D'AGUILAR GOLD LTD

REPORT FOR THE QUARTER ENDED 31 DECEMBER 2003

CONTENTS

Highlights

Activities During the Past Quarter

D'Aguilar Gold Project Summary

Work Programs for the Current Quarter

Corporate Activities

Corporate Information & Directory

AGUILAR IIMITE ACN 052 354 837

HIGHLIGHTS

Exploration

Independent gold explorer west of 3.7m ounce Gympie Gold field, south east Queensland
2,500 metres of reverse circulation percussion and diamond drill holes on the Clara Fault, Shamrock Deeps and Tableland prospects completed
Intersection of significant mineralisation over 20 metres during drilling at the Shamrock Mine
Manumbar Mine identified as high priority high grade epithermal gold project - targeting 500,000 ounces of gold
Further detail defined for dual exploration strategy of:
discovery of > 1 million ounces gold intrusive systems
discovery of 300,000 ounces gold for the 150,000 tonnes per annum Shamrock Plant
Key targets prioritised for drilling additional high grade epithermal gold focus in the Esk Trough
Gympie Gold exploration tenements transferred to D'Aguilar
Application lodged for a further 348 km² of gold exploration tenure northeast of Gympie Goldfield
Investigation of nickel resources at D'Aquilar
Re-evaluation of Solomon Islands projects

Corporate

Completed (fully subscribed) option issue raising \$286,560
D'Aguilar NOT affected by Gympie Gold receivership
Cash on hand at 30 September of \$3.1 million

ACTIVITIES DURING THE PAST QUARTER

Drilling Programs

During the quarter, the Company continued drilling programs on granted mining leases in the Company's portfolio of tenements in order to rapidly define 300,000 ounces of gold resources within economic trucking distance from the Shamrock treatment plant.

The drilling programs focussed on Clara Fault Line. Tablelands Mine and Shamrock Mine.

Clara Fault Line and Tablelands

Durina the quarter a total of 1,500 metres were drilled in 18 reverse circulation percussion drill holes on the Clara Fault Line and Tablelands Mine.

The initial program of 1.500 metres reverse circulation drilling tested prospective strike extensions of the Tablelands mine which produced 5,000 ounces of gold from an open cut mining operation in the late 1990's.

Previous reconnaissance exploration work in the area had consisted of a small soil sampling grid, limited surface trenching and a limited number of short drill holes (10-20 metres) drilled with a blast hole rig by a previous explorer. That work showed that gold mineralisation is generally depleted at surface, with anomalies of 0.1 to 0.5 g/t gold, in a weathering zone up to 25 metres thick, which masks the fresh sulphide mineralisation below. Reverse circulation drilling under a low order surface anomaly at the Tableland Mine by previous explorers yielded ore zones which attained grades up to 28 g/t at the water table at a depth of approximately 30 metres. Numerous other low order anomalies were never investigated.

On the Clara Fault, including Tablelands, D'Aquilar's drilling results indicated a broad, persistent and mineralised structure with extensive gold anomalism up to 3 metres at 1.56 grams per tonne in drill hole DP15 (Tablelands West Prospect). The broader zones of mineralisation include 12 metres at 0.45 grams per tonne gold in DP11 (Commercial Prospect), between 30 and 42 metres and a zone of 15 metres at 0.55 grams per tonne including 3 metres at 1.56 grams per tonne between 12 and 27 metres depth in DP15. The table below sets out the detailed results.

Clara Fault Drilling

Drill	AMG Collar		Bng	Bng		From	Tо	Lenath	Grade	Includes
Hole	Easting	Northing	Mag	AMG	Dip	(m)	(m)	(m)	$(g/t \text{ Au})$	Length(m)	Grade.o/t
DP11	426975	7100315	100	110.3	50	30	42	12	0.46
DP ₁₃	426946	7100331	100	110.3	50	69	72		1.14
DP15	426789	7100033	280	110.3	50	12	27	15	0.55	3	1.56
DP16	426791	7100033	$\overline{\phantom{a}}$	$\blacksquare$	90	33	36		0.29

The results substantiate the prospectivity of the Clara Fault and D'Aguilar has commenced testing deeper targets indicated at 150 to 200 meters below the Tablelands Pit, on the prognosed intersection of the Tablelands and Tablelands West ore bodies. Sampling of existing trenches on the New Zealand prospect, located on the Clara Fault identified a broad zone of anomalous gold mineralisation and a core zone of 6 metres @ 1.7 g/t gold.

Mineralised zones were characterised by anomalous silver copper and bismuth, indicating an intrusive related source for the mineralisation. Mineralised zones are generally blind at surface and are largely devoid of quartz veins. The host is a sheared arsenopyritic serpentinite between the Black Snake Porphyry to the east and Devonian metabasalts to the west.

Shamrock Mine

During the quarter the Company commenced a reverse circulation and diamond drill program of 1.500 metres on the Shamrock Mine. Three drill holes have been completed to date for a total of approximately 900 metres.

The drilling has intersected significant altered and mineralised structures across a true width of approximately 15 metres underneath the main Shamrock Shaft at a depth of approximately 130 metres below surface on the south end of the Shamrock workings. The intersection contains abundant pyrite, chalcopyrite, quartz, magnetite and potassium feldspars. The core is currently being logged, cut and submitted for assay. The results indicate that the mineralisation at the Shamrock plunges to the south. D'Aquilar is planning to test this zone further to the south and at depth towards an area of intense magnetic anomalies.

Mount Clara

During the quarter the Company arranged for the drilling of three diamond drill holes totalling 900 metres on the Mount Clara prospect 4 kilometres north of Shamrock.

Drilling of these holes is planned to commence in the current quarter. The Company is targeting ore grade copper and gold mineralisation in sheared serpentinites and intrusive granodiorites.

Prospect Reconnaissance

During the quarter. D'Aquilar conducted field review activities on several targets exhibiting significant prospectivity, within the project area.

Mt Terrible

At the Mt Terrible prospect, the Company conducted field reconnaissance activities which outlined a 500 metre long trending structure hosting anomalous silver, lead, zinc and gold mineralisation. Porphyritic intrusives rocks adjacent to this structure were mineralised and altered between hornfelsed sediments and the Station Creek adamellite. No drill targets have yet been identified, however the recognition of an altered and mineralised porphyritic host containing 0.93 g/t gold and 35 g/t silver is considered significant and adds to the development of D'Aquilar's disseminated gold model for the area.

Manumbar

During the quarter the Company commenced a detailed assessment of the geology of the Manumbar high grade epithermal gold prospect. D'Aguilar is focusing on the following elements:

The thickness and orientation of ore shoots encountered during open cut operations $\bullet$ which mined 49,000 ounces at a diluted head grade of 5.2 g/t to 60 metres depth from 1994 to 1996.
The movement on key fault structures in the prospect.
The low temperature quartz calcite potassium feldspar mineral assemblage.
The detailed magnetic signatures and the application of other geophysical techniques. $\bullet$
The broad similarity between Manumbar and other epithermal gold deposits (including $\bullet$ the Cracow and Vera-Nancy deposits).

The Manumbar mine can be accessed by 32 kilometres of haul road south of the Shamrock treatment plant. The deposit occurs in an epithermal quartz, calcite and potassium feldspar vein which has been emplaced in fractures in the altered Neara Volcanics filling the Esk Trough west of the D'Aguilar Block. The vein has been previously mined on three small pits. High grade exploration targets exist at depth beneath both pits and along strike.

High grades in the bottom of the east pit of 1.8 metres grading 36.9 grams per tonne. provides the basis for a small existing inferred gold resource of 39,400 tonnes at 7 grams per tonne. Currently, D'Aquilar is conducting a detailed review of all of the existing data on Manumbar in order to define the likely ore shoot plunge and trend. D'Aquilar then intends to drill the deep extension Manumbar veins also during the current quarter to define in excess of 500,000 ounces of high grades which may be treated rapidly through the Shamrock plant. The drilling program will consist of approximately 2,000 metres of diamond and reverse circulation drilling following the study of existing data.

The Company also commenced a review of additional epithermal targets in the D'Aquilar Gold Project area, focussing on the prospective zone of Neara Volcanics, adjacent to the D'Aquilar Block west of Kilkiyan. The Company has identified the Cinnabar prospect area of over 25 km² as a key target for follow up.

Nickel

During the quarter, the Company investigated records of Nickel occurrences within the D'Aquilar Gold Project area. Nickel occurs as low moisture laterite bodies in association with cobalt at the cobalt mine 1kilometre north of Mount Clara and in lateritised serpentinite bodies 3 kilometres east of the Shamrock Mine. A resource of 150,000 tonnes (@ 1.3%) Nickel and 0.15% Cobalt) was outlined by previous workers based on a shallow drilling program. Occurrences of nickel anomalism and erythrite (a cobalt mineral) in the altered serpentinite on the Tablelands Mine also support the prospectivity of the serpentinites for Nickel Laterite deposits.

The Company is investigating the extent of the laterite and the potential for additional resource, the identification of further prospects within the exploration tenements and the potential for Nickel resources in the saprolite zone beneath the laterite horizon.

Solomon Islands

During the quarter the Company held discussions with Department of Mines representatives of Solomon Islands with a view to recommence field activities at the Company's Guadalcanal projects.

The Company's key prospects at Mbetilonga covers 6 km² of copper in soil anomalism above 0.1% copper and trenching results of 100 metres at 2.5% copper.

D'Aquilar is waiting for a resumption of acceptable law and order conditions before recommencing field work in Solomon Islands.

Staffing and Logistics

During the quarter, the Company completed equipping the site office at the Shamrock Mine to support intense exploration activities and is continuing to engage the services of additional geologists and field hands to assist with the exploration program.

D'AGUILAR GOLD PROJECT SUMMARY

The D'Aquilar Gold Project covers over 2,500 km² of exploration licences and mining leases (580 ha) in the Kilkivan area 50km west of the Gympie Goldfield in south-east Queensland. The area is highly prospective for gold ore types including bulk mineable disseminated gold-copper ore bodies of the intrusive related class, metal sulphide vein systems and high grade epithermal gold structures.

The project area has a past production of 200,000 ounces of gold including 70,000 ounces produced from D'Aquilar's current leases by the 150,000 tonnes pa mill now owned by D'Aquilar.

The D'Aquilar Block is a Palaeozoic aged structural block intruded by late Triassic granites which have formed the gold ore bodies. The project area is characterised by a set of northwest and northeast fracture zones which the Company believes have controlled the ore emplacement.

The area is part of the highly mineralised Tasman Fold Belt of eastern Australia which hosts a number of large mineralised intrusive related porphyry systems ranging from North Parkes in New South Wales to Kidston in northern Queensland. The Company's exploration techniques are broadly similar to the techniques that discovered the major Tasman Fold Belt ore bodies.

Recently, D'Aquilar and its consultants have established the relevance of the intrusive related model which dictates that gold will be deposited in the upper levels of highly differentiated intrusive systems of intermediate chemical composition. The D'Aquilar block, flanked by the Esk Trough and the Cinnabar Prospect area on its western side, is host to numerous intrusions of this style, some of which D'Aquilar has already identified and host potentially ore grade mineralisation.

Most recently D'Aquilar, during the process of prioritising its targets, has identified a major epithermal gold system at the Manumbar Mine. 30 kilometres south of the Company's exploration base near Kilkivan. The characteristics of Manumbar are similar to those encountered during the exploration of the Royal Standard and Klondyke workings at the Cracow Mine by Sedimentary Holdings NL and Newcrest. Importantly, the structural setting, aeromagnetic signature, host volcanic rocks and wide banded ore veins with diagnostic quartz, potassium feldspars and calcite at Manumbar are very similar to features evident at other epithermal deposits, including Cracow.

Considerable effort is going into understanding the epithermal characteristics of parts of the D'Aguilar Gold Project and as a result, in addition to Manumbar, D'Aguilar has lifted the priority of the broader prospective Cinnabar Field over the Esk Trough, west of Kilkiyan.

The area has never been the subject of detailed coherent exploration programs and never previously been examined using the latest bulk mineable style mineralisation models. There are many reasons for this neglect and they can be summarised as follows:

Fragmented Tenures

In the past the ground has been held by a number of parties with relatively small tenures which prevented a large scale and regional exploration perspective.

Premature Production

Previous owners of the project or part thereof commenced mining and production activities without having defined sufficient resources and reserves to enable long term mine planning and bankability. D'Aquilar will thoroughly explore and define resources and reserves prior to incurring the expense of development.

Lack of Bulk Mineable Perspectives $\bullet$

Historic miners at the turn of the century and more recently in the 1990's were preoccupied with the mining of high grade and visibly identifiable reef systems which very often showed visible gold. In the ore bodies for which D'Aguilar is exploring, the gold is not usually visible. the ore bodies may be concealed by covering rocks and the gold will for the most part be disseminated through large volumes of rock rather than be confined to well defined structures.

D'Aquilar intends to apply geophysical techniques, particularly gravity and magnetics, to define bulk mineable and concealed targets for drilling.

Uncommercial Joint Ventures $\bullet$

Previously the area has been the subject of a number of joint ventures and royalty arrangements which have hampered the development of the known ore zones. D'Aquilar has however, complete ownership of the project areas without such encumbrances.

Inadequate Databases

The existing government databases available are relatively disjointed and therefore D'Aquilar has spliced together aeromagnetic and geochemical databases over the project area in order to gain a regional perspective and define targets in the optimal structural settings.

In addition, the Company has 100% ownership of some 580 hectares of mining leases on which potential for in excess of 300,000 ounces of gold have been identified. These targets offer the Company the opportunity to go into gold production much more rapidly, than if no mining tenure existed. Accordingly, D'Aguilar is expediting drilling programs on these mining lease areas and has commenced its drilling programs.

D'Aguilar's assessment of the project area has led to the development of a set of keys to prioritise the exploration targets. Application of the keys to the multi-disciplinary database will enhance the efficiency of the evaluation of in excess of twenty-four different targets in the project area, in order to meet the dual exploration objectives stated above.

WORK PROGRAMS FOR THE CURRENT QUARTER (see Figure 1)

The Company intends to conduct further drilling on the Shamrock and Tablelands Mines. subject to assay results from the current program. In addition the Company is currently drilling the Mt Clara prospect.

Drilling programs at Manumbar and Long Tunnel are planned following the results of mapping programs of mapping programs and assessment of existing data sets.

A detailed assessment of the high grade epithermal gold potential of the eastern Esk Trough is planned, and several key consultants have been engaged to assist with this assessment.

The Company is continuing to refine and develop its exploration strategy.

Figure 1

D'Aguilar Gold Project and Surrounding Districts Magnetic Data Preliminary Interpretation

CORPORATE ACTIVITIES

Entitlements offer / capital raising

During the quarter the Company completed a pro rata non-renounceable entitlements offer of 28,656,000 20 cent options exercisable on or before 31 March 2006 for a price of 1 cent per option, raising \$286,560.

The raising has contributed further funds to achieve the Company's dual objectives of discovering 1 million ounces of gold in bulk mineable intrusive related and porphyry systems and 300,000 ounces of gold resources on reef and shear systems which may be open cut to support the re-establishment of gold production at the Company's wholly owned Shamrock treatment plant west of Gympie in south east Queensland.

Tenement transfers

The Woolooga, Glastonbury and Mt Teitsel projects were transferred from Gympie Gold Limited during the quarter. The issue of 7,500,000 ordinary shares to Gympie Gold Limited as consideration was also completed during the quarter. ASX and shareholder approval for this issue had previously been granted.

Tenure Application

Since the end of the quarter. D'Aquilar has applied for a further 348 km² of gold exploration tenure in an area to the north east of Gympie Goldfield. The area was selected on the basis of its structural location and similar aeromagnetic signature to the Gympie Goldfield.

Gympie Gold receivership

D'Aquilar's exploration program is not affected by the recent appointment of Receivers and Managers to Gympie Gold Ltd.

Gympie Gold does not have any current or future obligations to D'Aguilar or any of D'Aquilar's projects.

D'Aquilar is continuing to explore the D'Aquilar Project Area in south east Queensland unaffected by the appointment of a Receivers and Managers to Gympie Gold.

Gympie Gold's shareholding in D'Aguilar

Gympie Gold holds 14.5 million shares in D'Aquilar, of which 12.75 million remain subject to ASX restriction agreements and 1.75 million remain subject to a voluntary restriction agreement.

In relation to the proposed sale by the Receivers and Managers of Gympie Gold 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, amongst other approvals, the approval of D'Aquilar.

Gympie Eldorado Gold Mine

As part of an ongoing review of regional acquisition opportunities, D'Aguilar is currently undertaking 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.

With appropriate financial backing, D'Aguilar considers that it is best placed to make an early and significant gold discovery on the Gympie Goldfield. D'Aquilar has at its disposal over 25 years of experience and direct involvement in the establishment of the current operations of the Gympie Goldfield through its current directors and senior staff. In addition, D'Aguilar holds or has applied for all of the key exploration ground outside of the Gympie Gold tenements and this ground position, D'Aguilar believes, will prove to be a strategic benefit on terms of the supply of supplementary feed stock for the Gympie Gold mill.

Cash on hand

Cash on hand at 31 December 2003 totalled \$3.1 million.

The information on ore reserves and mineral resources 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.

SGUILAR LIMITE AON 062 364 837

CORPORATE INFORMATION & DIRECTORY

DIRECTORS

Christopher Rawlings (Chairman) Nicholas Mather lan Levv Brian Moller Damien Revnolds Vincent Mascolo

COMPANY SECRETARY

Duncan Cornish

EXPLORATION MANAGER

Ron Cunneen

REGISTERED OFFICE AND HEAD OFFICE

D'Aquilar Gold Ltd Level 30, Riverside Centre 123 Eagle Street Brisbane QLD 4000 Phone: +617 3839 5113 + 61 7 3839 8661 Fax:

SHAREHOLDER ENQUIRIES

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 31 December 2003. D'Aquilar Gold Ltd had the following securities on issue:

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

STOCK EXCHANGE LISTING

On 19 August 2003 D'Aquilar 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 3/3/06)

INTERNET ADDRESS

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AUSTRALIAN BUSINESS NUMBER

ABN 67 052 354 837