STREAMPLAY STUDIO LIMITED — Interim / Quarterly Report 2004

Mar 14, 2004

GIPPSLAND LIMITED ABN 31 004 766 376

FINANCIAL REPORT FOR THE HALF YEAR ENDED 31 DECEMBER 2003

DIRECTORS' REPORT

The Directors present the financial report of the economic entity being Gippstand Limited ("the Company") and its controlled entities for the half year ended 31 December 2003.

DIRECTORS

The following persons were Directors of the Company who held office during or since the end of the half year:

Robert John (Jack) Telford John Morrison Chisholm John Damian Kenny

REVIEW OF OPERATIONS

The consolidated operating loss after tax for the half year was $726,720 (2002 - $313,803).

The Company continued its business of mineral exploration with the main focus being on the development of the Abu Dabbab tantalite, tin and feldspar project in Egypt in which Gippsland has a 50% economic interest by way of an incorporated joint venture with the Egyptian Government. The bankable feasibility study has commenced on the project and is expected to be completed by 30 June 2004.

On 5 August 2003 the Company issued a prospectus in relation to the offer of 14,000,000 ordinary shares at an issue price of 4 cents per share and 14,000,000 free attaching listed options to raise a total of $560,000. The offer was closed on 8 September 2003 fully subscribed. The free attaching listed options are exercisable at 9 cents each on or before 31 December 2007.

On 10 December 2003 the Company completed a share placement by issuing 6,000,000 ordinary shares at an issue price of 5 cents per share and 3,000,000 free attaching options to raise a total of $300,000. The free attaching listed options are exercisable at 9 cents each on or before 31 December 2007.

On 9 March 2004 the Company's securities were admitted to be traded on the London Stock Exchange's Alternative Investment Market ("AIM").

Prior to the Company's admission to AIM the Company completed a share placement whereby 25,000,000 ordinary shares were issued to private and institutional UK based investors at an issue price of 6.8 cents each (2.8 pence) raising a total of approximately $1.7 million (£700,000) before issue costs. The funds raised will be applied to complete the bankable feasibility study on the Abu Dabbab project in Egypt, augment working capital and satisfy costs related to the Company's listing on AIM.

In addition 2.790.567 unlisted options were issued to Hoodless Brennan & Partners, the broker who facilitated the share placement. The options are exercisable at 2.8 pence (approximately 6.8 cents) each and expire on 8 March 2007.

The financial effect of the AIM Listing and share placement completed on 9 March 2004 have not been brought to account at 31 December 2003.

Signed in accordance with a resolution of the Board and dated 15th March 2004.

inperd

RJ TELFORD DIRECTOR

CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER 2003

	31 December2003$	30 June2003$	31 December2002$
CURRENT ASSETSCash assetsReceivablesOther assets	255,48328.21117,250	91,01317.492	210,17913,082
TOTAL CURRENT ASSETS	300,944	108,505	223,261
NON CURRENT ASSETSProperty, plant and equipment	8,313	11,859	15,542
TOTAL NON CURRENT ASSETS	8,313	11,859	15,542
TOTAL ASSETS	309,257	120,364	238,803
CURRENT LIABILITIESPayablesProvisions	147,1767,248	60,8926,489	33,7464,542
TOTAL CURRENT LIABILITIES	154,424	67,381	38,288
TOTAL LIABILITIES	154,424	67,381	38,288
NET ASSETS	154,833	52,983	200.515
EQUITYContributed equityAccumulated losses	12,771,003(12,616,170)	11,942,434(11,889,451)	11,649,134(11,448,619)
TOTAL EQUITY	154,833	52.983	200.515

CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL PERFORMANCE FOR THE HALF YEAR ENDED 31 DECEMBER 2003

	2003	20025
Revenues from ordinary activities	4,257	3.863
Employee expenses	(25, 284)	(22, 409)
Depreciation	(3,546)	(3,683)
Project feasibility and exploration expenses	(420, 859)	(112, 640)
Management and consulting expenses	(77,050)	(92, 190)
Corporate office expenses	(35, 440)	(41, 981)
Provision for diminution in value of investments	(59,039)
Provision for non-recovery of loan	(59,039)
Other expenses from ordinary activities	(50, 720)	(44, 763)
Loss from ordinary activities before income tax expense	(726, 720)	(313, 803)
Income tax expense relating to ordinary activities
Net loss attributable to members of the parent entity	(726.720)	(313.803)
Total changes in equity other than those resulting fromtransactions with owners as owners	(726,720)	(313.803)
Basic loss per share (cents per share)	(0.7)	(0.4)
Diluted loss per share (cents per share)	(0.7)	(0.4)

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE HALF YEAR ENDED 31 DECEMBER 2003

	2003	200235
CASH FLOW FROM OPERATING ACTIVITIES
Receipts from operationsPayments to suppliers and employeesInterest received	31.754(582, 033)4,257	28.065(328, 838)3,864
Net cash used in operating activities	(546, 022)	(296,909)
CASH FLOW FROM INVESTING ACTIVITIES
Payments for investments	(59, 039)
Net cash used in investing activities	(59,039)
CASH FLOW FROM FINANCING ACTIVITIES
Loan to Egyptian Company for Mineral ResourcesProceeds from share issuesPayments for share issues	(59,039)860,000(31, 430)	236,334
Net cash provided by financing activities	769,531	236,334
Net increase/(decrease) in cash held	164,470	(60, 575)
Add opening cash brought forward	91,013	270,754
Closing cash carried forward	255.483	210.179

NOTES TO THE FINANCIAL REPORT FOR THE HALF YEAR ENDED 31 DECEMBER 2003

NOTE 1: STATEMENT OF ACCOUNTING POLICIES

BASIS OF PREPARATION OF THE HALF-YEAR FINANCIAL REPORT

The half-year financial report is a general-purpose financial report, which has been prepared in accordance with the requirements of the Corporations Act 2001, Accounting Standards including AASB 1029 "Interim Financial Reporting", Urgent Issues Group Consensus Views and other mandatory professional reporting requirements.

The half-year financial report has been prepared in accordance with the historical cost convention.

The accounting policies have been consistently applied by the entities in the economic entity and are consistent with those applied in the 30 June 2003 Annual Financial Report.

For the purpose of preparing the half-year financial report, the half-year has been treated as a discrete reporting period.

The half-year financial report does not include all notes of the type normally included within the annual financial report and therefore cannot be expected to provide as full an understanding of the financial performance. financial position and financing and investing activities of the consolidated entity as the full financial report.

The half-year financial report should be read in conjunction with the Annual Financial Report of Gippsland Limited as at 30 June 2003. It is also recommended that the half-year financial report be considered together with any public announcements made by Gippsland Limited and its controlled entities during the half-year ended 31 December 2003 in accordance with the continuous disclosure obligations arising under the Corporations Act 2001.

NOTE 2: EVENTS SUBSEQUENT TO REPORTING DATE

On 9 March 2004 the Company's securities were admitted to be traded on the London Stock Exchange's Alternative Investment Market ("AIM").

Prior to the Company's admission to AIM the Company completed a share placement whereby 25,000,000 ordinary shares were issued to private and institutional UK based investors at an issue price of 6.8 cents (2.8 pence) raising a total of approximately $1.7 million (£700,000) before issue costs. The funds raised will be applied to complete the bankable feasibility study on the Abu Dabbab project in Egypt, augment working capital and satisfy costs related to the Company's listing on AIM.

In addition 2.790.567 unlisted options were issued to Hoodless Brennan & Partners, the broker who facilitated the share placement. The options are exercisable at 2.8 pence (approximately 6.8 cents) and expire on 8 March 2007.

The financial effect of the above transactions have not been brought to account at balance date.

NOTE 3: CONTINGENT LIABILITIES

There have been no changes in contingent liabilities since the last annual reporting date.

NOTE 4: SEGMENT INFORMATION

The Company operates within the mineral exploration industry in Australia and Egypt.

	Australia		Egypt		Consolidated
	Dec2003	Dec2002	Dec2003	Dec2002	Dec2003	Dec2002S
Total Segment Revenue	4.257	3.863	$\mathbf{m}$	$\overline{\phantom{a}}$	4.257	3,863
Segment Result	(338,219)	(159.868)	(388.501)	(159.935)	(726.720)	(313.803)

NOTES TO THE FINANCIAL REPORT FOR THE HALF YEAR ENDED 31 DECEMBER 2003

NOTE 5: CONTRIBUTED EQUITY

	31 December2003	31 December2003
	$	Number
Issued capital:
114,528,359 (June 2003: 94,528,359) fully paid
ordinary shares	12,771,003	94,528,359
Movement
Opening Balance	11.942.434
Issue of 14,000,000 shares at an issue price of 4
cps pursuant to Prospectus dated 5 August 2003	560,000	14,000,000
- funds applied to the Abu Dabbab project
Less: Issue costs of capital raising	(10, 431)
Issue of 6,000,000 shares at an issue price of 5
cps pursuant to share placement	300,000	6,000,000
- funds applied to the Abu Dabbab project
Less: Issue costs of capital raising	(21,000)
Closing balance	12.771.003	114.528.359

As at 31 December 2003 the Company had the following unlisted options on issue:

250,000 unlisted options exercisable at 20 cents each by 15 February 2004: $(i)$

250,000 unlisted options exercisable at 30 cents each by 15 February 2004; and $(ii)$

11,000,000 unlisted options exercisable at 14 cents each by 14 July 2004. $(iii)$

In the case of (i) and (ii) above these options have expired since 31 December 2003. In the case of (iii) above these options were agreed to be cancelled by the optionholders for no consideration on 12 January 2004.

Refer Note 2 for details of securities issued subsequent to 31 December 2003.

NOTE 6: ACQUISITION OF AN ASSOCIATE COMPANY

In 10 October 2003 a wholly-owned subsidiary of the Company, Tantalum International Pty Ltd acquired a 50% interest in Tantalum Egypt LLC for cash consideration of $59,039. The remaining 50% interest in Tantalum Eqypt LLC is held by the Eqyptian Company for Mineral Resources which in turn is 100% owned by the Egyptian Geological Survey and Mining Authority, which is itself owned by the sovereign state that is the Arab Republic of Egypt.

DIRECTOR'S DECLARATION

The directors of the company declare that:

$\mathbf{1}$ The financial statements and notes as set out on pages 3 to 7:

• comply with Accounting Standard AASB 1029: Interim Financial Reporting and the $(a)$ Corporation Regulations 2001; and
• give a true and fair view of the financial position of the consolidated entity as at 31 December $(b)$ 2003 and its performance for the half year ended on that date.
• $\overline{2}$ In the Directors' opinion there are reasonable grounds to believe that the company will be able to pay its debts as and when they become due and payable.

This declaration is made in accordance with a resolution of the Board of Directors.

Dated this 15th day of March 2004.

Juped

RJ TELFORD DIRECTOR

Grant Thornton

INDEPENDENT REVIEW REPORT TO THE MEMBERS OF GIPPSLAND LIMITED

Scope

The financial report and directors' responsibility

The financial report comprises the statement of financial position, statement of financial performance, statement of cash flows, accompanying notes to the financial statements, and the directors' declaration for Gippsland Limited (the consolidated entity), for the half-year ended 31 December 2003. The consolidated entity comprises both the company and the entities it controlled during that half-year.

The directors of the company are responsible for the preparation and true and fair presentation of the financial report in accordance with the Corporations Act 2001. This includes responsibility for the maintenance of adequate accounting records and internal controls that are designed to prevent and detect fraud and error, and for the accounting policies and accounting estimates inherent in the financial report.

Review approach

We have conducted an independent review of the financial report in order to state whether, on the basis of the procedures described, anything has come to our attention that would indicate that the financial report is not presented fairly in accordance with Australian Accounting Standard AASB 1029: Interim Financial Reporting and other mandatory financial reporting requirements in Australia and statutory requirements so as to present a view which is consistent with our understanding of the consolidated entity's financial position and performance as represented by the results of its operations and its cash flows, and in order for the company to lodge the financial report with the Australian Securities & Investments Commission/Australian Stock Exchange Limited.

Our review has been conducted in accordance with Australian Auditing Standards applicable to review engagements. A review is limited primarily to inquiries of company personnel and analytical procedures applied to the financial data. These procedures do not provide all the evidence that would be required in an audit, thus the level of assurance provided is less than given in an audit. We have not performed an audit and, accordingly, we do not express an audit opinion.

Our review did not involve an analysis of the prudence of business decisions made by the directors or management.

Independence

In conducting our review, we followed the applicable independence requirements of Australian professional ethical pronouncements and the Corporations Act 2001.

Grant Thornton ®

INDEPENDENT REVIEW REPORT TO THE MEMBERS OF GIPPSLAND LIMITED (cont)

Statement

Based on our review, which is not an audit, we have not become aware of any matter that makes us believe that the half-year financial report of Gippsland Limited is not in accordance with:

• the Corporations Act 2001, including: $(a)$
  • giving a true and fair view of the consolidated entity's financial position as at 31 $\ddot{\Omega}$ December 2003 and of its performance for the half-year ended on that date; and
  • complying with Australian Accounting Standard AASB 1029: Interim Financial $(ii)$ Reporting and the Corporations Regulations 2001; and
• (b) other mandatory financial reporting requirements in Australia.

int Thomaton

GRANT THORNTON Chartered Accountants

San Nyll.

Sean McGurk Partner

Perth, WA

Dated this 15th day of March 2004.