dont sound too good.

70. Southland Colliery Emergency 291203 Page 1 of 3
ASX & AIM Announcement
29 December 2003
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.
Recent Events:
The evacuation of the Southland Colliery, announced on 24 December 2003, has worsened
to the status of an emergency.
Following the escalation of the “heating” into a fire on 25 December 2003 and the fire’s
subsequent containment, the Company awaits the result of an ongoing investigation by an
expert working group into the status of the combustion and its effect on current mine
workings and production.
ABN 88 000 759 535
70. Southland Colliery Emergency 291203 Page 2 of 3
Background to the Southland Spontaneous Combustion Emergency Situation:
• On 23 December, gas monitoring equipment detected elevated gas levels in the mine
and precautionary actions were triggered under the mine’s Safety Management Plan,
pending analysis and interpretation.
• On 24 December, the situation was interpreted with expert input as one of serious
safety risk and the Company so informed its key stakeholders, the emergency
services and the community near the mine and announced the existence of the
problem to both the Australian and London Stock Exchanges. It appeared that the
mined-out area adjacent to the current SL4 longwall panel had developed a
“heating”, indicating increased potential for spontaneous combustion of in-situ coal.
• On 25 December, the heating worsened and a fire commenced underground, which
was suppressed by further changes to mine ventilation. On 27 December, further
containment was effected by injection into the mine of suppression gases, which are
now choking oxygen supply to the fire.
• The mine is in the process of being sealed in a manner which will allow flexibility as
to re-entry or ultimately permanent closure, if such a course is dictated by safety or
economic considerations.
Current Analysis of the Situation:
• Expert personnel and advisors, as well as the Mines Inspectorate and Union
representatives, continue to participate in controlling the emergency.
• Safety takes the highest priority. The community has been kept informed
continuously, as have the emergency services.
• In light of the rapid escalation of this heating into a fire and the consequential
emergency situation, it may remain unsafe to re-enter the mine for a protracted
period.
The Future of Southland Coal and the Gympie Gold Group:
• Time has not permitted all of the issues to be fully evaluated and discussed with all
the relevant parties between 24 December and today. However, it must be
recognised that the situation could ultimately threaten the future of Southland Coal
and will have serious financial implications for the Gympie Gold Group.
• Directors and management are reviewing the situation and holding discussions with
major suppliers, lenders and with other interested parties to determine the immediate
course of action.
• The Board of Gympie Gold is considering options for the protection of all
stakeholders’ interests.
• In view of the current unavailability of reliable information as to the financial impact of
the problem, the Directors have requested, and the ASX has granted, the suspension
of trading in the Company’s securities. The Company is seeking a parallel
suspension of trading on AIM, pending both the outcome of this week’s discussions
and the receipt of further information on the impact of underground damage.
Until the occurrence of the emergency situation, Southland Coal’s prospects were strong.
Large contract volumes to customers worldwide had been secured, including many term
contracts. Product price negotiations had been completed with most customers for price
increases exceeding 20% for the year commencing 1 April 2004. Technical studies of further
expansion possibilities of the Southland Colliery had also been advancing.
The Board of Gympie Gold wishes to extend its thanks to the many people who have given
up their holiday period to assist in the containment and suppression of the combustion at
Southland Colliery.

I dont own GYM.