STREAMPLAY STUDIO LIMITED — Interim / Quarterly Report 2004

Jan 26, 2004

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

OUARTERLY ACTIVITY REPORT

Period: October - December 2003 27 January 2004

SUMMARY

• Overview positive tantalum market outlook
• Abu Dabbab Project
  • Pilot plant testwork increased tantalum recoveries $\blacksquare$
  • Low radio-activity levels $\bullet$
  • Bankable Feasibility Study $\bullet$
  • $\blacksquare$ Off-take agreements
  • Positive project finance discussions
• Nuweibi deposit 3-fold increase in tantalum resources
• Corporate
  • $\blacksquare$ Propose admission to AIM (London Stock Exchange)
  • Cancellation of Directors' Unlisted Options $\blacksquare$
  • New Company Secretary
  • New project investigations

OVERVIEW

$\bullet$

The Directors of Gippsland Limited ("Gippsland" or "the Company") are pleased to provide the following activities report for the period October to December 2003.

The Company's faith in the global tantalum industry is now being vindicated as tantalum stocks continue to decline whilst industry announcements demonstrate increased production levels which in the main are in balance with increased ex-mine sales and sales targets.

It is anticipated that the Company's 40 million tonne open-pit Egyptian Abu Dabbab tantalum-tin-feldspar project will come on-stream during late 2005 by which time industry analysts are predicting there will be a shortfall in the global tantalum market.

On a global basis, Abu Dabbab is expected to enjoy one of the lowest tantalum production costs as it will benefit from the revenue associated with co-production of tin and ceramic grade feldspar. Conversely, a number of existing producers are currently faced with increasing production costs associated with mining, decreased tantalum grades and metallurgical complications.

Gippsland's acquisition of the 98 million tonne Egyptian Nuweibi tantalum deposit illustrates the Company's long term commitment to become a major participant in the global tantalum industry. The increased resource base will aid Gippsland's plans to expand the initial Abu Dabbab mill feed-rate from 1 Mtpa to 2 Mtpa at the earliest opportunity.

ABU DABBAB - TANTALUM, TIN, FELDSPAR

Pilot Plant Testwork

The Company is presently undertaking a pilot plant programme based upon a 40 tonne bulk sample taken from the 40 million tonne Egyptian Abu Dabbab deposit. The programme which in the main is based upon gravity separation techniques is expected to be completed by the end of February 2004.

The interim pilot plant results with respect to tantalum, tin and ceramic grade feldspar are most encouraging and are nearing completion.

Testwork associated with the smelting of the SnO2 to produce tin metal (99.99% Sn) is about to commence. This testwork programme is expected to be brief, being based upon widely used and well tested technology.

Radio-activity Levels

Excessive levels of radioactive contaminants in the form of uranium oxide $(U_3O_8)$ and thorium oxide (ThO2) frequently plague tantalum mining operations some of which have difficulty in producing a tantalum concentrate having a combined $U_3O_8$ and ThO2 content of less than 0.5% the allowed maximum. These deleterious contaminants have the potential to prevent the start-up of a number of tantalum/niobium projects, particularly as more stringent international transport regulations are being contemplated. The Abu Dabbab testwork undertaken to date is currently achieving a combined U3O8 and ThO2 levels as low as 0.06%, which is well below current and contemplated maximum allowable levels for such contaminants.

Increased Tantalum & Tin Recoveries

In the course of undertaking the pilot plant work, the Company has recently had the opportunity to undertake testwork based on a combination of gravity separation and flotation of the tantalum and tin. The initial testwork demonstrated a recovery of up to 80% for both the tantalum and tin Gippsland Directors consider such recoveries to be quite exceptional and have the potential to greatly enhance the profitability of the project.

Bankable Feasibility Study

While the original gravity based study is nearing completion, the Directors are compelled to undertake further investigation of the possible use of a flotation process for the recovery of tantalum and tin as they consider that recoveries in the order of 80% must not be ignored. This additional work is likely to extend the completion of the bankable feasibility study until June 2004, an extension that the Directors feel is fully justifiable in light of the higher recovery levels.

The on-site engineering studies associated with the bankable feasibility study are scheduled to commence during February 2004. This engineering work will cover hydrology, hydrogeology, environmental impact study plus the geotechnical engineering associated with both the mine site and the process plant site. The work will also include engineering tasks associated with the bulk feldspar shipping facilities.

Off-take Agreements

An initial heads of agreement has been executed with a major European group for the off-take of 2.65 million tonnes of feldspar over a 5-year period. Discussions are currently under way with additional consumers of feldspar with the aim of concluding further off-take agreements which will facilitate the early expansion of the mill-feed rate from an anticipated 1 million tonnes per annum to 2 million tonnes per annum.

With the approaching completion of the Abu Dabbab bankable feasibility study, increasing attention now is being paid to the execution of long-term tantalum concentrate off-take agreements. The Company is currently in negotiation with a number of tantalum consumers.

Project Finance

The project has attracted the attention of a number of major resource finance groups and is likely to call for expressions of interest prior to 30 June 2004.

NUWEIBI DEPOSIT - CONFIRMATION OF RESOURCES

During September 2003 the Directors announced that Gippsland's 50%-owned joint venture company Tantalum Egypt had been granted an exploitation licence ("Licence") over the Nuweibi tantalum-feldspar deposit ("Nuweibi") located 15km from the 40 million tonne Abu Dabbab project which is also owned by Tantalum Egypt.

The Nuweibi deposit was discovered during the 1970s by joint Egyptian-Soviet geological expeditions whose members subsequently explored the deposit in detail. The extensive exploration completed included 21 diamond drill holes totalling 2,746 metres, trenching, surface sampling and metallurgical testwork.

Having synthesised all available geological data pertaining to the Nuweibi deposit the Company announced the following resource estimates which conform to the AusIMM JORC Code. The resources were estimated using the ore block model method using 5m blocks at a tantalum pentoxide ("Ta2O5") cut-off of 100g/t.

Resource Category	Tonnes	Grade Ta 2 O s	Contained $Ta_2O_5$
Indicated	48.1 M	147 g/t	$15.9 M$ lb
Inferred	51 M	138 g/t	$15.7$ M lb
Total Indicated & Inferred	98.1 M	$143$ g/t	$31.6$ M lb

Table 1: Nuweibi Summary of Resources

Note: Minor mismatch of totals due to rounding of tonnes & grade

The modelling indicated that the potential exists for a significant increase in Nuweibi resources to the east as most of the eastern diamond drill holes bottomed in mineralisation.

As is the case with the Abu Dabbab deposit, the mineralogy of the Nuweibi deposit is relatively simple in that it does not contain high levels of detrimental contaminants or minerals associated with uranium and thorium which curse a number of tantalum deposits throughout the world preventing commercial development.

The Nuweibi mineralisation is exposed as a hill of up to 115 metes in height above the wadi floor while diamond drilling programmes determined that the mineralisation extends to 200 metres below the wadi floor. Like the Abu Dabbab deposit, Nuweibi is well suited to open-pit mining at an expected waste/ore strip ratio of less than 1.5:1. It is anticipated that the use of one processing plant for both the Abu Dabbab and Nuwelbi deposits will greatly enhance the project's economics.

The addition of the Nuweibi deposit to Gippsland's portfolio resulted in a 3-fold increase in the Company's tantalum resources.

Like Abu Dabbab, the Nuweibi project will be developed under the umbrella of Egyptian Law No. 8/1997 -Investment Guarantees and Incentives, which was established specifically to encourage foreign investment in Egypt. Law No 8/1997 provides numerous benefits including protection against nationalisation, free export trade of products, a maximum of 5% customs import duty, and exemption from a number of taxes, including stamp duty and land tax. The provisions of Law No 8/1997 will also enable Tantalum Egypt to enjoy a twenty (20) year exemption from taxation of profits.

CORPORATE

Fundraising

During December 2003, the Directors announced the placement of 6,000,000 fully paid ordinary shares in the Company and 3,000,000 free attaching listed options (with each option having an exercise price of 9 cents and a term expiring on 31 December 2007) for total consideration of $300,000.

The issue has been made pursuant to section 708(10) of the Corporations Act to clients of Kirke Securities Ltd (a participating organisation of the ASX and a licensed dealer in securities).

The funds raised are to be used in part to fund the Abu Dabbab bankable feasibility study.

Proposed Admission to AIM - London Stock Exchange

Part of the $300,000 raised during quarter will be used by the Company in seeking admission to the London Stock Exchange's Alternative Investment Market ("AIM"). To this end, the Company appointed Nomad Grant Thornton London and UK based stockbrokers Hoodless Brennan & Partners Pic to assist with the proposed AIM listing.

The Directors believe that a dual ASX - AIM listing will result in a more realistic valuation being placed upon the Company's Eqyptian Abu Dabbab and Nuweibi which have combined resources of 138 million tonnes.

The Company is well underway with all the preparatory work associated with the admission to AIM which is anticipated to be completed by the end of February 2004.

Cancellation of Directors' Unlisted Options

During the quarter Gippsland Directors announced that all of the holders of the Company's class of unlisted options each of which have an exercise price of 14 cents and an expiry date of 11 July 2004 have agreed to cancel for no consideration all of the unlisted options that they hold. This class of unlisted options has therefore ceased to exist.

A total of 9,250,000 of the options were held by Gippsland Directors who agreed to cancel their unlisted options in order to simplify Gippsland's capital structure so as to assist the Company's proposed admission to AIM on the London Stock Exchange. The Directors of Gippsland were also of the view that a more simplified capital structure will facilitate the attraction of substantial European investors to the Company's share register.

New Company Secretary

During the Quarter Ms Julie Wolseley was appointed as Company Secretary following the resignation of Mr Gary Steinepreis. Ms Wolseley, who is well experienced in all aspects of public company accounting and compliant requirements, is proving to be a valued contributor to the Company's activities.

NEW PROJECTS

The Directors are continuing to evaluate new resource projects which will compliment the Company's activities in Egypt. In addition to tantalum projects, Gippsland is currently reviewing a number of gold and base metals projects with the aim to diversify the Company's activities and asset base. While projects having the capacity to produce early cash-flows are of particular interest, the prime focus is directed towards potentially world-class projects.

These evaluations are at an early stage and to date the Company has not entered in to any commitments regarding the projects.

The Company's planned dual ASX - AIM listing is expected assist the Company's expansion plans. particularly within North Africa.

RJ (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 30 years experience in the mining industry.