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Last Updated: 01/05/2012

June 2011 Quarterly Report

Quarterly Report for the period ending 30 June 2011

Highlights

Tasmania Mine Operations

• Safety performance improved with just one treatable injury recorded for the quarter.

• Gold production for the June quarter was 11,474oz, an increase of 5% from the March quarter. Production continued to be sourced largely from lower grade, peripheral areas of the mine, while the initial stoping areas from the higher-grade Western Zone were established.

• Cash cost of production increased to A$1,317 per ounce, allowing a modest cash surplus.

• Annual production for the 2010/11 financial year was 46,460 oz.

• Significant cost-savings achieved, following a site-wide cost-reduction programme, resulting in the removal of some services and contractors.

• Establishment of Radial-in-Reef stoping of the Western Zone continued, with the first panel due for firing in August.

• Mill throughput for the quarter was 67,645 tonnes, a reduction of 2% from the March quarter, with ore availability limited by the sequencing of small stopes, predominantly from the eastern part of the mine.

Tasmania Mine Exploration

• Infill diamond drillholes in the Western Zone confirm high grade zones, with intercepts including 4.8m @ 104.7 g/t gold, 7m @ 19.5 g/t gold and 5.2m @ 13.6 g/t gold.

Corporate

• Discussions with regard to a possible new investor in the Victorian exploration assets continued.

• Non-Executive Director Andrew Drummond resigned during the quarter.

• The Company’s Melbourne office closed at the end of June, with the registered office of the Company becoming the Tasmania Mine office.

CEO’S COMMENTARY ON THE QUARTER

BCD Resources CEO, Peter Thompson said “The quarter saw steady production of 11,474 oz, with high unit operating costs reflecting the low grade, peripheral stopes available, and lower tonnages mined. Safety performance was good, with the current LTI-free period currently at 130 days. While production output continued to be low, a turnaround in mining performance was achieved, with improved scheduling and weekly forecasts now being met on a consistent basis. Higher grade stoping from the Western Zone will commence in the September quarter, improving mined grade, although the rate of extraction of radial-in reef stoping will be one panel of 6,000t-10,000t per month. Significant cost savings have been achieved across the Company, as we strive to return to profitability.

The Company is focussed on maximising value from the Tasmania Mine and progressing the introduction of investors to the Victorian Copper project.”