finally some good news, page-4

announcement - good news This is indeed good news from GYM and is reflected in the stock activity today - positive price and volume.

Looking at the chart GYM was trading at 12 mth. low of $0.38 only yesterday. 12 mth. high was on 31.5.02 @ $1.26.
The higher gold price over the past few months was never reflected in GYM's price.

Analysts are touring the colliery today.
The presentation is very interesting reading.
19 Feb 2003 10:16 GYM: Presentation to Analysts Visiting Soutland Colliery

IMHO we will see GYM upgraded over the next week or two.

Bought back into GYM early today - expect to see this stock trading around the 75-80c mark before y-e.
This is not investment advise - read all the red stuff.
Good luck.
==========================================

Company Announcement

Production Resumes at Southland Colliery

GYMPIE GOLD LIMITED 2003-02-19 ASX-SIGNAL-G

HOMEX - Sydney

+++++++++++++++++++++++++
The longwall completed the transition to the seam floor at Gympie
Gold's 90%-owned Southland Colliery on 10 February. Production then
resumed with average tonnage limited to 2,000 tonnes per day for the
first week as mechanical equipment was brought back into a normal
production cycle and workload. The build-up is in progress with
production in the last 24 hours of 4,800 tonnes.

Ground conditions are better than they have been for the last six
months and, after consulting Southland's contract-operator Thiess and
independent experts, production for the June 2003 half-year is
expected to be between 500,000 tonnes and 600,000 tonnes.

Annual coal sales negotiations are commencing in Japan and elsewhere.
Demand for Southland Coal's product range remains very strong
particularly because of its low ash and high fluidity.

Southland intends to purchase a near-new 90-metre longwall mining
unit which will be integrated into the existing 220-metre longwall
unit. The upgraded, integrated equipment would overcome the
limitations of part of the current face support equipment and thus
enhance reliability of operations, particularly if poor ground
conditions such as those recently experienced are encountered again.
It is planned to be installed at the commencement of the next
longwall block (SL4) in late calendar 2003.

Recent delays in achieving consistent coal production have been a
drain on the Group's cash resources. As at 19 February, the Gympie
Gold Group had cash and undrawn credit facilities of approximately
$5.5 million and in-situ, developed coal with a realisable value at
current prices, net of expected production costs, of more than $50
million.

Steps taken to conserve funds include temporary curtailment of
exploration and mine development at Southland Colliery and at Gympie
Eldorado Gold mine. On the basis of achieving the forecast coal
production referred to above, the Group will be net cash flow
breakeven until June 2003 and then cash flow positive thereafter.

Gympie Gold is an Australian exploration, production and marketing
company which mines and markets gold and gemstone from southeast
Queensland and high-quality coking coal from the Hunter Valley in New
South Wales.

For Further Information Contact:

Harry Adams
MANAGING DIRECTOR on 0412 369 710

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
[email protected]