A small colony of little penguins, once extinct in a town on the NSW far south coast, is displaying promising signs of return.

The existence of penguins in Eden had been documented since the 1930s, but storms and predators disturbed their nesting sites, resulting in their local extinction by the 1990s.

But local conservationists are celebrating after several breeding pairs were spotted laying eggs and raising chicks around Twofold Bay.

"It's exceeded all my expectations," said Wendy Noble, chairperson of the Friends of Little Penguins Eden group.

" It's really exciting, it's the beginning of a colony, but it's still got that fragility to it until we can protect them properly. "

Two pairs were spotted mid-year breeding at Wheel Cove near the Eagles Claw Nature Reserve, while a furthe

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