Half-Year Profit Report

1 September - 30 December 2001

Australian exploration, production and marketing company Gympie Gold Limited today announced its financial results for the six months to 31 December 2001.

Revenues increased by 80% from $A22 million to $A39 million and the after tax loss was $A488,000 (profit A$237,000 for previous corresponding period). The results are in line with current budgets and reflect that the group is in the midst of a dramatic transformation targeting 02-03 production at triple the levels of 00-01 for both its coal and gold businesses.

The company is implementing its rapid-expansion strategy at a time when the

Australian dollar prices for its gold and coal products are at 10 year highs.