STREAMPLAY STUDIO LIMITED — Capital/Financing Update 2012

Oct 14, 2012

15 October 2012

==> picture [452 x 51] intentionally omitted <==

ABU DABBAB ALLUVIAL MINING PROJECT PROCESSING PLANT EXPANSION

• Purchase of demountable modular 50 tph Spiral Plant approved

• Treatment capacity to increase to 60 tph

• Production of tin contained in cassiterite concentrate to increase to approximately 80 tonnes per month from February 2013

• Project life at increased throughput capacity approximately 8 months

• Revenue from tin concentrate sales over the eight‐month period is expected to be approximately US$12.4 million

• Direct and indirect cash costs for the project (excluding capital expense) are estimated at US$5.3 million

• Total capital cost of expansion estimated to be $550,000 with payment of approximately 80% of this expense deferred until March 2013

• Significant proportion of mine pre‐production costs deferred until March 2013

• Opportunities for using the fully demountable modular plant for the exploitation of other placer tin deposits are being evaluated

The Directors of Gippsland Limited (“Gippsland” or “the Company”) [ASX: GIP, FRA: GIX] are pleased to announce that the Board of the Company and the Board of Tantalum Egypt JSC (“TE”) have approved the immediate purchase from MSP Engineering Pty Ltd of a demountable modular gravity separation plant comprised of rougher and cleaner spiral separators with a nominal treatment capacity of 50 tonnes per hour (tph) of minus 2 mm alluvial material (the “Spiral Plant”).

The Spiral Plant is scheduled for delivery to site by early January 2013 and is expected to be in full production by the end of January 2013. The estimated total capital cost of the expansion is approximately US$ 550,000 with payment of approximately US$440,000 of this sum deferred until March 2013.

The Directors of Gippsland are also pleased to announce that TE has entered into a Supplementary Contract for digging, loading, transporting and screening of alluvial materials with mining contractor Orbit Star Company (“Orbit”) pursuant to which Orbit will mine and screen 1,000 bank cubic metres (“BCM”) of ore per day until January 2013 and 3,000 BCM per day of ore and waste thereafter with payment of that portion of monthly invoices in excess of US$50,000 deferred until March 2013. As a result it is expected that a stockpile equivalent to approximately 26,000 BCM of ‐2 mm material and a stockpile equivalent to approximately 24,000 BCM of ‐4+2 mm material available for treatment will be established by early January 2013.

The Abu Dabbab Alluvial Mining Project commenced with a program of trial mining and processing using a HPC‐15 unit. This program was completed in July 2011.

In August 2011 the Company announced the Board agreed to implement the project subject to approval by the Board of TE and finalising financing arrangements. This followed completion of a comprehensive engineering study and economic evaluation of the opportunity and a program of trial mining (Announcement dated 3 August 2011). At this time a continuous processing route was preferred involving an integrated gravity plant processing of only high grade feed stocks and the stockpiling of lower grade materials for later treatment or processing through the Abu Dabbab hard rock plant in due course.

Alluvial Mining Project Processing Plant Expansion 121015

Page 1 of 8

==> picture [103 x 30] intentionally omitted <==

In October 2011, the Company announced that it had been decided to proceed with a smaller scale operation to be financed out of the Company’s then existing cash reserves involving single stage sequential batch processing at a nominal 16 tph feed rate using two modular IE‐TEC HPC‐30 units to process high grade alluvial material (Announcement dated 7 October 2011).

The program of mining and processing using HPC‐30 units commenced with their installation in March 2012 and the first commercial operations in June 2012. The HPC 30 units are effective at treating the +2 mm material at treatment rates of 10 to 12 tph but were not effective at treating the higher grade ‐2 mm. Consequently production has not matched initial expectations.

The Spiral Plant is not suitable for +2 mm material but will operate at high efficiency for –2 mm materials. It is expected that this unit will be capable of high recovery at this size range and feed rate. A large proportion of the cassiterite within the Abu Dabbab placer deposits reports to the ‐2 mm size fraction. Following commissioning of the Spiral Plant the existing HPC‐30 separators will be used to treat +2 mm material at a nominal feed rate of approximately 10 tonnes per hour.

The combined production capacity and improved recovery is expected to increase cassiterite production from the current rate of around 10 to 12 tonnes per month (containing on average between 5.5 and 6.6 tonnes of tin) to approximately 145 tonnes per month (containing on average 80 tonnes of tin). It is expected that a total of approximately 630 tonnes of tin contained in a 55% Sn cassiterite concentrate will be recovered over a project life of approximately 8 months after commencement of Spiral Plant production.

Revenue from tin concentrate sales over the eight‐month period is expected to be approximately US$12.4 million, assuming a tin price of US$20,000 per tonne. Direct and indirect cash costs for the project (excluding capital expense) are estimated at US$5.3 million over the same period. Total capital cost for the project after the completion of the expansion and including capital costs already incurred is estimated to be US$1.2 million.

During the period June to August 2012 training of the on‐site workforce continued with the result that the workforce is now considered capable of handling a larger operation. Recruitment of personnel to allow the project to move to a four‐shift 24/7 roster has commenced.

The Company intends to fully evaluate placer tin occurrences identified elsewhere on its tenements with a view to re‐deploying the alluvial plant upon exhaustion of mining and processing the Abu Dabbab placers. The Company is also aware of other placer deposits in Egypt and has commenced discussions with Egyptian authorities with a view to employing the demountable plant and equipment to exploit these deposits.

Yours faithfully Gippsland Ltd

==> picture [90 x 51] intentionally omitted <==

Jon Starink

Executive Director

For further information, please contact

Geoff Hawkins Gippsland Limited Tel: +61 8 9340 6000 Email: info@gippslandltd.com Web: www.gippslandltd.com

Alluvial Mining Project Processing Plant Expansion 121015

Page 2 of 8

==> picture [103 x 30] intentionally omitted <==

About MSP Engineering Pty Ltd

MSP Engineering Pty Ltd (“MSP”) are resource development consultants based in Perth, Western Australia. Previously known as McSweeney Partners Pty Ltd, MSP provides services over the entire project lifecycle from conceptual and feasibility studies to detail engineering design, project management, construction and commissioning of mineral processing facilities and associated infrastructure, and subsequent operational support. MSP has been delivering simple innovative, cost‐efficient mining and resource development solutions for over forty years for clients around the world.

Note:

In accordance with Listing Rule 5.6 of the Australian Stock Exchange Limited, the geological information in this report that relates to Exploration Results, Mineral Resources and Ore Reserves is based on data compiled by Dr John Chisholm, a Fellow of The Australasian Institute of Mining and Metallurgy. Dr Chisholm has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves'. Dr Chisholm consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

ATTACHMENTS

Key Project Assumptions

The key project assumptions are set out in Table 1 and Table 2.

Table 1 Abu Dabbab Placer Deposit Parameters

Project Mining Volumes	BCM (‘000) (in situ)	CONTAINED TIN (tonnes)
'Ore" Mineralised Waste	434 440	767 65

Table 2 Estimated tin recovery

Screen Size Fraction ‐ 2 mm ‐ 4 + 2 mm	Volume (‘000 BCM equivalent) 100 57	Tin in cassiterite within size fraction (tonnes) 590 86	Tin in cassiterite concentrate (tonnes) 561 73
		676	634

Alluvial Mining Project Processing Plant Expansion 121015

Page 3 of 8

==> picture [103 x 30] intentionally omitted <==

Figure 1 New Waste Water Settling Ponds

==> picture [431 x 323] intentionally omitted <==

Alluvial Mining Project Processing Plant Expansion 121015

Page 4 of 8

Figure 2 Spiral Plant Process Flow Sheet

==> picture [103 x 30] intentionally omitted <==

==> picture [390 x 608] intentionally omitted <==

Alluvial Mining Project Processing Plant Expansion 121015

Page 5 of 8

==> picture [103 x 30] intentionally omitted <==

Figure 3 Spiral Plant General Arrangement excluding Tailings Cyclone

==> picture [426 x 643] intentionally omitted <==

Alluvial Mining Project Processing Plant Expansion 121015

Page 6 of 8

Figure 4 Spiral Plant Rougher Spirals Detail

==> picture [103 x 30] intentionally omitted <==

==> picture [54 x 596] intentionally omitted <==

==> picture [53 x 596] intentionally omitted <==

==> picture [54 x 596] intentionally omitted <==

==> picture [53 x 596] intentionally omitted <==

==> picture [54 x 596] intentionally omitted <==

==> picture [53 x 596] intentionally omitted <==

==> picture [54 x 596] intentionally omitted <==

==> picture [53 x 596] intentionally omitted <==

Alluvial Mining Project Processing Plant Expansion 121015

Page 7 of 8

==> picture [103 x 30] intentionally omitted <==

Figure 5 Example of a Modular Demountable Spiral Plant

==> picture [395 x 567] intentionally omitted <==

Alluvial Mining Project Processing Plant Expansion 121015

Page 8 of 8