HIGHLIGHTS

Tasmania Mine Operations

• Gold production up 8% to 17,620 ounces
• Unit cash costs down 6% to A$934 per ounce
• The trial of a lower cost, enhanced remote mining method is on track to commence in the March 2010 quarter
• A contract has commenced to mine remnant reserves in the upper levels of the mine with a target of 2,000 to 3,000 ounces of incremental gold production per quarter

Tasmania Mine Exploration

• Resources increased by 37% to 571,000 ounces
• Reserves increased to 285,000 ounces at 9.6g/t
• J14 intersects 3.5 metres at 11.4 g/t gold
• Latest drill results expand reserve boundary westwards of currently planned development

Victorian Copper

• Ararat diamond holes confirm mineralisation with 3.1 metres at 3.1% copper
• Step-out drilling at Thursdays Gossan intersects 42 metres at 0.8% copper
• 51% Ararat joint venture interest earned

Corporate

• Cash and bullion increased by $3.9 million to $12.1 million

CEO’S COMMENTARY ON THE QUARTER

BCD Resources CEO, Bill Colvin said “It is very pleasing to report that drilling has delivered an extension to the life of the Tasmania Mine, with 233,000 ounces effectively added to resources during 2009.  Significantly, much of the addition is located west of existing reserves, rather than at depth, and will therefore provide greater production opportunity in the near term.

Development work has progressed well on establishing an enhanced remote mining method, with trial production to commence as planned in the March quarter.  The method considerably reduces development requirements and could offer potential cost savings of the order of $120 to $240 per ounce produced.

Our Victorian copper project continues to develop as a significant asset for the Company.  Recent strong price increases have underlined the attractiveness of readily mineable copper resources and we will strive to ensure that value is reflected in the Company’s share price.”