"The appointment of Numis as lead-broker in the UK reflects the priority we place on pushing ahead with organic growth opportunities at the same time as positioning the company to pursue corporate growth

opportunities, should they prove worthwhile after being fully evaluated,” said Gympie managing director Harry Adams.

“A number of such opportunities are currently being evaluated within the strategy to also reduce the level of the company’s gearing,” he said.

Numis has a strong record of supporting successful AIM-listed companies and recently established a strong presence in the resources equities sector.

In other Gympie news, Southland recently upgraded its production machinery during the move to a new longwall panel.

Southland’s run-of-mine output over the past week has been 64,000 tonnes and production for the first four months of the 2003/04 financial year was 102,000 tonnes above budget. This performance indicates that an

increase in annual output to over 2 million tonnes per annum can now be targeted.

Coal sales have also grown from 247,000 tonnes in the March 2003 quarter to 591,000 tonnes in the September 2003 quarter and are expected to grow further in the December quarter.

Over the six months to 30 September Gympie Gold spent $8 million upgrading Southland’s coal production equipment and built up coal stock and debtors worth approximately $30 million.

The continuing improvement of operational performance is expected to assist with the intended replacement of current short-term loan facilities with longer term banking arrangements. This refinancing remains a priority so as to allow the Company to more easily pursue its growth ambitions.