Lachlan Star Limited — Board/Management Information 2003

Jun 29, 2003

ASX Announcement

30 June 2003

Update on Current Activities

PRODUCTION

• 90%-owned Southland Coal produced 163,000 tonnes run-of-mine in June. This brings the average to 192,000 tonnes per month since repositioning the longwall to the seam floor in mid-February. This exceeds current budget of 150,000 tonnes per month. Product yield has averaged 94% for 180,000 saleable tonnes per month.
• Coal sales for the June quarter were 456,000 tonnes including resale of 52,000 tonnes of coal purchased for blending. Shipments for June were a record 262,000 tonnes but the quarter was constrained by port delays, which delayed 100,000 tonnes of scheduled sales into the 03-04 fiscal year.
• 100%-owned Gympie Eldorado Gold has a veraged 4,570 oz per month during the June quarter.

EXPLORATION

• Inglewood ore in the northernmost of current mine workings is 2.5 metres wide and grading 8.5 g/t. This ore zone will be developed in the next financial year.
• Drilling Inglewood North intercepted economic grades 1.2 kms north of the mine, including 2.5 metres at 10.7 g/t and 2.4 metres at 11.0 g/t.
• Drilling Inglewood South has located, 300 metres south of the mine, the fault which has up-thrown to near-surface the favourable productive beds.

FINANCE

• Cash on hand is \$8.5M and coal stocks and debtors have grown to \$26M from \$5.9M at 31 January, reflecting the increase in coal outputs since then.
• Completed capital raisings of \$15 million, repaid borrowings of \$8 million and rescheduled bank facilities.
• Gold hedging reduced to 125,000 oz at nominal cost at an average of \$A520oz to provide greater short term upside to a stronger gold price.
• Currency hedging increased to \$US60M at an average exchange rate of \$US61:\$A100

CORPORATE

• 25%-owned regional gold explorer D'Aguilar Gold Ltd issued its prospectus on 23 June for its IPO. Mr Ron Cunneen will be Exploration Manager.
• Personnel reviewed. Mr Peter Hayes appointed Chief Operating Officer and Mr Arthur Gillen Chief Financial Officer, replacing Mr John Leach - retiring Finance Director. Personnel numbers reduced by 60 at Gympie Eldorado. principally reflecting mine mechanisation and reduced development.
• The June Quarterly Report will be issued on 21 July 2003.

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

	ASIC registered agent number	304 15 July 2001 page 1/2
	lodging party or agent name Gympie Gold Limited
	office, level, business name or PO Box no. Level 9 Gold Fields House
	street number & name 1 Alfred Street
	state/territory NSW suburb/city Sydney postcode 2000
telephone (	02 1 9251 2777
facsimile	02 1 9251 2666	ASS. CASH.
DX number	suburb/city	PROC.
	Australian Securities & Investments Commission	form 304
	Notification of	Corporations Act 2001
	change to officeholders	205B & 601CV(1)
corporation name	Gympie Gold Limited
	ACN of ARBN 88 000 759 535
New appointment
	Give details below of the person(s) who have consented in writing to become a director and/or secretary of the company. A public company must have a minimum of 3 directors
	(2 resident in Australia) and 1 secretary (resident in Australia). A proprietary company must have a minimum of 1 director (resident in Australia). The office of secretary is optional,
but if appointed one must reside in Australia.
family name	given names
former names
residential address
suburb/city	state/territory	postcode
country (if not Australia)
date of birth (d/m/y)	$\sqrt{ }$ place of birth (town/city) f	(state/country)
office held & date appointed [	$\prime$ director 7.	secretary
alternate director [77]	alternate for:	I effective dates: from T to. 7
	The Terms of Appointment of an Alternate Director must be provided with this notification. These are attached in the annexure marked ( ). See guide to this form for annexure requirements.
family name	given names
former names
residential address
suburb/city	state/territory	postcode
country (if not Australia)
date of birth (d/m/y)	place of birth (town/city)	(state/country)
office held & date appointed I	director $\prime$	secretary
alternate director [	alternate for:	effective dates: from 10
	The Terms of Appointment of an Alternate Director must be provided with this notification. These are attached in the annexure marked ( ).
	See quide to this form for annexure requirements.
family name	given names
former names
residential address
suburb/city	state/territory	postcode
country (if not Australia)
date of birth (d/m/y)	place of birth (town/city)	(state/country)
office held & date appointed alternate director [	director 7 alternate for:	secretary effective dates: from 10

									15 July 2001
Ceasing to hold office
family name date of birth (d/m/y)	Leach 22/08/48				given names John Edward piace of birth Montreal, Canada
date ceased (d/m/y)	26/06/03			office held $\boxed{\mathbf{X}}$ director	$\Box$ secretary $\Box$ alternate director for:
family name					given names
date of birth (d/m/y)		1		place of birth
date ceased (d/m/y)		Ť	office held	director	secretary alternate director for:
family name					given names
date of birth (d/m/y)		7		place of birth
date ceased (d/m/y)		Ť		office held L director	secretary L alternate director for:
Change of name or address of officeholder
family name (previously notified)					given names
date of birth (d/m/y)	7	7			Is this person also an alternate director? [		(please tick, if yes)
new name (if changed)
date of change (d/m/y)	7	J
new address (if changed) unit, level, building name
	street number & name
	suburb/city				state/territory		postcode
	country (if not Australia)					date of change (d/m/y)		$\bigg)$ T
family name (previously notified)					given names
date of birth (d/m/y)	T	1			Is this person also an alternate director? [1		(please tick, if yes)
new name (if changed) date of change (d/m/y)	7.	T
new address (if changed)	unit, level, building name
	street number & name
	suburb/city country (if not Australia)				state/territory	date of change (d/m/y)	postcode	$\prime$
*NB: If insufficient space, set out details in an annexure -
Annexures must conform to requirements. (Refer Guide)
							Small Business (less than 20 employees), please provide an
Signature							estimate of the time taken to complete
	I certify that the information in this form is true and correct.						this form
	print name Anne Adaley				capacity Company Secretary
sign here					30/06/03 date		include	The time actually spent
								reading the instructions, working on the question and
								obtaining the information
								The time spent by all employees in collecting and
								providing this information. 5 hrs	mins