Successful Placing of Shares

    RNS Number : 1283F
  Gippsland Limited
  06 October 2008
   


    6 October 2008

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



    SUCCESSFUL PLACING OF SHARES


    Gippsland Limited, the dual ASX and AIM listed company (code "GIP") developing the 44.5 million tonne Abu Dabbab and the 98 million
tonne Nuweibi tantalum projects, today announces that it has completed a placing of 17,080,000 fully paid ordinary shares ("Placing Shares")
to UK institutional investors and Australian investors at a price of 2.5 pence (approximately 5.73 Australian cents) per ordinary share
("Placing"). The Placing, undertaken by the Company's UK broker Fox-Davies Capital Limited, raised the sum of UK£427,000 (approximately
A$978,500) before costs.  

    The Placing Shares will rank pari passu with all existing fully paid ordinary shares in the Company. Application has been made for the
Placing Shares to be admitted to trading on AIM and the Australian Stock Exchange with trading expected to commence on 9 October 2008. The
total number of ordinary shares on issue following admission will be 323,434,325.

    The funds raised under the Placing will be used for working capital purposes and for the further development of the Company's 44.5
million tonne Abu Dabbab and the nearby 98 million tonne Nuweibi tantalum projects.

    Gippsland has completed a definitive Feasibility Study for the Abu Dabbab project, having a design mill-feed rate of 2 million tonnes
per annum. It is scheduled to produce 650,000 pounds of tantalum pentoxide (Ta2O5), plus 1,530 tonnes of LME grade tin metal per year
commencing late 2010.  

    The Company has also concluded a 10-year tantalum off-take agreement with the German tantalum major HC Starck GmbH for the supply of 6
million pounds of tantalum pentoxide, representing more than 90% of the total initial tantalum production during this period.  The Abu
Dabbab project alone is expected to have a mine life of 20 years, however with Gippsland's total JORC Code Resources (see Appendix A)
exceeding 140 million tonnes, the Company will look to increase tantalum and tin production substantially following commencement of
operations.  Recent enquiries from third party tantalum consumers indicate that an expansion of production would be well supported.

    Gippsland Directors are presently in project finance negotiations with the German government owned KfW Bankengruppe and are targeting an
attractive 80% debt 20% equity facility, which the Directors anticipate will be concluded successfully prior to the close of 2008.

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

    For further information please contact:

 Jack Telford                         Richard Hail
 Gippsland Limited                    Fox-Davies Capital Limited 
 T: [phone]                   T: [phone]
 E: [e-mail]         E: [e-mail] 

 Jane Stacey                          Oliver Stansfield
 Investor Relations                   Fox-Davies Capital Limited
 M: [phone]                  T: [phone]
 E: [e-mail]                E: [e-mail] 

 Fiona Hyland                         Nandita Sahgal
 Investor Relations                   Seymour Pierce Limited
 M: [phone]                  T: [phone]
 E: [e-mail]                  E: [e-mail] 

 Matthew Thomas                       Asa Bridle
 Seymour Pierce Limited               Seymour Pierce Limited
 T: [phone]                  T: [phone]
 E: [e-mail]   E: [e-mail] 
    





    Appendix A

 TOTAL MINERAL RESOURCES      

 Category  Measured  Indicated  Inferred  Total  Cut-off

 Abu Dabbab       

 Million tonnes  15.2   17.3    12   44.5  100g/t Ta2O5
 Ta2O5 (g/t)      290    250   200   250
 Sn (%)          0.143  0.078  0.03  0.09

 Nuweibi      

 Million tonnes  -  48   50   98   100g/t Ta2O5
 Ta2O5 (g/t)     -  147  138  143

 TOTAL ORE RESERVES (inclusive of Mineral Resources)  

 Category  Proved  Probable    Total  

 Abu Dabbab      

 Million tonnes  15.201  15.038    30.240  
 Ta2O5 (g/t)      260     250       255    
 Sn (%)          0.133   0.084     0.109   
                                           
    Note: Numbers in table may not add correctly due to rounding

    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 and a Fellow of the Australian Institute
of Geoscientists. 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.


This information is provided by RNS
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