Beaconsfield Gold - Australia's Richest Gold Resource.

High Grade, Low Cost Gold Producer

September 2005 Quarterly Report

Report on Activities for the Quarter ended 30 September 2005

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

1.1 OPERATING PERFORMANCE

Gold production from the Beaconsfield Mine improved to 28,083 ounces, 5% higher than for the June 2005 quarter (26,865 ounces). Grade was consistent at 15.7g/t. Mill throughput increased but remains below ultimate capacity, limited by the rate of ore supply from underground.

Ore mined during the quarter totalled 57,319 tonnes (June 2005 quarter: 51,434 tonnes), of which 55,593 tonnes was hoisted to surface. Whilst still below budgeted expectations, the increase in tonnage compared to the low June 2005 quarter reflected improved stope availability and sequencing during the quarter. This was partially offset by slow progress in recovering a high grade ore pillar and the intersection in an ore drive of a surface diamond drill hole containing water.

With continued seismicity being experienced at depth in the mine, a permanent "real-time" seismic monitoring array was installed in July 2005. Seismic data is now available to technical staff and displayed graphically to operators underground as events occur.

Throughout the September 2005 quarter seismicity continued to occur in the vicinity of overlapping bands of conglomerate rock within the hangingwall and footwall of the Tasmania Reef. Events occurred most commonly during the Avoca pillar extraction stage of the mining operation. In response to the concentrated seismicity seen in these areas immediately following stope firings, non re-entry periods, typically of 12 hours duration, have been enforced in some areas.

Ground support systems have continued to evolve in response to seismicity. The use of point resin-anchored threadbar bolts to provide dynamic support in areas defined as being of high seismic risk from geological mapping has proven to be successful in minimising damage due to seismic shakedown.
The mine access decline advanced by 112 metres during the quarter to a depth below surface of 1,080 metres. Only 1,167 tonnes of waste rock were required to be hoisted to surface. The balance was utilised underground as stope backfill, resulting in significant haulage efficiencies and savings.

Production Summary

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

1.2 EXPENDITURE 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 $413 per ounce decreased by 1% over the previous quarter ($417 per ounce). In terms of cost per tonne milled, the September 2005 quarter figure of $195 has also decreased compared with the previous quarter ($201 per tonne).

Capital expenditure was $2.0 million (June 2005 quarter: $2.5 million). The main abnormal capital expenditure activity continued to be the extensive ore reserve diamond drilling program, which made up 24% of the capital costs for the quarter.

1.3 UNDERGROUND DRILLING OF THE TASMANIA REEF

The current underground diamond drilling program (F series) commenced in December 2003 and was completed during the September 2005 quarter, with a total of approximately 32,000 metres in 112 holes being drilled. Holes F85 and F95 to F112, totalling 4,640.7 metres, were drilled in the September 2005 quarter. Hole F113 is currently in progress as an exploration hole testing the Southern Reef and is not included in the above figures. Assays have been received for all holes up to hole F109. Assays are currently awaited for holes F110 and F112. Only holes for which assays were received during the September 2005 quarter, or subsequently, or those that have been reinterpreted, are listed below.

Further to the above, the following are one-off intercepts of mineralisation during the quarter that cannot yet be related to any other identified structures in the mine:

(1) FW and HW refer to ore splays in the footwall and hangingwall respectively of the Tasmania Reef.
(2) Estimated depth below surface (Hart Shaft collar 2047 metres RL).
(3) E.H.T is the estimated horizontal thickness of the reef intersection.

All holes completed during the September 2005 quarter, except F108 and F111, were drilled from the eastern cuddies on the 870mL, and targeted the Tasmania Reef in the "F21 Zone", the "840E Zone" and the "Deep Zone". Holes F108 and F111 were drilled from the South Trevor cuddy on 870mL and were targeted at the Tasmania Reef in the Keel Zone. Both of these latter holes failed to intersect any significant mineralisation.

Completion of the resource drilling programme occurred on schedule at the end of September 2005. Exploration drilling is now in progress with hole F113 targeted at the Southern Reef.

The following map broadly shows the location of the aforementioned zones and drilling completed to date.

Mineral Resources and Ore Reserves for the Beaconsfield Gold Mine were not updated from the previously published estimates as at 30th June 2005. A complete review of the Mineral Resources and Ore Reserves will be undertaken once all outstanding drilling results have been received. AMC, in conjunction with mine staff, is currently conducting a study to assess the financial impact of mining these areas. The Tasmania Reef and Eastern Hangingwall Reef in the F21 Zone are currently included in the Indicated Resource category for 158,000 tonnes at 17.0 g/t gold (86,000 ounces contained gold).


1.4 BMJV REGIONAL EXPLORATION

Mineral Resources Tasmania ("MRT") formally advised that a two (2) year extension over approximately half the exploration licence EL 20/94 had been granted, backdated from the original expiry date of 28th October 2004. As previously reported, it is proposed that drilling will commence at Middle Arm Gorge in the December 2005 quarter with the aim of investigating a possible separate reef structure paralleling the Tasmania Reef. Middle Arm Gorge is located around 2 km south of the Tasmania Reef. Follow-up work on the historical Salisbury Gold Field is also planned.


1.5 ARBITRATION AWARD

As previously reported, 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 found BREC and BA to be 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.

Subsequent to the arbitration award, liquidators were appointed to both BREC and BA. Beaconsfield Gold and the Deed Administrators of the Allstate group are continuing to deal with the liquidators of both BREC and BA with regard to the arbitration award.

In late June 2005 the BMJV participants and the professional indemnity insurer for BREC and BA reached an in-principle settlement whereby the insurer will pay $13 million as full settlement of the insurer's exposure, subject to the provision of certain third party releases. The BMJV participants are now seeking those releases in order to progress settlement.

The Beaconsfield Gold group's 48.49% share of the $13 million in-principle settlement is approximately $6.3 million.

In March 2004, $4 million of interest due to the Company's then secured creditor was set aside, to be repaid only from 50% of any proceeds received by Beaconsfield Gold from the BREC and BA arbitration. As a result, it is anticipated that approximately $3.15 million of this contingent liability will be repaid as a result of the in-principle settlement, reducing the contingent liability to approximately $0.85 million.


2. BEACONSFIELD GOLD NL CORPORATE

2.1 EXPLORATION OF BEACONSFIELD GOLD'S TENEMENTS

2.1.1 Beaconsfield Tenements

Expenditure on Beaconsfield Gold's 100% owned tenements at Beaconsfield during the quarter totalled $135,000.

North Pease Creek Prospect

The North Pease Creek property is around 4 km northwest of the Beaconsfield Mine. The "Mine Sequence" rocks that host the major Tasmania Reef at the Beaconsfield Mine (Ordovician conglomerate, sandstone and siltstone) occur between two well-defined, north-westerly trending thrust faults - the Cabbage Tree Thrust and the Cobblestone Creek Thrust. Beaconsfield Gold's geologists have confidently interpreted extensions of both the Mine Sequence rocks and of the two enclosing thrust faults northwest under a cover of Tertiary sediments into the North Pease Creek property. Some 2 km of prospective Mine Sequence rocks are interpreted to exist in the North Pease Creek property. The belt of prospective Mine Sequence rocks is only around 400 m wide and provides excellent focus for systematic exploration. Surface cover and lack of outcropping rocks prevented any historic prospecting, leaving the area lightly explored to date.

Previously reported drilling by Beaconsfield Gold during 2004/05 encountered significant gold mineralisation in several holes at the south-eastern end of the drill hole fence. The best intercept was NPC-7 which recorded 3.0 metres at 3.9 g/t gold from 163 metres including 1.0 metre at 8.6 g/t gold and ended with the basal 40 metres of the hole (138-178 metres EOH) grading 0.4 g/t gold. Mineralisation is hosted in black carbonaceous quartz sandstone and granule sandstone/conglomerate and is associated with increased abundance of fine pyrite, arsenopyrite and ankeritic fine stockwork fracture and veinlet zones.

Late in the quarter a follow-up drilling program commenced utilising diamond core tails on both vertical and angled RC percussion holes to overcome some of the drilling challenges previously encountered. The first hole in the program, NPC-6, was completed to a depth of 184 metres and encountered a pyritic alteration zone over 10 metres wide visually correlating with the mineralised zone encountered in NPC-7. The program is continuing.


2.1.2 Stavely Project, Western Victoria

In July 2005, Beaconsfield Gold secured an option to acquire 100% of Stavely Exploration Licence 4556 from New Challenge Resources Pty Ltd (NCR).

The Stavely property of 370 sq km is over 50 km in length north to south and up to 15 km in width west to east. Located south of the Grampians, with its northern boundary approximately 46 km south-south-west of the Stawell gold mine, the property contains large scale hydrothermal/plutonic mineralising systems associated with base metal and gold mineralisation. The extensive character of these systems has attracted previous exploration expenditure of some $4 million by major companies, including most recently Newcrest.

Beaconsfield Gold's primary focus initially will be gold exploration, but the nickel, copper-gold and zinc anomalies developed will warrant significant effort over time.

Fair View Gold Prospect

The Fair View gold anomaly currently extends between 2 km and 7 km south-south-east of Thursdays Gossan and skirts the western side of Mount Stavely.

In 1992, North Limited used geochemistry to survey streams in the southern part of the Stavely area. A broadly anomalous (+1ppb gold, maximum 16ppb gold) gold corridor was defined along the western margin of the Mount Stavely Volcanic Complex (MSVC).

In 2003, Newcrest undertook a systematic 100m x 200m multi-element, GPS controlled soil survey across the western boundary of the MSVC over a rectangular area roughly 5 km by 2.5 km. This generated a straight line gold-in-soil anomaly (+1ppb gold, maxima 10, 13, 16, 54 and 76ppb gold) some 5 km long that is open to the south-south-east and to the north-north-west.

The anomaly is within the Glenthompson Sandstone just west of the western margin of the MSVC and is probably related to a structure parallel to the western margin of the MSVC. The intersection of this structure with cross-cutting structures has not been assessed to date.

The southern portion of the Fair View gold anomaly was partly tested in a very preliminary fashion by Newcrest in 2004 with two east-west air core drill traverses 1 km apart. One traverse had two vertical holes 200m apart and the other traverse had three vertical holes 200m apart.

Of the five air core holes, one intersected 14m averaging 0.4g/t gold from 32m to the bottom of the hole, including 2m at 0.8g/t gold. This result is considered very encouraging. The few broadly spaced holes did not constitute a thorough test of the structure. Additionally, the holes were too shallow to properly test below the near surface zone of gold depletion.

Beaconsfield Gold considers that Fair View is an outstanding gold prospect and plans to conduct further soil sampling over the trend of anomalous results during the December quarter. Sample spacing will be closed up to 80m x 20m and a tractor mounted auger will be used to test the C horizon. If initial results are confirmed this will allow an effective drill program to be designed to test the prospect beneath the surface depletion zone.

2.2 GOLD HEDGING AND GOLD PROCEEDS

At 30 September 2005, the Company's hedge book was 54,000 ounces of flat forwards and spot deferreds, with deliveries out to February 2007, at an average price of $587 per ounce.

The marked-to-market value of the hedge book at 30 September 2005, when the spot price of gold was $622 per ounce, was negative $3.1 million.

2.2.1 Gold Hedging as a Percentage of Ore Reserves/Resources

BMJV ore reserves at 30 September 2005 were approximately 255,000 ounces (based on June 2005 reserves and gold milled during the September quarter), of which Beaconsfield Gold's 48.49% direct interest was approximately 123,650 ounces. As a percentage of those ore reserves, therefore, Beaconsfield Gold at 30 September 2005 was approximately 44% hedged.

On the same basis, approximately 24% of Beaconsfield Gold's resources were hedged.

2.2.2 Average Received Price per Ounce

Total net gold book proceeds and effective average received price per ounce of production are approximated in the following table.

Average Proceeds per Ounce of Production

2.3 CASH POSITION

At 30 September 2005, total effective cash held by the Company was approximately $7.0 million, excluding pending cash from the in-principle settlement with the BBR insurer.

2.4 CLAIM AGAINST ALLSTATE EXPLORATIONS NL ("Allstate")

On 3 November 2004, Beaconsfield Gold lodged a Proof of Debt ("POD") with the Allstate Deed Administrators for $29,271,854 plus interest, representing 48.49 % of the damages awarded to the BMJV participants in the claim against BREC and BA. The POD alleges that Allstate was negligent in the performance of its duties as manager of the BMJV and was in breach of its duties owed to the BMJV participants, under the terms of the BMJV Agreement, in its dealings with BREC and BA in connection with the contract to design, supply, construct and commission the gold ore treatment plant and bacterial oxidation plant at the Beaconsfield mine.

On 18 April 2005, the Allstate Deed Administrators formally advised the Company that the POD had been rejected.

On 2 May 2005, Beaconsfield Gold filed an application in the Supreme Court of Victoria appealing against the Allstate Deed Administrators' rejection of the POD. A directions hearing is scheduled for 2 December 2005.

2.5 ALLSTATE CLAIM AGAINST ALLSTATE LEGAL ADVISER

On 12 November 2004, Allstate, on its own behalf and as Manager of the BMJV, and the Allstate group participants in the BMJV filed a writ seeking damages for professional negligence against a legal firm that provided advice concerning the professional indemnity insurance policy and risk management issues generally associated with the contract to design, supply, construct and commission the gold ore treatment plant and bacterial oxidation plant at the Beaconsfield mine.

On 6 May 2005, the writ was served on the legal firm.

The legal firm has denied liability and filed a defence and counterclaim in the proceedings.

2.6 BEACONSFIELD GOLD ISSUED SECURITIES AT 30 SEPTEMBER 2005

2.7 TENEMENTS

Beaconsfield Gold has interests in the following tenements.

* BCD has an option to acquire 100% interest, subject to a 3% net smelter return royalty

2.8 INTERNET

Shareholders are invited to visit the Company's website to view all ASX releases (including all quarterly and annual reports), historical information relating to the Beaconsfield Mine, and Beaconsfield Gold NL corporate information: www.beaconsfieldgold.com.au

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