A pre-feasibility study for the Urucum North underground project,part of Beadell Resources Ltd.'sTucano gold minein northeastern Brazil, indicates a pretax net present value of US$49 million, ata 5% discount rate, and an internal rate of return of 30%.

Payback is in four years.

The initial pre-feasibility study results indicate that undergrounddevelopment at Urucum North is feasible, CEO and Managing Director Simon Jacksonsaid March 31.

"There are many moving parts in play at Tucano as the newmanagement team completely reconstructs an open pit mine plan going forward coupledwith a review of the optimum throughput for the Tucano mill as we move towards 2017,"Jackson added.

The initial life of mine is estimated at between seven to eightyears.

Pre-production capital stands at US$18.1 million, while the life-of-minesustaining CapEx is US$34.3 million.

The underground probable ore reserve stands at 2.97 million tonnesat 3.61 g/t of gold for 344,500 ounces of gold, with the study looking at recovering310,000 ounces of gold at all-in cash cost of US$825 per ounce.

Gross revenue is estimated to reach US$347 million.

The results are based on a gold price of US$1,120 per ounce andan updated mineral resource of 4.76 million tonnes at 3.76 g/t of gold for 575,000ounces of gold.

Urucum North is the only deposit at Tucano targeted for an undergroundresource. "The results provide a pathway to future underground developmentand a roadmap for future deep drilling along the whole Tucano trend," BeadellResources said.

There is good potential to further expand Urucum North's mineralresource near areas of capital development contemplated by the study. The companywill test a number of these target areas during this year's drilling campaign.

Deeper drilling will be aimed at upgrading the inferred mineralresource, at 1.93 million tonnes at 3.01 g/t of gold for 186,000 ounces, to measuredand indicated mineral resource and ultimately for conversion to ore reserves, aswell as continuing to explore the mineralization at depth.