GIP Gippsland

RNS Number:3975R
Gippsland Limited
19 September 2005



19 September 2005

Gippsland Limited

+++++++++++++++++++++++++++++++++++

Abu Dabbab project finance

Locked Cycle Testwork to Confirm Tantalum Recoveries
Increased Tantalum & Tin Production

+++++++++++++++++++++++++++++++++++

Gippsland Limited ("Gippsland") is pleased to announce that negotiations with a
major international banking institution ("Bank") for the financing of the Abu
Dabbab tantalum-tin project are progressing well. As part of the Bank's due
diligence, Gippsland has been requested to undertake a small locked-cycle
metallurgical testwork programme to re-confirm the tantalum and tin recoveries
achieved in previous feasibility study testwork.

Accordingly, a 1,800kg sample collected from along the 710 metre length of the 3
adits through the deposit is presently being processed in the pilot plant
located in a Perth metallurgical laboratory.

The feasibility study completed in November 2004 determined that Abu Dabbab
would produce some 650,000 pounds of tantalum pentoxide and 1,530 tonnes of tin
metal per year. These quantities are based on bulk mining and a grade of 261g/t
tantalum pentoxide.

By applying a small degree of grade control, the head-grade will be increased by
10 - 20% which in turn is expected to increase production to at least 720,000
pounds of tantalum pentoxide and 1,680 tonnes of tin metal per year.

Increased tantalum and tin production will have a marked positive impact on the
project's revenue stream and IRR.

The testwork presently underway will evaluate the recoveries associated with the
elevated mill feed grades and is expected to be completed by mid-October 2005.

For further information please contact:

Jack Telford
Executive Chairman
Gippsland Limited
www.gippslandltd.com
Tel: +61 (0)8 93898611
jtelford@gippslandltd.com

Leesa Peters
Laurence Read
Conduit PR
Tel: +44 (0)20 7618 8708
leesa@conduitpr.com
laurence@conduitpr.com

Bill Sharp
Les Polden
Hoodless Brennan & Partners Plc
Tel: +44 (0)20 7610 8565
B.Sharp@HB-Corporate.com
L.Polden@HB-corporate.com




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