STREAMPLAY STUDIO LIMITED — Capital/Financing Update 2014

Aug 18, 2014

Suite 12, 186 Hay Street PO Box 8206 Subiaco WA 6008 Subiaco East WA 6008 Australia Australia t: +61 8 9340 6000 e: info@gippslandltd.com f: +61 8 9340 6060 w: www.gippslandltd.com

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TOLL SMELTING AGREEMENT AND OPERATIONS UPDATE

Release Date: 19 August 2014

Key Points

• A non-binding agreement has been approved and signed by the Board of Tantalum Egypt JSC with a major smelting company for toll smelting the tantalum-tin concentrates planned to be produced from the Abu Dabbab Tantalum-Tin-Feldspar Project.

• This agreement reduces technical risk for the project and defers approximately $20 million of startup capital whilst staff are trained at the toll facility and allows for ample time for alternative smelter sites and technologies to be compared and assessed.

• Gippsland’s financing process to secure funds for the development of the Abu Dabbab project is now well advanced. Several interested investor groups have signed confidentiality agreements and are currently reviewing the project data. This remains the core focus of the Company and more definitive progress is expected by the end of the September quarter, 2014.

• The alluvial tin operation has recommenced operations and is aiming to recover 40 to 50 tonnes of tin in concentrates before closing in early November, 2014. A modest cash surplus is forecast which will be allocated to maintain the Egyptian operations through to early 2015.

1. ABU DABBAB TANTALUM-TIN-FELDSPAR PROJECT (50% INTEREST)

1.1 Toll Smelting

The Company is pleased to announce that the Board of Tantalum Egypt JSC (TE) has unanimously approved the signing of a non-binding Memorandum of Understanding (MoU) with a major international smelting company (SmelterCo) for the toll smelting of tantalum-tin concentrates planned to be produced at the Abu Dabbab Tantalum-Tin-Feldspar Project (the Project).

The key motivating factors for TE to pursue the MoU were to:

• a. Reduce the technical risk, particularly during the critical start-up phase, which will facilitate the financing of the Project and support its success;

• b. Defer $15 to $20 million of capital expenditure that was allocated to the construction of the smelter and support infrastructure; and

• c. Provide time to allow a full assessment of all smelting alternatives;

  • Which could include smelter sites in Egypt, the Middle East or elsewhere with competitive advantages in terms of;

    • cheaper power costs; at Abu Dabbab the smelter accounts for approximately 16% of the installed power allocation and approximately 23% of the variable power cost;

    • proximity to infrastructure, transport hubs and ports; the tantalum-tin concentrate production is modest volume wise at approximately 4-5ktpa and is easily containerised and transportable, whilst being very high value;

    • proximity to skilled labour and support services; and

  • New, improved smelting technologies and feedstock (from the “hard-rock” gravity plant) available for piloting.

1 Toll Smelting Agreement and Operations Update August 2014

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SmelterCo is one of the top 10 global smelting companies and has specific experience in tantalum recovery from tin concentrates; however given the non-binding nature of the MoU and “closed” structure of the tantalum market both parties prefer to keep the identity of SmelterCo confidential until a binding arrangement is negotiated. The broad terms and conditions include:

• TE supplies a tantalum-tin concentrate to SmelterCo for processing into tantalum glass and crude tin.

• TE will pay SmelterCo various fixed charges for utilisation of their smelting facilities. SmelterCo currently has under-utilised furnaces suitable for processing TE’s concentrate.

• SmelterCo will deliver to TE the tantalum glass for supply to HC Starck GmbH, with which TE has a 10 year Tantalum Sales and Purchase Agreement and SmelterCo will have a first right to purchase all tin product at LME benchmarked prices.

• The initial term for the toll smelting arrangement is to be four years, with an 18 month notice period required from either party to terminate the arrangement.

• TE will be able to second its people to SmelterCo’s smelter for training and supervision purposes.

• Whilst SmelterCo will not be taking technical risk, an incentive payment structure will be agreed whereby SmelterCo will share in any “over budget” performance such as recovery.

• Based on preliminary smelting fees and product specifications TE considers that there will be no cost penalty to the Project cash flows arising from the toll smelting arrangement. Indeed the MoU terms suggest a modest cost saving over the initial period with a toll smelting cost of approximately $2.50/t of ore compared to a $2.60/t of ore cost if TE purchased and operated its own smelter from start-up.

1.2 Feasibility Testwork

Following receipt of the updated feasibility study for the processing plant and supporting infrastructure from Lycopodium Engineers as reported in the June 2014 Quarterly, the Company has undertaken a detailed assessment of all technical aspects of the project to identify further risks and opportunities. The objective is to prepare a feasibility study implementation plan to ensure completion within a short-time frame planned to be six months from receipt of additional funding.

As part of this process TE geologists have commenced planning for a systematic sampling and re-mapping process of the 3 adits excavated through the Abu Dabbab deposit in the 1970’s. It is planned to collect a further 3-4 tonnes of mineralised material. Having this material carefully collected whilst staff are available on site is cost effective and expedites any request for further testwork likely to be required for financing and process flow sheet optimisation.

2. ALLUVIAL TIN OPERATION (50% INTEREST)

Mining of the alluvial tin deposits at Abu Dabbab was completed in late January 2014 and primary processing completed in early February, 2014. Re-processing of clayey tailings material (from the primary processing) was undertaken from February to April to maintain the operations pending the arrival of special crushers to enable the processing of an 81,000 tonne stockpile of coarse oversize material. The oversize (+2.5mm / -4mm) was also produced during the primary processing phase, specifically where material too coarse for the Spiral Plant was screened off and stockpiled as it still contained appreciable tin. However, a specialist, hi-impact hammer crusher was required to reduce the product size to less than 2mm, suitable for feeding to the Spiral Plant. These crushers were installed and commissioned in June before the site operations were suspended for Ramadan.

Crushing and screening operations were resumed on 12 August and to date approximately 4,000 tonnes of minus 2mm sized material has been stockpiled in front of the Spiral Pant, which will be restarted on 19 August, 2014. It is planned to recover approximately 40 to 50 tonnes of tin in concentrates by early November, after which the alluvial operation will be decommissioned.

2 GIP Toll Smelting Agreement and Operations Update August 2014

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This final phase of the alluvial operation is being run on a tight budget with the objective of generating a modest cash surplus which will be allocated to maintain the Egyptian side of the operations and administration into the first quarter of 2015. The key challenges to a successful end to the alluvial operations are to maintain equipment availability and overall productivity. This is being closely monitored with contingency plans in place to cease operations and decommission the site if the economic targets are not being met on a week to week basis.

3. COMMENTARY

The Board of TE approved the MoU for toll smelting on the basis that tantalum and tin recovery in the hardrock gravity plant will “make or break” the project and that is the area upon which TE must focus its attention during the start-up phase whilst TE staff receive a valuable training opportunity at the SmelterCo facility. As well, this move enhances the financing metrics of the Project; it is simpler, lower risk and requires less capital.

Critically, TE retains the flexibility to build its own smelter if and when it chooses but considers this to be a very exciting opportunity to partner with a well-credentialed and experienced smelter group whilst it commissions the gravity plant and also compares alternative smelter sites and newer technologies.

The alluvial mine project is clearly in its final phase. The Company is determined to achieve a strong finish for the project, whilst not exposing scarce cash to further under-performance. This alluvial mining exercise has not met expectations and has been a distraction from the main hard-rock project development. Notwithstanding the value of hindsight, very valuable lessons have been learned by the Company and by a core group of Egyptian employees which will no doubt contribute to underwriting the success of the hard rock project as it is developed.

As indicated by this report and the June 2014 Quarterly Report Gippsland and TE are working very hard to maintain technical development progress of the Project whilst completing the alluvial operations. However, the core focus of the Company has been the implementation of the investment strategy to attract funds for the completion of the 2014 Abu Dabbab definitive feasibility study and initial site work. Marketing of the investment opportunity is now well advanced with meetings ongoing with several interested parties in the Gulf region who have signed confidentiality agreements and are reviewing the data. Due to working around Ramadan and now the summer holiday season, the Company is not as advanced as originally planned but are encouraged by the responses received to date. More definitive progress is expected by the end of the September quarter, 2014.

In the interim, the Company remains reliant on unsecured loans from Gandel Metals Pty Limited, a company associated with Mr Ian Gandel the Company’s chairman. The funding is conditional on the Company continuing to make positive progress with respect to financing of the Abu Dabbab Project, in the opinion of Gandel Metals. To date, Gandel Metals has remained positive, and continues to support the Company’s efforts.

The Company looks forward to providing further updates as and when substantive progress or news comes to hand.

FOR FURTHER INFORMATION PLEASE CONTACT

Mike Rosenstreich Managing Director Gippsland Limited www.gippslandltd.com

• T: +61 8 9340 6000

• E: info@gippslandltd.com

3 GIP Toll Smelting Agreement and Operations Update August 2014

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Pictures from Abu Dabbab – August 2014

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(Clockwise from above left)

1.Mr Sabry Awad (TE Project Manager), Mr Mahamed Sobhy (TE Supervising Geologist and Mr Brian Talbot (GIP Project Development Manager) in front of the new impact crushers.

1. Mr Mahmoud Saleh(TE Plant Operator on the new crusher set-up.

2. Mr Sabry Awad with Mr Mike Rosenstreich (GIP Managing Director) discussing the proposed adit sampling program.

3. General view of the alluvial crushing and screening operation from the Spiral Plant site.

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4 GIP Toll Smelting Agreement and Operations Update August 2014