Ballarat Gold - In a very good position ?

Ballarat Goldfields N.L.
20 October 2005


ASX and Media release: 20 October 2005

Chairman's Address - AGM 20 October 2005

EXTRACT FROM FULL RNS:
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.