Gippsland* 
-Project 
& 
Corporate 
Updates 


22 
September 
2008 
(16:25:48) 


GIPPSLAND* 


GIP 
£13.4m 
4.375p 
BUY 


Project 
& 
Corporate 
Update 
AIM 


Junior 
miner 
Gippsland 
has 
calmed 
the 
market 
by 
announcing 
that 
it 
does 
not 
expect 
the 
recent 
financial 
instability 
to 
affect 
the 
raising 
of 
project 
financing 
for 
its 
flagship 
Abu 
Dabbab 
tantalum-tin 
project. 
Negotiations 
in 
this 
respect 
are 
currently 
in 
progress 
with 
KfW 
Bankengruppe, 
which 
is 
owned 
80% 
by 
the 
German 
Federal 
Government 
and 
20% 
by 
the 
German 
federal 
states, 
with 
legal 
due 
diligence 
on 
the 
project 
now 
nearing 
completion. 
In 
other 
news, 
negotiations 
with 
several 
engineering 
groups 
for 
the 
Abu 
Dabbab 
Engineering, 
Procurement, 
Construction 
Management 
(EPCM) 
contract 
have 
been 
undertaken 
during 
the 
past 
three 
months. 
An 
EPCM 
contract 
is 
expected 
to 
be 
executed 
between 
the 
company 
and 
the 
successful 
engineering 
group 
prior 
to 
the 
end 
of 
October 
this 
year. 


COMMENT 


Although 
this 
news 
is 
not 
as 
significant 
as 
the 
company's 
recent 
resource 
and 
reserve 
upgrades 
it 
does 
provide 
evidence 
that 
the 
development 
of 
Abu 
Dhabbab 
is 
on 
track. 
We 
are 
still 
waiting 
for 
news 
on 
the 
negotiations 
of 
project 
finance 
for 
Abu 
Dabbab 
where 
Gippsland 
recently 
hosted 
representatives 
of 
several 
German 
banks. 
Their 
due 
diligence 
evaluations 
are 
expected 
to 
be 
completed 
by 
this 
October. 
Analysts 
continue 
to 
value 
the 
Abu 
Dabbab 
project 
at 
between 
22p 
and 
27p 
per 
share, 
which 
suggests 
that, 
at 
the 
current 
price 
of 
4.375p, 
this 
stock 
could 
be 
a 
multi 
bagger. 
BUY.