GIPPSLAND LTD

Gippsland has completed a definitive feasibility study ("DFS") for Abu Dabbab based upon a mill feed rate of 2 million tonnes per year producing in excess of 650,000 pounds of tantalum pentoxide ("Ta2O5") which will make it the world's largest tantalum miner. The Abu Dabbab project will also produce approximately 1,530 tonnes of tin metal per year. Within approximately 2 years of start-up, the project is also scheduled to produce in the order of 1.5 million tonnes per year of ceramic grade feldspar which in turn will result in a tailings stream of less than 0.5 million tonnes per year greatly minimising the environmental impact of the project. Tantalum Egypt has executed a 10-year offtake agreement with the German tantalum refiner HC Starck GmbH for the supply of 600,000 pounds of tantalum per year in the form of a 20% Ta2O5 concentrate. Negotiations are presently in progress to adjust the offtake agreement to reflect the delivery of a high-grade synthetic concentrate ("SynCon") having a Ta2O5 content of >50%.