Placing of Ordinary Shares

RNS Number:9088Z
Gippsland Limited
16 March 2006

16 March 06

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

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ISSUE OF SHARES
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Gippsland (ASX & AIM: "GIP") today announces the placing of 24 million fully
paid ordinary shares to UK institutional investors at a price of 5 pence
(approximately 11.8 Australian cents) per share raising the sum of UK#1,200,000
(approximately A$2.84 million) before costs. The placing was undertaken by UK
broker HB-corporate.

These shares will rank pari passu with all existing Gippsland fully paid
ordinary shares. Application has been made for the admission of the new shares
for trading on the London Stock Exchange AIM and the Australian Stock Exchange
with trading expected to commence on 21 March 2006. The total number of shares
on issue following admission will be 201,818,359.

Further to the announcement on 7th March 2006 in respect of the Abu Dabbab
project finance mandate with the International Finance Corporation (IFC) the
funds raised under this placing will be employed to expand Gippsland's
management team including key positions in finance, operations, project
management, metallurgy and geology as the Company moves from an exploration
company to a world scale mining operation.

In addition the funds raised will be used to continue the exploration of the
Company's Wadi Allaqi gold projects in anticipation of confirming a JORC
compliant resource, subject to drilling results, during 2006.

Commenting on the placing, Gippsland Executive Chairman Jack Telford stated
"These additional funds will allow Gippsland to build a world class team capable
of fulfilling the potential of our 40Mt Abu Dabbab tantalum-tin project which is
destined to become a major participant in the global tantalum market. The funds
raised will also facilitate accelerated exploration of our highly prospective
gold projects in Wadi Allaqi."

For further information please contact:

RJ (Jack) Telford
Executive Chairman
Gippsland Limited
www.gippslandltd.com
Tel: [phone]
[e-mail]

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

Les Polden
Luke Cairns
Hoodless Brennan Plc
Tel: [phone]
[e-mail]
[e-mail]



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