Ann: Independent Calculation of Abu Dabbab Projec, page-7

re: Ann: Independent Calculation of Abu Dabba... From Offtake agreement:

"The milestone Offtake Agreement covers the delivery of 600,000 pounds of Ta2O5 per annum ? almost the entire expected initial annual production of 650,000 pounds of Ta2O5 from the project. As is traditional for the tantalum industry, the Ta2O5 Offtake Agreement prices are confidential however based upon present Ta2O5 spot prices the Abu Dabbab project is expected to generate Ta2O5 revenue in excess of US$280 million over the initial 10-year period of operations"

Source: http://www.gippslandltd.com/announcements/documents/ASX%20LSE%20071113%20HC%20Starck%20Tantalum%20Offtake.pdf

US$280M/6M pounds = US$43.08/lb

Using prices:
Tin US$ per tonne 25,450

Ta2O5
- Off-Take Price US$ per pound per OTA
- Residual Sales US$ per pound 110

Feldspar US$ per tonne FOB 35

I get a NPV(10) of US$605M calculated on a before tax cash flow basis for the 13.5 years compared to the US$593M quoted yesterday.

Consequently, I assume US$43.08/lb for Tantalum sales under the offtake.

Regards

SP