GIP Gippsland

RNS Number:8331X
Gippsland Limited
21 April 2004



21 April 2004

Gippland Limited

ABU DABBAB PROJECT

The recent substantial rise in the price of tin improves the economics of
Gippsland Limited's ("Gippsland" or "the Company") 40Mt Abu Dabbab
tantalum-tin-feldspar project ("Project").

The Abu Dabbab Project scoping study completed by Lycopodium Pty Ltd indicated
that the Project would produce approximately 1,000 tonnes of tin per annum over
the estimated mine life of 40 years. Tin revenues to be generated from the
Project are the third largest after the revenues to be generated from the sale
of tantalum and feldspar.

The tin revenues contained in the scoping study were based upon a London Metal
Exchange ("LME") tin price of US$3,954 per tonne whereas the current LME tin
price is in the order of US$9,000 per tonne. Based on the scoping study, the
increase in the price of tin is estimated to generate additional revenue of US$5
million per annum over the 40-year period which equates to more than
US$200,000,000 of additional revenue over the mine's projected life.
Consequently, the scoping study Project NPV increases from US$127 million to
US$185 million (at a discount rate of 6%) while the Internal Rate of Return
expands from 36% to 49%.

The Abu Dabbab Project's final economics will be quantified with the completion
of the bankable feasibility study which is being undertaken by Lycopodium. The
bankable feasibility study is scheduled to be completed by mid-July 2004.

The Directors are confident that the increase in the price of tin and the
tightening of the tantalum price bodes well for this world-scale project. The
improving market for these commodities also increases the likelihood of the Abu
Dabbab Project expanding from 1Mtpa to 2Mtpa within 2 years of the commencement
of mining operations.

The 40Mt Abu Dabbab Project is owned by Tantalum Egypt LLC, in which Gippsland
has a 50% interest by way of an incorporated joint venture with the Egyptian
Government. Tantalum Egypt LLC also owns the Mining Licence for the 98Mt Nuweibi
tantalum-tin-feldspar deposit located some 15km from Abu Dabbab.

                                                        www.gippslandltd.com.au
Gippsland Limited                                      info@gippslandltd.com.au


For further information please contact:

Jack Telford                   Laurence Read/Leesa      Bill Sharp
                               Peters
Executive Chairman             Conduit PR               Hoodless Brennan & Partners
                                                        Plc
Gippsland Limited              Tel: +44 (0)20 7936      Tel: +44 (0)20 7610 8565
                               9095
Tel: +61 (0)8 93898611         Fax: +44 (0)20 7995      Fax: +44 (0)20 7538 1625
                               5923
jtelford@gippslandltd.com.au   laurence@conduitpr.com   billsharp@hoodlessbrennan.com




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

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