3 July 2012

ABU DABBAB – ALLUVIAL TIN PROJECT UPDATE FIRST SHIPMENT COMPLETED

Highlights

• First cassiterite shipment despatched to Malaysia Smelting Corporation Bhd ('MSC')

Gippsland Limited ('Gippsland' or the 'Company') [ASX: GIP, FRA: GIX] provides the following update for the alluvial tin project (the "Abu Dabbab Alluvial Tin Project") in Egypt, previously referred to in ASX announcements dated 25 April, 3 August, 7 October 2011, 23 January, 27 February and 12 June 2012.

Mining of the Wadi Quaria placer tin deposit has continued and whilst the ramp up to full production has been slower than expected, the Company is pleased to announce that its first product despatch from the mine site was completed on Thursday 28th June.

Project Status Summarized

The latest milestones achieved are set out below:

Mining Contract

Table 1 summarises the mining contractor's output to the end of May. Ongoing performance has been satisfactory.

Table 1. Mining Contract Output
Material Movement	Project to date
Ore Mined, BCM	47,381
Waste removed, BCM	3,805
Ore screened, BCM	47,381
-6mm screened, LCM	10,599

* LCM = Loose Cubic Metres, BCM = Bank Cubic Metres

Project Schedule and Costs

Project to date capital costs at the end of the period were $688,507 (budget US$815,797 including contingency of $135,000); project to date direct operating costs were $460,758 (budget $639,154), indirect operating costs $209,861 (budget $139,712). Overall, capital and operating costs have therefore remained within budget.

Ore Processing

Screening of run of mine ore has continued and re-screening of the -6 mm screened ore fraction was completed towards the end of June. Ore processing was switched over to treatment of -2mm feed from the start of June. Ore processing to the end of May is summarised in Table 2.

Table 2. Ore Processed
Material Handled	Project to date
Plant feed, LCM *	2,478
Rougher concentrate, LCM *	74.4
Table concentrate, t	2.7

* Estimates based on survey and/or truck count

Product Despatch and Sales

The product finishing, bagging and despatch facilities were completed early in the month so as to enable the first product despatch to be prepared and completed. Details of the first shipment are presented in Table 3.

Table 3. Shipping Details
Details	Amount
Shipment number	1
Jumbo bags	12
Despatch date from site	28 June 2012
Total wet mass, t	9.0
Provisional grade, %Sn	46.0

* Grade determined by averaging 9 Niton hand-held XRF readings for each of 12 bags containing 750kg concentrate/bag, and rounded down to zero decimal points. The final grade is to be determined by independent laboratory assay.

A further shipment is planned for late July 2012.