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ADDITIONAL TIN REVENUE



ASX-LSE 081211 Alluvial Tin Resource.doc Page 1 of 3
11 December 2008

ABU DABBAB ALLUVIIAL TIIN RESOURCE

Highlights

• Inferred Resource of 438,000m3 containing 760 tonnes of recoverable tin metal
• Potential for additional revenue of US$8.7 million
• Net cash bonus of US$5.1 million during the first year of operation

Directors of Gippsland Limited ("Gippsland" or "the Company") [ASX, AIM: GIP, Deutsche
Börse: GIX] announce today that the Company has completed a scoping study ("study") in
relation to an extensive alluvial tin deposit contained within the 20km2 Exploitation
Licences covering the 44.5 million tonne Abu Dabbab tantalum-tin-feldspar project in
Egypt.
Based on exploration data gathered during the early 1970s and using a high tin cut off
grade of 1.2kg/m3, the Company has estimated an Inferred Resource of 438,000m3 of
alluvium containing in excess of 760 tonnes of recoverable tin metal within the alluvial tin
deposits explored.

Given that the current Inferred Resources only include the higher-grade basal parts of the
channels, the Directors are confident that additional resources of alluvial tin will be
delineated within the Exploitation Licences.

The previous exploration work utilised the
same high tin cut-off grade, effectively excluding large quantities of the overlying tinbearing
alluvium.

These areas are currently being evaluated as part of the Company"s
continuing tin exploration programme within the region.

The overlying tin-bearing alluvium
is being re-assessed and additional sampling has been completed, which is expected to
support the promotion of a large proportion of the presently defined Inferred Resource to
the higher Indicated Resource classification.

The study indicated that the recovery of the alluvial tin can be efficiently recovered by
screening the alluvium following which the fines will be delivered to the gravity circuit of the
main Abu Dabbab tantalum-tin production facility.

Accordingly, minimal additional plant
and equipment will be required to process and recover the alluvial tin, making it an
extremely cost effective process.

The alluvial tin concentrate will be smelted in the Abu
Dabbab submerged arc electric furnace to produce London Metal Exchange grade tin
metal.

Based upon the present tin price of US$11,500 per tonne, the scoping study indicated that
the alluvial tin has the potential to generate an additional US$8.7 million revenue during the
one year it will take to process the material and in doing so will generate a net cash bonus
for the overall Abu Dabbab project of approximately US$5.1 million during the first year of
operation.

For further information on the Abu Dabbab tantalum-tin-feldspar project, please visit the
Company"s website www.gippslandltd.com

RJ (Jack) Telford
Executive Chairman
Gippsland Limited
www.gippslandltd.com

For further information, please contact:
Jack Telford Fiona Hyland
Gippsland Limited Investor Relations
T: +61 8 9340 6000 M: +44 777 600 5847
E: E:
Oliver Stansfield Daniel Fox-Davies
Fox-Davies Capital Limited Fox-Davies Capital Limited
T: +44 20 7936 5200 T: +44 20 7936 5200
E: E:
Matthew Thomas Nandita Sahgal
Seymour Pierce Limited Seymour Pierce Limited
T: +44 20 7107 8000 T: +44 20 7107 8000
E: E:

Notte::
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.

 




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