Exploration risk increases with time, due to a general decrease in prospectivity as the more accessible deposits are found, and be- cause of rising costs and demands due to an improving standard of living. Risk is separated into financial risk, which increases sharply at the development stage, and the risk of failure which is at its peak at the outset of exploration. Risk is also divided into internal and external factors; some of the latter cannot be offset, viz. the systematic overall risk for any enterprise. The recently emergent risk embodied in withdrawal of large areas from exploration access is discussed. An appeal is made for objective multiple land-use policies to be applied so that land remains available at reasonable cost and with appropriate environ- mental safeguard conditions. Risks specific to gold exploration are discussed. As gold now accounts for over 50% of all mineral exploration, and most other metals are depressed, any sharp decline in gold will have grave effects on the ex- ploration industry. Gold exploration will become more difficult and expensive in about five years, after most of the readily accessible deposits in Australia are found. Government's role is important in pro- viding stability and basic data at reasonable cost. Exploration for specific minerals or of particular areas could be stimulated by extending the 150%.tax deductibility of R & D to aspects of exploration of strategic im- portance, particularly in the event of a downturn. Exploration is classic scientific research, at least through to the proving Stages.