RNS Number:7922D
Gippsland Limited
31 May 2006

31 May 2006

Gippsland Limited ("Gippsland" or "the Company")

+++++++++++++++++++++++++++++++++++++++++
IFC $2.7M EQUITY INVESTMENT IN GIPPSLAND
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Gippsland (ASX & AIM: GIP) today announces that pursuant to the Mandate
announced on 7 March 2006, the International Finance Corporation (*) ("IFC") has
exercised its option to subscribe for 25 million new fully paid ordinary
Gippsland shares at a price of $0.108 (approx #0.044) per share to raise $2.7
(approx. UK#1.1) million cash.

The 25 million shares issued to the IFC shall each have an attaching free
unlisted option having an exercise price of A$0.135 (approx. UK#0.055) and a
life of six years. Gippsland may require the IFC to exercise 12.5 million of
these options in the event that Gippsland shares trade at a weighted average
price equal to or greater than A$0.20 (approx. UK#0.081) for a period of 20
trading days, or relinquish the 12.5 million options.

The issue of the above securities was approved at the Extraordinary General
Meeting of Gippsland shareholders held on 16 May 2006.

Application will be made for the ordinary shares to be admitted to trading on
AIM, which is expected to commence on 6 June 2006.

Following this subscription, IFC will hold 25,000,000 shares representing 10.69%
of the ordinary share capital of the Company.

Gippsland Executive Chairman Jack Telford stated: "We are pleased to partner
with IFC at this important stage in our development. The IFC's investment and
vast international and industry experience will assist us in developing our
tantalum, tin, and potential gold projects. It will also provide valuable
guidance on community engagement and other mining development best practices.
The exercise by the IFC of the option for $2.7 million represents strong
testament to the quality of Gippsland's Egyptian projects and the Company in
general."

RJ (Jack) Telford
Executive Chairman

For further information please contact:
Jack Telford
Gippsland Limited
www.gippslandltd.com
Tel: +61 (0)8 93898611
jtelford@gippslandltd.com

Laurence Read / Leesa Peters
Conduit PR
Tel: +44 (0)20 7429 6605
leesa@conduitpr.com
laurence@conduitpr.com

Les Polden / Luke Cairns
Hoodless Brennan Plc
Tel: +44 (0)20 7538 1166
L.Polden@HBcorporate.com
L.Cairns@HBcorporate.com

--------------------------

(*) Established in 1956, IFC (www.ifc.org) is part of the World Bank Group. The
IFC is the largest multilateral source of loan and equity financing for private
sector projects in the developing World where it promotes sustainable private
sector development primarily by financing private sector projects, assisting
private companies, financing in international financial markets whilst providing
advice and technical assistance to businesses and governments.  Its strong
shareholder base, triple-A ratings, and the substantial paid-in capital base
allows the IFC to raise funds for its lending activities on favourable terms in
the international capital markets.




                      This information is provided by RNS
            The company news service from the London Stock Exchange

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