STREAMPLAY STUDIO LIMITED — Interim / Quarterly Report 2013

Apr 29, 2013

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THIRD QUARTER ACTIVITIES REPORT

Period: 1 JANUARY – 31 MARCH 2013 Release Date: 30 APRIL 2013

The Directors of Gippsland Limited (“Gippsland” or “the Company”) [ASX: GIP, FRA: GIX] provide the following Activities Report for the period January to March 2013, together with details of events up to the date of this report.

HIGHLIGHTS

• Consortium of Egyptian banks appoints Independent Technical Advisor;

• Demountable modular 50 tonnes per hour spiral plant commissioned; and

• Completion of Non‐Renounceable Rights Issue which raised $1.65 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”).

The Company is moving forward with the Consortium but has been approached by a further three substantial Gulf financial institutions expressing interest to participate in the debt financing package.

Opportunities for mezzanine debt financing of TE JSC for part of the balance of the funds required for the development of the Project are being pursued.

The balance of the funds required for the development of the Project after senior debt financing and mezzanine debt financing (if any) is likely to be contributed to TE JSC by way of shareholder loans to be provided by Tantalum International Pty Ltd (“Tantalum International”) which is presently a wholly owned subsidiary of the Company (“Shareholder Funding”).

To avoid significant raisings for the purpose of providing the Shareholder Funding for the Project, which might be highly diluting for the Company’s present shareholder base, the Company’s preferred approach is to raise all or substantially all of these funds by way of securing investment by MENA financial institutions or industry groups in Tantalum International or a Special Purpose Vehicle formed for such a transaction.

Two such potential MENA investors acting in concert have advised the Company that their respective Boards have approved an investment in Tantalum International in principle. Preliminary technical due diligence meetings have taken place and the potential investors have advised the Company that they have appointed an Independent Technical Advisor ("ITA") to assist them in the evaluation of the Project and the opportunity to invest in Tantalum International.

In addition, a number of other prospective investors for Tantalum International have been identified and in many cases preliminary meetings have been held.

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The Consortium has finalised the appointment of an ITA to assist it in the Transaction. After a tendering process the Consortium has selected Wardell Armstrong International as its ITA. Wardell Armstrong International is a UK based independent consultancy firm which provides a wide range of technical, professional and management services for all aspects of the exploration, delineation, assessment, extraction and processing of mineral resources.

The Consortium has instructed Wardell Armstrong International to prepare an initial technical report with a scope of work including a comprehensive summary of the global tantalum market, a high level review and validation of the business model and its assumptions, and a high level review and validation of the Project’s technical feasibility milestones.

Subject to a satisfactory outcome of this high level review, the Consortium intends to proceed to obtaining credit committee approval for the Transaction and to the final negotiation and execution of a definitive term sheet, which the Company expects to contain some conditions precedent that will need to be fulfilled prior to the first drawdown.

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

A demountable modular gravity separation plant comprising 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”) arrived on site on 17 January 2013.

The Spiral Plant is intended to treat approximately 30 tph of ‐2 mm dry feed derived from ROM mining and ROM screening operations and to retreat approximately 20 tph of accumulated tailings from the previous operations of the HPC‐30 circuit.

Installation of the Spiral Plant equipment was completed by 5 February and dry commissioning was completed by 13 February. Wet commissioning (water only) of the plant commenced on 13 February and was completed on 26 February. Commissioning with feed material started on 26 February.

During wet commissioning the locally sourced HDPE tailings discharge pipeline failed repeatedly and has been replaced. Otherwise the plant was successfully wet commissioned.

The start of processing operations with ‐2 mm dry feed derived from ROM mining and screening operations and from stockpiles has encountered unexpected contamination of the ‐2 mm feed with occasional coarse material and the feed circuit was modified to protect the Spiral Plant from this material.

In January it was recognised that the HPC‐30 tailings materials were contaminated by occasional stones entrained by the contractor during movement from the HPC‐30 circuit to stockpile. The presence of this material is problematic in the Spiral Plant. As this tailings material is damp, dry rescreening of this material prior to presentation to the Spiral Plant was not considered practical. Accordingly, a wet screening circuit was designed using elements of the HPC‐30 circuit and a new DSM screen unit which is presently being installed. Pending commissioning of the HPC‐30 tailings re‐ screening circuit, the Spiral Plant has been operated with ‐2 mm dry feed derived from ROM mining and screening operations and from re‐screening of stockpiles.

The nominal capacity of the Spiral Plant is 50 tph or 30,000 tonnes per month at around 85% availability. At an average feed grade of ‐2 mm feedstock of around 1.8 to 2 kg tin per tonne and at 90% recovery, the plant is expected to produce between 50 to 55 tonnes of tin contained in concentrate per month. Options are presently being evaluated for the treatment of +2 mm material.

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Cassiterite in the ‐4+2 mm size fraction is substantially liberated and recovery using a jig circuit is technically feasible. Cassiterite in ‐20+4 mm size fractions are typically present as composite particles and recovery of cassiterite from these size fractions would require crushing. The viability of installing a jig circuit or a contract crushing circuit is being evaluated. Should a circuit to process ‐4+2 mm material begin operation, additional production from this circuit would increase production by between 20 to 25 tonnes of tin in concentrate per month.

Mining operations at Wadi Mubarak placer deposit commenced in late March.

During the quarter, the Company made two shipments (shipments #5 and #6) of cassiterite. A summary of tin sales made from 1 January 2013 to the date of this report are as follows:

Shipment	Date of Sale	Fina de l Gra	Contained Tin	Sale Price of Tin	Sale Price of Tin		Total Gross	Total Gross	Total Gross	Total Gross
Number	to Smelter	(Sn)	(tonnes)	(USD per ton	ne)	P	ro	ceeds (US		D)
						(re ferNote			1)
4	8/1/13	61.340%	6.121	24,050				147,205
5	22/2/13	58.885%	5.850	23,500				137,481
6	25/3/13	58.810%	5.853	22,720				132,983

Note:

1. Total Gross Proceeds is calculated prior to the deduction of toll treatment charges.

As at the date of this report, a further two shipments (shipments #7 and #8) had departed Egypt and were in transit to Malaysia Smelting Corporation in Penang, Malaysia.

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.

Exploration continued during the quarter with systematic rock‐chip sampling, soil sampling and geological mapping of all of the VTEM anomaly areas and interpreted geological areas of interest. The work has identified numerous areas of artisanal workings which have been systematically sampled. Most of the artisanal workings have been located in the Gerasi South EL and the southern part of the Adobha 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.

The work has identified an area of interest to the north of Area 4 (see Figure 1) where two sub‐parallel zones of quartz veins with associated artisanal workings have been located. These northeast trending vein sets have been rock‐chip sampled. Of 98 samples collected, 57 contained >0.1g/t Au of which 28 samples contained >0.4g/t Au. Channel sampling along five lines returned >0.1/g/t Au in 17 of the 46 samples with a maximum of 1.6g/t Au over 2m in channel No A4‐04 (395354E/1856266N) and 1.60g/t Au over 2.1m in channel sample A4‐03 (395353E/1856212N).

The Rabat prospect located in the southeast corner of the Adobha EL, contains some old workings dating from the Italian colonial era. Rock‐chip sampling of veins returned some high copper values. Of 17 samples collected, 11 returned values of between 1.8 to 4.76% Cu. The veins and workings occur within a sequence of mafic to felsic volcanics adjacent to a large structural feature. To the west of the structural feature is an overlying sequence of clastic sediments. This particular stratigraphic sequence lies in close proximity to a large structural feature and enhances the area as a target for VMS style deposits.

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Rabat Prospect – results of rock‐chip sampling

S_No	UTME	UTMN	Au_ pb p	C	u (%	)
689353	417855	1859078	6		2.17
689354	416612	1859736	9		1.49
689504	416723	1862890.7	73		0.13
689505	416809	1 861881.2	13		1.38
689506	416809	1 861881.2	24		2.46
689507	417465	1860331	2 05		1.20
689508	417440	1860383	2		0.01
689509	417435	1860534	10		4.06
689510	417563	1860472	9		4.75
689511	417543	1860501	7		1.93
689512	417471	1860859	19		4.26
689513	417318	1861210	0		0.02
689514	417150	1861333	0		0.03
689515	416183	1859950	0	< 0.01
689516	416552	1859146	1		0.04
689517	416571	1859106	88		2.09
689518	416558	1861051	35		2.26

CORPORATE

Non­Renounceable Rights Issue

On 6 March 2013, Gippsland announced a non‐renounceable rights issue to shareholders with a record date of 18 March 2013 (5pm AWST) on the basis of one new share for every four existing shares at an issue price of 1 cent per new share ("Rights Issue"). The Rights Issue was successfully completed and raised a total of $1.65 million before issue costs. In all, 55% (almost 165 million) of the shares on offer were subscribed. The Rights Issue closed in April 2013 and shares were not allotted until 12 April 2013. Therefore funds raised in the Rights Issue are not included in the Appendix 5B “Mining Exploration Entity Quarterly report” for the quarter ended 31 March 2013.

RIU xplorers ConferenceE

The Company attended and presented at the RIU Explorers Conference in Fremantle, Western Australia, from 13 to 14 February, 2013. The presentation delivered by Mr Ian Gandel, Chairman, 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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Figure 1: Adobha Exploration Licence – Area 4 & Kurub Prospects

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Figure 2: Spiral Plant at the Abu Dabbab Alluvial Mining Project

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Figure 3: Abu Dabbab Screening and Processing Plant

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