GIP Gippsland

RNS Number:7663T
Gippsland Limited
27 March 2007



27 March 2007



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



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ADDITIONAL SEIGA GOLD DRILLING TARGETS

To view geological graphics associated with this release, please refer to the
Announcements section of the Gippsland website www.gippslandltd.com

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SUMMARY



*  Wide zones of anomalous gold in rock-chip sampling (120m at 0.59g/t Au).

*  Anomalous gold values over a strike length of 330m.

*  Highest gold grade of 4.61g/t over 5m interval.

*  Three gold targets identified from regolith samples with gold values up to
   3.06g/t.

*  Diamond drilling planned for Seiga resource upgrade.

*  Resource target of 500,000 ounces gold by December 2007



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ROCK-CHIP SAMPLING



Gippsland today announces the results of additional rock-chip sampling from the
Seiga South Zone at the Company's Seiga prospect at Wadi Allaqi, Egypt.  The
sampling was part of a programme to test a 1,200m long ridge that hosts the
ancient Seiga workings.  The sampling was undertaken to provide better target
selection as drill access is difficult along parts of the ridge with a bulldozer
required for drill pad preparation.  The latest results are from five profiles
(CP17 to 21) that test 330m of the mineralised shear at the southern end of the
ridge in the area referred to as the Seiga South Zone.



The results of the sampling delineated multiple, wide zones of anomalous,
laterally continuous gold mineralisation over the remaining 330m of the area
sampled.  The best results for each profile are summarised in the table below
and include a 10m wide zone averaging 3.2g/t Au.  In terms of exploration
potential the wider zones of lower grade mineralisation are considered to be
very significant as they represent a much larger target.  The widest
intersection is 120m with an average grade of 0.59g/t Au is of considerable
interest as the lower cutoff for the previously announced Seiga Inferred
Resource was 0.5g/t.



Table 1 - Seiga South Zone rock-chip sampling - best results ( > 0.1g/t Au)
Profile                       Interval (m)                  Length (m)                    Gold (g/t)
CP17                          30 to 60                      30                            0.46
CP18                           0 to 15                      15                            0.33
CP19                          35 to 70                      35                            1.31
CP19                          90 to 105                     15                            0.96
CP19                          90 to 145                     55                            0.36
CP20                          40 to 160                     120                           0.59
CP21                          30 to 120                     90                            0.71
CP21                          85 to 95                      10                            3.20



The western end of profile CP19 (35m at 1.31g/t) represents the southern
extension of the good intersections recorded in drill holes CRC040 & 041 located
50m to the north.  These two holes intersected 28m at 1.14g/t Au and 22m at
1.74g/t Au respectively.



A line of RC drill holes previously drilled along flat ground in the wadi
immediately to the south of line CP21 intersected low grade mineralisation in
four adjacent holes (CRC045, 71, 75 & 74).  A single hole (CRC070) drilled
adjacent to profile CP19 intersected 23m of low-grade mineralisation over two
intervals.



Table 2 - Previously reported drill hole intersections referred to in the text
Hole                          Interval (m)                  Length (m)                    Gold (g/t)
CRC040                          0 to 28                     28                            1.14
CRC041                          8 to 30                     22                            1.74
CRC045                          1 to 8                      7                             0.19
CRC070                          1 to 12                     11                            0.32
and                            32 to 44                     12                            0.22
CRC071                         16 to 30                     14                            0.49
CRC074                          1 to 16                     15                            0.61
CRC075                          1 to 16                     15                            1.64
CRC077                          4 to 8                      4                             0.51
CRC078                          4 to 30                     26                            0.50



It is planned to complete systematic RC drill testing of the rock-chip anomalies
during April when a bulldozer will be on site to complete the access and drill
pad construction.



REGOLITH SAMPLING



A small regolith sampling programme was completed over an area of thin wadi
sands adjacent to the southwest of the ancient workings.  Samples were collected
at 20m intervals along nine lines 100m apart.  The programme was designed to
test for mineralised shears below the wadi sands in an area that had not been
systematically covered by trenching or RC drilling.  Most of the samples
contained anomalous gold, the highest being 3.06g/t.  Three targets were
identified in areas where there has been no previous exploration which will be
drill tested during the April drilling.



RESOURCE DRILLING



Additional RC drilling is planned at Seiga where a JORC Inferred Resource of
1.5Mt at 1.6g/t Au for a total of 93,000oz has been outlined to date.  The work
will include resource infill drilling around the previously defined Seiga Main
Zone.  This work will be followed-up by diamond drilling.  The diamond drilling
equipment is currently being sent from Australia to Egypt to enable the deposit
to be drill tested below 150m.  The Mantis 330D drill rig presently on site will
continue to test numerous high-priority targets within the Company's Wadi Allaqi
tenements.



Resource definition drilling is also planned for the Shashoba and Haimur
tenements where drilling by the Company during 2006 delineated substantial gold
intersections.



Gippsland Chairman Jack Telford stated "An aggressive exploration programme has
been designed to identify a JORC resource of at least 500,000 ounces of gold
during 2007 from the Wadi Allaqi tenements with the view to increasing this to
1Moz within 18 - 24 months.  These are considered to be realistic targets given
the resources already identified within a small portion of the Seiga Main Zone
and the encouraging mineralised drill intersections recorded at numerous
locations within the Seiga tenement."


RJ (Jack) Telford
Executive Chairman


For further information please contact:


Jack Telford
Gippsland Limited
www.gippslandltd.com
Tel: +61 (0)8 9340 6000
jtelford@gippslandltd.com


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


Laurence Read / Ed Portman
Conduit PR
Tel: +44 (0)20 7429 6605 / 6607
Laurence@conduitpr.com
Ed@conduitpr.com


Fiona Owen
Grant Thornton Corporate Finance
Tel: +44 (0)20 7383 5100
Fiona.Owen@gtuk.com


Note:


In accordance with Listing Rule 5.6 of the Australian Stock Exchange 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.  Dr
Chisholm who is an Executive Director of Gippsland Limited 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.


Resource estimation methodology and classification is consistent, unless
specifically stated to the contrary, with the Australasian Code for Reporting of
Exploration Results, Identified Mineral Resources and Ore Reserves and included
Guidelines to the Reporting of Identified Mineral Resources and Ore Reserves
(Code) as per the Joint Committee of the Australasian Institute of Mining and
Metallurgy, Australian Institute of Geoscientists and the Australian Mining
Industry Council (JORC) and dated December, 2004.


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

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