STREAMPLAY STUDIO LIMITED — Interim / Quarterly Report 2011

Oct 28, 2010

207 Stirling Highway Claremont WA 6010 Australia $t : +61893406000$ $f : +61893406060$ PO Box 352 Nedlands WA 6909 Australia e: info@gippslandltd.com w: www.gippslandltd.com

ARN 31 004 766 376

FIRST QUARTER ACTIVITIES REPORT

Period: July - September 2010 Release Date: 29 October 2010

The Directors of Gippsland Limited ('Gippsland' or 'the Company') [ASX: GIP, FRA: GIX] provide the following Activities Report for the period July - September 2010, together with details of events up to the date of this report.

EGYPT - ABU DABBAB TANTALUM-TIN PROJECT

Tantalum Offtake Agreement

On 29 September 2010 Gippsland provided a market update in regard to the 10-year tantalum offtake agreement ('Offtake Agreement') executed in November 2007 between Gippsland's 50% owned subsidiary Tantalum Egypt JSC ('Tantalum Egypt') and the German tantalum major HC Starck GmbH ('HC Starck').

Pursuant to the 10-year Offtake Agreement, Tantalum Egypt is contracted to supply approximately six million pounds of tantalum pentoxide (' $Ta_2O_5$ ') produced from its 100% owned 44.5 million tonne Abu Dabbab Tantalum-Tin-Feldspar Project ('Abu Dabbab Project') in Egypt. With the exception of the first year of commercial production when Tantalum Egypt shall provide all $Ta_2O_5$ produced to HC Starck, the Offtake Agreement represents 600,000 pounds of Ta2O5 per year or 92% of the Abu Dabbab Project's initial projected annual Ta2O5 production.

The prices of $Ta_2O_5$ under the Offtake Agreement are confidential however the Offtake Agreement provides a base price for $Ta_2O_5$ and price-escalation clauses tied to production cost increases.

Gippsland is presently in negotiation with HC Starck regarding revised terms of the Offtake Agreement to reflect, amongst other matters, the production of a synthetic tantalum concentrate ('SynCon') having a higher $Ta_2O_5$ content and therefore a higher value. HC Starck has indicated that the SynCon is its preferred product for their tantalum refining process as it reduces transportation costs, consumption of processing reagents and largely eliminates the need to dispose of wastes in specialised underground storage repositories in Germany. Negotiations are also seeking to clarify matters relating to the working of the Offtake Agreement price and cost escalation provisions.

Whilst these HC Starck discussions are in progress, Gippsland has also entered into discussions with other tantalum refiners.

Project Finance

Gippsland has previously advised the market that its proposed financing for the Abu Dabbab Project with KfW-IPEX Bank GmbH was well advanced. Prior to the onset of the global financial crisis, the legal and technical due diligence had been largely completed by the bankers. A key component of the cost and nature of the financing of Abu Dabbab Project is the revised terms of the Offtake Agreement with HC Starck to take into account the delivery of the tantalum SynCon and clarification of matters relating to the working of the Offtake Agreement price and cost escalation provisions.

The financing discussions await completion of negotiations with HC Starck or with other tantalum refiners.

Appointment of Corporate Advisor - Noah's Rule

During October 2010 Gippsland announced the appointment of the risk and financial advisor, Noah's Rule, to assist in fund raising and financial structuring in regard to the development of the 44.5 million tonne Abu Dabbab Project.

The Noah's Rule team of banking, treasury and industry trained professionals, has worked with a broad range of highly successful resource companies both within Australia and overseas and is well placed to provide advice in regard to the financing of the Abu Dabbab Project.

Canadian 43-101 Resources and Reserves Classification

During the quarter the Directors announced that they had commissioned an independent geological consultant to prepare a Mineral Resources and Ore Reserves Report in relation to the Company's Abu Dabbab and Nuweibi tantalum deposits that will comply with the reporting requirements set forth in the Canadian National Instrument 43-101, Companion Policy 43-101CP, and Form 43-101F1.

While the Australian JORC CodeA classification is accepted worldwide, the North American market is in general more familiar with, and tends to rely more upon, the broadly similar Canadian 43-101 classification in relation to Mineral Resources & Ore Reserves.

The preparation of a Mineral Resources & Ore Reserves Report compliant with Canadian 43-101 classification due to be completed next quarter, will greatly assist in positioning the Company in the North American capital markets and in marketing the Company's tantalum products to North American customers, and elsewhere.

Gippsland's 44.5 million tonne Abu Dabbab and 98 million tonne Nuweibi deposits currently comply with the JORC Code and contain the following Mineral Resources and Ore Reserves, as at 30 June 2010:

Table 1. Abd Dabbab Resources (100g/ t 1a)Oc cut-Off/
Category	Million Tonnes	$Ta_2O_5$ (g/t)	Sn (%)
Measured	15.2	290	0.143%
Indicated	17.3	250	0.078%
Inferred	12	200	0.03%
Total	44.5	250	0.09%

Table 1: Abu Dabbah Resources (100g/t Ta-O-cut-off)

Table 2: Abu Dabbab Ore Reserves (100g/t Ta2O5 cut-off)

Category	Million Tonnes	$Ta_2O_5$ (g/t)	Sn (%)
Proven	15.20	260	0.133
Probable	15.04	250	0.084
Total Proven & Probable	30.24	255	0.109

Table 3: Nuweibi Resources (100g/t Ta2O5 cut-off)

Category	Million Tonnes	$Ta_2O_5$ (g/t)	Nb 2 O 5 (g/t)
Indicated	48	147	90
Inferred	50	138	95
Total	98	143	92

NB: In Nuweibi the Resources have the potential to be expanded as the mineralisation is open to the east, west and at depth as diamond drill holes in these areas bottomed in mineralisation.

Numbers in Tables 1, 2 & 3 may not correlate exactly due to rounding.

Tantalum Market

The long predicted shortage in the global tantalum supply is now having a dramatic effect on the international tantalum market, with the spot market priceB increasing from approximately US$38 per pound in December 2009 to the present price of approximately US$95 per pound.

The shortage is expected to continue through to at least 2013 by which time the Abu Dabbab Project is expected to largely satisfy demand with its initial production of in excess of 650,000 pounds of tantalum per year.

USA Conflict Minerals Bill

On 15 July 2010, the international tantalum market underwent a dramatic change with the passing of the 'Conflict Minerals Bill' by the United States Senate. Conflict Minerals including tantalum, commonly referred to as 'Blood Tantalum' or 'Coltan', have largely financed the 15-year war in the Democratic Republic of Congo ('DRC') which has been marked by appalling human rights abuses, and which to date has resulted in the loss of more than 5 million lives, the vast majority of which are reported to have been innocent civilians.

Provisions in the Conflict Minerals Bill will require mining companies registered with the Securities and Exchange Commission to publicly disclose if they are sourcing conflict minerals from the DRC or adioining countries. Companies will be required to detail the measures they have taken to avoid direct or indirect sourcing these minerals from DRC armed groups. The Conflict Minerals Bill also requires that all information disclosed be independently audited.

The US 'Conflict Minerals Bill' is akin to the 'Blood Diamonds' initiatives and requires companies to use independent experts to certify whether their production consumables (including tantalum) are conflictfree. It is anticipated that this initiative will be adopted by other nations, particularly the European Union, and will lift the curse of corruption and conflict from poor countries that are rich in oil and minerals by promoting greater public oversight and responsible trading practices.

Resignation from Tantalum Niobium International Study Center ('TIC')

The first quarter saw Gippsland announce that it had resigned from the Belgium based Tantalum Niobium International Study Center ('TIC') as the Directors have formed the opinion that the TIC no longer represents the interests of the majority of the world's ethical tantalum miners, and continues to align itself with companies and groups that have been severely criticised by the United Nations Organisation and various international NGOs for their involvement in the trade of Conflict Minerals of tantalum, tin and tungsten originating in the war-torn DRC.

The Directors also consider that continued TIC membership of companies with direct or indirect involvement with DRC minerals is contrary to the intent of the recently passed USA 'Conflict Minerals Bill'.

Since January 2009, more than nine (9) prominent companies involved in the tantalum industry have resigned from the TIC. The resignations have included major tantalum industry participants Cabot Supermetals, Talison Minerals, and in more recent times the tantalum miner Noventa Limited, reducing the TIC's claim of being the representative voice for the global tantalum industry.

ERITREA - GRANTING OF LARGE ERITREAN TENEMENTS (ADOBHA PROJECT)

During July 2010 Gippsland announced that the Company's 100% owned subsidiary Nubian Resources Pty Ltd had been granted a 2,100km2 Exploration Licence plus three new 100km2 Prospecting Licences (total $2,400km^2$ , in the highly prospective Adobha region of The State of Eritrea ('Licences').

The new Licences cover 2,400km2 of a highly mineral endowed region of Eritrea that is regarded as very prospective for volcanogenic massive sulphide (VMS) mineralisation and structurally controlled gold mineralisation. Local examples of these types of deposits are the Bisha base metal deposit (1.44 million ounce gold and 0.39 million tonne copper) located some 174km to the south and the 0.760 million ounce Zara gold project (Koka deposit) located only 16km to the south of the Company's most southern Licence. The large area covered by the Licences forms part of the Precambrian Nubian-Arabian Shield that also hosts the 13.7 million ounce Sukari gold deposit.

The large Exploration Licence covers the Company's three existing Prospecting Licences granted during September 2009 plus a number of other Prospecting Licence areas which were previously in the application stage. Under the terms of the Eritrean Mining Act, Prospecting Licences are granted for one year after which they may be converted to Exploration Licences or surrendered. Exploration Licences have tenure of three years which can be extended for a further two years.

The new Licences secure a large area around the promising base metal prospects discovered by the Company during recent regional reconnaissance geochemical surveys. The geochemical surveys and subsequent follow-up involving rock-chip sampling and geological mapping identified large areas of visible copper mineralisation, some of which contained associated lead and zinc. The geochemical surveys targeted the highest ranked of the interpreted Thematic Mapper ('TM') satellite image anomalies. A number of anomalies are still to be examined.

The two main areas of copper mineralisation identified thus far by the Company are anomalies E26 & E21:

Anomaly E26

• ❖ Widespread copper mineralisation in bedrock with values up to 10.63% Cu
• ❖ Large area of discontinuous copper mineralisation (390m x 520m)
• Mineralisation open to the east and north
• ❖ Copper bearing samples analysed up to 1.15g/t Au

Anomaly E21

• ❖ Copper mineralisation identified over 1.7km strike length
• ❖ High lead values (up to 0.97%) indicate favourable lithology for VMS deposits

AUSTRALIA - HEEMSKIRK TIN DEPOSIT DRILLING RESULTS

The Heemskirk Tin Project, at Zeehan in Tasmania, is comprised of the Queen Hill, Severn, and Montana deposits which collectively represent Australia's largest known undeveloped hard rock tin deposit. During the past year, Gippsland's joint venture partner Stellar Resources Ltd ('Stellar') [ASX: Code SRZ] undertook a review of the historical drill data, focusing on Queen Hill, the shallowest of the three deposits, with the objective of selecting near surface drill targets for infill drilling.

During the quarter Stellar announced excellent results achieved in the recently completed diamond drilling programme at the Heemskirk Tin Project, in which Gippsland holds a 40% free-carried interest.

Highlights of the successfully completed programme include:

• * Presence of a high grade zone within the near surface Queen Hill mineralisation confirmed
• ❖ Sampling of near surface Queen Hill mineralisation and in-fill drilling database is now complete
• ❖ The best results were:
  • 21.2 metres grading 0.82% tin, including 3.0 metres grading 1.87% tin, from drill hole ZQ96
  • $\bullet$ 5.0 metres grading 1.56% tin from ZQ98
• ❖ Tin mineralisation is open to the northeast and southwest

* Tin price of approximately US$27,000/t continues to outperform the price of other LME metals, underpinned by strong fundamentals

Under the terms of the Heemskirk joint venture agreement, Stellar (subject to satisfaction of a number of conditions) has the right to increase its ownership of the Heemskirk Tin Project from 60% to 70%. These conditions include the requirement of Stellar to:

• ❖ Complete a comprehensive feasibility study recommending that commercial development be undertaken with a view to undertaking mining operations and containing all necessary supporting reports and data including prepared geological and metallurgical, financing and marketing studies ('Studies'); coupled with,
• $\div$ A written commitment based upon the Studies by a corporation, institution or bank acceptable to Gippsland and Stellar to lend not less than one half of all costs to be met by Gippsland for the commercial development of the project up to the date of commencement of commercial production.

Gippsland is advised that Stellar will now undertake metallurgical testwork and a review of tin resource estimates.

CORPORATE

Placement to raise $3.2 million

During October 2010 Gippsland announced that the Company had successfully raised the sum of $3.2 million (before costs) by way of a placement of 80 million fully paid ordinary shares at $0.04 per share to institutional and sophisticated clients of Patersons Securities Limited.

The net proceeds of the capital raising are be used to continue the development of Gippsland's flagship asset, the 44.5 million tonne Abu Dabbab Project, and for working capital.

Spin off IPO of Eritrean and Tasmanian Assets

During September 2010 the Directors resolved to pursue the spin off via an IPO and listing on ASX Limited ('ASX') of Gippsland's 100% owned Adobha Project located in the State of Eritrea and Gippsland's 40% interest in the Heemskirk Tin Project located in Tasmania.

Gippsland's primary focus is on the development of its 44.5 million tonne Abu Dabbab Project.

The new public company ('Newco') that will seek to list on ASX will purchase from Gippsland the Adobha Project and Gippsland's 40% interest in the Heemskirk Tin Project, in exchange for equity in Newco. Newco will seek to raise sufficient funds to explore the Adobha Project via an underwritten IPO prospectus, with Gippsland shareholders to be offered on a pro-rata basis, the opportunity to subscribe for this equity capital in Newco.

It is the Board of Gippsland's view that the Adobha Project and Gippsland's 40% interest in the Heemskirk Tin Project are not currently attributed a significant valuation by the market and that these two assets would benefit from dedicated funding via an IPO of Newco on ASX.

Newco's capital structure, board composition and the pricing of the IPO are yet to be determined, however Gippsland will provide regular updates as these details become available.

Appointment of Auditor - Deloitte

On 31 August 2010 Gippsland announced the appointment of Deloitte Touche Tohmatsu ('Deloitte'), as the Company's auditor.

Annual Rep port

Gippsland's available on s Annual Rep n the Compa port for the ny's website 2009/2010 e. year was re eleased on 2 22 October 2 2010. The d document is

Notice of A Annual Gener ral Meeting

On 22 Octo posted to s corporate h ober 2010 th shareholders headquarters he Company s. The meet s located in C y's Notice of ting will be Claremont, W f Annual Ge held at 3:00 Western Aust neral Meetin 0pm WST on tralia. ng was relea n 26 Novemb ased to the ber 2010 at market and Gippsland's

RJ (Jack) Te Director, Ch Gippsland L www.gippsl lford hief Executiv Limited landltd.com e Officer

For further information n, please con ntact:

RJ (Jack) Te Gippsland L T: +61 8 9 lford Limited 9340 6000

• M: +61 41 18 911 928
• E: rjtelfor rd@bigpond .com

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