Gold Exploration Update

RNS Number:8032Y
Gippsland Limited
23 February 2006

23 February 2006

GIPPSLAND LIMITED ("Gippsland" or "the Company")

GOLD PROJECTS EXPLORATION COMMENCES

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

* 1,000 metres mechanical trenching

* 14,000m air-core and RC drilling programme

* 3 month drilling programme expected to confirm the extension at depth of the
highly encouraging surface gold results.

* Expansion of drilling programme

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

Gippsland (ASX & AIM: GIP) announces that a detailed trenching programme
commenced today in the Company's highly prospective Wadi Allaqi tenements
located to the south-east of Aswan in Egypt.

The 1,000 metre mechanical trenching programme will focus initially on the Seiga
gold deposit where recent rock chip sampling returned 20.3m at 7.40g/t Au
including 4.3m at 14.31g/t Au and 4m at 10.52g/t Au within a 50.5m wide zone of
mineralisation having an average grade of 5.5g/t Au. Rockchip sampling and
shallow trenching at Seiga has also identified a 250m long zone of gold
mineralisation within a 1.2km long shear zone.

The two week trenching programme will be immediately followed by a 14,000m
drilling programme to be undertaken by Perth based contractors Wallis Drilling.
The new Mantis multipurpose rig to be employed at Wadi Allaqi is scheduled to
arrive in Egypt on 3 March 2006. Systematic drilling will be conducted along the
untested portions of the 1.2km Seiga shear zone.

The rig will also be used to drill test other highly prospective gold and
copper-nickel prospects in the Wadi Allaqi region including eleven historical
gold mines and workings plus some targets identified by recent geochemical
exploration. One such high priority drilling target is the nearby Um Shashoba
prospect where sampling of wall rocks adjacent to ancient workings gave a best
result of 11.9m at 2.22g/t Au including 2m at 4.19g/t Au. At Haimur the drilling
will test geochemical anomalies where recent follow-up trenching intersected 5m
at 44.45g/t Au. There is no record of previous drilling at any of the gold
prospect areas.

Commenting today Jack Telford, Executive Chairman, of Gippsland said: "The Wadi
Allaqi gold exploration results achieved to date Gippsland are very very
encouraging. The exploration that commenced today is expected to greatly expand
our knowledge of the area, justifying the introduction of a second drill rig
which the Company is currently endeavouring to access."

RJ (Jack) Telford
Executive Chairman

For further information:
Jack Telford
Gippsland Limited
www.gippslandltd.com
Tel: [phone]
[e-mail]

Les Polden
HB-corporate
Tel: [phone]
[e-mail]

Leesa Peters / Laurence Read
Conduit PR
Tel: [phone]
[e-mail]
[e-mail]

Note: In accordance with Listing Rule 5.6 of the Australian Stock Exchange
Limited, 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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