Don't think that there is anything to worry about, looks like Seymour Pierce could not perform.

Anything serious and there would be a HALT on the other markets.

Reflection in price may be because they did not understand cause of trading halt.

Price is low at the moment but was slightly lower in December.

I think that there is a lot of support from KfW Bankengruppe/German government.

They WANT this Tantalum!

RNS Number : 3574O
Gippsland Limited
05 March 2009



5 March 2009

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

CORPORATE UPDATE


AIM LISTING

On 11 February 2009 Gippsland (ASX/AIM "GIP", FRA "GIX") announced that Seymour Pierce Limited, its Nominated Adviser ("Nomad") and Joint Broker for the purposes of the London Stock Exchange AIM ("AIM") Rules for Companies, had resigned.

Consequently, the Company's shares were suspended from trading on the AIM market until such time as a replacement Nomad is appointed. The Company's securities continue to trade on the Australian Securities Exchange and the Deutsche Borse in Frankfurt.

The Company is presently well advanced in its negotiations with a London-based firm to act as the Company's Nomad and Broker. It is expected that any appointment would include and be conditional upon raising additional working capital for the Company as well as the mandate to act as Financial Advisor for the raising of Gippsland's equity contribution to the Abu Dabbab Tantalum-Tin Project scheduled for later this year.

ABU DABBAB - PROJECT FINANCE

The prime assets of Gippsland are the Abu Dabbab and Nuweibi tantalum deposits located in Egypt. The international group Lycopodium Engineering Ltd has completed the Abu Dabbab Definitive Feasibility Study ("DFS") based upon
a design mill-feed rate of 2 million tonnes per year. The DFS includes projections showing production of 650,000 pounds of tantalum pentoxide (Ta2O5), plus 1,530 tonnes of LME grade tin metal per year, over a likely mine life of
20 years.

German bank KfW IPEX-Bank GmbH ("KfW") was appointed Mandated Lead Arranger to secure debt finance for the Abu Dabbab Project in December 2007. This mandate has been extended for a further 6 months to 30 June 2009 with the present focus being on their technical and legal due diligence process. KfW is part of the Standard & Poor's AAA rated KfW Bankengruppe which is 80% owned by the German Government and 20% by the Federal German states (Bundesl?er).

During this period Gippsland's ability to complete the due diligence process has been hampered due to its limited working capital resources and the need for management to address corporate matters such as securing a replacement Nomad and Broker for its AIM listing. However, with a new Nomad and Broker plus additional working capital in place the Company's primary focus will be on addressing all outstanding matters in the completion of the due diligence
process as quickly as possible.

Gippsland has secured 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. As announced in the December 2008 quarterly report, the Company is now planning to produce a higher grade tantalum concentrate known in the industry as SynCon, containing 55% Ta2O5. As a consequence of this proposed change Gippsland and HC Starck GmbH will review the existing off-take agreement in respect to product specifications and price before the due diligence process can be completed.

The Directors are confident that the outstanding due diligence matters can be completed in the near future so that the debt provider's project finance approvals may be obtained in the July - September '09 quarter. Gippsland Directors are targeting an attractive 80% debt, 20% equity ratio for the project financing.

WORLD SCALE RESOURCE - 142.5 MILLION TONNES

The Directors are confident that the Abu Dabbab project will play a crucial role in supplying the global tantalum industry with a reliable source of tantalum feedstock. Given the project's initial mill-feed rate of 2 million tonnes per year, the Company's very large resource base of 142.5 million tonnes provides a solid foundation for the stable supply of tantalum to world markets for the next 40 years and beyond. The magnitude of this resource base also provides significant opportunities for increased production.

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Date Last% ChangeHighLowVol*

10 Mar 2009	0.039	-2.5%	0.040	0.039	30,000
09 Mar 2009	0.040	0%	0.040	0.040	45,000
06 Mar 2009	0.040	0%	0.040	0.040	7,780
05 Mar 2009	0.040	-13.04%	0.040	0.040	50,000
04 Mar 2009	0.046	6.98%	0.046	0.046	30,000

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