SYDNEY MININGSYDNEY MINING

CLUBCLUB

5 DECEMBER 20025 DECEMBER 2002

Outline of PresentationOutline of Presentation

the answer

the question

the explanation:How we got here

Coal cash flow leverage

Gold exploration leverage

Value adding to coal and to gold

value today and target value

the plan

1996 to 2002 - Corporate1996 to 2002 - Corporate

Chopped H.O and divested non-core

Acquired coal infrastructure and consolidated gold ownership at low cost

Started gold and coal production

Used a range of debt & equity finance

Minimised shareholder dilution

Built teams and backing

Formed strategic alliances

Bought out partners

Started profitable small mine

Built great exploration and mining teams

Established resources 780K oz at 7.6g/t

Installed large exploratory decline

Launched exploration of Goldfield 7/02

Already having significant hits

1996 to1996 to 2002 - Gold2002 - Gold

Leverage to exploration upside

1996 to 2002 - Coal1996 to 2002 - Coal

Purchased infrastructure and land in 1998

Built great team with a halved workforce

Production ramping-up to > 1.5Mtpa

Sufficient development put in place

Diversified customer & product base

Commenced mining in thick-seam zonePositive consequences for coal qualitySome lessons being learnt for mining

Leverage to emerging coal cash flow

00-01 0.5Mt

01-02 1.0Mt

1st half 0.8Mtpa

2nd half 1.8Mtpa

1.2Mtpa rate triggers profits

Coal – ProductionCoal – Production

Coal – MarketingCoal – Marketing

Southland is diversifying its customer & product base in preparation for production at capacity of >2Mtpa

Coal- StrengthsCoal- Strengths

Long-life mine

Most surface lands our freehold

Strong community support

Strong environmental control

Prolific historic coal seam

High quality = high margin

Infrastructure in place for +2 mtpa

Gold - ProductionGold - Production

Cash Cost = $317/oz

Production from one zone of Inglewood Structure Production doubled over 5 years Profitably mining at high-grades of 8 g/t Targeting much larger production if exploration succeeds

Current production is efficient

Decline connects deeper mine in Dec

Major Goldfield targets being drilled

Decline will extend to discoveriesStill drilling Partridge to the west

1st cab off the rank will be Inglewood north

Last week hit Inglewood 1 km to the south

Gold 2002-03 StatusGold 2002-03 Status

100% controlled Goldfield and region

Prolific high-grade 4 million oz field

Potential for a further 6 million ozs

Strong community support

Low environmental risks

Established geological expertise

Exploration PotentialExploration Potential

GEOLOGICAL GEOLOGICAL KEYKEY

How gold How gold formed at formed at GympieGympie

River sand & cover rock

concealmentMary Valley sediments

(5-20m thick)

INGLEWOOD LODE

Targeting a new 2 million Targeting a new 2 million oz Inglewood-style ore oz Inglewood-style ore systemsystem

Drilled through the river Drilled through the river sands & sampled fresh sands & sampled fresh rock belowrock below

Lo-level geochemistry Lo-level geochemistry identified anomaliesidentified anomalies

High hit rate in follow-up High hit rate in follow-up drilling of + 65%drilling of + 65%

Exploration Exploration Technology Technology is Workingis Working

Inglewood Lode – A Major Goldfield Feeder?Inglewood Lode – A Major Goldfield Feeder?

1.5 million oz gold produced

2 million oz gold produced

Ore Feeder ?

Ore Feeder ?

Deep Monkland Mine has +3 years reserves. Deep Monkland Mine has +3 years reserves. Lewis Decline is accessing ore zones and Lewis Decline is accessing ore zones and opens up the goldfield opens up the goldfield

potentialpotential. TIME TO EXPAND EXPLORATION. TIME TO EXPAND EXPLORATION

Gold - DevelopmentGold - Development

More Ore Shoots

North

Inglewood LodeInglewood Lode - - northnorth

New ore shoots north of current mine

Can access by extending Lewis Decline

Inglewood being tracedInglewood being traced

2km zone mined to date on/near Inglewood has yielded 2 million ounces at +8g/t

Length of Inglewood extended by >8km by geophysical survey interpretation

Drilling yielding good early results to north

We’ve hit it last week to the south, uplifted!!!

1 kmC urra P late L o w er V o lc an ic s D r i l l h o le

P ro po s ed drill ho le C urra B reakP ro ductive B eds on Inglew ood - current res ourcesM ajo r body o f m ineralis ation

500m below C urra B reakP ar tr id g e Fau lt

L ew is D ec l in eL a in g S l id e

L O N G S E C T IO N O F T H E IN G L E W O O D S T R U C T U R E

S h af tW es t o f S c o t lan d

W es t P h o en ix P ro s p ec t P ro s p ec tI n g lew o o d H i l l

M in es

L ew is & M o n k lan d

P ro s p ec tD eep s

M o n k lan d

P ro s p ec tS o u th I n g lew o o d

Gold - Gemstone

The starting point, mkt cap $160M

Coal$100 Million

Sold 10% for

$11 millionIn May 01

Gold$68 Million

Company Production Market Cap Market Cap(000oz) ($millions) (per prod oz)

Troy 50 77 1.54Triako 46 48 1.04Sipa 56 47 0.84

152 172 1.13

Gympie Production = 60,000 ouncesImputed Value = $68 million

GYM share price > 230cps in 2008 ?GYM share price > 230cps in 2008 ?

Need value growth $240M ?Need value growth $240M ?

Discover/exploit > 2M oz au, @ 8g/t ?Discover/exploit > 2M oz au, @ 8g/t ?

Coal to 2.5Mtpa…$15/t profit & FCF ?Coal to 2.5Mtpa…$15/t profit & FCF ?

Add legs to each table, corporate ?Add legs to each table, corporate ?

Separate the tables?Separate the tables?

The plan is to achieveThe plan is to achieve

20%pa for next 6 years20%pa for next 6 years

emerging coal cash flow with

the exploration leverage of a high-grade goldfield