BGF Ballarat Gold

RNS Number:7983M
Ballarat Goldfields N.L.
28 November 2006

Ballarat Goldfields NL

ASX and Media release: 28 November 2006

Chairman's Address - AGM 28 November 2006

Thank you all for coming to today's meeting. This past year has been a
significant one for Ballarat Goldfields NL, culminating in the announcement of
the proposed merger with Lihir Gold Limited (Lihir). In essence the merger with
one of Australia's leading gold producers will allow the plans we have for
Ballarat Goldfields to be funded thus ending any uncertainty about the Company's
ability to raise the $120m needed to develop the Ballarat East Project. The
Company post merger will have the capacity to advance our extended portfolio of
exploration projects, including Ballarat South, Ballarat West and Berringa.

As noted in the Annual Report, your Company delivered on the objectives set for
the year to June 2006 and in the process a number of significant milestones were
achieved that underscored our belief in the longer term prospects for Ballarat
Goldfields. Considerable investment in the exploration program, coupled with the
greatly increased understanding of the mineralisation at Ballarat East, led to a
significant increase in our previously reported Resource estimate to 1.4 million
ounces of gold.

We have continued to develop the underground mine and completed construction of
most of the major surface infrastructure including stage one of our 600,000
tonne per annum processing facilities continuing our transition from explorer to
producer.

Our focus remains on the evolution of our geological model in order to generate
long term value and this year crucial information, derived from this process and
our early stope development, has enabled us to prioritise and better target our
exploration and development activities. This has led to a change in our mine
plan to focus on the higher grade mineralisation at depth and includes an
increase the Company's target output from the Ballarat East field from 200,000
to 250,000 ounces per annum.

The proposed merger with Lihir by a scheme of arrangement, whereby Ballarat
Goldfields would become a wholly owned subsidiary, ensures that the funding of
the $120m development plan for Ballarat East goes ahead. It also means that the
management, staff and contractors currently working with Ballarat Goldfields
will continue to be employed and that this important economic activity for
Ballarat and the Victorian economy will continue. The Managing Director will
further explain the very sound rationale for this move.

All in all a very satisfactory year and the merger with Lihir ensuring that the
full potential of Ballarat Goldfields can be realised.

Before asking Richard Laufmann to speak I would like to record the Board's and
Management's appreciation of the role played by Colin Smith the previous
Chairman of your Company. Colin made an exceptional contribution to the
development of Ballarat Goldfields and his unwavering enthusiasm in the future
of the Company ensured that we reached the stage we are at today. We all wish
him well in his retirement.

END



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