J.E. Gay
Managing Director
GUNNS Ltd
58 Cimitere St
Launceston Tasmania 7250

Friday, 1 December 2000

Dear Mr Gay,

I am writing to you in my capacity as both a shareholder in GUNNS and the corporate campaigner for The Wilderness Society.

I have recently purchased shares in GUNNS and perused the 2000 annual report. I note a number of interesting factors in this report. Of major concern to me was the lack of any breakdown regarding the performance of individual sectors of the company. The inability to access this information makes an analysis of the company's performance impossible.

I would be particularly interested to know what are the 'growth' divisions of the company. Other points of interest include how much revenue is derived from woodchips as a percentage of total profits? Is Japan a major element of our woodchip customer base?

The report states at page 54 that the company is economically dependent on the continuing supply of sawlog from Forestry Tasmania. What is the current annual supply under existing contracts?

My role at The Wilderness Society brings me into contact with a number of ethical shareholder groups, superannuation funds and the financial services industry. There has been a growing interest throughout all of these sectors in ethical investment issues. As Australia mirrors the UK experience we will see massive amounts of capital being directed into industries and companies who function in an environmentally responsible manner. These companies will be pro-active and operate at a level far above mere compliance.

I will be contacting other shareholders in GUNNS over the coming months to share with them some of my concerns with our company. I worked closely with the North Ethical Shareholders in their campaign to improve the financial and ethical performance of their company. Many of these shareholders have indicated to me that they also own shares in GUNNS. This interest is likely to intensify due to GUNNS' acquisition of Boral's Tasmanian operations. With the impending sale of North Forest Products to an unspecified purchaser we can all look forward to a dynamic time in the Tasmanian corporate sector.

I would appreciate an opportunity to meet with you to discuss these and other issues at your convenience. Whilst I am situated in Melbourne I will be visiting Tasmania in the coming months to further acquaint myself with the physical, corporate and political climate.

I look forward to meeting with you,

Yours truly,

Leanne Minshull
Corporate Campaigner
The Wilderness Society