BGF Ballarat Gold

RNS Number:7645J
Ballarat Goldfields N.L.
02 October 2006

BALLARAT GOLDFIELDS NL
ASX and Media release: 2 October 2006

           Ballarat Goldfields Development Plan and Financing Update

Ballarat Goldfields NL (BGF) is pleased to announce that it continues to advance
the new development plan for Ballarat East. BGF has a non binding term sheet in
place for the provision of a A$100 million delayed draw financing facility
which, when combined with current cash, would provide the required A$120 million
funding to implement the improved development plan for Ballarat East.

The debt facility is being arranged by RFC Corporate Finance Ltd and is subject
to a number of conditions typical of a facility of this nature including;
provision at the sole discretion of the Lenders; third party due diligence,
which is currently underway; final credit approval and legal documentation. The
term sheet does not contemplate BGF entering into any hedging arrangements.

As stated previously, the new development plan for Ballarat East provides
greater certainty to production and cash flows albeit by bringing capital
development forward. Highlights of the improved development plan (more detail is
provided in previous announcements) include:

*      greater certainty to achieve higher production rates of around 250,000 
       ounces of gold per annum (previously 200,000 ounces per annum) with 
       increased flexibility to deliver a consistent production tonnage to the
       process plant;

*      concurrent access to the substantially higher grade gold mineralisation 
       at depth, in the southern and northern areas, by re-locating a proposed 
       ventilation shaft to the southern end of the mine and equipping it for
       haulage;

*      cash operating costs falling below A$300/oz when in full production;

*      conservative rates of development for underground access and shaft 
       construction given the successful completion of the North Prince Extended
       ventilation shaft in 2005 and on-going development experience;

*      by-passing potential upper level ore sources, above the base of the 
       historical workings, which are proving to be difficult to access and
       unreliable for consistent large scale production. These areas may provide
       a supplemental ore source at modest production rates once full scale 
       production has commenced; and,

*      the ability to carry out resource definition drilling well ahead of 
       production.

BGF is committed to the improved development plan for Ballarat East and will
provide further details on the debt facility once it is finalised.

                                      End



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
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END
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