STREAMPLAY STUDIO LIMITED — Interim / Quarterly Report 2010

Jan 26, 2010

SECOND QUARTER ACTIVITIES REPORT

Period: October - December 2009 Release Date: 27 January 2010

The Directors of Gippsland Limited ('Gippsland' or 'the Company') [ASX: GIP, Frankfurt DB: GIX] provide the following Activities Report for the period October - December 2009, together with details of events up to the date of this report.

ABU DABBAB

The Abu Dabbab Tantalum-Tin-Feldspar Project is gaining international prominence as the next major reliable source of ethically produced tantalum. This is being viewed favourably by the industry in view of the increasing criticism being directed at companies and countries supplying so called 'Conflict Tantalum" or 'Blood Tantalum' with little or no regard for sustainable development of their natural resources or the welfare of their people.

Conflict Tantalum

The global tantalum industry has recently been disrupted by a flood of cheap Conflict Tantalum from the north-eastern regions of the Democratic Republic of Congo ('DRC') where it is mined by enslaved children and adults under atrocious conditions. The proceeds of the mining are predominantly used to finance the numerous subversive militia groups operating in the region and in surrounding countries. The entry of this cheap tantalum into the supply chain has seen a number of legitimate but high-cost tantalum miners suspend operations, due to their inability to match the price of the DRC material.

End User Concern

International pressure to cease the usage of Conflict Tantalum has been greatly enhanced by the formation of the Electronic Industry Citizenship Coalition www.eicc.info ('EICC'), established by the world's largest electronic companies, working together to improve efficiency and social responsibility in the global supply chain and to promote an industry code of conduct for global electronics supply chains to improve working and environmental conditions.

International NGOs such as Enough www.enoughproject.org and Global Witness www.globalwitness.org have in recent months targeted and named a number of subversive militia miners and mineral traders involved in the supply of Conflict Tantalum. The NGOs and the United Nations Expert Committee on Conflict Minerals have made adverse reference to a number of companies and individuals associated with the Belgium headquartered Tantalum-Niobium International Study Centre www.tic.org ('TIC'). The Global Witness publication 'Comments on TIC Artisanal and Small Scale Mining Policy' (dated 15 November 2009) was critical of the manner in which the TIC executive has approached the question of Conflict Tantalum.

The TIC was generally regarded as the voice of the global tantalum industry, however this influence has reduced following the resignation of a number of major tantalum industry participants.

Abu Dabbab Tantalum-Tin-Feldspar Project

The Abu Dabbab Project has a JORC Code Mineral Resource♠ of 44.5 million tonnes at a grade of 250 g/t Ta2O5, while the Company's nearby Nuweibi tantalum deposit has a JORC Code Mineral Resource♠ of 98 million tonnes at a grade of 147 g/t Ta2O5.

The total contained Ta2O5 content within the Abu Dabbab and Nuweibi deposits is 55 million pounds of Ta2O5, an amount which is sufficient to satisfy global tantalum demand for more than a decade.

The Abu Dabbab Project is scheduled to commence operations at an initial mill feed rate of 2 million tonnes per annum, producing in excess of 650,000 pounds of tantalum pentoxide per year, which by today's standards would make it the world's largest producer.

Abu Dabbab is unique in that it will also generate substantial revenues from the co-products tin metal (1,530 tonnes per year) and ceramic grade feldspar (1.5 million tonnes per year), resulting in approximately 80% of all ore mined being converted to valuable saleable products. Consequently, the Directors are confident that net production costs will be competitive with all major alternative tantalum sources, including Conflict Tantalum from the DRC.

Abu Dabbab Project's favourable location allows year-round access in an area supported with excellent infrastructure. Abu Dabbab's tantalum is mineralogically simple and contained in an apogranite in contrast to carbonatite hosted deposits which are by nature chemically complex and difficult to process. Additionally, as the Abu Dabbab tantalum mineralisation is not in the form of a pyrochlore, it is not plagued with high levels of uranium.

Abu Dabbab Tantalum Offtake

Even after allowing for a continuation of the supply of Conflict Tantalum to the global tantalum market, a significant supply shortfall of tantalum raw material by 2011 and beyond has been forecast by industry observers as a result of the closures of primary tantalum mining operations over the past 18 months, including Talison's Australian operations and Cabot Corporation's Canadian Tanco operations. This anticipated critical supply shortfall is expected to be exacerbated as the constraints being applied internationally to the use of Conflict Tantalum progressively exclude this material from the supply chain.

As previously announced, Gippsland has an agreement with German tantalum refiner HC Starck GmbH for the delivery of conventional tantalum slags and concentrates. Gippsland is presently in negotiation with HC Starck GmbH to vary the agreement for the delivery of a more valuable high purity synthetic tantalum concentrate (SynCon).

Gippsland Directors are aware of increasing interest in Abu Dabbab tantalum, particularly from companies that are now no longer able to legitimately source material emanating from the DRC. Accordingly the Company is also in discussion with a number of other major tantalum refiners in regard to additional tantalum offtake and/or involvement in the Abu Dabbab project. Consequently the Directors are confident that the emerging tantalum shortage and the constraint of Conflict Tantalum usage, places the Company in an excellent position to finalise a robust long-term offtake agreement in the near future.

ERITREA

During November 2009, Gippsland completed a reconnaissance drainage geochemical survey from within the three Prospecting Licences ('PLs') the Company holds in Eritrea (Adobha Project). A total of eleven Thematic Mapper ('TM') alteration targets were sampled by collecting 196 drainage samples associated with zones of argillic alteration and favourable host lithologies.

Anomalous results for gold, copper and zinc were recorded from all of the three 100 km2 PLs.

• TM target E26 (411400E/1920400N) located within the northern Afah PL yielded a coherent copper anomaly 2.8 km long with six samples containing anomalous copper values (>65 ppm), with the highest being 193 ppm. The copper anomaly is closely associated with an intense zone of argillic alteration measuring 6.4 x 1.4 km. Anomalous, but non-coincident gold and copper values were also recorded from the target area. Rock types within the anomaly include felsic volcanics, quartzchlorite-sericite schist and chloritic lapilli tuff, all of which are known to be frequently associated with volcanogenic massive sulphide ('VMS') deposits.
• A low order but coincident gold, copper and zinc anomaly was identified at the E21 target (404800E/1905000N) within the central Merba West PL. The close association of this anomaly with the TM alteration target, favourable geology and low sample density make this a priority for further sampling.

• TM target E14 (403700E/1888100N) located within the Rebae Tahat North PL yielded the highest gold values with two samples containing 1.1 and 3.7 g/t. These two samples located 1 km apart drain from a strong zone of argillic alteration measuring 1.5 x 0.4 km. Two rock-chip samples from the same area returned 0.287 and 0.210 g/t Au. The presence of widespread quartz-chloritesericite-schist containing pyrite makes this anomaly of particular interest.

Gippsland Directors are greatly encouraged by the results of this first pass widely spaced sampling programme which will now be followed up by infill drainage sampling to determine the source of the anomalous gold, copper, and zinc values. This fieldwork will also involve a rock chip sampling programme and geological mapping.

The three PLs cover 300 km2 of ground that is prospective for both VMS mineralisation and structurally controlled gold mineralisation. The PLs were selected following an interpretation of TM satellite data of a large part of northern Eritrea. During this study, the Bisha and Zara/Koka mineral deposit areas were used as type examples.

The Bisha gold-base metal deposit located 174 km to the south that contains 1.44 Moz Au, 0.39 Mt Cu and 0.499 Mt Zn was selected as it represents a VMS deposit of the type that can be expected to occur in the area of interest. The 0.94 Moz Zara/Koka gold project located 65 km to the south was selected as it represents a structurally controlled gold deposit located in the southern part of the area of interest.

On receipt of the above results, the Directors unanimously agreed to make application for a further three 100 km2 Prospecting Licenses in the Adobha region. If successful, the additional licences will double the Company's holdings in Eritrea.

AUSTRALIA – HEEMSKIRK TIN DEPOSIT

The Heemskirk Tin Project, at Zeehan Tasmania, collectively comprises Australia's largest known undeveloped high grade tin deposit; the Queen Hill, Severn, and Montana deposits. During the March quarter, Gippsland's joint venture partner Stellar Resources Ltd (ASX: Code SRZ) intends to undertake 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.

CORPORATE

Renounceable Rights Issue

During the Quarter the Company completed a fully underwritten renounceable Rights Issue to all shareholders on the basis of two new Shares for every seven existing Shares at an issue price of $0.032 per new Share to raise $3,872,958 for the Company before costs.

Annual Report 2009

On 23 October 2009, Gippsland's Annual Report 2009 was lodged with ASX Limited. An electronic copy of the Annual Report is available on the Company's website.

For further information, please contact:

RJ (Jack) Telford Director Chief Executive Officer Gippsland Limited T: +61 8 9340 6000 E: rjtelford@bigpond.com

DJ Carmichael & Co Paul Covich / Rob Matthews

• T: +61 8 9263 5271
• E: pcovich@djcarmichael.com.au / rmatthews@djcarmichael.com.au
• W: www.djcarmichael.com.au

WH Ireland Limited (UK)

John Molyneux / James Hughes

• T: +44 20 7220 1665 / +44 20 7220 1663
• E: john.molyneux@wh-ireland.co.uk / james.hughes@wh-ireland.co.uk
• W: www.wh-ireland.co.uk
• ♠ To view full details of Abu Dabbab and Nuweibi JORC Code compliant Mineral Resources and Ore Reserves please CLICK HERE.

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 has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves'. Dr Chisholm consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.