STREAMPLAY STUDIO LIMITED — Capital/Financing Update 2013

Mar 4, 2013

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5 March 2013

PROJECT FINANCING STRATEGY

Gippsland Limited [ASX: GIP, DB: GIX] ("Gippsland" or "the Company”) is pleased to provide an update in relation to its Abu Dabbab project financing activities since its last announcement dated 17 October 2012.

As previously announced, a Consortium of Egyptian banks comprised of Bank Audi, Banque Du Caire, Banque Misr and Commercial International Bank was formed to jointly support Tantalum Egypt JSC (“TE JSC”) in raising the required senior debt financing (the “Transaction”) for the development of the initial phase of the Abu Dabbab Tantalum‐Tin‐Feldspar Project (the “Project”).

The Company is moving forward with the Consortium but has been approached by a further 3 substantial Gulf financial institutions expressing interest to participate in the debt financing package.

Opportunities for mezzanine debt financing of TE JSC for part of the balance of the funds required for the development of the Project are being pursued.

The balance of the funds required for the development of the Project after senior debt financing and mezzanine debt financing (if any) is likely to be contributed to TE JSC by way of shareholder loans to be provided by Tantalum International Pty Ltd (Tantalum International) which is presently a wholly owned subsidiary of the Company (‘Shareholder Funding’). As also previously announced, El Torgoman Partners & Advisors Ltd (the ‘Advisor’) has been appointed by Gippsland to provide various services to assist it and Tantalum International Pty Ltd in relation to securing the Shareholder Funding.

The Consortium is presently engaged in the appointment of an Independent Technical Advisor (‘ITA’) to assist it in the Transaction and anticipated this appointment being made in early March 2013.

The Consortium intends to initially instruct the ITA to perform a high level review of the Project, which is expected to be concluded in two to three weeks. Subject to a satisfactory outcome of this high level review, the Consortium intends to proceed to obtaining credit committee approval for the Transaction and to the final negotiation and execution of a definitive term sheet, which the Company expects to contain some conditions precedent that will need to be fulfilled prior to the first drawdown.

The Directors believe that the present market capitalisation of Gippsland, being approximately A$14.5 million at a share price of $0.012, does not reflect the potential value of the Company’s interest in Tantalum International and the Project. As announced on 8 July 2011, the Net Present Value (‘NPV’) of Gippsland’s interest in the Project (including stage 2) was independently assessed as being US$269 million (assuming 50% debt financing).

The Directors also believe that Gippsland’s shareholder base, largely comprised of retail investors, may not be in a position to support equity raisings of the likely magnitude irrespective of the market capitalisation of the Company.

To avoid significant raisings for the purpose of providing the Shareholder Funds for the Project, which might be highly diluting for the Company’s present shareholder base, the Company’s preferred approach is to raise all or substantially all of these funds by way of securing investment by

130305 ASX ANNOUNCEMENT - Project Financing Strategy-FINAL

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MENA financial institutions or industry groups in Tantalum International or a Special Purpose Vehicle formed for such a transaction.

Two such potential MENA investors acting in concert have advised the Company that their respective Boards have approved an investment in Tantalum International in principle. Preliminary technical due diligence meetings have taken place and the potential investors have advised the Company that they have appointed an Independent Technical Advisor to assist them in the evaluation of the Project and the opportunity to invest in Tantalum International.

In addition, a number of other prospective investors for Tantalum International have been identified and in many cases preliminary meetings have been held. The Company expects that orderly presentations and discussions with these parties will take place shortly.

Yours faithfully Gippsland Limited

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Ian Gandel Chairman

T: +61 8 9340 6000 E: info@gippslandltd.com

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