Gippsland

Gippsland Limited is pleased to announce the preliminary results of an exploration programme completed on its Adobha Project in Eritrea during May 2010. The work followed up some very encouraging results obtained from a reconnaissance drainage geochemical survey of Thematic Mapper (“TM”) anomalies, completed during late October to early November 2009, which yielded anomalous gold and base metal values from three target areas (E14, E21 & E26).

During May 2010 each of the above anomalies was assessed in the field with additional drainage samples collected, geological profiles made and rock-chip sampling of areas of interest. Visible copper in the form of malachite (copper carbonate) was located in rocks in the drainage channels in target areas E21 & E26 and followed to the source where malachite was located in the bedrock.

TM Anomaly E21 (404800E/1905000N)A

Malachite was located in detrital rocks in channels draining a strike length of approximately 2km of the stratigraphic succession. Following up these drainage channels resulted in malachite being located in bedrock discontinuously over a strike length of about 1km. The host rocks included a thick sequence of felsic volcanic tuffs and breccias, some of which contained chloritic-ferruginous-silica alteration and disseminated galena (lead sulphide).

TM Anomaly E26 (411400E/1920400N)ª

Geological traverses identified malachite in detrital rocks in the drainage channels at two localities approximately 2.5km apart along strike. Field examination in the southern area identified discontinuous malachite in bedrock over a width of at least 390m and a strike length of some 520m. The host rocks to this mineralisation include felsic tuffs and breccias. The northern area will be examined in more detail during the next exploration programme.

TM Anomaly E14 (403700E/1888100N)ª

Additional drainage samples and some rock-chip samples were collected to follow up some anomalous gold values detected during the reconnaissance survey.

Sample preparation of the 288 samples collected has been completed in Asmara with the pulps being sent to Genalysis in Perth for analysis.

Gippsland CEO Jack Telford stated: “Our exploration in this highly prospective Adobha region continues to yield very encouraging results. The Directors are confident that the Company’s ‘first mover advantage’ at Adobha will be supported by the batch of samples presently being analysed in Australia.”

RJ (Jack) Telford Director,

Chief Executive Officer

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 has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Dr Chisholm consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.