RNS Number:9165S
Ballarat Goldfields N.L.
20 October 2005


ASX and Media release: 20 October 2005

Chairman's Address - AGM 20 October 2005

Before moving to considering the accounts and various resolutions I would like
to make the following comments.

Up front, I would like to thank you, our owners for the continued support and
confidence you have demonstrated. From the time of our refinancing in October
2002, a great deal has changed, both in the financial markets, the commodity
markets and in our company's outlook.

October 2002, saw us begin with little funding and a clear objective, to clear
the company of its debts and 'maximise our understanding of the geology and of
the mineralisation controls'.

With the evolution of our geological understanding, the construction of our
geological model, followed by a relative handful of drill holes, these first
objectives were met.

As a consequence of this, more drilling and a conceptual study, demonstrated for
the first time the economic potential of the project and the field.

To date, it is fair to say that we have had nothing but positive confirmation of
the geological model. Definitional drilling of the zones of first production is
well advanced with encouraging outcomes. To date, development has been
difficult, hampered by varying ground conditions, but is improving with depth
and new procedures.

Along the way, BGF has developed and refined our Vision, to 'Become a Major
Australian Gold Producer'. We identified then, and continue to believe, that our
platform for growth is the progressive unlocking of the potential of the
Ballarat field.

In order to achieve this we have embarked on a number of parallel objectives.

These can be summarised by the following actions:
   * The rapid and focused development of the Ballarat East project including 
     ongoing geological drilling and understanding.
   * The geological modelling of Berringa.
   * The acquisition of Ballarat South.
   * The step out drilling of the Yarowee Creek holes to define the boundary of,
     and begin the exploration of Ballarat West.

All of these projects add up to an impressive potential platform from which to
pursue organic growth, and comprised the basis for BGF to make a transition from
explorer, to self funded developer.

As we have stated, we believe the medium term outlook for the global economy is
uncertain and that gold and unhedged gold stocks will provide an attractive
investment option. BGF, with cash in hand and no hedging in place, is well
placed within this framework.

So it is with a great deal of satisfaction that we can reflect on the past 12
months and look to the future.

The most significant decision, to bring forward the construction of our process
plant presented numerous hurdles, including the financing. Rather than stall the
project, we proceeded, with the aid of debt finance from Investec and an
underwriting of the listed options by RFC. These strategies ensured our cash
position, enabling us to enter into significant construction contracts.

Amidst the above activity, we completed our listing on the Alternative
Investment Market of the London Stock Exchange. This places BGF in a truly
international forum, quoted daily on arguably the largest new financial market.

Our Managing Director, at the end of the meeting, will provide an overview of
the progress to date for our company.

We are well aware of our responsibilities as Directors. We have adopted
governance policies appropriate to our current circumstances, which will evolve
as our status changes. Our small board has grown, now having a broader span of
talent as we move toward production. We continue to believe a maximum of five
(5) Directors to be adequate during the next phase of the company's development.

Rather than adopting a passive view of strategy, our board of directors is
focused on continuing to rapidly pursue a path of growth, working with our
management. An open platform of dialogue and a preparedness to make difficult
decisions within a framework of ambiguity are what we consider fundamental to
our continued success. And to this end we can guarantee we will continue to
pursue and embrace opportunities.

In conclusion, I would like to acknowledge the achievements of our Managing
Director. He has taken BGF to the world, attracted a first class team, developed
strong industry competencies within the company, in a tight market for talent,
and continues to push hard for growth and development. We have the support of
our host communities and regulators. Our people are a first class combination of
staff and contractors which are the core of any successful company.

                                      END



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

END
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