gippsland limited ("the company")

Hi ppl this is from Shares Mag, U.K. yes i do own not a ramp your choice you either like it or you dont easy.

Expected first date of trading:
09/03/2004

Market:
AIM

Proceeds to be used for:


Location of address at which admission document will be available:
N/A

Date at which admission document will be available:



Subject: GIP GOING U.K. FROM SHARES MAG U.K. :)


SHARES MAGAZINE - SMALL COMPANY PROFILES 2

Telford takes it in his stride

The executive chairman of soon-to-list Gippsland tells James Quinn why his Egyptian dream is more than just a wish

Jack Telford does not seem unduly worried about the state of his current placing, in spite of the fact that there are only three

weeks to go.

For Telford, executive chairman of Australian tantalum miner Gippsland (ASX:GIP), is more than comfortable with the work

done to date, and the work now being carried out on his behalf as its £700,000 placing reaches the final stages.

As we talk, Telford is just ten hours away from flying back to Perth after three weeks in London and Europe, convincing

investors to back the ensuing placing, and to talk to European business partners regarding off-take contracts from Gippsland’s

Egyptian tantalum and tin mine.

He’ll be back for the float – in the second week of March – but between now and then its up to broker Hoodless Brennan to get

everything sorted. ‘I have no problem with that,’ grins Telford. ‘Geoff Hoodless has everything in hand, and he has a good team

behind him.’ His accent, part-Australian, part-English given his current surroundings in a Bankside restaurant, is part of his

charm.

As we begin talking, he is fiddling with his mobile phone. ‘I’m just SMSing [sic] one of my kids,’ he smiles, in the knowledge that

even though he is thousands of miles from home, he can keep in touch.

It is 1.15pm in London, so it is 9.15pm in Perth. Nearly bedtime, but at 57, I doubt Telford’s kids are that young.

On to the business of his company’s ensuing dual-listing. Gippsland is listing on AIM; the first Australian company to do so

under the new fast-track system put in place last year.

Telford is pretty pleased about that, and how little it is costing. ‘I think I know, but I can’t remember the exact figure,’ he smiles,

turning to his PR man sitting next to him, who makes a note to e-mail the figure over later. Gippsland’s shortened AIM

admission document shows this figure is slightly more than £100,000, which is cheap considering. Is this the only reason

Gippsland is listing here?

‘No, not at all. London has a history of mining finance, and the people here understand what it takes to finance such a project,

and the likely returns. ‘Back home, we have lots of people that understand mining, just not many who understand how to invest

in it.’

So does that mean London is to be flooded with cheap dual-listings? ‘I don’t think so, only those with projects of some

importance will move over,’ he says, adamantly.

Gippsland’s Egyptian mines are not yet constructed, which is half the reason for the placing. It is raising approximately

£700,000, partially to pay for the bankable feasibility study on its Egyptian projects, located at Abu Dababb and Nuweibi.

The study will have cost about $1 million to $1.25 million when it is finished, and around £300,000 of the money from the

placing is needed to pay for the final part, due to be published in June.

So, what then? ‘Then we take on board what it says, modify our plans accordingly, and begin to raise the necessary finance.’

The feasibility study is expected to forecast that the total capital cost of the project will be $50 million, which is a fair chunk of

money for a company with a market capitalisation of £4 million prior to the placing.

Funding for the project is likely to come through further equity placings in addition to a debt-based finance package to be put in

place towards the tail end of the current year. The UK listing will help to make that happen, with the help of London as a centre

for resource finance, and the added potential interest through its AIM quote.

Page 1 of 3

The feasibility study is expected to show a production potential of 800,000 tonnes a year of high-quality feldspar to be sold into

the ceramics sector, 400,000 tonnes of tantalum pentoxide to be sold to industrials, and one thousand tonnes of tin, which can

be sold directly through the London Metal Exchange or elsewhere.

That is pretty good news, as Gippsland’s off-take contracts continue to build. It has already signed head of terms with a major

industrial group for the sale of 2.65 million tonnes of feldspar over five years – 250,000 tonnes in the first year rising to 900,000

tonnes in year five.

It has announced a second off-take contract at the start of February for 500,000 pounds a year of tantalum pentoxide to an

Asian industrial firm.

Gippsland’s project in Egypt is pretty unique, given that it is a joint venture with the Egyptian government. Gippsland finds the

money, and the government grants all the necessary permissions, and opens the doors where necessary. That has meant a

speedier route than normal for Telford, who has only been working on the project for two years, with production due to start in

late 2005.

He says that when the costs are taken into account, the return split will be 80:20 in Gippsland’s favour, but once the bankable

study is in, it is for Gippsland to find the cash.

‘I want to ensure both sites get into production while it is still controlled by us,’ he says, when asked whether he will sell it on to

a major. ‘This is a key deposit, and one that can make us lots of money. But I am not precious about projects, and if it delivers

greater shareholder return by selling it, then so be it.’

This is perhaps not surprising, as Telford has a vested interest in the company through his 13% stake, which will be diluted

following the placing.

And the risks? Political? Ecological? Not raising the $50 million? ‘There are risks with everything, but we wouldn’t be doing this

if we didn’t think it would work.

‘Raising the money will be the next step, but with the data under our belts, there’s no reason why it should be a problem.

Telford and his men have a close working relationship with the Egyptian government through Dr Ali Fahmi Al Sa’aidi Sa’aidi,

the Minister for Industry and Technology. ‘His Excellency, you understand,’ says Telford, clasping his hands together as if in

prayer. The agreement with the government lasts for 30 years, with an automatic 30-year extension as long as everything is

running to plan.

So it will out-live most of the people currently working on the project? ‘Yes, I suppose it will,’ he says, before choking briefly on

a chunk of bread. Shares wonders if it has spoken too soon.

But Telford is fine after some sips of water, and goes on to mention he is flying back to Perth later that night.

He is not a man who wastes money, referring to the good deal he has got at his London hotel, later balking at tales exchanged

of lofty executive pay in even small British exploration firms, taking the tube when most would hail a cab.

Straight after our meeting he is off to Hoodless Brennan for one last chat before the listing, and he seems quite sure that the

placing is going well, with a mixture of institutions and private clients taking part.

Having presented to a number of roadshows, does he like private clients? ‘Yes, most definitely. They ask some of the most

detailed questions, often highly technical.’

Does that mean that Shares has let him down with its financial bent? ‘Not at all,’ he laughs. ‘You’ve been very direct.’

With that he is off into the London rain – ‘very temperate’ he laughs. In two days he will be back in Perth, basking in its 40-

degree heatwave.

But he will be back for the listing in the second week of March, and to tell more people about Gippsland, and those extensive

licences in Egypt, 25km from the Red Sea.