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Highly Successful Quarter



ASX LSE Quarterly Jul - Sep 0801027.doc Page 1 of 5
Release date: 27 October 2008
FIIRST QUARTER ACTIIVIITIIES REPORT
July - September 2008
HIIGHLIIGHTS
ABU DABBAB


• 11% total Mineral Resource increase from 40 to 44.5 million tonnes
• 30% increase in total Measured and Indicated Resources
• Increase in tantalum grades
• Doubling of Ore Reserves from 14.6 to 30.24 million tonnes
• Confirmation of high grade 40% tantalum product
• Confirmation of low radioactivity tantalum product
• Environmental Impact Assessment Study update
• Receipt of EPCM offers
• Project funding progress


HEEMSKIRK TIN PROJECT TRANSACTION
SUCCESSFUL PLACEMENT OF SHARES
ABU DABBAB ABU DABBAB
The prime assets of Gippsland Limited ("Gippsland" or "the Company") (ASX/AIM "GIP") are the world-scale
44.5 million tonne Abu Dabbab and the 98 million tonne Nuweibi tantalum deposits located in Egypt.

The
Company, in which the International Finance Corporation ("IFC") part of the World Bank Group is a
substantial shareholder, has completed a definitive Feasibility Study based upon a design mill-feed rate of 2
million tonnes per annum.

It is scheduled to produce 650,000 pounds of tantalum pentoxide (Ta2O5), plus
1,530 tonnes of LME grade tin metal per year.
The Company has concluded a 10-year tantalum off-take agreement with the German tantalum major HC
Starck GmbH for the supply of 6 million pounds of tantalum pentoxide, representing more than 90% of the
total initial tantalum production during this period.

The Abu Dabbab project alone is expected to have a mine
life of 20 years, however given that Gippsland"s total JORC Code Resources exceed 140 million tonnes, the
Company will look to increase tantalum and tin production substantially following commencement of
operations.
Gippsland Directors are presently engaged in project finance negotiations at an advanced level with the
German government owned KfW Bankengruppe and are targeting an attractive 80% debt 20% equity facility,
which the Directors anticipate will be concluded successfully prior to the close of 2008.
RESOURCE INCREASE AND UPGRADE
During the Period all outstanding tantalum and tin assays resulting from a small Abu Dabbab infill drilling
programme were received.

The programme was designed to allow an upgrade of the Inferred Resources to
the higher Indicated and Measured categories.


• The new drilling has resulted in an 11% global resource increase from 40 million tonnes to 44.5
million tonnes, of which 32.5 million tonnes (73%) are now in the Measured and Indicated categories.
ASX LSE Quarterly Jul - Sep 0801027.doc Page 2 of 5
• As a result of the new drilling the global tantalum pentoxide (Ta2O5) grade has increased from 243g/t
to 250g/t.
The March 2008 resource update (Table 1) incorporated the results of the previous drilling plus the initial RC
drilling.

This confirmed the previous resource estimate of 40Mt.
Table 1: Abu Dabbab Resources March 2008 (100g/t Ta2O5 cut-off)
Category Million Tonnes Ta2O5 grade (g/t) Sn grade (%)
Measured 12.0 261 0.136
Indicated 13 248 0.066
Inferred 15 225 0.063
Total 40 243 0.09
Note: Numbers in table may not correlate exactly due to rounding
The updated resources based on the recently completed diamond drilling are summarised in Table 2 below.
Table 2: Abu Dabbab Resources update July 2008 (100g/t Ta2O5 cut-off)
Category Million Tonnes Ta2O5 grade (g/t) Sn grade (%)
Measured 15.2 290 0.143
Indicated 17.3 250 0.078
Inferred 12 200 0.03
Total 44.5 250 0.09
Note: Numbers in table may not correlate exactly due to rounding
The combined Measured and Indicated Resources of 32.5 million tonnes extend down to 225RL with the
Inferred Resources being confined to the lower part of the deposit below the 225RL.
ORE RESERVE UPGRADE
Following the 30% increase in the Abu Dabbab Measured and Indicated Resources, pit optimisation studies
resulted in a new Ore Reserve estimation of 30.24 million tonnes grading 255g/t Ta2O5 and 0.109% Sn, an
overall 107% increase in total Ore Reserves.
Table 3: Abu Dabbab Ore Reserves, as at August 2008
Category Million Tonnes Ta2O5 grade (g/t) Sn grade (%)
Proved Ore Reserve 15.201 260 0.133
Probable Ore Reserve 15.038 250 0.084
Total Proved & Probable Ore Reserve 30.240 255 0.109
Note: Numbers in table may not correlate exactly due to rounding
The new optimised pit design includes only Measured and Indicated Mineral Resources with all Inferred
Resources located below the current pit floor.

There is no internal dilution due to the even distribution of the
mineralisation within the wireframe but an allowance for 5% dilution at a zero tantalum and tin grade has
been included around the margins of the deposit.
FAVOURABLE MIINIING STRIIP RATIIO
The new resource and reserve modelling undertaken during the period highlighted the fact that for several
years the project will have almost zero mining waste, as operations will focus on mining the mineralisation
outcropping above the wadi floor.

The modelling also determined that overall the project will have a most
favourable waste/ore strip ratio of 0.83/1.0.
HIIGH GRADE TANTALUM PRODUCT WIITH LOW LEVELS OF RADIIOACTIIVIITY
Metallurgical testwork and modelling has shown that the Abu Dabbab project will produce a premium grade
product having a Ta2O5 content of 40%.

Most importantly, the work demonstrated that the Abu Dabbab
tantalum product will not be classified as an International Maritime Organisation (IMO) Class 7 radioactive
material as the combined U3O8 and ThO2 will be well below the maximum limit of 0.1%, thus enabling the
material to be shipped without restriction.
The shipment of IMO Class 7 radioactive materials is highly restricted by IMO regulations to the extent that
they are not permitted to enter the European Economic Zone, Japan and numerous other countries unless
ASX LSE Quarterly Jul - Sep 0801027.doc Page 3 of 5
shipped in a special purpose vessel.

The road transportation of IMO Class 7 materials within Europe and
numerous other jurisdictions is extremely difficult, to the point of being impractical.
ENVIIRONMENTAL IIMPACT & SOCIIAL ASSESSMENT
During the Period the Company took delivery of the updated Environmental and Social Impact Assessment
("ESIA") undertaken by the Egyptian environmental group Environics.

The ESIA update covers changes in
the project associated with the relocation of the plantsite to within 1km of the open pit mine and the use of
seawater for the majority of the process plant.

The findings of the ESIA were positive, not raising any areas
of significant concern.
The ESIA is presently undergoing a final review following which it will be translated into the Arabic language
for presentation to the Egyptian Environmental Affairs Authority ("EEAA") for approval which is expected to
be granted within 60 days.

The Company does not expect any delay in securing the EEAA approval as in the
main the recent changes to the Abu Dabbab project reduce its overall environmental and social impact.
The ESIA has been prepared in accordance with IFC guidelines and World Bank standards.
DELIIVERY OF EPCM OFFERS
During September and October 2008, the Company took delivery of offers by international engineering
groups to undertake the Engineering Procurement & Construction Management ("EPCM") for the Abu
Dabbab project.

The offers have been reviewed by the Company"s lawyer and are presently being adjusted
to reflect the legal advice.
PROJECT FIINANCE DUE DIILIIGENCE
During the period, the German banks KfW IPEX-Bank GmbH ("KfW") and Deutsche Investitions und
Entwicklungsgesellschaft mbH ("DEG") ("Banks"), both being part of the German banking major KfW
Bankengruppe, continued their technical due diligence process being undertaken by Coffey Mining ("Coffey")
on behalf of the Banks.

Coffey engineers have advised the Company that the technical due diligence is
expected to be completed by mid-November 2008.
The Company is advised that the Abu Dabbab legal due diligence being undertaken on behalf of the Banks
by City of London lawyers Milbank, Tweed, Hadley, & McCloy LLP is similarly nearing completion.
As a result of the regular contact with the Banks and the due diligence undertaken to date, the Directors
believe that the Banks and Coffey have maintained a positive attitude towards the Project in spite of the
recent international financial turmoil.
The KfW Bankengruppe, which is 80% owned by the German Federal Government and 20% owned by the
Federal German States or Bundesländer, has been providing banking services to the private sector and
industry world-wide for more than 50 years.
DEG has been financing and structuring the investments of private enterprises in developing and transition
countries for more than 45 years.

DEG is one of the largest European development finance institutions for
the promotion of the private sector.
HEEMSKIRK TIN PROJECT TRANSACTION HEEMSKIRK TIN PROJECT TRANSACTION
During the Period, Gippsland and Stellar Resources Limited ("Stellar") announced that Agreement has been
reached to merge their respective Joint Venture interests in the Tasmanian Heemksirk Tin project (formerly
known as the Zeehan Tin project) into Stellar"s subsidiary Columbus Metals Limited ("Columbus").
The Agreement is conditional upon Columbus raising a minimum of A$10 million (≈UK£4.8M) and being
admitted to the official list of the ASX on or before 31 December 2008 or such later date as may be agreed.
The Agreement prescribes that Gippsland will be issued with 15 million fully paid ordinary Columbus shares
at an Initial Public Offer ("IPO") price of A$0.25 (≈UK£0.12) each or the same number of fully paid ordinary
Columbus shares that Stellar will hold in Columbus at the time of its admission to the official list, if that
number is greater than 15 million.

Upon listing, Columbus will also invite a nominee from Gippsland to join
the board of Columbus as a non-executive director.
ASX LSE Quarterly Jul - Sep 0801027.doc Page 4 of 5
The Heemskirk Tin Project comprises the Severn, Queen Hill and Montana tin resources within the 6km2
Retention Licence 5/1997, located adjacent to the mining town of Zeehan in northwest Tasmania.

As such,
the Heemskirk resources lie within the world renowned Western Tasmanian tin province which hosts such
famous tin mines as Renison, Mt Bischoff and Cleveland.

RL 5/1997 is presently owned 60% by Stellar and
40% by Gippsland.
Stellar is preparing a Prospectus for the IPO of Columbus, however it is likely that the IPO will only proceed
following an improvement in the equities market.
SUCCESSFUL SHARE PLACEMENT SUCCESSFUL SHARE PLACEMENT
During the period Gippsland completed a placing of 17,080,000 fully paid ordinary shares ("Placing Shares")
to UK institutional investors and Australian investors at a price of 2.5 pence (approximately 5.73 Australian
cents) per ordinary share ("Placing").

The Placing, undertaken by one of the Company"s UK brokers Fox-
Davies Capital Limited, raised the sum of UK£427,000 (approximately A$978,500) before costs.
The funds raised under the Placing will be used for working capital purposes and for the further development
of Abu Dabbab.


ANNUAL REPORT ANNUAL REPORT
Gippsland"s 2008 Annual Report to shareholders is available in the Investor Relations section of the
Company"s website.
RJ (Jack) Telford
Executive Chairman
Gippsland Limited
www.gippslandltd.com
For further information please contact:
Jack Telford
Gippsland Limited
T: +61 8 9340 6000
E:
Oliver Stansfield Richard Hail
Fox-Davies Capital Limited Fox-Davies Capital Limited
T: +44 20 7936 5200 T: +44 20 7936 5200
E: E:
Jane Stacey Fiona Hyland
Investor Relations Investor Relations
M: +44 792 292 3306 M: +44 792 292 3307
E: E:
Matthew Thomas Nandita Sahgal
Seymour Pierce Limited Seymour Pierce Limited
T: +44 20 7107 8000 T: +44 20 7107 8000
E: E:
Notte::
In accordance with Listing Rule 5.6 of ASX Limited and Part 2 of the AIM Guidance Notes for Mining, Oil and
Gas Companies, 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 and a Fellow of the Australian Institute of Geoscientists.

Dr Chisholm who
is an Executive Director of Gippsland with over 25 years experience in the mineral industry including the
evaluation of exploration data, mineral resources and ore reserves, has consented to the issue of the
information in this report in the form and context in which it appears.
ASX LSE Quarterly Jul - Sep 0801027.doc Page 5 of 5
Appendiix 1:: Resourrce Esttiimattiion Metthodollogy
The Abu Dabbab resources were estimated by the ordinary kriging method using 25m x 25m x 10m blocks
and upper cuts of 800g/t Ta2O5 and 0.55% Sn within a wireframe model of the mineralised body.

The
primary search ellipse was oriented at 85° towards 100° with search distances of 7m to 206m.

Search axes
2 and 3 were oriented 00° towards 190° and -05° towards 100° respectively with search distances of
between 4.5m and 125m.

A global density of 2.6 was applied.
The resource categories were applied on the basis of sample density with Measured Resources being those
above 325RL, Indicated Resources between 325RL and above 225RL with Inferred Resources located below
225RL.




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