2002-02-18 ASX Announcement

Prospectus - Shareholder Update

FUNDRAISING - $1,200,000

Dear Shareholder,

Attached is a Prospectus dated 7 February 2002 plus a Supplementary Prospectus dated 14 February 2002, in respect to an offer of 10,000,000 ordinary shares at an issue price of 12 cents each to raise up to $1,200,000.

As the above documents relate to a placement issue, Gippsland Limited ("Gippsland" or "the Company") Shareholders' uptake of the shares is not linked to their present holding in the Company. i.e., Shareholders have the option to increase their percentage holding in the Company.

The completed Share Application Form contained in the Supplementary Prospectus should be mailed along with the associated application funds to the Gippsland office to arrive no later than 14 March 2002.

Shareholders and non-shareholders alike may apply for shares in the issue. Applications shall be accepted on a first-come basis.

The year 2002 is destined to be an exciting period for Gippsland and the Directors will strive to increase Shareholders' asset base as the year progresses. Yours sincerely

Yours sincerely
John (Jack) Telford
Executive Chairman

Note: In accordance with Listing Rule 5.10 of the Australian Stock Exchange Limited, the geological information in this report that relates to mineral resources and ore reserves is based on information compiled by Gippsland Director Dr John Chisholm, who is a Fellow of the Australasian Institute of Mining and Metallurgy, with over 25 years experience in the mining industry.

ASX 02.02.18