Southland Colliery Emergency

Principal Points

• The "heating" problem at the Southland Colliery announced on 24 December 2003 became an emergency and escalated into a fire on 25 December 2003.
• The fire has been suppressed by ventilation changes and further contained by circulation of inert gases which are now choking oxygen supply.
• Gympie Gold's wholly-owned subsidiary Southland Coal is considering its operational options at Southland Colliery with Joint Venturer and Alliance Partner Thiess.
• An expert working group is evaluating the status of the combustion and damage to mine workings and equipment.
• The mine is in the process of being sealed in a manner to allow re-entry or possibly closure if safety or economic considerations dictate.
• It may remain unsafe to re-enter the mine for a protracted period and the situation could have serious implications for the future of Southland Coal.
• The financial impact is currently unquantifiable.
• The Board of Gympie Gold is considering options for the protection of all stakeholders' interests.
• At the request of Directors, the ASX has suspended trading in the Company's securities. The Company is seeking a parallel a suspension of trading on AIM.

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