Company Project Update

RNS Number:4172R
Ballarat Goldfields N.L.
19 September 2005


BALLARAT GOLDFIELDS nl

ASX, AIM and Media release: 19 September 2005

                Ballarat Goldfields - Company Activities Update

Ballarat Goldfields NL (BGF) is pleased to provide an update of its current
activities to shareholders and option holders to inform them of the progress
that has been made during the quarter to advance the development of its Ballarat
projects. This update is made in consideration of Ballarat's listed options (ASX
and AIM "BGFO") being exercisable before 30 September 2005 and their quotation
ending on 23 September 2005.

Key Appointments

Two senior executive appointments have been made:

  * Wojciech (pronounced "Voytek") Ozga was appointed General Manager of
    operations for BGF. Most recently, Wojciech spent 2 years in Kazakhstan as
    Director of the Kazakhstan Operations for AIM listed Celtic Resources
    Holdings plc, where he was responsible for development of the Suzdal
    underground mine and the processing facilities. Prior to this, Wojciech was
    employed by WMC Limited as General Manager Central Norseman and Group
    Manager Mining Projects. In his capacity as Group Manager Mining Projects,
    Wojciech managed the Olympic Dam mine expansion. Wojciech brings a wealth of
    operating and development experience to the Company.

  * Nick Colalancia has taken up the role of Project Manager, responsible
    for the process plant construction. Nick, the principal of Rosetta Stone Pty
    Ltd, has a long career in all aspects of project construction and
    development, including 6 years in the oil and gas industry and the last 16
    years in the mining industry. During this time Nick has undertaken a number
    of large engineering construction projects, including work at Olympic Dam
    for WMC.

Process Plant

Construction of the processing plant is progressing and is on schedule for
commissioning during the December quarter 2005. Currently:-

  * The site earthworks are around 80% complete.
  * The foundations for the crushing and gravity sections of the plant have
    been completed.
  * Construction of the gravity module is nearing completion and being
    readied for site erection.
  * The crushing plant components have arrived in Ballarat.

Ballarat East Underground Development

The underground development at Ballarat East is progressing on three fronts as
the Sulieman decline advances to the north, initially as a drilling platform,
the Woah Hawp decline advances to the south for access to mineralisation and the
vent drive advances towards the North Prince Extended ventilation shaft. BGF has
now:

  * Accessed the first gold resource and it is being developed on the 160
    and 189 levels. Definition drilling of this resource is continuing.
  * Developed procedures for traversing cross cutting faults that has led to
    an improvement in development rates in these areas.
  * A second underground drilling jumbo on site. This is required to begin
    the ramp up of underground development and to access to the gold resource.
    The next phase of the development ramp up will begin following the
    completion of the ventilation shaft and connecting ventilation drive.

North Prince Extended - Ventilation Shaft

  * The ventilation shaft is at a depth of 114 metres with the final design
    depth of 127m expected to be completed during October.

Exploration

BGF's exploration is ongoing and currently focussed on:

   * Ballarat East definition drilling; and,
   * Data analysis from the recently acquired Ballarat South leases.

The definition drilling at Ballarat East continues to validate BGF's geological
model and the data from Ballarat South indicates that the gold mineralisation at
Ballarat South is a direct extension of the Ballarat East lines. This provides
strong encouragement to advance this project area.

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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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