RNS Number:6558T
Gympie Gold Limited
24 December 2003



                                RNS Announcement

                                24 December 2003
                          Southland Colliery Evacuated


A serious problem has developed at the Southland Colliery. The mine's gas
monitoring equipment has detected abnormal gas levels in the mine. It appears
that a mined-out area adjacent to the current SL4 longwall panel has developed a
"heating" which indicates increased potential for spontaneous combustion of
in-situ coal.

The mine's Safety Management Plan has been followed and consequently all
personnel evacuated from the mine.

Expert personnel and advisors, as well as the Mines Inspectorate and Union
representatives, have been called to the mine to participate in the development
of a plan to control the heating.

Management is already implementing actions to extinguish the heating. This may
include drilling of a borehole from the surface and injecting an inert gas down
the borehole to the point of the heating. This process would take at least one
week and the mine would likely be idle for some weeks.

No persons will re-enter the mine until a safe working environment has been
re-established. In the meantime, most production personnel have been requested
to take available leave.

Customers are being advised and some shipments will need to be re-scheduled.

An expert working group has been assembled and the Company will provide further
information in due course.



                        For further information contact:
 Harry Adams, Managing Director 02 9251 2777 or international +61  2 9251 2777

Electronic copies of this report are available on website www.gympiegold.com.au
       Requests to be placed on email circulation list can be emailed to
                             info@gympiegold.com.au



                      This information is provided by RNS
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