miningnews article/all gip production pre sold.

Entire Gippsland production pre sold
Rebecca Keenan
Friday, January 14, 2005

THE demise of Sons of Gwalia has created market opportunities for tantalum
hopeful Gippsland, which has expanded one of the offtake agreements for
production from its Abu Dabbab tantalum project in Egypt.

The original agreement with an undisclosed buyer at an undisclosed price has
been expanded to 480,000 pounds of tantalum per annum for five years. Terms
of the original agreement were for 320,000lbs per annum for four years. The
pricing of the contract is understood to be the same as the original
contract.

The purchaser has the first right of refusal for an additional 70,000lbs of
tantalum per annum at the same price.

Gippsland has another offtake agreement with a major Asian tantalum customer
for 100,000lbs per annum.

"With the signing of this agreement with one of the global leaders in the
tantalum industry, Gippsland has in effect pre-sold 100% of the Abu Dabbab
project's scheduled tantalum production of 650,000lbs per year for the first
five years of business," Gippsland chairman Jack Telford said.

A recently completed bankable feasibility study showed the US$80.5 million
project could produce 650,000 pounds of tantalum per annum (plus 2220tpa of
tin), generating net free cash flow of US$127 million over the initial 13
years of an estimated 20 year mine life.

Also this week Gippsland was granted a free trade zone by the Egyptian
government, which the company said would mean no customs import duty for
plant and equipment, no sales tax and no tax on company profit.

Not included in the study was a planned production of one million tonnes per
annum of ceramic grade feldspar which can be produced as a co-product to the
tantalum and tin production.

Gippsland said it has already executed a heads of agreement with a large
European group for the offtake of the feldspar over five years.

Negotiations with banks in regards financing are reportedly underway, with
project start up expected in around 18 months.

Gippsland shares gained over 4% to 12 c in late morning trade.