STREAMPLAY STUDIO LIMITED — Interim / Quarterly Report 2012

Oct 30, 2011

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FIRST QUARTER ACTIVITIES REPORT

Period: 1 JULY – 30 SEPTEMBER 2011 Release Date: 31 OCTOBER 2011

The Directors of Gippsland Limited ('Gippsland' or 'the Company') [ASX: GIP, FRA: GIX] provide the following Activities Report for the period July to September 2011, together with details of events up to the date of this report.

HIGHLIGHTS

• Orders placed for Abu Dabbab Alluvial Project equipment;

• Independent validation of project economics;

• Completion of VTEM survey in Eritrea and commencement of follow‐up work programme;

• Completion of scoping study for the Heemskirk JV tin project and further drilling results; and

• Fully underwritten renounceable rights issue.

EGYPT ­ ABU DABBAB TANTALUM­TIN PROJECT

Free Zone Walled Compound

During the quarter, work on the Free Zone at the Abu Dabbab project site was completed.

Sea Water Intake and Feldspar Port Studies

As advised last quarter, following consultation with the Company’s Cairo‐based environmental consultants, Environics, it was decided that the preferred means of sea water intake will take the form of an intake located outside the fringing reef, connecting with a pipeline to shore mounted on a jetty structure.

During the period, the Company’s engineers, Lycopodium Ltd, were commissioned to prepare revised drawings of such an arrangement, for the purposes of inclusion in the updated Environmental Impact Statement.

Project Debt Finance

The Company, together with Noah’s Rule, continued discussions with a well known and respected global financial institution with a view to securing an offer for debt finance of the Abu Dabbab Project. Progress was slowed, partially as a result of uncertainties in the global capital markets and continuing, albeit isolated, unrest in Egypt. Other regional funding opportunities are therefore being investigated. Subject to successful completion of these discussions and completion of project financing conditions precedent, the Company will be in a position to announce project go‐ahead. A clearer picture of the timing should emerge in the last quarter of 2011.

Project ESIA

As previously advised, the announced project changes require the updating of the project Environmental Social Impact Assessment (“ESIA”) to take account of the increased production rate, the elimination of the use of sea water as process water and the consequential changes to the tailings storage facility and seawater intake and brine discharge facilities. The Company’s environmental consultant, Environics, is nearing completion of the ESIA and is now expected to deliver its report in

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November 2011, following which the final environmental approvals for the project may be obtained. The final details being completed relate to the jetty and brine injection bore fields design to complete their study. Approvals from the Shoreline Protection Authority on the jetty design and the Ministry of Water and Irrigation for the bore fields design are also required before submitting the final report to the Egyptian Environmental Affairs Agency. These are expected to be submitted shortly.

Abu Dabbab lluvial ProjeA ct

As reported last quarter, during April 2011 the HPC‐15 alluvial separator was successfully commissioned on ‐12.5mm feed and the trial mining of material and on‐site processing was commenced, with sample feed being mined by excavator from six profiles. The six profiles selected represent the range of alluvial material and cassiterite grades expected to be encountered during full scale mining.

The trial mining to date has focussed on characterising the placer deposit material to determine metallurgical behaviour and to confirm the cassiterite content of the deposit, cassiterite content of the waste material and the mineralogy of the cassiterite in the concentrate and tailings.

During the September 2011 quarter, Gippsland completed a comprehensive engineering study and economic evaluation of the opportunity to develop the Abu Dabbab alluvial tin deposits (the “Abu Dabbab Alluvial Project”). The Directors are satisfied that the results of the trial mining program are sufficiently robust to permit immediate project go‐ahead and implementation of the Abu Dabbab Alluvial Project has been approved.

On 7 October 2011, Gippsland announced that orders had been placed for two modular IE‐TEC HPC‐30 units which will be utilised to process high grade alluvial material at the Abu Dabbab Alluvial Project. The initial alluvial mining program will target only the high grade portions of the Wadi Quaria deposit and to maximise efficient utilisation of available processing capacity, only the ‐6mm fraction will be processed, with rougher tailings stockpiled.

Mining and processing operations are scheduled to commence in March 2012. Under the base case, processing operations will be completed within seventeen months from the start of operations.

Various possible operating and economic outcomes have been modelled, leading to Gippsland’s preferred scenario being adopted. The project is forecast to be cash flow positive one month after operations commence, that is April 2012 and is forecast to generate US$2.25 million, after costs, in the 6 months from April to September 2012 (US$3.5 million for the entire 17 month project life). Breakeven is anticipated approximately 10 weeks after the commencement of operations.

Independent Validation of Abu Dabbab Project Economics

On 8 July 2011, Gippsland announced the results of an independent calculation of project economic indicators and sensitivities for the Abu Dabbab tin‐tantalum‐feldspar project completed by the Company’s financial advisers, Noah’s Rule.

The economic performance indicators produced are the conventional Net Present Value (“NPV”) and Internal Rate of Return (“IRR”) methodologies for project evaluation utilising a core set of costs provided by the Company’s engineering consultants and revenue assumptions related to product sales, market price and fuel costs set by Gippsland’s management in consultation with Noah’s Rule. The results are summarised in Table 1.

The key price assumptions upon which the Base Case performance indicators presented in Tables 1(a) (un‐geared) and 1(b) (geared) were based are summarised in Table 2.

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Table 1(a) Base Case Un­Geared Economic Performance Indicators (Capital costs 100% Equity Funded)

erformance Indicator P	erformance Indicator P	nits U	Project	Gippsland Share
NPV	@ 10% discount rate	US$ million	593.0	2 63.6
PV N	@ 15% discount rate	S$ million U	402.8	1 64.9
NPV	@ 20% discount rate	$ million US	271.5	94.6
IRR		%	39.2	28.4

Table 1(b) Base Case Geared Economic Performance Indicators (Capital costs 50:50 Debt*:Equity Funded)

erformance Indicator P	erformance Indicator P	nits U	Project	Gippsland Share
NPV	@ 10% discount rate	US$ million	583.8	268.8
PV N	@ 15% discount rate	S$ million U	392.6	188.4
NPV	@ 20% discount rate	$ million US	260.7	1 32.3
RR I		%	37.8	42.5

*Interest on debt is assumed at 7% per annum

Table 2: Base Case Price Assumptions

Product		Unit	Product Price Assumptions
Tin		US$ per tonne	25,450
a T 2O5
	Off‐Take Price	US$ per pound	ff‐take Agreement O per
	Residual Sales	d US$ per poun	110
Feldspar		e FOB US$ per tonn	35
Diesel Price		US$per litre	0.935

Whilst Noah’s Rule has reviewed and held discussions around the mining inputs, throughput and costs in the financial model, these are primarily supplied by the Company and its consultants. Noah’s Rule’s primary input into the financial model relates to market price assumptions utilised for commodity sales, discount factors and currency exposures.

EGYPT ­ NUWEIBI TANTALUM­TIN PROJECT

A programme of work has been approved for the Nuweibi project with the specific aims of achieving the following:

• Increasing the identified mineral resources;

• Delineating zones of higher tantalum and tin grades;

• Determining the limits of the mineralisation; and

• Assessing the commercial parameters of the associated heavy mineral placer deposits.

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This work will include the following activities:

• Topographic survey;

• Infill RC drilling;

• Mineral resource estimation; and

• Bulk testing of the placer deposits.

A budget of $300,000 has been proposed to complete the various items of work.

Work is scheduled to commence in the December 2011 quarter subject to the usual security permits being available for access to the field area.

ERITREA (ADOBHA PROJECT)

Gippsland’s 100% owned subsidiary Adobha Resources (Eritrea) Pty Ltd (formerly Nubian Resources Pty Ltd) holds a 2,100 km[2] Exploration Licence in the highly prospective Adobha region of The State of Eritrea. During September 2011, the Company received approval from the Ministry of Energy and Mines in the State of Eritrea regarding the conversion of the 100 km[2] Prospecting Licence held by Adobha Resources (Eritrea) Pty Ltd for the Gerasi South area to an Exploration Licence. The Prospecting Licences held by Adobha Resources (Eritrea) Pty Ltd for the Hafta West and Romay areas have expired as they had a one year term, however, applications to convert these areas to Exploration Licences have been lodged with the Ministry of Energy and Mines and the applications are pending.

The two granted Exploration Licences cover a total area of 2,200km[2] of the highly mineral endowed Nubian‐Arabian Shield in Eritrea that is regarded as very prospective for volcanogenic massive sulphide 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 174 km to the south and the 0.760 million ounce Zara gold project (Koka deposit) located only 16 km to the south of the Company's most southern Licence. The Precambrian Nubian‐ Arabian Shield hosts at least five gold deposits containing in excess of 1 million ounces of gold including the 14.5 million ounce Sukari gold deposit in Egypt.

During the quarter, Gippsland completed a 5,161 line‐kilometre airborne geophysical survey over the Adobha and Gerasi South licence areas in Northern Eritrea held by its wholly owned subsidiary Adobha Resources (Eritrea) Pty Ltd.

The airborne geophysical survey covered 19 target areas selected on the basis of Thematic Mapper (TM) anomalies, geological interpretation, and geochemical anomalies identified during geochemical surveys by Gippsland completed during late October to early November 2009, May 2010 and July 2011.

The survey was flown by Geotech Airborne Limited using a Versatile Time Domain Electro Magnetic system (VTEM) at a line spacing of 200 m with a nominal height of 80‐120 m determined by the topography.

Aeromagnetic data was also acquired as part of the survey. Interpretation of the preliminary data by the Company’s consultant geophysicist has identified 16 electromagnetic (EM) anomalies which have been ranked on the basis of their EM response (intensity and decay rate), geological setting, proximity to TM anomalies and presence of coincident geochemical anomalies.

Field examination of all of the EM anomalies was completed during October 2011 in order to determine appropriate further exploration with a view to drill testing at the earliest opportunity.

AUSTRALIA – HEEMSKIRK TIN DEPOSIT

The Heemskirk Tin Project (Gippsland: 40% free carried to BFS), at Zeehan Tasmania, collectively comprises Australia's largest known undeveloped hard rock tin deposit; the Queen Hill, Severn, and Montana deposits.

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During the reporting period, Gippsland's joint venture partner Stellar Resources Ltd (ASX: Code SRZ, “Stellar”) reported further progress on the project with the following key points:

• Stellar announced the completion of the scoping study by Stellar for the Heemskirk Tin Project. According to Stellar, the study demonstrates a high return on investment is achievable and justifies rapidly moving the project into pre‐feasibility phase. Independent mining consultancy Mining One conducted the study and estimated a 21% internal rate of return and 3.5 year payback at a long‐term tin price of US$25,000/t (US$22,500/t net of treatment charges) and 1.0A$/US$ exchange rate.

• Stellar, as operator of the JV, has stated that the Heemskirk Tin Project remains on track for production n 2014 subject to the timing of governmi ent approva s and financing. l

Stellar announced strong drill results in relation to five holes (two at Stormsdown and three at Montana) drilled during the quarter.

On 12 October 2011, Stellar announced details regarding additional diamond exploration drilling. The proposed holes represent a major step out targeting 150 m down plunge from historical diamond drill hole ZS84 which intersected 10 m grading 0.8% tin. The purpose of the drilling was to test the limit of the northeast margin of the Severn deposit at depth.

CORPORATE

Fully Underwritten Renounceable Rights Issue

On 12 July 2011, Gippsland announced a fully underwritten renounceable rights issue to shareholders at the record date of 21 July 2011 (5pm AWST) on the basis of three new shares for every ten existing shares to raise approximately $5,063,000 before costs at an issue price of 2.7 cents per new share ("Rights Issue").

The Rights Issue was successfully completed during August 2011. It was fully underwritten by Patersons Securities Limited and sub‐underwritten by Gandel Metals Pty Ltd as trustee for the Gandel Metals Trust, a company controlled by Gippsland Chairman, Mr Ian Gandel.

In all, 62% (almost 117 million) of the shares on offer were subscribed for. The remaining 70.5 million shares on offer were taken up by the sub‐underwriter, Gandel Metals Pty Ltd as trustee for the Gandel Metals Trust.

Annual Report

Gippsland's Annual Report for the 2010/2011 year was released on 27 October 2011. The document is available on the Company's website.

Notice of Annual General Meeting

On 25 October 2011 the Company's Notice of Annual General Meeting was released to the market and posted to shareholders. The meeting will be held at 3:00pm (WST) on 30 November 2011 at Gippsland's corporate headquarters located in Claremont, Western Australia.

Ian Gandel Chairman Gippsland Limited www.gippslandltd.com

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For further information, please contact:

Geoff Hawkins Gippsland Limited T: +61 8 9340 6000 E: info@gippslandltd.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 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.

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