RNS Number:0947T
Gympie Gold Limited
10 December 2003

                               ABN 88 000 759 535
    LEVEL 9  GOLD FIELDS HOUSE 1 ALFRED STREET   SYDNEY  NSW  2000 AUSTRALIA
 Phone : 02 9251 2777  Facsimile : 02 9251 2666  Email : info@gympiegold.com.au
                        Website : www.gympiegold.com.au


5 December 2003

Dear Shareholder

                       Equity Raising and General Meeting

On 25 November 2003, Gympie Gold announced the placement of 50.0 million
ordinary shares at $0.50 per share to raise $25.0 million.

Further information on this raising and the progress of your company is provided
in the enclosed Chairman's Address to the recent Annual General Meeting. In
essence the proceeds are earmarked to:

  * Meet increased working capital requirements of growing coal production;
  * Reduce the Company's debt-to-equity ratio; and
  * Pursue organic growth opportunities at both coal and gold projects.

The ASX Listing Rules limit the number of shares that a company may issue during
any 12 month period to 15% of its shares on issue. Given this limitation, the
placement of 50.0 million shares has been structured as follows:

  * 28.5 million shares were issued, raising $14.25 million; and
  * subject to approval by shareholders at a General Meeting on 8 January
    2004, 21.5 million shares will be issued to raise the balance of $10.75
    million.

Subject to the approval of shareholders, the placements will increase Gympie
Gold's shares on issue by 24% to 256.7 million shares, compared with 206.7
million shares prior to the issue.

Due to time constraints, costs and various legal issues, your Directors
considered these placements to be the most appropriate method to raise capital
at this time.  The Board considered raising some of the new equity by making an
offer to existing shareholders.  However, in view of:

  * the Company having offered a share purchase plan to
    shareholders as recently as April 2003; and

  * the complications associated with offering shares to all shareholders by a 
    rights issue,

the Board decided that it was in the best interests of the Company and the
shareholders to proceed with the placement.


General Meeting

Also enclosed with this letter are the following documents relating to the
General Meeting to be held on 8 January 2004:

  * Explanatory Statement and Notice of the General Meeting ('Notice'); and

  * A proxy form.

The Notice contains the proposed resolutions which require the approval of the
shareholders. The Explanatory Statement explains each proposed resolution, as
well as why shareholder approval for the resolution is required.  It also sets
out a voting exclusion statement for each resolution.

You are urged to consider carefully all of this material, determine how you wish
to vote and cast your vote accordingly.  Shareholders unable to attend the
General Meeting are urged to complete the proxy form in accordance with the
instructions set out in the Notice.

Yours sincerely

Michael Darling
Chairman
Gympie Gold Limited


                      This information is provided by RNS
            The company news service from the London Stock Exchange
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