ABN 31 004 766 376 and Controlled Entities

FINANCIAL REPORT

FOR THE HALF YEAR ENDED

31 DECEMBER 2007

CORPORATE DIRECTORY	1
DIRECTORS' REPORT	3
AUDITOR'S INDEPENDENCE DECLARATION	4
CONDENSED CONSOLIDATED INCOME STATEMENTFOR THE HALF YEAR ENDED 31 DECEMBER 2007	5
CONDENSED CONSOLIDATED BALANCE SHEETAS AT 31 DECEMBER 2007	6
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITYFOR THE HALF YEAR ENDED 31 DECEMBER 2007	7
CONDENSED CONSOLIDATED CASH FLOW STATEMENTFOR THE HALF YEAR ENDED 31 DECEMBER 2007	8
NOTES TO THE FINANCIAL REPORTFOR THE HALF YEAR ENDED 31 DECEMBER 2007	9
DIRECTORS' DECLARATION	12
INDEPENDENT AUDITOR'S REVIEW REPORT TO THE MEMBERS OF GIPPSLAND LIMITED	13

GIPPSLAND LIMITED ABN 31 004 766 376and Controlled Entities
	CORPORATE DIRECTORY
DIRECTORS	Robert John (Jack) Telford – Executive Chairman & Chief ExecutiveOfficerJohn Morrison Chisholm – Executive DirectorJon Starink – Executive DirectorJohn Stuart Ferguson Dunlop – Non-Executive DirectorJohn Damien Kenny - Non-Executive Director
COMPANY SECRETARY	Rowan St John Caren
REGISTERED OFFICE	207 Stirling HighwayClaremont WA 6010Australia
POSTAL ADDRESS	PO Box 352Nedlands WA 6909Australia
TELEPHONE	+61 (0)8 9340 6000
FACSIMILE	+61 (0)8 9340 6060
E-MAIL	[email protected]
WEBSITE	www.gippslandltd.com
AUDITORS	PKF Chartered Accountants & Business AdvisorsLevel 7, BGC Centre28 The EsplanadePerth WA 6000Australia
NOMINATED ADVISOR (NOMAD)	Seymour Pierce Limited20 Old BaileyLondon EC4M 7ENUnited Kingdom
SOLICITORS	Blakiston and Crabb1202 Hay StreetWest Perth WA 6005Australia	Trowers & Hamlins3rd Floor, 1 El Gabalaya StreetZamalek, CairoArab Republic of Egypt
	CobbetsShip Canal House, King StreetManchester M2 4WBUnited Kingdom
SHARE REGISTRIES	Security Transfer Registrars Pty LtdSuite 1, Alexandrea House770 Canning HwyApplecross WA 6153Australia	PO Box 535Applecross WA 6953Australia
	Website: www.securitytransfer.com.au
	Computershare LimitedPO Box 82The Pavilions, Bridgwater RoadBristol BS99 7NHUnited KingdomWebsite: www.computershare.com

CORPORATE DIRECTORY (cont)

AUSTRALIAN STOCK EXCHANGE	The Company's securities are quoted on the official list of the AustralianStock Exchange Ltd (ASX), the home exchange being:The Australian Stock Exchange (Perth) Ltd1 The EsplanadePerth WA 6000Australia
ASX CODE	Shares – GIP
LONDON STOCK EXCHANGE	The Company's securities are quoted on the London Stock ExchangePlc's (LSE) Alternative Investment Market (AIM);10 Paternoster SquareLondon, EC4M 7LSUnited Kingdom
LSE – AIM CODE	Shares – GIP

DIRECTORS' REPORT

Your directors submit the financial report of the economic entity for the half year ended 31 December 2007.

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 Jon Starink Mr John D Kenny Mr John SF Dunlop

Review of Operations

The consolidated operating profit after tax for the half year was $13,777 (2006 – loss of $1,978,847).

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 both Gippsland and the Egyptian Government have a 50% economic interest. A 10 year offtake agreement was signed with the German company HC Starck GmbH for the supply of 600,000 pounds of Ta2O5 per annum. This agreement replaced an earlier smaller agreement for the sale of 480,000 pounds of Ta2O5 per annum over a five year period. The project will also produce an average of 1,530 tonnes of tin per annum which will be sold via the London Metal Exchange or on the spot market.

An addendum to the Bankable Feasibility Study (BFS) was also completed detailing the relocation of the plant site closer to the vicinity of the mine to reduce ore haulage costs.

Detailed discussions commenced with a major German bank over the terms and conditions for securing the debt portion of the project finance. The bank is now in the process of undertaking due diligence on the project.

An in-fill drilling programme totalling 1,438m has commenced to increase the drilling density at Abu Dabbab. This programme will enable the inferred resources to be upgraded to an indicated resource category and hence be converted to a reserve under the JORC code.

Gippsland also continued exploration on the Wadi Allaqi tenements in southern Egypt. Drilling was undertaken at the Seiga and Abu Swayel prospects for gold and copper-nickel respectively. This exploration intersected zones of mineralisation at both prospects.

The company appointed Fox-Davies Capital Ltd and subsequent to the half year end Seymour Pierce Ltd as Co-Brokers to the Company. Seymour Pierce Ltd has also been appointed as the NOMAD for the company.

During the half year Gippsland completed the issue and allotment of 33,674,180 shares pursuant to the conversion of listed options having an exercise price of A$0.09 which expired on 31 December 2007.

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 2007.

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

R J TELFORD DIRECTOR Dated this 14th day March 2008

AUDITOR'S INDEPENDENCE DECLARATION

As lead engagement partner for the review of Gippsland Limited for the half year ended 31 December 2007, I declare that, to the best of my knowledge and belief, there have been:

(i) no contraventions of the independence requirements of the Corporations Act 2001 in relation to the review; and
(ii) no contraventions of any applicable code of professional conduct in relation to the review.

PKF Chartered Accountants

Neil Smith Partner

Dated at Perth, Western Australia this 14th day of March 2008.

PKF is a national association of independent chartered accounting and consulting firms, each trading as PKF. PKF Australia Ltd is also a member of PKF International, an association of legally independent chartered accounting and consulting firms.

Liability limited by a scheme approved under Professional Standards Legislation

CONDENSED CONSOLIDATED INCOME STATEMENT FOR THE HALF YEAR ENDED 31 DECEMBER 2007

Consolidated Entity

	Note	31 December2007$	31 December2006$
Revenue		54,775	92,632
Foreign exchange losses		(28,260)	(3,703)
Management and employee expenses		(666,253)	(323,620)
Exploration expenses		(12,426)	(835,927)
Reversal of impairment of deferredexploration expenditure	3	2,116,696	-
Depreciation expense		(44,098)	(18,641)
Impairment of deferred explorationexpenditure		(889,908)	(432,929)
Administration expense		(516,749)	(456,659)
Profit / (loss) before income taxexpense		13,777	(1,978,847)
Income tax expense		-	________-
Net profit / (loss) attributable tomembers of the parent entity		13,777	(1,978,847)
Basic profit (loss) / diluted profit (loss)per share (cents per share)		0.0	(0.8)

CONDENSED CONSOLIDATED BALANCE SHEET AS AT 31 DECEMBER 2007

	Consolidated Entity
	31 December	30 June
	2007	2007
	$	$
CURRENT ASSETS
Cash and cash equivalents	3,104,747	2,611,219
Trade and other receivables	42,809	119,925
Other current assets	26,005	22,411
TOTAL CURRENT ASSETS	3,173,561	2,753,555
NON CURRENT ASSETS
Property, plant and equipment	233,722	154,908
Deferred exploration expenditure	2,456,091	-
TOTAL NON CURRENT ASSETS	2,689,813	154,908
TOTAL ASSETS	5,863,374	2,908,463

CURRENT LIABILITIES
Trade and other payables	350,014	458,177
Short term provisions	56,923	38,301
TOTAL CURRENT LIABILITIES	406,937	496,478
NON-CURRENT LIABILITIES
Long term provisions	-	-
TOTAL NON-CURRENT LIABILITIES	-	-
TOTAL LIABILITIES	406,937	496,478
NET ASSETS	5,456,437	2,411,985
EQUITY
Contributed equity	28,440,456	25,409,780
Share option reserve	138,802	138,802
Accumulated losses	(23,122,821)	(23,136,597)
	5,456,437	2,411,985

CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE HALF YEAR ENDED 31 DECEMBER 2007

	Share Capital -Ordinary	AccumulatedLosses	OptionReserve	Total
Balance at 1 July 2006Loss attributable to members of parent	22,658,274	(18,945,379)	77,827	3,790,722
entity	-	(1,978,847)	-	(1,978,847)
Sub-totalOption 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
Balance at 1 July 2007Profit attributable to members of parent	25,409,780	(23,136,598)	138,802	2,411,984
entity	-	13,777	-	13,777
Sub-total	25,409,780	(23,122,821)	138,802	2,425,761
Shares issued during the year	3,030,676	-	-	3,030,676
Balance at 31 December 2007	28,440,456	(23,122,821)	138,802	5,456,437

CONDENSED CONSOLIDATED CASH FLOW STATEMENT FOR THE HALF YEAR ENDED 31 DECEMBER 2007

	Consolidated Entity
	31 December2007$	31 December2006$
CASH FLOW FROM OPERATING ACTIVITIES
Interest receivedPayments to suppliers and employeesNet cash used in operating activities	40,749(2,035,623)(1,994,874)	84,399(1,647,122)(1,562,723)
CASH FLOW FROM INVESTING ACTIVITIES
Purchase of property, plant and equipmentPayments for project development	(122,912)(382,662)	(177,117)-
Net cash used in investing activities	(505,574)	(177,117)
CASH FLOW FROM FINANCING ACTIVITIES
Proceeds from share issues	3,030,676	-
Net cash provided by financing activities	3,030,676	-
Net increase / (decrease) in cash held	530,228	(1,739,841)
Effects of exchange rate changes on cash	(36,700)	(3,703)
Add opening cash brought forwardClosing cash carried forward	2,611,2193,104,747	3,937,9432,194,399

NOTES TO THE FINANCIAL REPORT FOR THE HALF YEAR ENDED 31 DECEMBER 2007

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.

The half-year financial report does not include all of the 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.

It is recommended that this financial report be read in conjunction with the annual financial report for the year ended 30 June 2007 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.

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

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

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

The Group's ability to continue as a going concern is contingent upon raising additional capital and / or debt finance to fund exploration and project development, funding for the Abu Dabbab project, other commitments, other principal activities and working capital. If additional capital and / or debt finance 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.

Changes in accounting policies

Since 1 July 2007, the Group has adopted the following Standards and interpretations, mandatory for financial reporting periods beginning on and after 1 July 2007. Adoption of these Standards and Interpretations did not have any material effect on the financial position or the performance of the Group.

AASB 101 (revised October 2006) Presentation of the financial statements
AASB 7 Financial Instruments: Disclosures
AASB 2005-10 Amendments of Australian Accounting Standards (AASB 132, 101, 114, 117, 133, 139, 1, 4, 1023 and 1038)
AASB 2007-1 Amendments of Australian Accounting Standards arising from the Interpretation 11 (AASB 2)
AASB 2007-4 Amendments of Australian Accounting Standards arising from ED 151 and Other Amendments
AASB 2007-7 Amendments of Australian Accounting Standards (AASB 1, AASB 2, AASB 4, AASB 5, AASB 107 & AASB 128)
Interpretation 10 Interim Financial Reporting Impairment
Interpretation 11 AASB 2 Group and Treasury Share Transactions

NOTES TO THE FINANCIAL REPORT FOR THE HALF YEAR ENDED 31 DECEMBER 2007

NOTE 2: SEGMENT INFORMATION

Primary reporting – Business segments

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

Primary reporting – Geographic segments

	Segment RevenueHalf-year ended		Segment resultHalf-year ended
	31 December2007$	31 December2006$	31 December2007$	31 December2006$
Continuing operations
Australia	37,138	92,596	(797,374)	(1,142,956)
Egypt	17,637	36	811,151	(835,891)
Consolidated revenue	54,775	92,632
Profit / (loss) before
income tax expense			13,777	(1,978,847)
Income tax expense			-	-
Profit / (loss) for theperiod			13,777	(1,978,847)

NOTE 3: REVERSAL OF IMPAIRMENT LOSS

In the current period, the company has reversed impairment losses previously recognised amounting to $2,116,696 in relation to the Abu Dabbab tantalite, tin and feldspar project.

The main events and circumstances that led to the reversal of these impairment losses are as follows:

A 10 year off take agreement was signed with the German company HC Starck GmbH for the supply of 600,000 pounds of tantalum per annum.
Bankable Feasibility Study on the Abu Dabbab has been updated.
Detailed negotiations with a major German Bank to secure the debt portion of project finance have commenced. The bank is now undertaking its due diligence process.
Commencement of an in fill drilling program at Abu Dabbab to upgrade the indicated resource to reserve category under the JORC code requirements.

The main class of asset affected by the reversal of the impairment loss is Deferred Exploration Expenditure which at 31 December 2007, totals $2,465,091.

NOTES TO THE FINANCIAL REPORT FOR THE HALF YEAR ENDED 31 DECEMBER 2007

NOTE 4: CONTRIBUTED EQUITY

	31 December2007$	31 December2007Number	30 June2007$	30 June2007Number
Issued capital:
293,198,772 (June 2007:
259,524,592) fully paid ordinary
shares	28,440,456	293,198,772	25,409,780	259,524,592

Movement
Opening Balance at 1July 2007Shares issued through the exercise	25,409,780	259,524,592
of options during the period	3,030,676	33,674,180
Closing balance at 31 December
2007	28,440,456	293,198,772
Options
		No of Options
Opening balance at 1July 2007		83,232,393
Less: Exercise of options during
the period		(33,674,180)
Less: Options expired at 31
December 2007		(24,558,213)
Closing balance at 31 December
2007		25,000,000

As at 31 December 2007 the economic entity had the following options on issue:

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

NOTE 5: CONTINGENT LIABILITIES

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

NOTE 6: EVENTS SUBSEQUENT TO REPORTING DATE

Since 31 December 2007, the following events have arisen that have materially affected the operations of the economic entity, the results of the economic entity or the state of affairs of the economic entity.

Gippsland Limited has issued 2 million options to each of the Company's London based co-brokers, Seymour Pierce Limited and Fox-Davies Capital Limited. These options are not listed and are non transferable, have an exercise price of 7UK pence and an expiry of 15 December 2011.
Gippsland Limited has issued 500,000 shares to an employee as part of the employee's employment agreement. The shares will be held in escrow for 12 months ending 28 February 2009.

DIRECTORS' DECLARATION

The directors of Gippsland Limited declare that:

1. The financial statements and notes, as set out on pages 5 to 11:
- 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 2007 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 14th day of March 2008.

R.J. Telford Chairman

INDEPENDENT AUDITOR'S REVIEW REPORT

TO THE MEMBERS OF GIPPSLAND LIMITED

Report on the Half-Year Financial Report

We have reviewed the accompanying half-year financial report of Gippsland Limited, which comprises the condensed balance sheet as at 31 December 2007, and the condensed income statement, condensed statement of changes in equity and condensed cash flow statement for the half-year ended on that date, a statement of accounting policies, other selected explanatory notes and the directors' declaration of the consolidated entity comprising the company and the entities it controlled at 31 December 2007 or from time to time during the half year ended on that date.

Directors' Responsibility for the Half-Year Financial Report

The directors of the company 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 responsibility includes establishing and maintaining internal control relevant to the preparation and fair presentation of the half-year financial report that is free from material misstatement, whether due to fraud or error; selecting and applying appropriate accounting policies; and making accounting estimates that are reasonable in the circumstances.

Auditor's Responsibility

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 Engagements 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 company's financial position as at 31 December 2007 and its performance for the half-year ended on that date; and complying with Accounting Standard AASB 134 Interim Financial Reporting and the Corporations Regulations 2001. As the auditor of Gippsland Limited, 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. Accordingly, we do not express an audit opinion.

Liability limited by a scheme approved under Professional Standards Legislation

Independence

In conducting our review, we have 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 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 December 2007 and of its performance for the half-year ended on that date; and
(b) complying with Accounting Standard AASB 134 Interim Financial Reporting and Corporations Regulations 2001.

PKF Chartered Accountants

Neil Smith Partner

Dated at Perth, Western Australia this 14th day of March 2008.

AI assistant

STREAMPLAY STUDIO LIMITED Interim / Quarterly Report 2008

65841_rns_2008-03-13_09fe326d-788f-4bf0-a415-be10e157fa8d.pdf

FINANCIAL REPORT

FOR THE HALF YEAR ENDED

CONTENTS

CORPORATE DIRECTORY (cont)

DIRECTORS' REPORT