For the period ended 30 September 2012

Highlights

Beaconsfield Operations

Safety performance: one LTI and one MTI reported.

Commissioning of Lefroy tailings treatment project during August-September.

GIC cleanout from process plant production of 3,626 ounces for Sept Quarter.

Asset sales from mine closure ongoing with revenue of $0.914m received for the quarter.

Middle Arm Tailings drilling confirms significant remnant gold-rich tailings with average

grades of 1-2 g/t gold.

Stormont JV signed, allowing for profit sharing from development of high-grade, near-

term open-pittable gold resource. Feasibility study underway.

Corporate

Net free cash position $ 5.4m at 30 September.

CEO’S COMMENTARY ON THE QUARTER

BCD Resources CEO, Peter Thompson said

“The transition from underground miner and operator of a Bacox treatment plant to the

retreatment of tailings using the CIL process marks an important change for the

Company, as it seeks low-risk and high margin treatment opportunities.

Projects with potential for significant cashflow are emerging from Middle Arm Tailings

and Stormont Gold, with other third party projects which may have future use for our

treatment plant facilities under review.”

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BEACONSFIELD OPERATIONS

SAFETY

Safety performance for the quarter was disappointing, with 1 LTI resulting from an accidental impact with

high-pressure water, and 1 medical treatment injury from a laceration to a finger. Full recoveries are reported

for both incidents. The 12 month rolling average MTIFR (Medical Treatment Injury Frequency Rate) reduced

to 20.9 at the end of September.

PRODUCTION

Gold production of 3,626 ounces during July and August was the final drawdown of gold-in-circuit from the

Tasmania Mine which was closed in June. Plant modifications were made to allow ore processing by Carbon-

In-Pulp (CIP), and CIP commissioning of Lefroy tailings commenced in August. The process plant is now

capable of processing by either Bacox or CIL, with only minor adjustment.

Mine Operations

Recovery of all saleable equipment and installation of pipework for underground disposal of tailings was

completed, and preparations for capping of the three shafts made. Almost all of the underground workers have

completed their employment with the Company, with a three-man crew retained to complete some asset sales

and Closure Plan tasks.

Closure Plan

Mine closure and rehabilitation progressed, with rehabilitation of the mine surface and stockpile areas, clay

capping of 66% of tails dam 1, removal of 20% of tails dam 2, draining and stacking of Wetlands clay,

minesite fencing, office removal and delivery of representative drillcore to MRT in Hobart completed.

Removal of tailings from the plastic-lined tails dam 2 by hydromining (water cannon and suction pumps) has

been suspended after the removal of 20% of its contents as this technique was neither effective nor efficient.

Alternative, lower cost means of closure for tails dam 2 are under investigation.

COSTS

Cash costs of production were A$1,224 per ounce, including the costs of recovery of gold-in-circuit and

Lefroy commissioning costs, with a diminishing workforce.

Capital expenditure for the quarter was $1,296m, largely on plant modifications and establishment of

tailings pipework. In addition, $3,344m was spent on closure and rehabilitation costs.

ASSET SALES

Sales of underground equipment and infrastructure progressed. Major items of remaining underground

equipment for sale are shown on the Company website (www.bcdresources.com.au), with most sales

expected to be concluded in the March quarter.

The company will fully retain its valuable Bacox and CIL processing facility which has a current

replacement value of approximately $60m.

LEFROY TAILINGS PROJECT (100% BCD)

The Lefroy tailings are historical goldmine tailings, located on a mining lease near Lefroy, 40km from the

Beaconsfield plant and estimated at 140,000 tonnes averaging 1.4 g/t gold, containing 6,000oz of gold in

situ. Transport to Beaconsfield and processing of this material commenced in August, with the first

consignment of gold-loaded carbon despatched in mid-October, containing an estimated 350 ounces of

gold. Leaching of gold in cyanide solution has been rapid, but throughput delays have been experienced

due to high rainfall, clay-rich material and resulting material handling issues. Metallurgical recoveries

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have increased during commissioning and are currently at 60%, still short of the targeted recovery of

75%.

Total tonnage of tailings processed in the September Quarter was 16,798 tonnes at a head grade of 1.52

g/t gold, with the rate increasing to an average of 675 tonnes/day during October.

STORMONT GOLD JOINT VENTURE (BCD 50% profit-share)

On 9th October, the Company executed a Joint Venture with Torque Mining Ltd and Frontier Resources

Ltd over the Stormont gold deposit in northern Tasmania.

Figure 1 Stormont and Beaconsfield location plan

The Stormont deposit is a skarn-style gold-silver-bismuth deposit located in northern Tasmania, 40km

south of Devonport and 130km by road to Beaconsfield (refer Fig 1). It is a shallow deposit, with

mineralisation commencing at surface and extending to around 40m depth (refer Cross Section, Fig 2).

The deposit has been extensively diamond drilled on 12.5m-spaced traverses and has the following

published inferred resources:

Cut-off (g/t gold) Tonnes Gold g/t Bismuth % Silver g/t Contained Gold ounces

0.5 150,800 2.89 0.17 3.82 14,011

1.5 84,500 4.38 0.23 4.48 11,900

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Figure 2 Stormont Cross Section

Previous metallurgical testwork indicates that the gold is free-milling and that high recoveries should be

achieved from Carbon-In-Leach (CIL) processing. A 50/50 Joint Venture has been formed with BCD as

the manager and operator, and for BCD to mine and process Stormont ore.

Following recovery of all feasibility costs, operating costs and royalties, net profits from the project will

be shared 50% BCD, 45% Torque and 5% Frontier. Torque and Frontier will also be entitled to 100% of

net profits achieved from gold revenues from gold sales in excess of A$1,700 per ounce.

Work on the mine approval process has advanced, with environmental studies, waste rock

characterisation, metallurgical testwork, pit design and preparation of a Notice of Intent and mining lease

application underway. This process is being expedited, with the aim of developing and processing the

Stormont deposit as soon after the completion of Lefroy tailings processing in 2013 as possible.

Indicative costs of mining, haulage and processing suggest that a cut-off grade of around 1.5g/t gold

would be optimal.

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EXPLORATION

HISTORICAL BEACONSFIELD TAILINGS (EL6/2012)

Middle Arm Tailings

Exploration licence EL6/2012 was granted during August, covering the historical tailings present in

Middle Arm Bay, Beaconsfield. These tailings originated from the Tasmania Mine between 1877

and 1914, which recovered gold by roasting and discharged tailings into the Tamar estuary at Middle

Arm Bay. Subsequent recovery and re-treatment of some of these tailings occurred between 1985

and 1988 by the Golconda company. A 75-hole drilling programme for Middle Arm tailings drilling

vertical vibracore holes on a 200m x 100m grid has been completed and assays from almost all holes

have been received. Significant remnant gold-rich tailings have been confirmed, with best

intersections including 2.8m @ 2.8 g/t gold, 1.5m @ 2.3g/t gold, 1.4m @ 2.3 g/t gold and 1.5m @

1.9 g/t gold (refer Fig 3 below and Table 2 in the Appendix).

The weighted average gold grade from mineralised holes assayed to date is 1.7g/t gold, and the

clustered distribution of the better thickness of tailings gives encouragement for recovery of

significant tonnages by dredging.

A resource estimate for this tailings deposit will be made in the December quarter, following receipt

of all assays, density measurements and metallurgical testwork results. Other studies to expedite the

permitting and extraction of these tailings are underway.

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Figure 3 Middle Arm Tailings drilling results, Sept 2012

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Golconda Tailings

Testwork on the Golconda tailings dams from CIL treatment of Middle Arm tailings from 1985-1988

was undertaken during the Quarter. This work confirmed that although gold grades of 0.2 to 0.9 g/t

gold are present in the dams, metallurgical recovery by CIP of the remaining gold is very low, and

not economically viable. Work on this project has ceased and the Mining Lease application

discontinued.

VICTORIAN COPPER PROJECT (100% BCD)

During the Quarter, the Company acquired the remaining 49% equity in the Ararat project from Range

River Gold Ltd. No field activity was undertaken during the Quarter. The Company has decided to seek

a sale of the Victorian Copper Project in order to focus exclusively on precious metal production. On

receipt of density analysis, an upgrade will be made to the TGC resource estimate, following the aircore

drilling programme results announced in June.

Figure 4 Stavely-Ararat Tenement plan and prospects

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Background

BCD is the 100% holder of the Stavely Project in Western Victoria, located on farmland approximately

100km west of Ballarat, and well serviced by road, rail and power. A shallow, chalcocite-hosted Inferred

Copper Resource at the Thursdays Gossan Chalcocite (TGC) of 10.6 million tonnes at 0.45% copper has

previously been announced. Significant higher grade copper mineralisation underlying this resource,

within the Thursdays Gossan Sulphide (TGS) deposit, and in the nearby Junction 1 deposit, has also been

previously announced. BCD also holds the Ararat Project, where an Inferred copper Resource of 800,000

tonnes at 2.7% copper has previously been announced from the Ararat Copper Deposit. Figure 4 shows

the location of tenements, copper resources and prospects.

Table 1 Inferred Resources, Stavely and Ararat Projects

Deposit Tonnes Copper % Gold g/t Silver g/t Contained

Copper tonnes

TGC 10.6 million 0.45 nil nil 47,000

Ararat 0.7 million 2.7 0.8 9.0 19,000

CORPORATE

BOARD CHANGES

During the quarter, as advised to the ASX, several Board changes were announced. On 26th July, Mr Clive

Carroll joined the Board as non-executive Director. On 3rd

Sept, Mr Mike Botting (non-executive Chairman)

and Mr Kevin Perrin (non-executive Director) resigned, Mr David Groves was appointed as non-executive

Director, and Mr Clive Carroll became non-executive Chairman. Also on 3rd

September, Ms Richelle

Greenwood took on the role of Chief Financial Officer, with Mr Brian Coulter remaining in the role of

Company Secretary.

GOLD PRICING

2,000 ounces of production from the Lefroy Tailings Project has been sold forward at a gold price of A$1,737

per ounce, on a rolling, deferred basis. The Company’s policy concerning hedging is regularly reviewed.

The average gold price received during the quarter was A$1,542 per ounce.

CASH POSITION

Group free cash totalled A$5.4 million at 30 September 2012. The Company is debt-free.

TASMANIA ROYALTY DISPUTE

The BCD Resources group continued its proceedings in the Supreme Court of Tasmania to recover alleged

overpayment of Tasmanian mining royalty totalling $2.6 million. These payments were made during the

period 2003 to 2006 by the then receiver and manager of BCD and by the deed administrators of Allstate

Explorations NL (now BCD Resources (Operations) NL). Mediation of the claims is anticipated, however

timing is still uncertain.

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RELOCATION OF COMPANY OFFICE AND CORPORATE OFFICE

During the quarter, the Mine office at Beaconsfield was relocated to the Beaconsfield Treatment Plant. The

company’s office address and Registered Office and Principal Place of Business are now, as advised to the

ASX, 1 Rifle Range Rd, Beaconsfield, Tasmania 7270, with all other contact details unchanged.

Competent Persons Statement

Resource Statements for the Stavely and Ararat Copper deposits and the exploration results presented in this report

accurately reflects information compiled under the supervision of Peter Thompson M.Sc, a full-time employee of BCD

Resources NL, who is a Corporate Member of The Australasian Institute of Mining and Metallurgy and has sufficient

relevant experience in relation to the mineralisation being reported on to qualify as a Competent Person as defined in the

Australasian Code for Reporting of Identified Mineral Resources and Ore Reserves (The JORC Code, 2004). Mr

Thompson consents to the inclusion in the report of the matters based on his information in the form and context in which

it appears.

Resource statements and exploration results for the Stormont Gold deposit presented in this report have been previously

published by Frontier Resources Ltd. That resource statement was released to the ASX on 27 April 2012.

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APPENDIX

Table 2 Drillhole Results, Middle Arm Tailings, Sept 2012

DRILLHOLE COLLAR NORTH COLLAR EAST THICKNESS (m) GOLD (g/t)

MAV001 5441484 486534 0.60 0.5

MAV002 5441474 486636 1.40 2.3

MAV003 5441476 486740 2.83 2.8

MAV005 5441304 486495 0.18 0.8

MAV006 5441320 486595 1.50 1.9

MAV007 5441313 486681 1.54 2.3

MAV008 5441307 486806 0.35 2.6

MAV009 5441119 486290 0.43 2.9

MAV010 5441111 486422 0.30 0.5

MAV011 5441109 486524 0.46 1.1

MAV012 5441102 486622 0.35 2.2

MAV013 5441111 486721 0.51 2.4

MAV015 5441109 486925 1.38 2.3

MAV016 5441107 486993 0.41 0.6

MAV017 5440911 486190 0.23 1.2

MAV018 5440899 486277 0.40 1.8

MAV019 5440894 486372 0.20 0.6

MAV020 5440899 486474 0.42 1.0

MAV021 5440903 486576 0.38 1.5

MAV022 5440908 486687 0.43 1.8

MAV024 5440914 486875 0.88 1.7

MAV025 5440908 486965 0.45 0.7

MAV026 5440911 487069 0.53 0.3

MAV028 5440782 486943 0.29 1.0

MAV029 5440774 487062 0.27 0.5

MAV031 5440692 487088 0.41 0.6

MAV032 5440715 487288 0.14 0.2

MAV033 5440627 487220 Nil

MAV040 5440331 487690 0.20 0.6

MAV044 5440706 486185 Nil

MAV045 5440731 486317 0.22 1.6

MAV046 5440714 486416 0.21 0.5

MAV047 5440710 486517 Nil

MAV048 5440708 486624 0.12 1.7

MAV049 5440710 486718 0.20 0.9

MAV050 5440702 486802 0.21 0.5

MAV053 5440515 486271 0.39 1.1

MAV054 5440506 486365 0.19 0.9

MAV055 5440509 486467 0.69 1.4

MAV056 5440507 486572 0.45 2.2

MAV057 5440508 486669 0.61 2.3

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MAV060 5440310 486225 0.20 0.9

MAV061 5440323 486335 0.26 0.7

MAV062 5440304 486424 0.14 0.7

MAV063 5440309 486527 0.43 2.2

MAV064 5440301 486635 0.41 2.2

MAV065 5440113 486292 0.42 2.4

MAV066 5440104 486381 0.62 1.7

MAV067 5440104 486500 0.23 1.5

MAV068 5440184 486578 0.49 0.8

MAV069 5439911 486164 0.08 0.9

MAV070 5439901 486267 0.82 2.5

MAV072 5439665 486134 0.15 1.7

MAV073 5439685 486230 0.95 1.5

MAV074 5439699 486317 1.03 2.7

MAV075 5439512 486172 0.18 1.1

MAV077 5439518 486369 0.13 3.6

MAV078 5440870 486573 0.26 1.7

MAV079 5440848 486571 0.37 1.5

MAV080 5440806 486571 0.49 1.7

MAV080A 5440806 486571 0.20 1.6

MAV081 5440773 486566 0.27 1.4

MAV082 5440743 486569 0.28 1.8

MAV083 5440713 486567 0.17 2.0

MAV084 5440803 486488 0.18 1.2

MAV085 5440808 486517 0.26 1.4

MAV086 5440810 486545 0.24 1.5

MAV087 5440809 486598 0.24 2.3

MAV088 5440810 486632 0.28 1.6

MAV089 5440793 486679 0.30 1.8

MAV090 5441660 486471 Nil

MAV091 5441662 486567 0.37 0.6

MAV093 5441674 486792 0.87 0.9 Coordinates are given in GDA94

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