Gippsland

Gippsland Limited (ASX: ‘GIP’; FRA: ‘GIX’) (‘Gippsland or the Company’) advises that the Board of Gippsland has resolved to pursue the spin off via an IPO and listing on ASX Limited (‘ASX’) of Gippsland’s 100% owned Adobha Project located in the State of Eritrea and Gippsland’s 40% interest in the Heemskirk Tin Project located in Tasmania.

Gippsland’s primary focus is on the development of its flagship 44.5 million tonne Abu Dabbab Tantalum-Tin-Feldspar Project located in Egypt and to progressing the financing and construction of Abu Dabbab, which has the potential to be the world’s largest single source of highly strategic supermetal tantalum.

The new public company (‘Newco’) that will seek to list on ASX will purchase from Gippsland, the Adobha Project and Gippsland’s 40% interest in the Heemskirk Tin Project, in exchange for equity in Newco. Newco will seek to raise sufficient funds to explore the Adobha Project via an underwritten IPO prospectus, with Gippsland shareholders to be offered on a pro-rata basis, the opportunity to subscribe for this equity in Newco.

It is the Board of Gippsland’s view that the Adobha Project and Gippsland’s 40% interest in the Hemskirk Tin Project are not currently attributed a significant valuation by the market and also believe that those two assets would benefit from dedicated funding via an IPO of Newco on ASX.

Adobha Project

The Adobha Project is comprised of a 2,100 km2 Exploration Licence plus three 100 km2 Prospecting Licences in the Adobha region of the State of Eritrea, all of which are 100% owned by Nubian Resources Pty Ltd, which is a 100% owned subsidiary of Gippsland.

These four tenements secure a large area encompassing a number of promising base metal prospects discovered by Gippsland during recent reconnaissance geochemical and geological surveys.

The geochemical surveys and subsequent follow-up exploration involving rock-chips sampling and geological mapping identified large areas of visible copper mineralization, some of which contain associated lead and zinc. The geochemical surveys targeted the highest ranked of the interpreted Thematic Mapper (TM) satellite image anomalies.

A number of anomalies are still to be examined and the vast majority of the funds raised by Newco via the IPO will be used to undertake this further exploration.

A map of the 2,400 km2 area that the four tenements cover and which constitute the Adobha Project and a detailed document can be found here http://www.gippslandltd.com/.