BGF Ballarat Gold

RNS Number:6106K
Ballarat Goldfields N.L.
05 April 2005

BALLARAT GOLDFIELDS NL (ACN 006 245 441)

ASX and Media release: 5 April 2005

Finance Facility Secured to Allow an Early Start to Gold Production at Ballarat
                                      East

Ballarat Goldfields NL (BGF) is pleased to announce that it has secured a
bridging finance facility, with Investec Bank (Australia) Ltd (Investec). This
facility will allow BGF to commence production at Ballarat East some six months
ahead of the schedule previously envisaged under the pre-feasibility study.

BGF has been completing its project development plan, incorporating the results
of its recent drilling and optimisation studies.

BGF now plans to begin accessing ore in the third quarter and to commission the
process plant in the fourth quarter, this year. The plant construction contract
will be finalised shortly.

The earlier than anticipated production start has been made possible by the
delineation of a number of ore sources in close proximity to the existing
decline that will allow early mining access.

The capital required by the company to come into production under the project
development plan remains in line with the pre-feasibility study estimate. The
company raised $27 million in July 2004, with the balance expected to come out
of the funds to be raised from the exercise of the listed options in September
2005.

Production is planned to ramp-up to approximately 200,000 ounces per annum over
a three year period.

As a consequence of the early commencement of production at Ballarat East, BGF
will require funds to be committed earlier than anticipated in the
pre-feasibility study. Therefore, in order to bridge its short term funding
requirements BGF has arranged a finance facility with Investec. On completion of
documentation, the facility will enable BGF to draw up to $17 million. This
facility is expected to be re-paid from the exercise of the listed options.

The facility does not require BGF to enter into any hedging arrangements.

Further details will be made available over the coming months.

For further information, please visit our website www.ballarat-goldfields.com.au
or contact Joel Forwood, Manager Corporate and Markets, on 03 5327 1111.



                      This information is provided by RNS
            The company news service from the London Stock Exchange

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