STREAMPLAY STUDIO LIMITED — Interim / Quarterly Report 2006

Apr 27, 2006

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 itelford@gippslandLtd.com www.gippslandltd.com

QUARTERLY ACTIVITY REPORT

Period: January - March 2006

HIGHLIGHTS

• ❖ IFC mandated as lead debt arranger for 40Mt Abu Dabbab tantalum project
• ❖ IFC equity investment option in Gippsland
• ❖ Outstanding Wadi Allaqi gold exploration results
  • Mineralised zone up to 75 metres wide with
  • ♦ Strike length >770 metres
• ❖ Wadi Allagi drilling in progress
  • Intersection of encouraging zones of quartz veining, carbonate alteration and sulphide mineralisation below ancient gold workings
  • ♦ Gold analytical results due early May '06
• ↓ UK share placement raises A$2.8 million
• ❖ Building of Management Team

ABU DABBAB PROJECT FINANCE MANDATE

During the January to March quarter the Directors of Gippsland Limited ("Gippsland" or "the Company") announced that the International Finance CorporationA ("IFC"), a member of the World Bank Group, has been mandated as Lead Debt Arranger for Gippsland's Abu Dabbab Tantalum-Tin Project (the "Project") in Eqypt.

The Project cost estimate as at November, 2005, based on the Feasibility Study completed by Lycopodium Engineering Ltd in November 2004, is approximately US$90 million, including capital costs (2Mtpa processing plant, mining fleet, haul roads, power plant, employee accommodation and general infrastructure) and financing costs during the construction period. The targeted debt component is 60% (US$55 million) of the project costs. The debt financing will be raised via a combination of an IFC A-Loan, an IFC B-Loan and parallel financing from other Development Finance Institutions (DFIs) and Export-Credit Agencies (ECAs).

The fees payable by Gippsland to the IFC in respect of its arranging role include the issuance of 2,250,000 fully paid ordinary Gippsland shares in 3 tranches of 750,000 each in lieu of up front cash appraisal fees to be charged by the IFC.

The balance of the financing of the Project is to be raised through equity financing of approximately US$35 million, with potential IFC participation.

US$2 MILLION IFC EQUITY INVESTMENT IN GIPPSLAND

Pursuant to the Mandate, the IFC has been provided with a 90-day option to subscribe for US$2M of new fully paid ordinary share equity capital in Gippsland. If the IFC exercises its option then this equity investment by the IFC in Gippsland shall be effected by way of the issue of 25 million new fully paid ordinary Gippsland shares at a price of US$0.08 (approx. A$0.108 / UK£0.046) per share to raise US$2 million (approx. A$2.69 / UK£1.14 million) cash for Gippsland.

The 25 million shares issued to the IFC will each have an attaching free unlisted option having an exercise price of A$0.135 (approx. UK£0.057) and a life of six (6) years. Gippsland may require the IFC to exercise 12.5 million of these options in the event that Gippsland shares trade at a weighted

average price equal to or greater than A$0.20 (approx. UK£0.085) for a period of 20 trading days, or relinguish the 12.5 million options.

The issue of the 25 million shares and 25 million options to the IFC is subject to the execution of an equity subscription agreement mutually acceptable to the IFC and Gippsland.

The issue of the 25 million shares and 25 million options to the IFC is also subject to Gippsland shareholder approval which shall be sought at an Extraordinary General Meeting of Gippsland shareholders to be held on 16 May 2006.

FURTHER US$3 MILLION IFC EQUITY INVESTMENT IN GIPPSLAND

Gippsland has also granted to the IFC a first right of participation to invest an additional US$3 million at the time of and on the same terms as are offered by Gippsland when raising the equity component of the Abu Dabbab project capital cost. IFC will have 30 days within which to exercise this preemptive right.

The issue of these shares to the IFC is subject to Gippsland shareholder approval which shall be sought at the Extraordinary General Meeting of Gippsland shareholders being held on 16 May 2006.

WADI ALLAQI GOLD EXPLORATION

During the quarter Gippsland completed further mechanical trenching at Wadi Allagi where the previous sampling ended within mineralisation. The trenching confirmed and expanded the highgrade gold results obtained during previous sampling work.

SEIGA

Trenching undertaken at Seiga has confirmed the results of earlier trenching programmes as well as significantly expanding the width and strike length of the Seiga gold mineralisation.

Trenches CP1 and CT2 have identified a mineralised zone 75 metre wide including:

• $\bullet$ 8 metres @ 7.7a/t Au
• $\div$ 20.3 metres @ 7.4g/t Au
• $\div$ 43 metres @ 3.57g/t Au

Trench CP6 situated 62m north of trench CP1 has identified a mineralised zone 50m wide including:

• $\triangleleft$ 31 metres @ 4.34g/t Au
• $\div$ 14.5 metres @ 2.65/t Au

Trenches excavated the north and south of CP1 extended the overall strike length of mineralised zone (> 1g/t Au) from 250m to over 770m.

The 3 most southern trenches CT7, 6 & 8) located 260m, 420m and 460m respectively south of trench CP1 contained wide intersections of low grade but anomalous gold values.

Trench CT7 intersected 24m at 0.93g/t Au while CT8 intersected 16m at 0.65g/t Au.

UM SHASHOBA

At the Um Shashoba prospect located 6km to the south-east of Seiga, the trenching identified anomalous (>0.1g/t) gold values associated with shearing over a strike length of 500m. The northern and southern extension of this shear zone is masked by colluvial sediments which will be tested by drilling. The trenching revealed a hardpan laver below colluvial sediments at around 1 metre depth which would have posed a severe challenge to the ancient miners exploring for extensions to the exposed mineralisation. These extensions will be tested by lines of drill holes.

Previous sampling of wall rocks adjacent to ancient workings gave a best result of 11.9m at 2.22g/t Au including 2m at 4.19g/t Au.

UM TIUR

A small number of trenches (8, totalling 227.4m) were completed to identify the line of lode. Access for the excavator was poor and the main area of interest could not be tested. The trenching did however expose the shear zone hosting the main Um Tiur mineralisation some 1.5km south of the dormant Um Tiur mine.

WADI ALLAQI DRILLING PROGRAMME IN PROGRESS

During the quarter, the Company arranged the importation into Egypt of a new multipurpose drill rig to undertake a drilling campaign to systematically test Seiga and all of the Company's 9 Wadi Allagi prospects

Most encouragingly, the 14,000 metre drilling programme currently in progress has intersected wide zones of quartz veining, carbonate alteration and sulphide mineralisation below the ancient Seiga workings. Initial drilling analytical results are expected to be available early May 2006.

The drilling programme is expected to confirm the extension at depth of the highly encouraging surface gold results achieved to date.

UK SHARE PLACEMENT

During the quarter Gippsland completed a placement of 24 million fully paid ordinary shares to UK institutional investors at a price of 5 pence (approximately 11.8 Australian cents) per share raising the sum of UK£1,200,000 (approximately A$2.84 million) before costs.

The funds raised under this placing will be employed to expand Gippsland's management team including key positions in finance, operations, project management, metallurgy and geology as the Company moves from an exploration company to a world scale mining operation.

In addition the funds raised will be used to continue the exploration of the Company's Wadi Allagi gold projects in anticipation of confirming a JORC compliant resource, subject to drilling results, durina 2006.

BUILDING OF MANAGEMENT TEAM

During the quarter, Gippsland received an excellent response to its advertisements for financial and management executives for the development of the Abu Dabbab project. Appointments are expected to commence during the coming month of May.

AGUERO DISPUTE

During the quarter the Company announced that a settlement had been reached with respect to the dispute with Alex Aguero. The terms of the settlement do not involve any admission of liability by Gippsland and include the issue of 3.6 million Gippsland fully paid ordinary shares to Aquero and 2.4 million Gippsland fully paid ordinary shares to the litigation funder who financed Aguero in this matter. Gippsland Directors consider the resolution of the matter to be a sound commercial outcome for the Company.

EXTRAORDINARY GENERAL MEETING OF SHAREHOLDERS

On 16 May 2006 Gippsland will hold an Extraordinary General Meeting of Shareholders to consider and, if thought fit, to pass the resolutions listed in the Notice of Meeting mailed to shareholders on 14 April 2006.

RJ (Jack) Telford Executive Chairman

For further information please contact:

Jack Telford Gippsland Limited www.gippslandltd.com Tel: +61 (0)8 93898611 jtelford@gippslandltd.com

Laurence Read / Leesa Peters Conduit PR Tel: +44 (0)20 7429 6605 leesa@conduitpr.com laurence@conduitpr.com

Les Polden / Luke Cairns Hoodless Brennan Plc Tel: +44 (0)20 7538 1166 L.Polden@HBcorporate.com L.Cairns@HBcorporate.com

Note: In accordance with Listing Rule 5.6 of the Australian Stock Exchange Limited, the geological information in this report that relates to Exploration Results, Mineral Resources and Ore Reserves is based on data compiled by Dr John Chisholm, a Fellow of The Australasian Institute of Mining and Metallurgy. Dr Chisholm who is an Executive Director of Gippsland Limited with over 25 years experience in the mineral industry including the evaluation of exploration data, mineral resources and ore reserves, has consented to the issue of the information in this report in the form and context in which it appears.

Established in 1956, IFC (www.ifc.org) is the largest multilateral source of loan and equity financing for private sector projects in the developing World where it promotes sustainable private sector development primarily by financing private sector projects, assisting private companies, financing in international financial markets whilst providing advice and technical assistance to businesses and governments. Its strong shareholder base, triple-A ratings, and the substantial paid-in capital base allows the IFC to raise funds for its lending activities on favourable terms in the international capital markets.