CORE LITHIUM LTD — Capital/Financing Update 2011

May 22, 2011

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ASX ANNOUNCEMENT

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23 May 2011

Multiple large‐scale gravity targets revealed on Yorke Peninsula

The results announced today from Core Exploration Ltd’s (ASX : “CXO”) first gravity survey, have further strengthened the Company’s confidence in the IOCG (Iron Oxide Copper Gold) potential on its Yorke Peninsula Project in South Australia.

The survey identified multiple drill targets over an extensive 12km strike length.

As the Company moves closer to its first drilling on the prospect, due to start next month, a large‐scale set of magnetic and gravity features have been identified in the structural corridor previously interpreted by Core (Figure 1).

The new gravity anomalies are substantial (magnitude 2‐4mgal) and are coincident with a 12km long, 2‐4km wide structural zone within Core’s tenement (Figures 1‐3).

Importantly, these gravity anomalies are closely associated with, but off‐set from, the magnetic anomalies in this large structural/fault zone (Figure 2). This scenario is a strong indicator of magnetite/hematite iron oxide alteration systems and potentially IOCG style mineralisation.

These large‐scale gravity and magnetic drill targets are hosted in an analogous geological setting to Rex Minerals Ltd’s Hillside Project (Inferred Resource of 170Mt at 0.7% Copper) on the adjacent tenement (Figures 4a and 4b).

Core is immediately following up these promising exploration results with infill gravity surveys over a 50km[2] area. Soil surveys are also underway.

Drill contractors have been booked and drilling of many of the high priority targets is planned for mid‐June.

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 15, 45 Pirie Street, Adelaide SA 5000 | T (04) 8726 6050| F (08) 8312 2002 | E info@coreexploration.com.au www.coreexploration.com.au

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Figure 1 Residual Gravity Image, Area 3, Yorke Peninsula Project, S.A.

A Level 15, 45 Pirie Street, Adelaide SA 5000 | T (04) 8726 6050| F (08) 8312 2002 | E info@coreexploration.com.au www.coreexploration.com.au

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Figure 2 Magnetic(RTP) image overlain with residual gravity contours, Area 3, Yorke Peninsula Project,

A Level 15, 45 Pirie Street, Adelaide SA 5000 | T (04) 8726 6050| F (08) 8312 2002 | E info@coreexploration.com.au www.coreexploration.com.au

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Figure 3. 3D model of Area 3 magnetics, Yorke Peninsula Project (looking south‐east)

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Figures 4a & 4b. Regional magnetics and geology, Yorke Peninsula, South Australia

A Level 15, 45 Pirie Street, Adelaide SA 5000 | T (04) 8726 6050| F (08) 8312 2002 | E info@coreexploration.com.au www.coreexploration.com.au