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Last Updated: 01/05/2012

Quarterly Report for Period Ending 30 June 2010

QUARTERLY REPORT FOR PERIOD ENDING 30 JUNE 2010

HIGHLIGHTS

Tasmania Mine Operations

• Gold production increased by 39% to 13,802 ounces
• Good progress was made with the introduction of an enhanced mining method which will provide significant cost and productivity benefits when fully implemented.  Whilst only 8% of the ore mined during the quarter utilised this method, that proportion is expected to increase substantially by the end of the 2011 financial year

Tasmania Mine Exploration

• Strong results continued from drilling of the Western Zone. 
  • J26 intersects 11.4m at 46.7 g/t gold
  • J29 intersects 10.7m at 12.0 g/t gold
  • J32 intersects 8.3m at 12.9 g/t gold
• Interim JORC resource estimate released for the new Western Zone of 155,000 tonnes at 16.0 g/t gold containing 80,000 ounces

Merger with Bendigo Mining

• A Scheme Implementation Agreement was announced for a merger with Bendigo to create a significant mid-tier Australian gold mining business
• The Merger offer ratio of 0.72 Bendigo shares for every BCD share represents an attractive premium of 44.0% to BCD’s closing price prior to the announcement
• The new company’s strong financial position will allow it to accelerate the development and maximise the value of the Tasmania Mine
• Bendigo has agreed to provide to BCD a pre-completion loan of up to A$8 million to accelerate the development of BCD’s Tasmania Mine and for working capital purposes

CEO’S COMMENTARY ON THE QUARTER

BCD Resources CEO, Bill Colvin said “The proposed merger between BCD and Bendigo Mining will combine two gold companies with a natural fit of assets.  Growth potential will be enhanced whilst operational and financial risk is reduced.  The new company’s strong financial position will allow it to accelerate the development of the Tasmania Mine, unlocking value from the new high grade Western Zone and the implementation of the lower cost enhanced mining method.

Synergies between the two Tasmanian based gold operations are readily apparent and the increased levels of gold production from the combined company (137,600 ounces in FY10) are expected to provide more market relevance for the benefit of both BCD and Bendigo shareholders.

This merger provides an immediate uplift in value and is expected to continue to unlock further value for all of the shareholders of the combined company through the next stages of its growth.”