Lachlan Star Limited — Capital/Financing Update 2003

Jun 10, 2003

ASX Announcement

11 Inne 2003

Convertible Notes - Quarterly Interest Payment

The next quarterly interest payment on Gympie Gold Limited's \$40 million Convertible Note issue is due to be paid to noteholders on 30 June 2003. The Record Date for entitlement to this payment will be 20 June 2003 and the Exentitlement Date will be 16 June 2003.

Noteholders receive quarterly interest payments at a fixed rate of 8.5% per annum on the \$1.00 Issue Price and interest for the June quarter will be 2.119 cents per note.

In order to reflect the dilutionary impact of the shares issued under a Share Purchase Plan during May, the Conversion Ratio of the notes has been adjusted from 0.7407 to 0.7567. This ratio means that noteholders have the right to convert one note into 0.7567 of a Gympie Gold ordinary share. If the holder elects not to convert the notes into Gympie Gold shares, then the Company will redeem the notes at the Issue Price of \$1.00 each at the end of their five-year life in September 2007.

The Convertible Notes trade on the ASX (code GYMG) and AIM (code GGDA) markets.

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

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