RNS Number:4461S
Gympie Gold Limited
24 November 2003




ACN 000 759 535

                             ASX & AIM Announcement

                                25 November 2003



                      $25M CAPITAL RAISING TO BOOST GROWTH



Gympie Gold Limited ("Gympie" or the "Company") announces a placing of 50
million ordinary shares (the "New Shares") to raise A$25 million before expenses
(the "Placing") to boost organic growth and take advantage of strong coking coal
and gold markets.

Gympie has received commitments from investors in Australia and the United
Kingdom for the placement of the New Shares which are being issued at A$0.50 per
share or its # equivalent at today's exchange rate of $A2.355 to #1.00. This
price represents a 7% discount to the share price of the Company's shares on the
ASX prior to the halt in trading on 18 November 2003 requested by the Company.
The trading halt, expected to be lifted today, was requested by the Company
during a planned four day road show to prospective institutional placees.

In the Placing, 30 million New Shares have been placed with institutions in the
United Kingdom and this part of the Placing has been underwritten by the
Company's new UK brokers, Numis Securities Limited. Australian brokers to the
issue are Southern Cross Equities and Wilson HTM.

The New Shares will rank pari passu in all respects with the existing ordinary
shares in the Company.

 The net proceeds of the Placing will be used 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.

Gympie's existing authority to issue shares is limited to 28.5 million New
Shares representing approximately 14% of the existing shares on issue.  As a
result, the New Shares are to be issued in two tranches as follows:

  * 28.5 million shares (the "First Tranche") on or about 1 December 2003; and
  * 21.5 million shares (the "Second Tranche") in early January 2004, subject
    to approval by Shareholders at a General Meeting of the Company expected to
    be held on or about 8 January 2004 (the "January General Meeting").

The Placing is conditional, inter alia, on the admission of the New Shares to
trading on the Alternative Investment Market ("AIM") of the London Stock
Exchange and the Australian Stock Exchange (ASX).




Applications are being made for the First Tranche of the New Shares to be
admitted to trading on the ASX and AIM and dealings in the First Tranche are
expected to commence in the first week of December 2004.

Applications will be made in due course for the Second Tranche of the New Shares
to be admitted to trading on the ASX and AIM, following the January General
Meeting on or about 8 January 2004.

The issue of the New Shares would increase Gympie Gold's issued ordinary share
capital to 256.7 million shares from 206.7 million shares (+24%).

Managing Director, Mr Harry Adams, said "This capital raising enables us to push
ahead with organic growth opportunities and to take advantage of the current
strong markets for both coking coal and gold.

At Southland Coal, production has been increased to more than the 2 million
tonnes per annum level and we are exploring ways to expand production further.

At Gympie Eldorado Gold, a number of very prospective targets along a 30
kilometre strike length can now be drilled, notably including the historically
prolific Inglewood Structure.

In structuring the capital raising we considered including a share purchase plan
for all shareholders but the Company is not allowed to have a second such offer
within a twelve month period.

We are however particularly pleased to welcome a number of notable UK
institutional investors to the register."

Gympie Gold is dual-listed on ASX (Code "GYM") and AIM (Code "GGD") and is an
Australian mining exploration, production and marketing company with two core
businesses: coking coal and gold.



                        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




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