STREAMPLAY STUDIO LIMITED — Interim / Quarterly Report 2012

Jan 30, 2012

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SECOND QUARTER ACTIVITIES REPORT

Period: 1 OCTOBER – 31 DECEMBER 2011 Release Date: 31 JANUARY 2012

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

HIGHLIGHTS

• Abu Dabbab Alluvial Project on schedule for March 2012 start‐up;

• Follow‐up exploration commences in Eritrea; and

• Divestment of Heemskirk Tin Project Interest

EGYPT ­ ABU DABBAB TANTALUM­TIN PROJECT

Project Debt Finance

Due to the political upheaval in the Middle East during 2011, the Company has re‐focused the search for a financier on major banks and sovereign funds located in the Middle East and North Africa region. Discussions in this regard are ongoing.

Sea Water Intake and Project ESIA

As advised previously, 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, prepared revised drawings of such an arrangement which have been included in the updated Environmental Impact Statement (also known as the Environmental Social Impact Assessment (‘ESIA’) in Egypt).

The ESIA also required updating 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.

The updated ESIA has been submitted to the Shore Protection Agency and Ministry of Water and Irrigation for approval.

Abu Dabbab Alluvial Project

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. These units have arrived at Alexandria Port in Egypt and are expected to arrive on site in early February 2012.

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.

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Mining and processing operations are on schedule 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.

After a competitive tender process, the mining contract was awarded to Orbit Star Contracting. The mobilisation payments have been made and the contractor is expected to be fully operational on site mid‐February.

Gippsland Executive Director, John Dunlop, will head the commissioning team on site during the entire start‐up phase, which is expected to run from mid‐February till the end of March. He will be assisted by Tantalum Egypt JSC (‘TE’) geological professionals on site and supported by the existing accounting and management staff in the TE Cairo office.

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.

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 undertaken during the quarter included satellite image acquisition, map compilation and processing of a small parcel of cassiterite bearing alluvials.

Drilling at Nuweibi planned for the December 2011 quarter has been deferred until 2012 due to the lack of a suitable drilling rig.

ERITREA (ADOBHA PROJECT)

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

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 (1.618 million ounce gold and 0.45 million tonne copper in the Ore Reserves) located some 174 km to the south and the Probable Ore Reserve of 0.760 million ounces of gold at the 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

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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 received the final levelled data for the 5,161 line‐kilometre airborne geophysical survey over the Adobha and Gerasi South licence areas in Northern Eritrea. The airborne geophysical survey covered the 19 target areas selected on the basis of Thematic Mapper (TM) anomalies, geological targets, and geochemical anomalies identified during geochemical surveys by Gippsland completed during late October to early November 2009, May 2010 and July 2011.

The survey flown by Geotech Airborne Limited, during the September 2011 quarter, used a Versatile Time Domain Electro Magnetic system (‘VTEM’) at a line spacing of 200m with a nominal height of 80‐120m determined by the topography. Aeromagnetic data was also acquired as part of the survey. Interpretation of the data by the Company’s consultant geophysicist has identified 16 electro‐magnetic (‘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. It is encouraging to note that in the central part of the project area there is a close association between the VTEM anomalies and regional drainage geochemical anomalies identified from the geochemical sampling completed during Ju y 2011. l

Field inspection of the EM anomalies was completed in early October in order to determine appropriate further exploration with a view to drill testing at the earliest opportunity. Access to the VTEM anomalies varies considerably with some easily accessible for drilling whereas some will require light portable drilling rigs to be flown in by helicopter.

Follow‐up exploration in the areas of the VTEM anomalies has commenced with programmes of geological mapping, in‐fill drainage sampling, and soil and rock‐chip sampling. Gravity surveys are being planned for the high to medium priority VTEM anomalies. Drilling is planned to commence in the March quarter.

The Company has submitted an application for an Exploration Licence to cover the area to the west of the granted Adobha and Gerasi South Exploration Licences.

AUSTRALIA – HEEMSKIRK TIN DEPOSIT

Divestment of Heemskirk Tin Project Interest

During the quarter, Gippsland and Stellar signed a sale and purchase agreement whereby Stellar will acquire the 40% interest held in the Heemskirk Tin Project by Gippsland in return for 43,528,743 Stellar shares and a royalty.

The shares received by Gippsland will be escrowed for 6 months from the date of issue and 50% of the shares are to be escrowed for a further 6 months, subject to listing rule requirements which may impose more extensive escrow periods.

The transaction was approved by Gippsland shareholders at an Extraordinary General Meeting on 20 January 2012 and by Stellar shareholders on 25 January 2012. Completion of the transaction is imminent.

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CORPORATE

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.

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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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