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1 For the period ended 30 September 2014 HIGHLIGHTS STORMONT (TASMANIA) JOINT VENTURE GOLD PROJECT MINING AND PRODUCTION COMPLETED. LORENA GOLD PROJECT CONSTRUCTION CONTINUES TO ADVANCE. COMMISSIONING EXPECTED TO COMMENCE BY YEAR END. MICHAEL BOORNE JOINS THE COMPANY AS A NON-EXECUTIVE DIRECTOR. NIGEL WEBB RETIRES. CHAIRMAN S COMMENTARY ON THE QUARTER BCD Resources Chairman, Mr Clive Carroll, said: The main focus for our Company this quarter has been completing operations of mining and processing of our Stormont Joint Venture in Tasmania. The company continues to progress with its processing plant construction for the Lorena Joint Venture high grade gold project at Cloncurry. The process of consolidating the company s balance sheet with the restructure of its subsidiary companies was also completed during the quarter. PROCESSING PLANT AT LORENA SEPTEMBER/OCTOBER 2014 PROJECTS

2 STORMONT GOLD JOINT VENTURE (BCD 50% Economic Interest) Operations at Stormont effectively commenced in December 2013, with mining completed during August The Project mined 110,200 tonnes of ore in total. Processing at Beaconsfield has now been completed and final project gold production attributable to BCD is estimated to be 4,210 ounces, final reconciliation are yet to be completed. The financial performance of the Project is expected to be marginally profitable but below expectations. The main reasons for the reduced profitability were attributable to an actual reduction of recovered gold grade versus forecast gold grade of approximately 25%. The Project was further financially disadvantaged by difficult mining conditions, and in particular increased processing cost as a result of the unexpected complexity and hardness of the majority of ore mined. LORENA JV PROJECT (BCD MANAGER AND EARNING 50% Economic Interest) During the quarter the Company continued to progress the development of the Lorena Gold Project, a 50/50 joint venture between Malachite Resources Limited (MAR) and BCD. BCD is required to fund the development of the Lorena Gold Project to earn its 50% economic share in the project to date. BCD has spent more than $3.2 million on direct civil construction, plant and equipment and approximately further $0.6 million on the statutory approval and feasibility requirements of the project to date. The Company is expected to shortly fulfil all the condition precedents necessary of the project finance support and working capital facility offers previously reported to Shareholders. All necessary Project plant and equipment has now been procured and is either now physically located at Lorena or in final stages of manufacture or enroute to Lorena. Contractors for critical aspects of construction have been engaged. The major civil and mining contracts have been awarded to JDR Mining and Civil Pty Ltd of Mt Isa. Preliminary site works have now commenced. Based on the current construction status of the Project, the company is confident that commissioning will commence during the last quarter of

3 POSITIONING OF MILL INFRASTRUCTURE AT LORENA MINING FLEET MOBILISED FOR PRE STRIPPING AND TAILS CONSTRUCTION AT LORENA 3

4 EARTH WORKS AND TAILING DAM CONSTRUCTION PREPARATIONS PLACEMENT OF REGRIND MILL 4

5 PLACEMENT OF FLOATATION CELLS AERIAL VIEW AERIAL VIEW 5

6 HIGH GRADE UNDERGROUND POTENTIAL MIDDLE ARM BEACONSFIELD HISTORICAL TAILINGS Due to the priority focus on the Stormont and Lorena projects, a programme for further sampling and metallurgical testing of the identified high grade resource of 19,700 ounces within the greater resource of 29,900 ounces has been extended to commence when viable to do so. OTHER During the quarter the Company continued to explore additional long term processing opportunities at our Company s Beaconsfield processing facilities. These discussions are ongoing. CURRENT EXPLORATION TENEMENTS Beaconsfield Consolidated Mining Lease 1767 P/M (a) Beaconsfield Tasmania Middle Arm Beaconsfield EL 6/2012 Beaconsfield Tasmania (a) The mining lease is currently not in operation and rehabilitation works are being undertaken. The lease will be cancelled upon successful completion of rehabilitations works. No tenements were acquired or disposed of during the quarter. 6

7 HISTORICAL TASMANIA MINE REHABILITATION During the Quarter the company dismantled its mine ore conveyor at the historical Tasmanian Mine site and precast the concrete capping for the Fresh Air Rise (FAR) which will be positioned for completion in the coming quarter. Rehabilitation works for the wetlands sediment will continue in the coming quarters, with a project analysis and testing work on the already rehabilitated site being commissioned. Expenditure for the quarter was approximately $50,000. FINANCE The A$1 million facility provided by Eclectic Investments Pty Limited a company related to BCD s Chairman is now fully drawn and the Company currently has no other current debt obligations. The company has also accepted a firm offer for the provision of certain project financing facilities to support the development and working capital requirements of the Lorena Project Joint Venture. GOLD FORWARD SALES Carry over deferred forward sales balance of 1,400 ounces was delivered during the quarter against the Stormont Gold project at an average delivery price of A$1,395 per ounce. The company is currently unhedged. CASH POSITION Group free cash totalled A$0.733 million at 30 September CONSOLIDATION OF SUBSIDIARIES The administration process was completed during the quarter. The completion of this restructure was a complex exercise, but of significant long term benefit to our Company. The Company now has a simpler corporate structure and more importantly, has complete control over its major asset, the Beaconsfield Processing Facility. The Board believes the Company can now build on its conservative Balance Sheet and improve the asset base. 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 commenced in August 2014, with no result, however the Directors are still pursing the State Government. For further information contact: BCD Resources NL t: e: enquiries@bcdresources.com.au w: 7