue for Beaconsfield Gold of A$513 per ounce (A$570 per ounce previous quarter). Beaconsfield Gold cash flow from its 48.49% direct interest in the BMJV for the quarter was approximately $2.1 million ($2.8 million previous quarter). BMJV underground drilling program continuing with drilling commencing from two cuddies established to target new ore reserves below the 840 metre level east zone and also the F21 eastern zone above 1200 metres depth. Beaconsfield Gold recommenced drilling on its 100% owned exploration tenements at the end of the quarter. The first hole at North Pease Creek encountered Ordovician Mine Sequence stratigraphy under Tertiary cover 3 km north-west of the Beaconsfield Mine. A fine fractured stockwork at the base of the hole carried anomalous gold and arsenic. Beaconsfield Gold audited profit for the 2004 year (no tax payable) was $11.7 million after providing for depreciation and amortisation of $6.3 million. During the quarter, Beaconsfield Gold fully repaid its remaining 48.49% share of the total owing to the providers of goods and services to the Beaconsfield Mine who had their invoices frozen when Allstate, the Manager of the BMJV, went into administration on 8 June 2001. At the end of the quarter, BankWest secured debt was $4.2 million against which Beaconsfield Gold held $6.8 million in cash, of which $5.7 million was held in BankWest accounts with restricted access.

KPI SUMMARY FOR 12 MONTHS ENDING 30 SEPTEMBER 2004

Key performance indicators for the Beaconsfield Mine Joint Venture (BMJV) and Beaconsfield Gold (BCD) for the 12 months ending 30 September 2004 are as follows:

⁽¹⁾ Before BCD corporate and debt servicing costs.

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

The drilling from the Trevor and South Trevor cuddies in the hangingwall of the Tasmania Reef at the 870 metre level established that a previously unknown fold in the stratigraphy hosting the Tasmania Reef has resulted in a strike offset of the mineralisation of approximately 150 metres to the east from around 1,000 metres depth.

Two new drilling cuddies, at Middle East Trevor, were established approximately 130 metres to the east of the Trevor and South Trevor cuddies on the 870 metre level towards the end of the September quarter. The great majority of the balance of the drilling program will now be carried out by two diamond drilling rigs operating from these cuddies through to June 2005. The target of the drilling will be to establish new ore reserves in two areas: (1) below the 840 metre level east zone and (2) in the F21 resource zone above 1200 metres depth.

In addition, it is planned to drill a total of nine intersections from three primary holes, employing navi drilling, below the F21 resource zone between 1200 and 1400 metres depth. The first of these nine holes, F53, is currently being drilled.

1.2 MINE PERFORMANCE

Ore production at the end of the quarter was available from over 10 levels throughout the mine, down to the 965 metre level, allowing significant flexibility in mine scheduling. The decline / waste development layout and the modified ½ Upper / Avoca mining method continued to provide operating benefits and efficiencies. Decline advance during the quarter totalled 185 metres with the face of the decline 1,005 metres below surface at 30 September 2004.

Production Summary

The Hart Shaft continued to perform well during the quarter with 55,833 tonnes of ore and 35,251 tonnes of waste (total material 91,084 tonnes) being hoisted. An additional 7,886 tonnes of waste rock were not hoisted, being utilised underground as stope backfill. A further 2,206 tonnes of "sand fill", a coarser fraction of the mill tailings, were also pumped underground and used as stope backfill.

Gold Production

The average September 2004 quarter reconciled head grade of 19.4 g/t gold was 1.0 g/t or 5% better than for the June 2004 quarter.

Ore treatment plant gold recovery for the September 2004 quarter, excluding changes in gold in circuit, was 98.0% compared with the June 2004 quarter figure of 92.6%. There was a build up in gold in circuit at the end of June 2004 due to an unusual electrical failure in the ore treatment plant in that month and that temporary build up in gold in circuit inflated the recovery figure in the subsequent September 2004 quarter.

Gold production for the September 2004 quarter was 34,045 ounces, 3,197 ounces or 10% greater than the June 2004 quarter result of 30,848 ounces. The percentage of gold production recovered by gravity processes during the quarter was approximately 51%.

1.3 BMJV EXPENDITURE

Direct operating expenditure for the September 2004 quarter was $11.062 million, 14% higher than for the June 2004 quarter ($9.682 million). Mining costs were abnormally high, being 22% higher than for the June quarter.

Capital expenditure for the September 2004 quarter was $2.062 million (June 2004 quarter was $2.103 million). The main abnormal capital expenditure activity continued to be the extensive ore reserve diamond drilling program.

1.4 EXPLORATION JOINT VENTURE BETWEEN DDV AND THE BMJV

No field work was carried out by DDV on the BMJV exploration tenements during the quarter.

1.5 ARBITRATION AWARD

As previously reported in January 2004, an arbitration award was made in favour of the BMJV participants (Beaconsfield Gold group 48.49% and Allstate group 51.51%) against ACN 005 585 795 Pty Ltd (formerly Brown & Root Engineering & Construction Pty Ltd ("BREC")) and Batepro Australia Pty Ltd ACN 009 006 777 ("BA"). The arbitrator, Mr J Tyrill, found that BREC and BA are jointly and severally liable to the BMJV participants for $60,366,785 together with interest after 17 January 2004 at the rate of $29,292 per week. The Arbitrator also found that the cross claims by BREC and BA against the BMJV participants fail.

On 30 April 2004, Administrators were appointed to BREC and the Administrators were subsequently appointed the liquidators of BREC on 1 July 2004. On 7 June 2004, liquidators were appointed to BA. The Deed Administrators of the Allstate group, together with the Beaconsfield Gold group, are continuing to deal with the liquidators of BREC and BA in regard to the arbitration award.

2. BEACONSFIELD GOLD CORPORATE

2.3 BEACONSFIELD GOLD CASH FLOW FROM ITS 48.49% DIRECT BMJV INTEREST

Cash flow accruing to Beaconsfield Gold from its 48.49% direct interest in the BMJV, before BCD corporate and debt servicing costs, is approximated in the following table.

Beaconsfield Gold Cash Flow from its 48.49% Direct Interest in the BMJV

2.4 FULL REPAYMENT OF DEBT TO PRE - 8 JUNE 2001 ALLSTATE TRADE CREDITORS

Prior to coming out of receivership in March 2004, Beaconsfield Gold owed $2,620,927 to Allstate Explorations NL (Subject to Deed of Company Arrangement). This amount was the Company's remaining 48.49% share of the total owing to the unsecured trade creditors of Allstate, the providers of goods and services to the Beaconsfield Mine who had had their invoices frozen when Allstate, the Manager of the BMJV, went into administration on 8 June 2001.

Two repayments of $327,616 each were made by the Company on 12 March 2004 and 5 July 2004. A further repayment of $400,000 was made on 6 August 2004 and the remaining balance of $1,565,715 was repaid on 7 September 2004.

2.5 BANK DEBT AND CASH POSITION

At the end of the September quarter, BankWest secured debt was approximately $4.2 million against which the Company held approximately $6.8 million in cash, of which $5.7 million was held in BankWest accounts with restricted access.

Three banks are currently completing due diligence with the intention of making credit-approved offers to Beaconsfield Gold for hedging, revolving credit and guarantee facilities to replace the BankWest facilities. The Company expects to be able to decide on a new bank within a month.

2.6 CURRENT BEACONSFIELD GOLD ISSUED SECURITIES

2.7 TENEMENTS

2.7.2 Beaconsfield Gold 100% Owned Exploration Licences