STREAMPLAY STUDIO LIMITED — Interim / Quarterly Report 2003

Apr 27, 2003

Suite 34, 18 Stirling Highway, Nedlands WA 6009 PO Box 352, Nediands WA 6909, Australia ABN 31 004 766 376 Tel: (08) 9389 8611 Fax: (08) 9389 8612 E-mail: itelford@aippslandItd.com.au www.gippslandltd.com.au

OUARTERLY ACTIVITY REPORT

Period: January - March 2003

30 April 2003

SUMMARY

• Abu Dabbab Project (tantalum, tin, feldspar)
  • o Scoping Study Project NPV of A$212 million, IRR of 36%
  • o Testwork advances 18.4% increase in Ta2O5 recovery
  • NPV moves to A$265 million, IRR increases to 42% $\sim$
  • Gippsland's 50% interest in Project NPV now moves to A$133M $\circ$
  • 40 tonne bulk sample en route to Australia $\sim$
  • Pilot plant work being scheduled $\circ$
  • Product off-take negotiations under way $\triangle$
  • Environmental Impact Study (EIS) to commence $\sim$
  • Discussions with international project development banks $\circ$
  • o Bankable Feasibility Study moves toward completion
• Completion of fund raising in full
• Appointment of MENA Regional Manager

ABU DABBAB TANTALUM, TIN, & FELDSPAR PROJECT

The 40 million tonne Abu Dabbab tantalum, tin, and feldspar project ("Abu Dabbab Project") is located on land that adioins to the western shore of the Red Sea in Egypt.

The Abu Dabbab Project, which is conveniently situated with respect to ocean ports and general infrastructure, is the subject of a 50:50 joint venture agreement between Gippsland Limited ("Gippsland" or "the Company") and the Egyptian Geological Survey & Mining Authority, (a state agency of the Egyptian Government).

The international engineering group Lycopodium Pty Ltd ("Lycopodium") is presently undertaking the bankable feasibility study ("BFS") for the Abu Dabbab Project.

Interim Scoping Study

As a consequence of the metallurgical testwork undertaken by Lycopodium during the quarter, the magnitude of the Abu Dabbab Project expanded considerably, especially with respect to the production of micronised, ceramic-grade feldspar which increased from an estimated 500,000 tpa to 800,000 tpa.

As a result of the expanded operation, the Company determined that the BFS should include a pilot plant testwork programme, as announced to the market on 31 January 2003. This work, which shall take place in Australia, will be based on a 40 tonne bulk sample which is currently en route by sea from Eqypt to Australia.

In view of the above development, Gippsland instructed Lycopodium to undertake an interim Scoping Study to enable the Company to consider the ramifications of the expanded operation. The following results of the Scoping Study were released to the market on 18 March 2003.

Scoping Study Results
Initial Mine Life (Conservative)	21.5 years (Project Life up to 40 years)
Ore Treated per Annum	1 million tonnes
Production per Annum	340,000 lbs tantalum pentoxide (" $Ta_2O_5$ ")985 tonnes tin (99.99% Sn)800,000 tonnes ceramic grade feldspar
Capital Cost	US$41.5 million
Revenue over 21 year period	US$966 million
Average Annual Revenue	US$44.79 million
Average Annual Operating Costs	US$28.76 million
Operating Margin	US$345.65 million over 21 years orA$27 million per annum
Project NPV@6%	US$127.11 million orA$211.8 million
IRR.	36%
Payback Period	3 years

The Scoping Study took into account royalty payments to the Egyptian Government whilst being based upon conservative mining and process recovery efficiencies, and the following product market prices:

Tantalum as $Ta2O5$	$US$47.30/1b^{(A)}$
Tin metal	US$3,954/t
Feldspar	US$31/t CIF Italian port

The Scoping Study did not take into account revenue resulting from the sale of niobium pentoxide (Nb2O5).

Gippsland has determined that the project will be strongly cash-flow positive at tantalum pentoxide ("Ta2O5") prices of US$30/lb and is viable based upon the sale of Ta2O5 alone.

For the purposes of the Scoping Study a 21-year mine life was assumed. However, it should be noted that the actual mine life is expected to be in the order of 40 years.

Increase in Tantalum Recovery Rates

After the completion of the Scoping Study, Phase 2 of the testwork was completed in March 2003, as scheduled. This work, which was undertaken by SGS Lakefield Research Limited of Toronto Canada ("SGS Lakefield"), achieved an 18.4% increase in Ta2O5 recovery rates. As a consequence of this result, it is forecasted that initial Ta2O5 production is now likely to exceed 400,000 pounds per annum. The recovery of tin was also increased by a similar quantum. SGS Lakefield is one of the world's leading independent metallurgical laboratories.

Notwithstanding the significant Ta2O5 and tin recovery increases, the testwork produced premium grade-ceramic feldspar having a combined alkali metal content (Na2O & K2O) in excess of 13% and exceptionally low levels of iron (0.03% Fe2O3) and titanium (<0.01% TiO2).

It should be noted that the SGS Lakefield Phase 2 testwork has not been fully optimised. Consequently, product recovery efficiency may be improved as further testwork is undertaken.

Increase in NPV of the Abu Dabbab Project

The increased Ta2O5 recovery achieved by SGS Lakefield will have a positive effect on the overall economics of the Abu Dabbab Project. Based on the application of the increased Ta2O5 recovery

alone, the Abu Dabbab Project's IRR increases to 42% while the NPV @ 6% increases to US$159 (A$265 million).

Gippsland has a 50% interest in the Abu Dabbab Project which amounts to A$133M.

Tantalum Off-take Arrangements

The Company is presently having discussions with two consumers of $Ta_2O_5$ concentrate and has to hand an enquiry from another. The negotiations are proceeding well. However, to date the Company has not entered into any contractual arrangements with the companies concerned.

Feldspar Off-take Arrangements

During the quarter the Company has entered into negotiation with three major Italian consumers of feldspar with the objective of securing long-term off-take arrangements.

The Company is also in negotiation with feldspar consumers in France and Spain, both of which import significant tonnages of feldspar.

The feldspar negotiations are proceeding well. However the Company has not to date entered into any contractual arrangements with the companies concerned.

As a result of the abovementioned discussions, it is clear that the Abu Dabbab Project's feldspar is ideally suited for the production of high quality ceramics (including gres porcellanato tiles) and sanitary ware, and that the product is clearly of a superior quality to the bulk of the material that is currently consumed in Italy from both domestic and overseas sources.

Bankable Feasibility Study

The BFS, which is being undertaken by the engineering group Lycopodium, is proceeding to expectations and is progressively producing encouraging results. The BFS is proceeding based on an initial annual throughput of 1 million tonnes per annum.

If the Abu Dabbab Project's feldspar sales proceed as expected, it is anticipated that an early decision will be made to expand the operation to 1.5 million tonnes per annum.

Commencement of Environmental Impact Study

The Company has entered into negotiation with two companies in regard to the completion of the Environmental Impact Study ("EIS") associated with the Abu Dabbab Project. It is intended that the EIS will be undertaken in accordance with international standards while meeting the requirements of major overseas development banks and project financiers. The work program for the proposed EIS has been presented to one such bank for comment to ensure that it meets that bank's expectations. The EIS is expected to take 14 weeks to complete.

Project Finance

The Company has held preliminary discussions with an international development bank which has expressed interest in providing project finance. These discussions are at a very early stage and, to date no contractual arrangements have been entered into by the Company.

COMPLETION OF FUND RAISING IN FULL

During the Quarter, the Company) completed a pro-rata non-renounceable entitlement issue to Gippsland shareholders of 15,671,393 fully paid up ordinary New Shares in Gippsland, the issue being based upon one (1) New Share for every five (5) Shares at an issue price of 3 cents per Each New Share subscribed for included an attaching New Option for no New Share. consideration with each New Option having an exercise price of 9 cents and a term expiring on 31 December 2007.

On 15 January 2003, the Directors announced that the issue had been completed in full, raising the sum of $470,141. The funds raised are principally being used to fund the Abu Dabbab Project's BFS.

APPOINTMENT OF REGIONAL MANAGER (MENA)

During the Quarter the Company appointed Mr Ayman Ayyash to the position of Regional Manager - Middle East and North Africa ("MENA").

Mr Ayyash holds a Bachelor of Science in Civil Engineering having graduated from the South Dakota State University and is currently completing an MBA with Edinburgh Business School.

He has nineteen years work experience in Kuwait, Australia, USA, United Arab Emirates, Egypt, and Jordan in various industry sectors with a focus and emphasis on the construction, mining, and infrastructure sectors. Mr Ayyash's extensive marketing and management experience in the MENA Region, together with his engineering capabilities, provides him with a strong background from which to facilitate the development of the Abu Dabbab Project while providing on-going support for Gippsland in the region.

Mr Ayyash is a dual Australian and Jordanian national and, until January of this year, worked with the Australian Embassy in Cairo, Egypt, while holding a diplomatic position as Minister Commercial and Senior Trade Commissioner for the Australian Trade Commission (Austrade). His Austrade responsibilities in the main involved the advancement of Australian interests and trade in the MENA region. Mr. Ayyash has also held senior positions with international companies around the world, including Tube Makers of Australia (a subsidiary of BHP) and Du Pont of the USA.

Mr. Ayyash will be initially based in Amman, Jordan. However, he will be a regular visitor to Eqypt for the purpose of assisting with the development of the Abu Dabbab Project.

OUTLOOK

The outlook for the Abu Dabbab Project is most encouraging as it has numerous positive features, namely:

• JORC Code compliant resources $\bullet$
• Project ready to commence mining
• Project life up to 40 years
• No exploration required for at least 10 years
• Remarkable grade consistency throughout
• Mineralisation is metallurgically uncomplicated
• Importantly, processing not complicated by presence of Yttrium or rare-earth minerals
• Low energy, labour, and transport costs
• Prospects for off-take agreements encouraging
• Robust Scoping Study project NPV A$212 A$265 million
• Metallurgy and engineering being undertaken by world leaders
• Bankable feasibility study nearing completion

John (Jack) Telford Executive Chairman

Note: In accordance with Listing Rule 5.10 of the Australian Stock Exchange Limited, the geological information in this report that relates to mineral resources and ore reserves is based on information compiled by Gippsland Director Dr John Chisholm, who is a Fellow of the Australasian Institute of Mining and Metallurgy, with over 25 years experience in the mining industry.

(A) Metal Bulletin Research - London 22 October 2002.

Metal Bulletin Research - London have predicted a Ta2O5 price average of US$47.30/lb for the period 2002 - 2010.