REPORT FOR JUNE 2004 OUARTER

HIGHI IGHTS

Exploration

Intense exploration program in progress on D'Aguilar tenements south of Kilkivan, approximately 200kms north-northwest of Brisbane, Queensland, Australia.
Manumbar gold prospect identified as an epithermal styled gold target, similar to other Queensland multi-million ounce epithermal gold projects at Cracow and Vera Nancy.
Drilling commenced at Manumbar in June. A high-grade calcite-quartz vein has been discovered - 4.2 metres true width $@$ 7.65 g/t gold including 1 metre $@$ 19.65 g/t gold and 1 metre $@$ 11.2 g/t gold.
$\bullet$ 1.3 m @ 14.5 g/t gold and 1.2 m @ 6.6 g/t gold discovered in CRA core from Manumbar.
5km vein strike potential, 7 drill targets at Manumbar
Regional interpretation of multilayer exploration database over the D'Aquilar Gold project area identified eighteen project areas and six key prospects which will be mapped and sampled to generate specific drill targets.
Three additional epithermal gold target areas identified in the Neara Volcanics of the Esk Trough, west of Kilkivan.
Drilling commenced at the Elginvale bulk tonnage gold-copper prospect.

Corporate

Cash on hand at 30 June 2004 totalled \$2.1 million
Exploration permit application over 20 Mt $@$ 0.07% molybdenum Andurambah project 100kms north-northwest of Brisbane.

For further information, contact Nicholas Mather, Managing Director or Duncan Cornish, Company Secretary, Telephone +61 7 3303 0680 or e-mail [email protected] Electronic copies and more information are available on our website www.daquilar.com.au

ASX Code: DGR

Postal Address Shamrock Mine Site GPD Box 6261. Brisbane QLD 4001

ACTIVITIES DURING THE PAST OUARTER

Exploration Strategy

Since D'Aquilar's listing on the Australian Stock Exchange in 2003, the Board has reprioritised the exploration targets based on the Company's multi-discipline exploration database. The database has also identified several new targets. Eighteen project areas have been defined and six have been selected for priority programs to define drill targets (Figure 1).

The Manumbar Epithermal Gold Project has emerged as the target most likely to deliver an orebody in the medium term and accordingly the focus of the exploration effort during the quarter was redirected to the Manumbar Project.

The similarity mineralogically between Manumbar and the well-known Queensland epithermal gold deposits at Cracow (Newcrest 70%, 1.8 million oz) and Vera Nancy (Newmont, 3.5 million oz) underscores the potential at Manumbar for the discovery of in excess of 1 million ounces of gold, in a system over 5 kilometres strike length.

Manumbar Epithermal Gold System

During the quarter, D'Aquilar conducted detailed mapping and sampling programs around the periphery of the three existing Manumbar pits. These programs preceded the drilling program, which commenced in June 2004. Several key controls to mineralisation at Manumbar were identified:

$1¹$ Emplacement of the vein in brittle andesite lavas rather than less brittle agglomerates
$2₁$ Broad requirement for the presence of a vein flexure to host significant width and grade
$3₁$ Presence of adularia, a diagnostic potassium feldspar mineral
$\mathbf{A}$ Mineralisation with a high gold to silver ratio.

These features appear to be also evident at the Cracow and Vera Nancy deposits.

Manumbar is characterised by the unusual predominance of calcite in a vein system which has been mined to a depth of only 60 metres for the recovery of 49,000 ounces gold at a head grade of 5.2 g/t, prior to the current ownership of D'Aguilar. Known strike length of workings is 1.2 km but the vein systems appear to extend much further and D'Aquilar believes that there is potential for approximately 5 km of mineralised veins. based on known geological mapping and CRA gold in soils geochemical data. In-situ grades in exploration drilling reached over 40 g/t gold. The veins are essentially devoid of silica mineralisation and are interpreted to lie above the boiling zone which in a gold bearing epithermal system often hosts very high or "bonanza" gold grades.

Recent D'Aquilar Drilling at Manumbar (Figure 2)

During the quarter D'Aquilar drilled 1.890 metres at Manumbar. The drill holes were HQ sized diamond core holes with 150 metre precollars. D'Aquilar intersected the silica zone at Manumbar in holes DP024, 025 and 026 at a depth of approximately 120 to 180 metres below surface. As shown in Table 1 the vein in these holes is mineralised at sub ore grade levels, however prospectivity at depth is still indicated. Weak development of the Manumbar lode was encountered in DP023. D'Aquilar believes that the poor grades in these holes are a function of incompetent volcanic agglomerate host rather than brittle lava in this area.

In drillhole DP028, the North Lode vein was intersected at approximately 90 metres below surface in and returned highly encouraging grades averaging 7.65 g/t over a true width of 4.2 metres from 94 metres downhole, including 1 metre @19.65 g/t gold and 1 metre @11.2 g/t gold on the margins of the vein. The vein was a typical Manumbar style calcite dominant vein.

D'Aquilar assaved zones not previously sampled in drill core from Manumbar drilled by CRA Limited underneath the east pit. This assaying discovered additional zones of mineralisation parallel to the main zone. This feature accords with the dual mineralised zones discovered in D'Aquilar drillholes DP024 - DP026.

Drillhole 10	Easting (metres)	Northing (meters)	Azimibi (hole bearing)	Declination! (hole dip) (degrees)	From (metres)	Ų6. (metres)	Length ${\rm (meters)}$	Grade (g/t) Au	End of nole (mtrs)
MB43*	437060	7083195	015	60	104.0	105.3	1.3	14.5	162.0
MB44*	437112	7083188	000	60	84.4	85.6	1.2	6.61	141.0
DP023	436895	7083326	330	57	87.0	88.0	1.0	1.02	374.1
DP024	436862	7083264	010	58	231.0	232.0	1.0	0.1	347.2
DP025	436988	7083460	225	60	226.0	229.0	3.0	1.46	297.0
DP026	436838	7083578	205	55	135.2	135.8	0.6	3.23	252.2
DP028	436724	7083680	317	55	94.0	100.0	6.0	7.65	150.0
including					94.0	95.0	1.0	19.65
land					99.0	100.0	1.0	11.2

Table 1

*Notes:

CRA Limited drillholes MB43 and MB44 were assayed by D'Aguilar in zones not previously analysed. 1.

Assay results for DP027 and DP028 (0 to 92 metres) have not been returned at the time of this report

Seven additional targets were followed up with additional mapping and sampling during the quarter in positions detailed in Figure 2 but are yet to be drilled:

East of the North Pit at 50-100 metres depth

This target is supported by the presence of previous drill intersections of 4 metres true thickness at 3.6 g/t Au at a depth of 50 metres. Hole DP028 drilled by D'Aguilar during the quarter intersected the north lode at a depth of approximately 90 metres under the eastern end of the pit and further drilling is planned to extend the zone of mineralisation. The target is supported by recent rock chip samples which yielded 165 g/t gold in a 15cm wide banded and brecciated calcite vein which splays off the north side of the North Pit. Drill testing of this feature is also planned.

Projected junction of the west and north lodes

During the quarter, a soil anomaly outlined by CRA Exploration data was tested inconclusively by D'Aquilar drillhole DP027. The hole did not intersect any significant gold anomalies and the target area requires more detailed mapping prior to further drilling. Recent sampling returned up to 2.65 g/t gold from calcite float located by D'Aquilar geologists in this area providing support for the target.

The West Ridae

The west ridge target is located to the north of the western end of the west and north lodes and is supported by surface gold values in soil and stream sediments which previously returned up to 3.5 parts per billion gold on the west side of Mi Mi Creek north of the north lode at Manumbar. The target has a strike length of approximately 1.5 km. Reconnaissance mapping during the quarter showed the presence of vein material in the soil horizons in the area.

Fast of the Fast Pit

This target is supported by surface gold values up to 19 parts per billion (ppb) in soil over the previous CRA soil grid (as indicated in Figure 2). The anomaly adds a further 500 metres to the known strike extent of the Manumbar East Pit.

Court Le Roi

The target covers a 3.5 km long zone south west towards the historic Court Le Roi diggings which are siliceous and may be a deep equivalent of the high level Manumbar system. Gold has been recorded by D'Aguilar in rock chip sampling between 0.3 and 9.0 g/t at Court le Roi. The extension of the zone of surface gold values southwest from Manumbar on Mi Mi Creek is indicated in the stream sediment data as indicated in Figure 2.

Soil Anomalies north of the North Lode

Gold values in soils and stream north of the North Lode range from 5.3 to 10.4 ppb oold and are supported by stream sediment anomalies ranging from 10.4 to 27.0 ppb (as indicated on Figure 2). A target zone of approximately 500 metres strike length is indicated. This zone has not previously been investigated.

Soil Anomalies west of the Manumbar system

CRA soil lines spaced 200 metres apart upon which the east lode was defined at Manumbar also define a similarly coherent zone of gold in soil anomalies approximately 1 kilometre to the west north west of the west pit.

Overall Assessment of Manumbar Potential

D'Aquilar continues to target a vein system with in excess of 5 km strike potential, based on the extent of known structural and geochemical anomalies. Previous drilling data on the vein system indicates that the vein system has the potential to be mineralised at in excess of 20 gram metres of gold over true widths in excess of 2 metres for approximately 50% of its known strike length. Gold grades may be significantly higher than this in deeper parts of the Manumbar and the upside potential of the entire system is considered by D'Aguilar to be in excess of 1.0 million ounces of gold.

The Directors of D'Aguilar are encouraged by the discovery of significant high grade mineralisation under the Manumbar north pit, which produced only 1,000 ounces at 3.5 a/t gold. The Board believes that this indicates that the numerous surficial geochemical anomalies at Manumbar conceal significantly mineralised ore positions which warrant reasonably aggressive exploration programs. Exploration histories of comparable epithermal gold projects indicates that gold grades in the vein systems may not be consistent and that low grade intersections over relatively narrow widths may occur within generally high grade and wide zones of mineralisation. D'Aquilar intends, in the current quarter, to investigate the application of a number of geophysical survey techniques to accurately define veins prior to detailed drilling in order to maximise the effectiveness of future drill programs.

Exploration Database (Figure 1)

During the quarter, the interpretation of the major geochemical, geophysical and geographic information (GIS) data sets over the D'Aquilar Gold project commenced. The area covers some $3,000 \text{ km}^2$ and the database represents the only compilation of all of the existing exploration remote sensing and satellite data to be assembled over the D'Aguilar Block. The database is facilitating a regional approach to exploration of the D'Aquilar Block, leading to the definition of a number of new prospect areas and resulting in a better definition of priority for drill targets. D'Aquilar has identified 18 key project areas for follow up in the project area as indicated in Figure 1.

The database comprises:

Six aeromagnetic surveys.
Four geochemical databases, encompassing 63,000 stream sediment sample points, 14,000 soil samples and 10,000 rock chip samples. The stream sediment and aeromagnetic data has been levelled.
Three landsat satellite data and aerial photography sets. $\bullet$
Mineral occurrence data. $\bullet$
Published and unpublished geological maps. $\bullet$
Field geological maps. $\bullet$
Land tenure. $\bullet$
Topographic data. $\bullet$

A program of detailed interpretation of the database with further mapping and sampling was commenced in May. D'Aquilar has mobilised five field crews to assist with the mapping and sampling effort required over these project areas.

Prospect Ranking Priorities

As a result of the database construction, and a revised understanding of the potential offered by several of the targets. D'Aquilar has been able to re-prioritise the various known prospects within the exploration portfolio.

Elginvale

Since the end of the quarter the Company has commenced drilling the Elginvale Porphyry system in the south west of the project area. A total of 13 holes have been designed to test a 2.5 x 1 km zone, broadly anomalous in gold and containing a central anomalous area over 200 parts per billion gold with a peak of 6ppm.

At Elginvale, D'Aquilar has planned three holes initially, totalling 1,000 metres, to intersect mineralisation in CRA drill holes EV2 and EV4 drilled in 1991. EV4 returned from 110 metres to the bottom of the hole at 150 metres intersected 40 metres of mineralised and altered granodiorite grading 0.8 g/t gold. Some 400 metres further south drillhole EV2 terminated at 150 metres, with the bottom of hole sample returning 2 metres @ 1.4 g/t Au. These holes are located coincident with a magnetic high feature.

A zone of fractured and altered fine grained intrusive rocks have been intersected in the first two holes and are interpreted to represent the top of a mineralised intrusive system. Assay results are awaited. The area is the centre of a zone of complex intrusive features represented by magnetic highs over a north south extension of 8kms.

D'Aquilar has identified several gold bearing bulk tonnage targets similar to Elginvale. These targets are located on the margin of the Esk Trough and the D'Aguilar Block. During the current quarter D'Aquilar will investigate targets outlined during June, at King Creek, Jimmys Scrub, Peenam, Ollenburgs and Gallangowan.

Tablelands

At Tablelands, drilling by the Company in January this year on the Clara Fault defined an extension to the Tablelands ore body grading 12g/t gold over one metre. During the quarter, D'Aquilar commenced drilling the first of two planned drill holes to test this zone with the aim of providing early feed material for the Shamrock Plant located 1 km to the east. Hole DP030 did not intersect any significant mineralisation and the second hole has been suspended. Drilling at Shamrock was also suspended owing to drilling difficulties without reaching the target zone and to concentrate on Manumbar which was considered to be a higher priority.

During the quarter the Company commenced detailed mapping and sampling programs on the Clara Fault. Kabunga, Manumbar West. Long Tunnel - One Mile Creek, the Sinai Basin (Ortts and Sawpit Creek) Bongmillerers. (The Gap - Gibraltar Rock) and Woolooga. D'Aquilar aims to define drill targets at these prospects in the current quarter.

Andurambah

During investigation of sources of geological information for the database, D'Aguilar's investigating geologists come across other open tenements showing previous exploration with significant mineralogical potential. If it is perceived that the tenement has the potential to add to shareholder value the ground is applied for.

During the quarter D'Aquilar applied for an exploration permit over an area of 308 km² covering the Andurambah Porphyry Molybdenum Project 100 kilometres northnorthwest of Brisbane in south east Queensland. Andurambah contains a resource of 20 Mt at a grade of 0.07% molybdenum or 8 Mt at a grade of 0.11% molybdenum. The resource was defined by CRA in 1969 and upgraded by BHP between 1981 and 1983. The resource has a waste to ore ratio of approximately 1.4:1 and occurs in an aplitic porphyry granite and adamellite host. D'Aguilar's interest in Andurambah is based on the following factors:

1. A current world molybenum price of US \$ 19 per pound (approximately A\$ 59,000 per tonne) driven largely by the increase in specialty steel alloy consumption world wide.
1. Additional exploration upside for the tungsten mineral scheelite, and silver.
1. Numerous exploration targets have been identified at:
a. A broad area of additional molybdenum silver lead tungsten and copper anomalism is evident but not drill tested immediately east of the main resource.
b. 800 metres south of the main resource, rock chip results show anomalous values for copper - 1%; Silver - 13 ounces per tonne, with weak zinc, bismuth and gold values over an area 500x300m in altered granodiorite.
c. Devonian aged calc silicate skarn rocks with high magnetic signatures marginal to the porphyry on the north west
d. An arcuate geophysical chargeability anomaly 500 metres north of the porphyry is untested.
e. The contact between the host porphyry and the Devonian aged sediments to the north has not been adequately tested for higher grade mineralisation.
f. Regional targets within 10 km of Andurambah.

D'Aquilar is currently assessing the exploration potential identified and is evaluating the potential project economics, and market dynamics for molybdenum and tungsten.

Figure 1

D'Aguilar Gold Project Area

Figure 2

Completed and planned drill holes and further drill targets, Manumbar, D'Aguilar Gold Project.

D'Aguilar Gold Limited June 2004 Quarterly Report

CORPORATE ACTIVITIES

Tenement Applications

During the quarter, D'Aquilar has applied for a further $616 \text{ km}^2$ of exploration tenements in two areas at Andurambah (Molybdenum), 100km north-northwest of Brisbane and Oakey Creek (Tungsten / Copper) 50 km west of Gladstone. Both project areas are being assessed at present. An initial assessment of Andurambah has been conducted and is summarised in this report.

Gympie Gold receivership

D'Aquilar is continuing to explore the D'Aquilar Project Area in south east Queensland un-affected by the appointment of a Receivers and Managers to Gympie Gold Ltd

Gympie Gold's shareholding in D'Aquilar

Gympie Gold Ltd holds 14.5 million shares in D'Aquilar, of which 12.75 million remain subject to ASX restriction agreements. 1.75 million shares were released from voluntary escrow during the March quarter.

In relation to the proposed sale by the Receivers and Managers of Gympie Gold Ltd of the 12.75 million D'Aquilar shares. D'Aquilar advises:

1. D'Aquilar is a party to the escrow restriction agreements.
1. Any variation to the escrow restriction agreements would require the approval of D'Aquilar, in addition to regulatory approvals.

Gympie Eldorado Gold Mine

As part of an ongoing review of regional acquisition opportunities. D'Aquilar undertook an internal assessment of the Gympie Eldorado Gold Mine, which is being offered for sale by tender by the Receivers and Managers of Gympie Gold. D'Aguilar decided not to take any action.

Cash on hand

Cash on hand at 30 June 2004 totalled \$2.1 million.

The information on ore reserves, mineral resources and exploration results contained in this report is based on information compiled by Mr Nicholas Mather who is member of the Australian Institute of Mining and Metallurgy. Mr Mather has relevant experience in relation to the mineralisation being reported on to qualify as a Competent Person as defined by the Australasian Code for Reporting of Mineral Resources and Reserves.

CORPORATE INFORMATION & DIRECTORY

DIRECTORS

Christopher Rawlings (Chairman) Nicholas Mather (Managing Director) lan Levy Brian Moller Damien Reynolds Vincent Mascolo

COMPANY SECRETARY

Duncan Cornish

EXPLORATION MANAGER

Ron Cunneen

REGISTERED OFFICE AND HEAD OFFICE

D'Aquilar Gold Ltd Level 5 60 Edward Street Brisbane OLD 4000 Phone: +61 7 3303 0680 +61 7 3303 0681 Fax:

SHAREHOLDER ENOURIES

Pitcher Partners (formerly Douglas Heck & Burrell) manages D'Aguilar Gold Ltd's share registry.

If you would like to monitor your shareholding online, you can do so by visiting Pitcher Partner's website, www.shares.com.au, and following the instructions.

For issuer-sponsored shareholders, if you change address, or if you have any other queries regarding the details of your shareholding, please contact the Company's share registry directly:

Pitcher Partners Level 22, 300 Queen Street Brisbane QLD 4000 Phone: +61 7 3228 4000

ISSUED CAPITAL

At 30 June 2004, D'Aguilar Gold Ltd had the following securities on issue:

57.3 million ordinary shares $\bullet$
28.7 million 20c options expiring 31/3/06 $\blacksquare$
4.5 million 20c options expiring 31/10/05 $\bullet$

STOCK EXCHANGE LISTING

On 19 August 2003 D'Aguilar Gold Ltd was admitted to the Australian Stock Exchange Ltd ("ASX") and the Company's shares commenced trading on the ASX on 21 August 2003.

ASX Codes: DGR (Ordinary shares) DGRO (20c Options expiring 31/3/06)

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AUSTRALIAN BUSINESS NUMBER

ABN 67 052 354 837