CORE LITHIUM LTD — Capital/Financing Update 2011

Jun 16, 2011

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ASX ANNOUNCEMENT 17[th] June 2011

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Exploration Update

Yorke Peninsula Drill Program Doubled to 4000m

Results from recent gravity survey work have led to a decision by the Board of Core Exploration Ltd (ASX : “CXO”) to double the size of the maiden drill program on its flagship Yorke Peninsula Project in South Australia.

Core’s Managing Director, Mr Stephen Biggins, said the upcoming air‐core drill program had been increased to 4,000m as a result of the Company’s increasing level of confidence in the IOCG (Iron Oxide Copper Gold) potential of the Yorke Peninsula Project.

Mr Biggins said the Company had completed its infill gravity surveys to better define the large‐scale set of magnetic and gravity drill targets identified within the 12km long, 2‐4km wide Palace Structural Zone (Figure 1).

“This geophysical scenario is a strong indicator of magnetite/hematite iron oxide alteration systems and potentially IOCG style mineralization,” he said.

“Importantly, these large‐scale gravity and magnetic drill targets are hosted in an analogous geological setting to Rex Minerals Ltd’s (ASX:RXM) Hillside Project (Inferred Resource of 170Mt at 0.7% Copper) on the adjacent tenement.”

Mr Biggins said Core had executed an agreement with its preferred drilling contractor, however due to a delay in the contractor’s availability to arrive on site, the maiden drill program is now scheduled to commence in mid‐July.

Soil geochemical surveys have now been completed on Areas 1, 2 and 3 of the tenement with results due in July.

A Level 2, 143 Hutt St, Adelaide SA 5000 | T (08) 7324 2987 | F (08) 8312 2002 | E info@coreexploration.com.au www.coreexploration.com.au

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Mt Painter Project

Reconnaissance geological mapping and rock chip sampling was undertaken recently on the Company’s Mt Painter project in northern South Australia.

Visual indications of copper mineralisation and significant radiometric responses indicative of uranium mineralisation were identified in some outcrop and rock chip samples. Rock chip samples have been submitted for assay and results are expected in July.

The Mt Painter Project comprises one exploration licence (EL 4569) covering 106 km[2] adjacent to the Mt Painter Inlier, in the northern Flinders Ranges. The region is well known for its numerous breccia complex uranium occurrences within the Mt Painter Inlier and nearby secondary uranium deposits at Beverley and Beverley 4‐mile deposits on the east.

For further information please contact:

Stephen Biggins John Field Managing Director Field Public Relations Core Exploration Ltd 08 8234 9555 info@coreexploration.com.au john@fieldpr.com.au

The information in this report has been compiled by Stephen Biggins (BSc(Hons)Geol, MBA) as Managing Director of Core Exploration Ltd and who is a member of the Australasian Institute of Mining and Metallurgy and is bound by and follows the Institute’s codes and recommended practices. As a Competent Person, he has a minimum of 5 years relevant experience in the style of mineralisation and types of activities being reported and has given written consent to the above report in the form and context in which it appears.

A Level 2, 143 Hutt St, Adelaide SA 5000 | T (08) 7324 2987 | F (08) 8312 2002 | E info@coreexploration.com.au www.coreexploration.com.au

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Figure 1. Drill targets with residual gravity contours overlain on Magnetic (RTP) image, Area 3, Yorke Peninsula Project, S.A.

A Level 2, 143 Hutt St, Adelaide SA 5000 | T (08) 7324 2987 | F (08) 8312 2002 | E info@coreexploration.com.au www.coreexploration.com.au