CORE LITHIUM LTD — Capital/Financing Update 2011

Mar 9, 2011

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ASX ANNOUNCEMENT

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10[th] March 2011

High priority targets identified on Yorke Peninsula Project, S.A.

A number of high‐priority, potential drill targets have been identified by Core Exploration Ltd’s (ASX: CXO, the “Company” or “Core”) detailed magnetic survey on the Yorke Peninsula Project, S.A.

The geophysical report now available on the recently completed survey has identified a number of high‐priority magnetic targets in an analogous geological setting to Rex Minerals Ltd’s Hillside Project (Inferred Resource of 170Mt at 0.7% Copper) on the adjacent tenement.

The caliber of these targets strengthens Core’s view on the Company’s IOCG exploration model on the Yorke Peninsula. To prepare for drilling, Core Exploration will commence surface geochemical and gravity geophysical surveys in the next few weeks.

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Figure 1. Core Exploration’s Yorke Peninsula Project, S.A.

A Level 15, 45 Pirie Street, Adelaide SA 5000 | T (08) 8210 1254 | F (08) 8210 1234 | E admin@coreexploration.com.au

www.coreexploration.com.au

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Newly Identified IOCG (Iron Oxide Copper‐Gold) Targets

Core has identified number of magnetic features which are immediately evident as potential IOCG exploration targets across all three areas of the Company’s Yorke Peninsula tenement (Figures 2, 3 & 4).

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Figure 2. IOCG Targets on TMI – Area 1

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Figure 3. IOCG Targets on TMI – Area 2

Figure 4. IOCG Targets on TMI – Area 3

A Level 15, 45 Pirie Street, Adelaide SA 5000 | T (08) 8210 1254 | F (08) 8210 1234 | E admin@coreexploration.com.au

www.coreexploration.com.au

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The best targets identified by fit Core’s high‐priority IOCG ranking criteria:

• Have a strong magnetic response (magnetite is the main accessory mineral to IOCG on the Yorke Peninsula)

• Are structurally controlled (structures act as a pathways and traps for mineralising fluids)

• Magnetic anomalies that overprint the magnetic stratigraphy

Importantly, Core believes that the Company’s tenements are in an equivalent geological setting to that hosting the Hillside IOCG discovery which occurs to the east (Figure 5b). As both locations contain:

• Granites of the Hiltaba Suite which are the same age as mineralisation

• Wallaroo Group, Wandearah, Weetulta Formations which may host mineralisation

• Structures and faults which were active at the time of mineralisation

The high priority targets are now undergoing further detailed modelling, including 3‐D inversions and will be the focus of upcoming soil and gravity surveys.

Next Steps

Core is commencing communication with landowners in preparation for surface geochemical and gravity geophysical surveys to start in coming weeks.

The results of magnetics, gravity and geochemistry surveys will be combined to prioritise drilling targets on the Yorke Peninsula Project. Drilling is planned to commence late in May‐ June 2011.

A Level 15, 45 Pirie Street, Adelaide SA 5000 | T (08) 8210 1254 | F (08) 8210 1234 | E admin@coreexploration.com.au www.coreexploration.com.au

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Yorke Peninsula Project Summary

Core Exploration’s flagship Yorke Peninsula Copper Project (EL 4177) covers 243km[2] of the Olympic Dam Copper‐Gold‐Uranium Province of the Gawler Craton.

The Company is encouraged by the recent discovery of the nearby Hillside Copper Project by Rex Minerals Ltd (ASX:RXM), and that company’s subsequent definition of an Inferred Resource of 170 million tonnes at 0.7% copper and 0.2g/t gold on its adjacent tenement.

At Hillside, the best mineralisation occurs below 200m. Therefore, the opportunities for new discoveries remain significant, due to most of the area being obscured by shallow cover sediment and much of the past exploration being completed prior to modern under‐cover exploration techniques being developed.

Regionally important structures are believed to control the location of IOCGU mineralisation within the region. One of the most obvious structures is the Pine Point Fault, which runs in a north‐south direction on the eastern side of the Yorke Peninsula. Importantly, a number of south‐westerly faults splay off of this feature into the tenements held by the Company. These fault zones will be the focus of exploration on the Core Exploration project (Figures 5a & 5b).

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Figures 5a & 5b. Regional magnetics and geology, Yorke Peninsula, South Australia

A Level 15, 45 Pirie Street, Adelaide SA 5000 | T (08) 8210 1254 | F (08) 8210 1234 | E admin@coreexploration.com.au www.coreexploration.com.au

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Core is a committed explorer searching for IOCG and uranium deposits in world class copper and uranium mining provinces in South Australia.

For further information please contact:

Stephen BigginsManaging DirectorCore Exploration Ltdadmin@coreexploration.com.au	John FieldField Public Relations08 8234 9555john@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 (08) 8210 1254 | F (08) 8210 1234 | E admin@coreexploration.com.au www.coreexploration.com.au