STREAMPLAY STUDIO LIMITED — Interim / Quarterly Report 2013

Oct 30, 2012

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FIRST QUARTER ACTIVITIES REPORT

Period: 1 JULY – 30 SEPTEMBER 2012 Release Date: 31 OCTOBER 2012

The Directors of Gippsland Limited (“Gippsland” or “the Company”) [ASX: GIP, FRA: GIX] provide the following Activities Report for the period July to September 2012, together with details of events up to the date of this report.

HIGHLIGHTS

• Consortium of Egyptian banks formed to support Tantalum Egypt JSC in raising senior debt;

• Draft Indicative Term Sheet received from the Consortium;

• Purchase of demountable modular 50 tph spiral plant approved;

• First pass drilling programme completed in Eritrea; and

• Completion of Non‐Renounceable Rights Issue which raised $1.38 million.

EGYPT ­ ABU DABBAB TANTALUM­TIN PROJECT

Project Debt Finance

A syndicate of four Egyptian banks, being Bank Audi, Banque Du Caire, Banque Misr and Commercial International Bank, have joined forces and formed a consortium (the “Consortium”) to jointly support Tantalum Egypt JSC (“TE JSC”) in raising the required senior debt financing (the “Transaction”) for the development of the initial phase of the Abu Dabbab Tantalum‐Tin‐Feldspar Project (the “Project”).

Gippsland has received and is presently considering a Draft Indicative Term Sheet (“Term Sheet”) on behalf of TE JSC from the Consortium in relation to the Transaction.

Gippsland has appointed El Torgoman Partners & Advisors Ltd (the “Advisor”) to provide various services to assist it and Tantalum International Pty Ltd (a wholly owned subsidiary of Gippsland) to raise the balance of the finance for the Project (“Shareholder Fund Raising”). TE JSC is also expected to engage El Torgoman Partners & Advisors Ltd to provide various services to assist it to raise the debt finance for the Project.

Subject to approval by the Board of TE JSC, TE JSC will appoint Helmy, Hamza and Partners, a member firm of Baker & McKenzie International to act as borrower counsel to TE JSC in the debt Project financing for the Project. Helmy, Hamza and Partners is also expected to be appointed to assist the Company in relation to the Shareholder Fund Raising.

The initial phase of the Project involves the proposed development by TE JSC of an open pit mine for the purpose of processing around 41 million tonnes of in‐situ mineable ore over 13.8 years at a processing rate of 3 million tonnes per annum of run‐of‐mine (“ROM”) ore with projected average annual production capacity of over 925,000 lbs of tantalum pentoxide (Ta2O5) in a marketable form and over 2,300 tonnes of tin as LME quality metal. Abu Dabbab is world class and can potentially produce tantalum raw material feedstock, providing stable, long term supply of a vital strategic raw material.

A second phase of Abu Dabbab’s development would involve a feldspar processing circuit, bulk material ship loading facilities and associated logistics infrastructure to produce and load up to 2.4 million tonnes per annum of ceramic‐grade feldspar.

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The estimated investment cost of the first phase of the Project is in the range of USD $225‐250 million.

The Term Sheet, once signed, will not be binding on either side and is subject to full due diligence, approvals and fulfilment of required conditions precedent.

Project Environmental Approvals

As reported previously, the updated Environmental Social Impact Assessment (“ESIA”) has been submitted to the Shore Protection Agency and Ministry of Water and Irrigation for approval.

Abu Dabbab Alluvial Project

On 3 July 2012, the Company announced the first product despatch from the mine site. A further two shipments have since been despatched up to the date of this report.

The Board of the Company and the Board of TE JSC have approved the immediate purchase from MSP Engineering Pty Ltd of a demountable modular gravity separation plant comprised of rougher and cleaner spiral separators with a nominal treatment capacity of 50 tonnes per hour (tph) of ‐2 mm alluvial material (the “Spiral Plant”). The combined production capacity and improved recovery is expected to increase cassiterite production from the current rate of around 10 to 12 tonnes per month, containing on average between 5.5 and 6.6 tonnes of tin, to approximately 145 tonnes per month, containing on average 80 tonnes of tin, from February 2013.

The spiral plant is scheduled for delivery to site by early January 2013 and is expected to be in full production by the end of January 2013. The estimated total capital cost of the expansion is approximately US$550,000 with payment of approximately US$440,000 of this sum deferred until March 2013.

TE JSC has also entered into a Supplementary Contract for digging, loading, transporting and screening of alluvial materials with mining contractor Orbit Star Company (“Orbit”) pursuant to which Orbit will mine and screen 1,000 bank cubic metres (“BCM”) of ore per day until January 2013 and 3,000 BCM per day of ore and waste thereafter with payment of that portion of monthly invoices in excess of US$50,000 deferred until March 2013. As a result it is expected that a stockpile equivalent to approximately 26,000 BCM of ‐2 mm material and a stockpile equivalent to approximately 24,000 BCM of ‐4+2 mm material available for treatment will be established by early January 2013.

Revenue from tin concentrate sales over the eight‐month project life is expected to be approximately US$12.4 million, assuming a tin price of US$20,000 per tonne. Direct and indirect cash costs for the project (excluding capital expense) are estimated at US$5.3 million over the same period. Total capital cost for the project after the completion of the expansion and including capital costs already incurred is estimated to be US$1.2 million.

MENA Mining Show

The Company attended and presented at the MENA Mining Show 2012 held in Dubai from 21 to 23 October, 2012. The presentation delivered by Mr Jon Starink, Executive Director, is available on the Company's website. The MENA Mining Show provided the opportunity for the Company to promote its projects and was seen as an important event to increase the profile of the Group in the MENA region.

ERITREA (ADOBHA PROJECT)

Gippsland’s 100% owned subsidiary Adobha Resources (Eritrea) Pty Ltd holds the Adobha Exploration Licence covering 2,100 km2 and the Gerasi South Exploration Licence covering 100 km2 in the highly prospective Adobha region in the State of Eritrea.

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On 6 July 2012, the Company announced that a drilling rig was being mobilised to the Adobha Project site to commence drilling the Versatile Time Domain Electro Magnetic system (“VTEM”), gravity and geochemical targets. Despite some logistical difficulties caused by the start of the wet season the drilling commenced on 13 July.

During the period, the Company completed the first part of a 5,000m drilling programme on the Adobha Project in Northern Eritrea. A programme of 53 holes totalling 2,845m tested six of the high to medium ranked VTEM anomalies that were accessible.

Heavy rains associated with the wet season made movement between the sites difficult and precluded testing of some of the targets where the only access was along river beds. Assay results from the programme have now been received for most of the holes which were completed during the period 13 July to 10 September.

The best RC drill intersections are shown in Table 1.

				Table 1	Table 1	**Adobha **	Pro	t RC cti ject Bes drill interse	t RC cti ject Bes drill interse	t RC cti ject Bes drill interse	ons
Anom	aly	Hole		Fro m (	m)	To	Interval		Grade (pp	m)	N‐UTM	E‐UTM
						m) (		(m)
V11		RCAD11		40		46		6	2,377 Zn,
									654Pb		1885351	406469
V13		RCAD03		46		62		1 6	720 Cu		1924918	406363
V14		RCAD05		4 0		68		28	410Cu		1918720	410861
		Incl.		42		46		4	1,435 Cu
14 V		RCAD	06	0		26		2 6	1,638Cu		18797 19	410832
		Incl.		22		24		2	7,597 Cu

The drilling results received to date indicate that the area is mineralised and that additional geological mapping and geochemical sampling will be required prior to the second phase of drilling.

Exploration is continuing in the Gerasi South EL where the focus is on gold mineralisation trending north from the Zara Project (Koka deposit) located 16km to the south of the southern boundary of the tenement. This work is mainly drainage geochemical sampling and geological mapping.

CORPORATE

Resignation of Director

On 12 July 2012, Mr John Dunlop resigned his position as Director of the Company.

Non­Renounceable Rights Issue

On 2 August 2012, Gippsland announced a non‐renounceable rights issue to shareholders with a record date of 14 August 2012 (5pm AWST) on the basis of three new shares for every seven existing shares at an issue price of 0.6 cents per new share ("Rights Issue"). The Rights Issue was successfully completed and raised a total of $1.38 million before issue costs. In all, 55% (almost 230 million) of the shares on offer were subscribed.

Research Note

Petra Capital has issued a research note on Gippsland. The research note is available on the Gippsland website www.gippslandltd.com under Investor Relations ‐ Broker Evaluations.

Annual Report

Gippsland's Annual Report for the 2011/2012 year was released on 16 October 2012. The document is available on the Company's website.

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Notice of Annual General Meeting

On 16 October 2012 the Company's Notice of Annual General Meeting was released to the market and posted to shareholders. The meeting will be held at 12:30pm (WST) on 16 November 2012 at Gippsland's corporate headquarters located in Claremont, Western Australia.

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Ian Gandel Chairman

Gippsland Limited www.gippslandltd.com

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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