Gippsland Limited (‘Gippsland’ or ‘the Company’) [ASX: GIP, FRA: GIX] is pleased to announce that it has received the final levelled data for the 5,161 line-kilometre airborne geophysical survey over the   Adobha and Gerasi South licence areas in Northern Eritrea held by its wholly owned subsidiary Adobha Resources (Eritrea) Pty Ltd.  The airborne geophysical survey covered 19 target areas selected on the basis of Thematic

Mapper (TM) anomalies, geological targets, and geochemical anomalies identified during geochemicalsurveys by Gippsland completed during late October to early November 2009, May 2010 and July 2011. The survey was flown by Geotech Airborne Limited using a Versatile Time Domain Electro Magnetic system (VTEM) at a line spacing of 200m with a nominal height of 80-120m determined by the topography. Aeromagnetic data was also acquired as part of the survey.

Interpretation of the data by the Company’s consultant geophysicist has identified 16 electro-magnetic (EM) anomalies which have been ranked on the basis of their EM response (intensity and decay rate), geological setting, proximity to TM anomalies and presence of coincident geochemical anomalies.

It is encouraging to note that in the central part of the project area there is a close association between the VTEM anomalies and regional drainage geochemical anomalies identified from the geochemical sampling completed during July 2011.  The regional geochemical sampling could not be completed due to the lack of helicopter availability and will recommence when a suitable helicopter is available.

Field inspection of the EM anomalies was completed in early October in order to determine appropriate further exploration with a view to drill testing at the earliest opportunity.   Access to the VTEM anomalies varies considerably with some easily accessible for drilling whereas some will require light portable drilling rigs to be flown in by helicopter

Follow-up exploration in the areas of the VTEM anomalies has commenced with programmes of geological mapping, in-fill drainage sampling, and soil and rock-chip sampling.   Gravity surveys are being planned for the high to medium priority VTEM anomalie

The Company has submitted an application for an Exploration Licence to cover the area to the west of the granted Adobha and Gerasi South Exploration Licences.

http://www.gippslandltd.com/upload/docs/111222_ASX_Eritrean_Geophysical_Survey_Update.pdf

Ian Gandel Chairman

The Directors of Gippsland Limited (‘Gippsland’ or ‘the Company’) [ASX: GIP, FRA: GIX] released an Activities Report for the period October – December 2010, together with details of events up to the date of the report.

Please find below an excerpt from the company’s activities in Eritrea.

Eritrea (Adobha Project)

Gippsland’s 100% owned subsidiary Nubian Resources Pty Ltd holds a 2,100km² Exploration Licence plus three 100km² Prospecting Licences (total 2,400km²), in the highly prospective Adobha region of The State of Eritrea (‘Licences’).

The Licences cover 2,400km² of a highly mineral endowed region of Eritrea that is regarded as very prospective for volcanogenic massive sulphide (VMS) mineralisation and structurally controlled gold mineralisation. Local examples of these types of deposits are the Bisha base metal deposit (1.44 million ounce gold and 0.39 million tonne copper) located some 174km to the south and the 0.760 million ounce Zara gold project (Koka deposit) located only 16km to the south of the Company’s most southern Licence. The large area covered by the Licences forms part of the Precambrian Nubian-Arabian Shield that also hosts the 13.7 million ounce Sukari gold deposit.

Under the terms of the Eritrean Mining Act, Prospecting Licences are granted for one year after which they may be converted to Exploration Licences or surrendered.  Exploration Licences have tenure of three years which can be extended for a further two years.

The Licences secure a large area around the promising base metal prospects discovered by the Company during recent regional reconnaissance geochemical surveys.   The geochemical surveys and subsequent follow-up involving rock-chip sampling and geological mapping identified large areas of visible copper mineralisation, some of which contained associated lead and zinc.  The geochemical surveys targeted the highest ranked of the interpreted Thematic Mapper satellite image anomalies.  A number of anomalies are still to be examined.

During the quarter Gippsland has been preparing to complete geological mapping at 1:25,000 scale over the whole of the tenement area with 1:5,000 scale mapping over areas of interest such as outcropping mineralisation, geochemical anomalies and areas of hydrothermal alteration.   Gippsland has purchased high resolution ALOS satellite imagery over the whole of the project area and has completed a geological interpretation of this imagery at a scale of 1:25,000.  A broad scale interpretation at 1:250,000 has also been completed which has been exceptionally useful in identifying mappable units.

The interpretation work is a vital prelude to the field mapping which can now proceed and, as a consequence, will take considerably less time than originally forecast.   Field work will commence during February and will continue through to April involving geological mapping and geochemical sampling.

A status report on the proposed spin off of the Eritrean assets and the Company’s interests in the Tasmanian Heemskirk Tin Project is included later in this report.

CORPORATE

Placement to raise $3.2 million

During October 2010 Gippsland successfully raised the sum of $3.2 million (before costs) by way of a placement to institutional and sophisticated clients of Patersons Securities Limited which placed 80 million fully paid ordinary shares at $0.04 per share.

Spin off IPO of Eritrean and Tasmanian Assets

During the quarter, Gippsland has made significant progress in relation to the tasks involved with then proposed 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 44.5 million tonne Abu Dabbab Project located in Egypt and to progressing the financing and construction of Abu Dabbab Project, which has the potential to be the world’s largest single source of the highly strategic supermetal tantalum.

Adobha Resources Ltd (‘ARL’) has been incorporated and, under the current proposal, will purchase from Gippsland the Adobha Project and Gippsland’s 40% interest in the Heemskirk Tin Project, in exchange forequity in ARL.  ARL will seek to raise sufficient funds to explore the Adobha Project via an underwritten IPO prospectus, with Gippsland shareholders to be offered the opportunity to subscribe for ARL shares on a pro-rata basis.

It is the Board of Gippsland’s view that the Adobha Project and Gippsland’s 40% interest in the Heemskirk Tin Project are not currently attributed a significant valuation by the market and also believe that the potential value of these assets would be substantially unlocked by dedicated funding via an IPO of ARL on ASX.

Further updates in relation to the progress of the IPO and proposed timetable will be announced when available.

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/.

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.

Gippsland Limited (ASX:GIP) published its Second Quarter Activities Report for the period October-December 2009, together with details of events up to the date of this report. The report includes a section of the companies activities in Eritrea.

During November 2009, Gippsland completed a reconnaissance drainage geochemical survey from within three Prospecting Licences (‘PLs’) the Company holds in Eritrea (Adobha Project). A total of eleven Thematic Mapper (‘TM’) alteration targets were sampled by collecting 196 drainage samples associated with zones of argillic alteration and favourable host lithologies.

Anomalous results for gold, copper and zinc were recorded from all of the three 100 km² Pls.

• TM target E26 (4114400E/1920400N) located within the northern Afah PL yielded a coherent copper anomaly 2.8 km long with six samples containing anomalous copper values (>65 ppm), with the highest being 193 ppm. The copper anomaly is closely associated with an intense zone of argillic alteration measuring 6.4 x 1.4 km. Anomalous, but non-coincident gold and copper values were also recorded form the target area. Rock types within the anomaly include felsic volcanics, quartz-chlorite-sericite schist and chloritic lapilli tuff, all of which are known to be frequently associated with volcanogenic massive suphide (‘VMS’) deposits.

• A low order but coincident gold, copper and zinc anomaly was identified at the E21 target (404800E/1905000N) within the central Merba West PL. The close association of this anomaly with the TM alteration target, gavourable geology and low sample density make this priority for further sampling.

• TM target E14 (403700E/1888100N) located within the Rebae Tahat North PL yielded the highest gold values with two samples containing 1.1 and 3.7 g/t. These two samples located 1 km apart drain from a strong zone of argillic .alteration measuring 1.5 x 0.4 km. Two rock-chip samples from the same area returned 0.287 and 0.210 g/t Au. The presence of widespread quartz-chlorite-sericite-schist containing pyrite makes this anomaly of particular interest.

Gippsland Directors are greatly encouraged by the results of this first pass widely spaces sampling programme which will now be followed up by infill drainage sampling to determine the source of the anomalours gold, copper, and zinc values. This fieldwork will also involve a rock chip sampling programme and geological mapping.

The three PLs cover 300 km² of ground that is prospective for both VMS mineralisation and structurally controlled gold mineralisation. The PLs were selected following an interpretation of TM satellite data of a large part of northern Eritrea. During this study, the Bisha and Zara/Koka mineral deposit areas were used as type examples.

The Bisha gold-base metal deposit located 174 km to the south that contains 1.44 Moz Au, 0.39 Mt Cu and 0.499 Mt Zn was selected as it represents a VMS deposit of the type that can be expected to occur in the area of interest. The 0.94 Moz Zara/Koka gold project located 65 km to the south was selected as it represents a structurally controlled gold deposit located in the southern part of the area of interest.

On receipt of the above results, the Directors unanimously agreed to make application for a further three 100 km² Prospecting Licences in the Adobha region. If successful, the additional licences will double the Company’s holdings in Eritrea.

Australian based international resource company Gippsland (ASX: GIP) has unveiled promising results from a reconnaissance drainage geochemical survey from within the three Prospecting Licences in Eritrea.

The news saw shares in Gippsland increase 9.4% to 7c during the afternoon trade. The survey saw a total of eleven Thematic Mapper alteration targets sampled by collecting 196 drainage samples associated with zones of argillic alteration and favourable host lithologies.

Anomalous results for gold, copper and zinc were recorded from all of the three 100 km2 PLs.

TM target E26 (411400E/1920400N) located within the northern Afah PL yielded a coherent copper anomaly 2.8 km long with six samples containing anomalous copper values, with the highest being 193 ppm.

A low order but coincident gold, copper and zinc anomaly was identified at the E21 target (404800E/1905000N) within the central Merba West PL. The close association of this anomaly with the TM alteration target, favourable geology and low sample density make this a priority for further sampling.

TM target E14 (403700E/1888100N) located within the Rabae Tahat North PL yielded the highest gold values with two samples containing 1.1 and 3.7 g/t.

Gippsland chief executive Jack Telford said the company was greatly encouraged by the results of the first pass widely spaced sampling programme.

Infill drainage sampling will follow to determine the source of the anomalous gold, copper, and zinc values.

The three PLs cover 300 km2 of ground that is prospective for both VMS mineralisation and structurally controlled gold mineralisation.

The PLs were selected following an interpretation of Thematic Mapper (TM) satellite data of a large part of northern Eritrea. During this study, the Bisha and Zara (Koka) mineral deposit areas were used as type examples.

The three PLs are located in a geological setting similar to the Bisha gold-base metal deposit located some 174 km to the south that contains 1.44 Moz Au, 0.39 Mt Cu and 0.499 Mt Zn. The structural setting of the area covered by the PLs is also similar to that found at the 0.94 Moz Zara (Koka) gold project located along strike some 65 km to the south.

“As a result of the above results, Gippsland Directors have unanimously agreed to make application for a further three 100 km2 Prospecting Licenses in the Adobha region,” Mr Telford said.

“If successful, the additional licences will double the Company’s holdings in Eritrea.

“The Directors believe that Gippsland’s first-mover advantage in this highly prospective province improves the likelihood of identifying substantial gold and copper deposits similar to those situated on strike to the south of the Company’s PLs, and elsewhere in the Arabian-Nubian Shield.” Source: (Proactive Investors)

Eritrea

Gippsland Limited (ASX:GIP,DB:GIX) today announced that its wholly owned subsidiary, Nubian Resources PLC, has been granted three Prospecting Licences in the Adobha region of the State of Eritrea.

It is said that the north-western part of Eritrea belongs to the mineral rich, Precambrian Nubian-Arabian Shield that also covers several other Gippsland exploration deposits in Egypt.

Mining companies made significant gold and base metal discoveries in Eritrea that contained defined Mineral Resources and Ore Reserves in recent years. The two major projects in Eritrea are Bisha and Zara located near Asmara.

Gippsland’s three granted licences are said to cover the area of 300 km² of ground that is prospective for volcanogenic massive sulphide (VMS) mineralisation and structurally controlled mineralisation. The area was selected following an interpretation of Thematic Mapper (TM) satellite data of a large part of northern Eritrea. The Bisha and Zahra (Koka) mineral deposit areas were used as type examples durng the study. Both deposits were selected because they can represent VMS and Koka deposits that can be expected to occur in the area of interest.

The licences of 100 km² each, are located between 203 and 247 km north of the Eritrean capital of Asmara in a geological setting similar to the Bisha gold-base metal deposit located 174 km to the south that contains 1.44 Moz Au and 0.39 Mt Cu. The structural setting  of the area covered by the Licences is also similar to the found at the 0.94 Moz Zara gold project located some 65 km to the south.

The Eritrean Department of Mines granted Licenses on 16th September 2009, however due to delays associated with Ramadan celebrations, the Company received confirmation of the granting on 4th October 2009.

According to the Directors of Gippsland Ltd further steps to be taken are as follows,

Geochemical Sampling Programme

An initial geological sampling program will be undertaken during October-November involving the collection of drainage channel samples within the project area, a technique which is known to be effective in the exploration of both gold and base metal deposits in Eritrea.

The drainage sampling will focus on eleven target anomalies that were identified during the TM interpretation study. Drainage samples will be collected from pre-determined sites designed to test the TM targets within the three licences. All samples will be analysed for CU, Pb, ZN and AU.

Logistics

Road access into the area is available, enabling most of the sampling programme to be completed using two sampling teams in 4WD vehicles. A helicopter will be used for initial reconnaissance of the TM anomalies and collecting samples from the more inaccessible areas.

Personnel

Gippsland personnel will include Gippsland’s Chief Geologist Dr John Chisholm, two o the Company’s Egyptian geologists along with two Eritrean geologists and support personnel.

Potential

As a result of these successful applications, the Company now holds licences totalling 300 km² in a region that has had minimal previous exploration but has the potential to host high grade gold and base metal deposits, similar to recent substantial discoveries immediately to the south.