STREAMPLAY STUDIO LIMITED — Interim / Quarterly Report 2004

Jan 30, 2005

Suite 34, 18 Stirling Highway, Nedlands WA 6009 PO Box 352, Nedlands WA 6909, Australia A.C.N. 004 766 376 Tel: (08) 9389 8611 Fax: (08) 9389 8612 jtelford@gippslandLtd.com www.gippslanditd.com

OUARTERLY ACTIVITY REPORT

Period: October - December 2004 31 January 2005

HIGHLIGHTS

• ❖ Abu Dabbab 2Mtpa Bankable Feasibility Study Completed
  • Revenue >US$500 million during first 13 years of operation
  • Net Free Cash Flow US$153 million during first 13 years of operation
  • Potentially World's second largest tantalum producer >650,000lb/yr Ta2O5
• ❖ Abolition of 5% Government Rovalty
• Granting of Abu Dabbab Free Trade Zone
  • Zero import duty
  • • Zero sales tax
  • Zero profit tax
• ❖ Additional Tantalum off-take agreements
• * Share Placement to RAB Special Situations LP raising £600,000 (A$1.5 million)

2MTPA BANKABLE FEASIBILITY STUDY COMPLETED

During the quarter, the Directors of Gippsland Limited ("Gippsland" or "the Company") released the results of the 2Mtpa Abu Dabbab Bankable Feasibility Study ("BFS") undertaken by the international engineering group Lycopodium Ptv Ltd.

The BFS determined that the 40Mt Egyptian Abu Dabbab Project will produce in excess of 650,000 pounds of tantalum pentoxide ("Ta2O5") per year which will firmly establish the operation as the world's second largest tantalum producer. The project will also produce 1,530 tonnes of tin metal per year.

The BFS determined that the project will generate gross sales revenue in excess of US$500 million during the first 13 years of its estimated 20-year mine life. These sales are from tantalum and tin only and exclude all potential feldspar sales revenues.

ABOLITION OF 5% ROYALTY FOR ABU DABBAB PROJECT

20 January 2005 the Company announced ∩n the extinguishment of the 5% royalty that was to be levied by the Egyptian government on gross sales revenue arising from production at the Company's Abu Dabbab Project.

The abolition of the Abu Dabbab Project's 5% royalty obligation was approved by the Egyptian Prime Minister His Excellency Dr Ahmed Nazef and the Minister of Petroleum His Excellency Eng Sameh Samir Fahmy.

The extinguishment of the royalty is a significant development since the announcement on 3 November 2004, which released

the results of the 2Mtpa Abu Dabbab BFS incorporating the payment of a 5% royalty to the Egyptian Government.

The impact of the removal of the 5% royalty has resulted in a substantial financial benefit to the BFS for the Abu Dabbab Project as tabled below.

Key Financial Indicators	With 5% Royalty	Without 5% Royalty
Gross sales - first 13 years	>US$500 million
Net Free Cashflow - first 13 years	US$127 million	US$153 million
Internal Rate of Return on all equity basis	$17.4%$	20.2%
IRR on 80% debt 20% equity basis	29%	33.2%
Capital Expenditure		US$80.5 million
Capital Expenditure Repayment	4.5 years	$<$ 4 years

Table 1: Bankable feasibility study results

The 2Mtpa BFS was undertaken based upon an arbitrary study period of 13 years however the combined Abu Dabbab-Nuweibi resource base of 138Mt is expected to provide a mine life well in excess of 20 years. Based upon a 20-year mine life, the Abu Dabbab Project is likely to generate revenue in excess of US$700 million and a net free cashflow of approximately US$230 million over the 20-year period.

The revenue figures above are based upon tantalum and tin sales only and exclude all potential revenue which could be derived from feldspar sales. Testwork undertaken in Australia to date has demonstrated that the Abu Dabbab Project has the potential to produce approximately 1.5Mtpa of ceramic grade feldspar. In-plant testwork conducted by major Italian ceramic tile producers has indicated that the material is ideally suited to the production of both high quality ceramic tiles and white sanitary ware. Italy imports approximately 2Mtpa of a relatively lowgrade feldspar from Turkey. Consideration will be given to the production of feldspar immediately following the commencement of tantalum and tin production which is expected to take place during the second quarter of 2006.

GRANTING OF FREE TRADE ZONE

On 12 January 2005 the Directors announced that the Egyptian General Authority for Investment & Free Trade Zones ("GAFI") www.gafinet.org has approved Gippsland's application to have the Abu Dabbab Project operate within a project specific Private Free Trade Zone.

GAFI is Eqypt's "One Stop Shop" for investment, easing the way for investors worldwide to take advantage of Egyptian investment opportunities with emphasis being placed upon export oriented industries. GAFI is the primary governmental authority concerned with facilitating foreign investment and assisting with a range of services which are provided at no cost to the foreign investor.

The Private Free Trade Zone will provide a number of significant long-term benefits to the Abu Dabbab Project including but not limited to the following:

• 1. Zero customs import duty for plant & equipment;
• 1. Zero customs import duty for project consumables;
• 1. Zero sales tax: and
• 1. Zero general and Company profit taxation.

The benefits afforded by the Private Free Trade Zone will accrue for the life of the project which based on a mining rate of 2Mtpa is expected to be several decades.

The Private Free Trade Zone will also apply to the Company's nearby 98Mt Nuweibi tantalum deposit which like Abu Dabbab is also covered by a 30-year mining licence which may be extended for a further 30-year period if required.

The Directors consider that Gippsland's ability to reach this milestone agreement with GAFI to establish a project specific Private Free Trade Zone (the first of its kind) provides clear evidence that the Abu Dabbab Project is enjoying a very high level of support from its joint venture partner Egyptian Mineral Resources Authority (formerly named Egyptian Geological Survey & Mining Authority), and all levels of the Egyptian Government.

INCREASED TANTALUM OFFTAKE

During May 2004 the Directors announced that the Company had entered into an off-take agreement for the sale of 320,000 pounds of tantalum per year over a 4-year period.

On 13 January 2005 the Directors advised that the Company has entered into a formal Sale and Purchase Agreement ("Agreement") for an expanded off-take (on a 'take or pay' basis) with the same purchaser ("Purchaser") for a new total of 480,000 pounds of tantalum per year for a fixed period of 5 years. The price of the tantalum, which has been fixed for the whole of the contract period, will remain confidential for commercial reasons. The Directors advise that the agreed price is consistent with that used in the Abu Dabbab BFS completed during November 2004.

Additionally, over the 5-year period, the Purchaser has been granted the first right of refusal for an additional 70,000 pounds of tantalum per year subject to such quantities being available for sale. The price for this additional tantalum off-take is fixed for the 5-year period and is the same as that applicable to the 480,000 pound yearly off-take.

As previously announced, the Company has also entered into a Heads of Agreement with an Asian tantalum consumer for the off-take of 100,000 pounds of tantalum per year.

With the signing of this Agreement with one of the global leaders in the tantalum industry, Gippsland has in effect pre-sold 100% of the Abu Dabbab project's scheduled tantalum production of 650,000 pounds per year for the first 5 years of business.

The Directors are cognisant of the fact that the execution of this Agreement represents a major change in the global tantalum industry that has historically relied largely on tantalum production by Sons of Gwalia Limited which recently entered into voluntary administration.

The Directors consider that the Abu Dabbab Project's zero domestic revenue tax regime, low labour costs, a diesel fuel cost of only US$0.09/litre and a mining strip ratio of 1.1:1, supported by a 138Mt resource base, will ensure that the Abu Dabbab Project sets the global benchmark for low tantalum production costs for several decades.

ABU DABBAB PROJECT FINANCE

The Company is currently in negotiation with a number of leading banks in relation to Abu Dabbab project finance. The appointment of a lead project finance bank is expected to be concluded during February 2005.

WADI ALLAOI EXPLORATION

The Company holds exclusive exploration rights to nine exploration licences located in Wadi Allagi situated to the southeast of Aswan. During the quarter, assays were received from the reconnaissance sampling completed during October 2004. Preparations for the next field program continued with costing for drilling, airphotography and aeromagnetics surveys.

Abu Swayel - Copper, Nickel

The Abu Swayel prospect contains a small copper-nickel deposit that was drilled during the 1960s. This deposit is below ancient workings for copper that had been exploited during antiquity. The deposit is open at depth and until a suitable drill rig is available, exploration will be directed in areas away from the historical workings where it is proposed to complete systematic regolith sampling, some limited IP surveys and drilling. Recent regolith sampling has indicated that highly anomalous Cu, Ni, Au, Pd & Pt are all associated with and peripheral to the mineralisation.

Three samples of outcropping oxide mineralisation and a single sample of weathered sulphide material from an onsite stockpile were sampled to determine copper, nickel, gold and platinoid content. All four samples contained anomalous precious metals. The copper and nickel values were consistent with the results of previous drilling during the 1960s.

TUDIO EL TODURO VI FUN D'ITUȚUI INIIOLUIDUMOTI
Sample	Cu (%)	Ni (%)	Au $(g/t)$	$Pd$ ( $ppb$ )	$Pt$ (ppb)
SW1 (oxide)	3.18	1.15	0.411	427	84
SW2 (oxide)	3.34	.39	0.317	558	120
SW3 (oxide)	0.99	.95	0.207	635	81
SW4 (sulphide)	2.89	1.91	0.180	445	142

Table 7: Recuits of Abu Swavel mineralisation

Four orientation regolith samples were collected along strike from the old workings to determine metal values and to assess the effectiveness of regolith sampling prior to undertaking a systematic survey. The samples were collected 50m apart and all contain anomalous metal values.

.
Sample	$Cu$ (ppm)	$Ni$ (ppm)	Au (ppb)	(ppb)Pd	Pt $(ppb)$
AS83 (regolith)	497	348	20	18
AS84 (regolith)	3932	1723	59	65	14
AS85 (regolith)	183	147	20.
AS86 (regolith)	515	297	1 ፍ	о

				Table 3: Abu Swayel regolith samples
--	--	--	--	--------------------------------------

Haimur - Gold

At the Haimur prospect, ancient and historical mining was conducted from quartz veins associated with a northeast trending shear along a line of low hills. A large shear trending parallel to the historical workings has been identified from geological mapping which is located 50-250m to the northwest. Three occurrences of placer gold workings have been located along the shear.

Twenty 10m channel samples were collected in a series of offset traverses across the shear zone. The samples contained anomalous gold values with a maximum value of 169ppb.

Considering that the samples were collected from extremely oxidised bedrock material in the wadi banks, the results are most encouraging and will be followed-up with systematic sampling on a 200m x 50m grid.

Sample	Location	Length (m)	Au (ppb)
H1	#234	10	75
H2	#235	10	42
H3	#236	10	62
H4	#237	10	60
H5	#238	10	39
H6	#239	10	57
H7	#240	10	47
H 8	#241	10	42
Η9	#242	10	125
H10	#243	10	169
H11	#245	10	59
H12	#246	10	22
H13	#247	10	17
H14	#248	10	18
H15	#249	10	36
H16	#250	10	99
H17	#251	10	68
H18	#252	10	77
H19	#253	10	27
H20	#254	10	21

Table 4: Haimur - Results of wadi bank sampling

Seiga - Gold

The Seiga deposit was mined during antiquity and later explored but not mined during the 1900s. Current and previous exploration has identified extensive historical workings that are mineralised over widths of up to 15m. Sampling indicates that gold mineralisation extends beyond the narrow quartz veins and that there is the potential for an open cut deposit.

Five channel samples were collected during the quarter, from the wall-rocks adjacent to and along strike from the ancient open cut. The samples were all from intensely altered sericite schists. The results are at grades of economic interest and will be followed-up with RAB drilling.

.
Sample	Au $(g/t)$	Length $(m)$
Seiga #85	8.00	0.5
Seiga #86	3.46	0.5
Seiga #86A	3.36	5
Seiga #87	2.67
Seiga #88	5.04

			Table 5: Seiga sampling results
--	--	--	---------------------------------	--

Umm Shashoba - Gold

Umm Shashoba was a centre of mining during ancient times as evidenced by small but numerous piles of tailings. The ancient workings are concentrated, along two sub-parallel lines of quartz veins approximately 360m apart, within a major shear zone. Between the old workings is a zone of intensely altered schists containing low but significant gold values. Four 10m samples were collected from the altered schist and considering that the samples are all from altered rocks the results are encouraging.

		Table 6: Umm Shashoba channel sample results
--	--	----------------------------------------------	--	--	--

Sample	Au (ppb)	Length $(m)$
$US$ #145	24	10
US $#146$	629	10
US $#147$	64	10
US $#148$	216	10

CORPORATE

Annual General Meeting

Pursuant to ASX Listing Rule 3.13.2, all 5 resolutions put to shareholders at the AGM held on 25 October 2004, were duly carried on a show of hands.

Placement - RAB Capital

During the quarter the Directors announced that it had placed 20 million new shares with RAB Special Situations LP, a fund managed by UK-based investment management company RAB Capital plc.

The new shares were placed at a price of 3 pence each to raise £600,000 (approx. A$1.5 million). Following the placement, the new shares represent 12.54% of the Company's 159,528,359 shares on issue.

Additionally, RAB Special Situations LP was granted 10 million unlisted Options having an exercise price of 4 pence each and an expiry date of 31 December 2007.

RJ (Jack) Telford Executive Chairman

For further information please contact:

Jack Telford	Leesa Peters / Laurence Read	Bill Sharp / Les Polden
Gippsland Limited	Conduit PR	HB-corporate
Tel: +61 (0)8 9389 8611	Tel: +44 (0)20 7618 8760	Tel: +44 (0)20 7510 8560/8576
jtelford@gippslandltd.com	leesa@conduitpr.com	b.sharp@HB-corporate.com
www.gippslandltd.com	laurence@conduitpr.com	l.polden@HB-corporate.com

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 Gippsiand Director Dr John M Chisholm, who is a Fellow of the Australasian Institute of Mining and Metallurgy, with over 25 years experience in the mining industry.