STREAMPLAY STUDIO LIMITED — Interim / Quarterly Report 2007

Mar 15, 2007

ABN 31 004 766 376 and Controlled Entities

FINANCIAL REPORT

FOR THE HALF YEAR ENDED

31 DECEMBER 2006

CONTENTS

CORPORATE DIRECTORY	1
DIRECTORS' REPORT	3
AUDITOR'S INDEPENDENCE DECLARATION	4
CONSOLIDATED INCOME STATEMENT FOR THE HALF YEAR ENDED 31 DECEMBER 2006	5
CONSOLIDATED BALANCE SHEET AS AT 31 DECEMBER 2006	6
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE HALF YEAR ENDED 31 DECEMBER 2006	7
CONSOLIDATED CASH FLOW STATEMENT FOR THE HALF YEAR ENDED 31 DECEMBER 2006	8
NOTES TO THE FINANCIAL REPORT FOR THE HALF YEAR ENDED 31 DECEMBER 2006	9
DIRECTORS' DECLARATION	11
INDEPENDENT AUDIT REVIEW TO THE MEMBERS OF GIPPSLAND LIMITED	12

CORPORATE DIRECTORY

DIRECTORS	Robert John (Jack) Telford - Executive Chairman & Managing Director John Morrison Chisholm - Executive Director John Stuart Ferguson Dunlop - Non-Executive Director John Damien Kenny - Non-Executive Director
COMPANY SECRETARY	Rowan St John Caren
REGISTERED OFFICE	207 Stirling Highway Claremont WA 6010 Australia
POSTAL ADDRESS	PO Box 352 Nedlands WA 6909 Australia
TELEPHONE	+61 (0)8 9340 6000
FACSIMILE	+61 (0)8 9340 6060
E-MAIL	info@gippslandItd.com
WEBSITE	www.gippslanditd.com
AUDITORS	Grant Thornton Western Australian Partnership, Chartered Accountants 256 St George's Terrace Perth WA 6000 Australia
NOMINATED ADVISOR (NOMAD)	Grant Thornton Corporate Finance Grant Thornton House Melton Street, Euston Square London NW1 2EP United Kingdom
SOLICITORS	Blakiston and Crabb 1202 Hay Street West Perth WA 6005 Australia Cobbets	Trowers & Hamlins 3 rd Floor, 1 El Gabalaya Street Zamalek, Cairo Arab Republic of Egypt Ibrahim Naji & Co
	Ship Canal House King Street Manchester M2 4WB United Kingdom	Suite 409, Level 4 102-B Margahny Street Heliopolis, Cairo Arab Republic of Egypt
SHARE REGISTRIES	Security Transfer Registrars Pty Ltd Suite 1, Alexandrea House 770 Canning Hwy Applecross Wa 6153 Australia	PO Box 535 Applecross WA 6953 Australia
	Website: www.securitytransfer.com.au
	Computershare Limited PO Box 82 The Pavilions, Bridgwater Road Bristol BS99 7NH United Kingdom
	Website: www.computershare.com

CORPORATE DIRECTORY (cont)

AUSTRALIAN STOCK EXCHANGE	The Company's securities are quoted on the official list of the Australian Stock Exchange Ltd (ASX), the home exchange being: The Australian Stock Exchange (Perth) Ltd 1 The Esplanade Perth WA 6000 Australia
ASX CODES	Shares – GIP Listed options - GIPO
LONDON STOCK EXCHANGE	The Company's securities are quoted on the London Stock Exchange Plc's (LSE) Alternative Investment Market (AIM); 10 Paternoster Square London, EC4M 7LS United Kingdom
LSE – AIM CODES	Shares – GIP Listed options - GIPO

DIRECTORS' REPORT

Your directors submit the financial report of the economic entity for the half year ended 31 December 2006.

Directors

The names of directors who held office during or since the end of the half-year:

Mr Robert J Telford Dr John M Chisholm Mr John D Kenny Mr John SF Dunlop

Review of Operations

The consolidated operating loss after tax for the half year was \$1,978,847 (2005 - \$1,234,588).

The principal activities of the economic entity during the half-year were the exploration and development of commercially and economically viable mineral resources. The primary focus continued to be 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 ("BFS") was updated for financing purposes. The updated BFS confirmed that the 40 million tonne Abu Dabbab project will produce an average of 650,000 pounds of tantalum pentoxide (Ta2O6) over the first thirteen years of an estimated twenty year mine life, which will establish Gippsland as the world's second largest tantalum producer. The project will also produce an average of 1,530 tonnes of tin per annum.

The project also has the potential to become a significant feldspar producer for use in the manufacture of ceramic floor tiles and sanitary ware from the tailings generated in the production of tantalum and tin. A feasibility study on the feldspar production will commence once the tantalum and tin operation is in operation.

On November 27, 2006, Gippstand announced the appointment of the German company Linden Advisory & Consulting Services as its Financial Advisor for the financing of the Abu Dabbab project.

Gippsland also continued exploration on the Wadi Allagi tenements in southern Egypt. At Seiga, this exploration produced a first pass inferred resource of 1.5 million tonnes at 1.7g/t Au containing 93,000 ounces of gold.

The company boosted its financial and commercial expertise with the appointment of Mr Paul Sims as Chief Financial Officer and Mr Rowan Caren as Company Secretary.

Auditor's Declaration

The lead auditor's independence declaration under section 307C of the Corporations Act 2001 is set out on page 4 for the half-year ended 31 December 2006.

This report is signed in accordance with a resolution of the Board of Directors.

uped

R J TELFORD DIRECTOR

Dated this 16^th day March 2007

Grant Thornton Western Australian Partnership ABN 21 965 022 882 Chartered Accountants, Business Advisers and Consultants

and the state of the state of

and a straight

i.

AUDITOR'S INDEPENDENCE DECLARATION

In accordance with the requirements of section 307C of the Corporations Act 2001, as lead auditor for the review of Gippsland Limited and its controlled entities for the half-year ended 31 December 2006, I declare that, to the best of my knowledge and belief, there have been:

• no contraventions of the auditor independence requirements of the Corporations Act $(a)$ 2001 in relation to the review; and
• $(b)$ no contraventions of any applicable code of professional conduct in relation to the review.

GRANT THORNTON WESTERN AUSTRALIAN PARTNERSHIP Chartered Accountants

astrt

CYRUS PATELL Partner

Dated 16 March 2007

Level 6 C:\Documents and Settings\DEFAULT\Local Settings\Temporary Internet Files\OLK43\R-Independence declaration-half year with electronic signature,DOC 256 St Georges Terrace Perth 6000 Australia GPO Box P1213 Perth WA 6844 T + 61 8 9481 1448 F +61894810152 E giperth@gtwa.com.au W www.grantthornton.com.au

An independent Weslern Australian partnership entitled to trade under the International name Grant Thornton.

Grant Thomton is a trademark owned by Grant Thomton International and used under ilcence by independent firms and entities throughout the world.

CONSOLIDATED INCOME STATEMENT FOR THE HALF YEAR ENDED 31 DECEMBER 2006

Consolidated Entity

	31 December 2006 5	31 December 2005 \$
Other Income	92,632	10,669
Employee expenses	(221, 131)	(136, 987)
Depreciation	(18, 641)	(10, 643)
Project feasibility and exploration expenses	(1,268,856)	(531, 891)
Management and consulting expenses	(146.972)	(71, 424)
Corporate office expenses	(43, 381)	(29,069)
AIM administration expenses	(129, 376)	(91, 160)
Unrealised foreign exchange (losses)/gains	(3,703)	16,757
Impairment of exploration		(194, 143)
Other expenses from ordinary activities	(239, 419)	(196, 697)
Loss before income tax expense	(1,978,847)	(1, 234, 588)
Income tax expense
Net loss attributable to members of the parent entity	(1.978,847)	(1,234,588)
Basic loss / diluted loss per share (cents per share)	(0.8)	(0.7)

The accompanying notes form part of these financial statements

CONSOLIDATED BALANCE SHEET AS AT 31 DECEMBER 2006

		Consolidated Entity
	31 December 2006 \$	30 June 2006 \$	31 December 2005 \$
CURRENT ASSETS
Cash and cash equivalents	2,194,399	3.937.943	826.916
Trade and other receivables	54,281	49,212	42,650
Other current assets	6.744	915	3,650
TOTAL CURRENT ASSETS	2,255,424	3,988,070	873,216
NON CURRENT ASSETS
Property, plant and equipment	194,160	35,684	43,004
TOTAL NON CURRENT ASSETS	194,160	35,684	43,004
TOTAL ASSETS	2,449,584	4,023,754	916,220
CURRENT LIABILITIES
Trade and other payables	541,100	208,109	172,948
Short term provisions	18,951	9,923	9,000
TOTAL CURRENT LIABILITIES	560,051	218,032	181,948
NON-CURRENT LIABILITIES
Long term provisions	16,683	15,000
TOTAL NON-CURRENT LIABILITIES	16,683	15,000
TOTAL LIABILITIES	576,734	233,032	181,948
NET ASSETS	1,872,850	3,790,722	734,272
EQUITY
Contributed equity	22,658,274	22,658,274	17, 187, 682
Share option reserve	138,802	77,827	77,827
Accumulated losses	(20, 924, 226)	(18, 945, 379)	(16, 531, 237)
	1,872,850	3,790,722	734,272

The accompanying notes form part of these financial statements

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE HALF YEAR ENDED 31 DECEMBER 2006

	Share Capital - Ordinary	Retained Earnings	Option Reserve	Total
Balance at 1 July 2005	15,868,236	(15,296,649)		571,587
Loss attributable to members of parent entity		(1.234.588)		(1,234,588)
Sub-total	15,868,236	(16,531,237)		(663.001)
Shares issued during the year	1.388.890			1,388,890
Option reserve on recognition of bonus
element of options			77.827	77.827
Transaction Costs	(69,444)			(69, 444)
Balance at 31 December 2005	17, 187, 682	(16,531,237)	77,827	734,272
Balance at 1 July 2006	22.658.274	(18, 945, 379)	77.827	3.790.722
Loss attributable to members of parent entity		(1.978.847)		(1,978,847)
Sub-total Option reserve on recognition of bonus	22.658,274	(20, 924, 226)	77.827	1.811.875
element of options			60,975	60,975
Balance at 31 December 2006	22,658,274	(20, 924, 226)	138,802	1,872,850

The accompanying notes form part of these financial statements

CONSOLIDATED CASH FLOW STATEMENT
FOR THE HALF YEAR ENDED 31 DECEMBER 2006

	Consolidated Entity
	31 December 2006 \$	31 December 2005 \$
CASH FLOW FROM OPERATING ACTIVITIES
Payments to suppliers and employees Interest received Net cash used in operating activities	(1,647,122) 84,399 (1, 562, 723)	(884.767) 10,669 (874,098)
CASH FLOW FROM INVESTING ACTIVITIES
Payments for property, plant and equipment Payments for exploration / tenement guarantees	(177, 117)	(11,705) (179, 492)
Net cash used in investing activities	(177, 117)	(191, 197)
CASH FLOW FROM FINANCING ACTIVITIES
Proceeds from share issues Payments for share issues		1.388.890 (69, 444)
Net cash provided by financing activities		1,319,446
Net (decrease) / increase in cash held	(1,739,841)	254.151
Effects of exchange rate changes on cash	(3,703)	(16, 757)
Add opening cash brought forward Closing cash carried forward	3,937,943 2,194,399	589,522 826,916

The accompanying notes form part of these financial statements.

NOTES TO THE FINANCIAL REPORT FOR THE HALF YEAR ENDED 31 DECEMBER 2006.

NOTE 1. BASIS OF PREPARATION

The half-year consolidated financial statements are a general purpose financial report prepared in accordance with the requirements of the Corporations Act 2001, Australian Accounting Standard AASB 134: Interim Financial Reporting, Urgent Issues Group Interpretations and other authoritative pronouncements of the Australian Accounting Standards Board.

It is recommended that this financial report be read in conjunction with the annual financial report for the year ended 30 June 2006 and any public announcements made by Gippsland Limited and its controlled entities during the half-year in accordance with the continuous disclosure requirements arising under the Corporations Act 2001.

The half-year report does not include full disclosures of the type normally included in an annual financial report.

Reporting Basis and Conventions

The half-year report has been prepared on an accrual basis and is based on historical costs modified by the revaluation of selected non-current assets, financial assets and financial liabilities for which the fair value basis of accounting has been applied.

Going Concern (i)

The financial statements have been prepared on the going concern basis of accounting which assumes that the Company will be able to meet its commitments, realise its assets and discharge its liabilities in the ordinary course of business.

The Company's ability to continue as a going concern is contingent upon raising additional capital to fund exploration commitments, other principal activities and working capital. If additional capital is not raised, the going concern basis may not be appropriate with the result that the entity may have to realise its assets and extinguish its liabilities other than in the ordinary course of business and at amounts different from those stated in the financial report. No allowance for such circumstances has been made in the financial report.

NOTE 2: SEGMENT INFORMATION

Primary reporting - Business segments

The economic entity only operates in the mining and exploration segment.

Primary reporting - Geographic segments

		Segment Revenue Half-year ended	Segment result Half-year ended
	31 December 2006 \$	31 December 2005 \$	31 December 2006 \$	31 December 2005 \$
Continuing operations Australia Egypt	92,596 36	10,669	(1, 142, 956) (835, 891)	(1,040,445) (194, 143)
Consolidated revenue	92,632	10,669
Loss before income tax expense Income tax expense			(1,978,847)	(1,234,588)
Loss for the period			(1,978,847)	(1.234.588)

NOTES TO THE FINANCIAL REPORT FOR THE HALF YEAR ENDED 31 DECEMBER 2006

NOTE 3: CONTRIBUTED EQUITY

	31 December 2006	31 December 2006
	\$	Number
Issued capital:
232,851,926 (June 2006: 232,851,926) fully paid
ordinary shares	22.658.274	232,851,926
Movement
Opening Balance	22,658,274	232,851,926
Shares issued during the period
Closing balance	22.658.274	232,851,926

As at 31 December 2006 the economic entity had the following options on issue:

(i) 43,738,393 listed options exercisable at 9 cents each by 31 December 2007;
-----------------------------------------------------------------------------------

10,000,000 unlisted options exercisable at 4 UK pence each by 31 December 2007; $\langle$ ii)

4,500,000 unlisted options exercisable at 15 cents each by 31 December 2007; and $(iii)$

25,000,000 unlisted options exercisable at 13.5 cents each by 26 May 2012. $(iv)$

NOTE 4: CONTINGENT LIABILITIES

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

NOTE 5: EVENTS SUBSEQUENT TO REPORTING DATE

Since 31 December 2006, no event has arisen that would be likely to materially affect the operations of the economic entity, the results of the economic entity or the state of affairs of the economic entity not otherwise disclosed in the economic entity's financial statements.

DIRECTORS' DECLARATION

The directors of Gippsland Limited declare that:

• 1. The financial statements and notes, as set out on pages 5 to 10:
• a) comply with Accounting Standard AASB 134: Interim Financial Reporting and the Corporations Regulations 2001; and
• b) give a true and fair view of the consolidated entity's financial position as at 31 December 2006 and of its performance for the half-year ended on that date.
• 1. In the directors' opinion there are reasonable grounds to believe that the economic entity 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 16^th day of March 2007.

Jurped

R.J. Telford Chairman

Grant Thornton 霸

Grant Thornion Western Australian Partnership ARN 21 965 022 882 Chartered Accountants, Business Advisers and Consultants

Independent Review Report

To the Members of Gippsland Limited and its Controlled Entities

Scope

The half-year financial report and Director's responsibility

We have reviewed the accompanying half-year financial report of Gippsland Limited and its Controlled Entities (the consolidated entity) which comprises the consolidated balance sheet as at 31 December 2006 and the consolidated income statement, consolidated statement of changes in equity and consolidated cash flow statement for the half-year ended on that date, a description of accounting policies, other selected explanatory notes and the directors' declaration. The consolidated entity comprises both Gippsland Limited and the entities it controlled during that half-year.

The directors of the consolidated entiry are responsible for the preparation and fair presentation of the half-year financial report in accordance with Australian Accounting Standards (including the Australian Accounting Interpretations) and 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 appropriate accounting policies and reasonable accounting estimates inherent in the halfyear financial report.

Review approach

We conducted an independent review where our responsibility is to express a conclusion on the half-year financial report based on our review. We conducted our review in accordance with Auditing Standard on Review Engagement ASRE 2410 Review of an Interim Financial Report Performed by the Independent Auditor of the Entity', in order to state whether, on the basis of the procedures described, we have become aware of any matter that makes us believe that the financial report is not in accordance with the Corporations Act 2001 including, giving a true and fair view of the consolidated entity's financial position as at 31 December 2006 and its performance for the half-year ended on that date; and complying with Accounting Standard AASB 134 Taterim Financial Reporting and the Corporations Regulations 2001'. As the auditor of Gippsland Limited and its controlled

Level 6 258 St Georges Terrace Perth 6000 Australia GPO Box P1213 Perth WA 6844 + 61 B 9481 1448 + 61 8 9481 0152 E gtperth@gtwa.com.au W www.granithornton.com.au

An independent Western Australian partnership entilled to trade under the international name Grant Thornton. Grant Thornton is a trademark owned by Grant Thornton International and used under licence by independent firms and entities throughout the world.

entities, ASRE 2410 requires that we comply with the ethical requirements relevant to the audit of the annual financial report.

A review of a half-year financial report consists of making enquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with Australian Auditing Standards and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. We have not performed an audit and, accordingly, we do not express an audit opinion.

Independence

In conducting our review, we complied with the independence requirements of the Corporations Act 2001.

Conclusion

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 and its controlled entities is not in accordance with the Corporations Act 2001, including:

• $\left( a\right)$ Giving a true and fair view of the consolidated entity's financial position as at 31 December 2006 and of its performance for the half-year ended on that date.
• $(b)$ Complying with Australian Accounting Standard AASB 134 : 'Interim Financial Reporting' and the Corporations Regulations 2001.

Inherent Uncertainty Regarding Continuation as a Going Concern

Without qualification to the review opinion expressed above, attention is drawn to the following matter. As a result of the matters described in Note 1 to the financial statements, there is significant uncertainty whether the entity will be able to continue as a going concern and therefore whether it will realise its assets and extinguish its liabilities in the normal course of business and at the amounts stated in the financial report

GRANT THORNTON WESTERN AUSTRALIAN PARTNERSHIP Chartered Accountants

ze evt,

CYRUS PATELL Partner

Perth, WA 16 March 2007