CORE LITHIUM LTD — Capital/Financing Update 2012

Oct 3, 2012

ASX ANNOUNCEMENT

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ASX : CXO
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4[th] October 2012

Core extends base and precious metal exploration by 1,000km[2] around Fitton Project, S.A.

• Core’s tenements now cover over 1,000km[2] around its Fitton project where it is exploring for copper, uranium and gold mineralisation

• Newly granted tenement EL 5015 is also prospective for base and precious metals

• Up to 203 g/t silver and 13.34 % combined lead and zinc assays from sampling of old workings on new EL 5015

• Mineralised breccia hosted within fault zones interpreted to be up to 1.5km long.

• Numerous further targets at historical mines, interpreted faults and outcropping gossan within Core’s 1,000km[2] tenement package.

Core Exploration Limited (ASX:CXO) is pleased to announce highly promising assay results from newly granted EL 5015 Yerelina, which covers close to 1,000 square kilometres adjacent to the Company’s Fitton Project in northern South Australia.

The granting of EL 5015 greatly increases the Company’s exploration footprint in the Fitton area adjacent to EL 4569 which Core is actively exploring for outcropping, shear hosted copper, uranium and precious metal mineralisation (Figure 4). This newly granted tenure is also highly prospective for shallow base and precious metal mineralisation (Table 1 and 2).

Four historical workings, operating in the late 19[th] and early 20[th] century, are recorded from within EL 5015. These old workings are located in an apparent east – west trend over 8 kilometres (Figures 2, 3 & 4). The limited documented information about the historical workings indicates that high grades of silver (Ag) and lead (Pb) were mined. Core’s mapping and sampling around and along strike from these workings has confirmed silver, lead and zinc mineralisation.

Core’s analysis of modern satellite imagery and the Company’s recently completed detailed heliborne magnetic and radiometric survey data has identified that these workings are hosted by a large scale system of repeated north/south regional structures over many kilometres (Fig 2 & 3).

Historic Target	Gold	Silver	Copper	Lead	Zinc	Pb+Zn
Great Gladstone	0.02g/t	203g/t	0.2%	5.0%	2.3%	7.30%
Emily	0.01 g/t	12.1 g/t	0.3%	0.9%	12.4%	13.34%
Big Hill	0.01g/t	5.9g/t	0.0%	1.7%	0.6%	2.35%

Table 1. Summary of best results of reconnaissance sampling of 3 historic mine workings, EL 5015.

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

Initial Investigations on EL 5015

Core has undertaken reconnaissance mapping and sampling within the new EL 5015. To date, the Company has visited three of the four historical workings and confirmed that they are associated with north – south striking iron rich gossaneous breccias that appear to have in filled fractures that cross cut the Adelaidean Tapley Hill Formation strata (Figure 1).

Core identified up to 10 historical shafts at the Great Gladstone workings that appear to be up to 30m deep (Figures 1 & 5). Great Gladstone is recorded to have produced high grade silver and lead. Recent field mapping has also identified surface expressions of secondary copper oxide (malachite, azurite). Primary sulphides in existing mullock heaps indicate primary mineralisation at depth. Sampling of the mullock heaps as well as from in situ iron rich gossan produced assay values up to 11.27 % combined lead (Pb) + zinc (Zn) and up to 203 g/t silver (Ag) (Table 2).

The Great Gladstone workings are aligned north – south over approximately 1km and have been dug into a semi continuous 0.5m to 2.5m wide iron rich brecciated gossan. Furthermore Core observed that the iron rich breccia is found to not only occur infilling north – south fractures, but also extend along the east – west bedding planes of the Tapley Hill Formation. This observation provides a mechanism for the mineralising fluid to have travelled and accumulated at depth, layer parallel to stratigraphy.

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Figure 1: Example of in situ gossan (dark rock) on edge of mullock heap, from within Great Gladstone, EL 5015.

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

Initial investigations at the Emily workings identified two historical shafts 50 metres apart both dug into an, up to 2m wide, north – south striking iron matrix rich breccia filled fault. Samples from the Emily working assayed at up to 13.34% combined Pb + Zn.

The Big Hill workings are comprised of a single drive shaft into a significant iron rich breccia gossan. This gossan is up to 250m long, striking north – south and up to 20m wide pinching out at both the northern and southern ends. This is the most significant outcropping gossan identified by Core at this stage. Samples taken from the historic workings at Big Hill as well as from along the gossaneous outcrop assayed at up to 2.35% combined Pb + Zn with the majority of samples from the large gossan above 1% combined Pb + Zn.

Core completed a heli-magnetic survey over the historical mine areas on EL 5015 at the same time as the adjacent Fitton EL 4569 in an attempt to map the faults that have been identified as hosting the mineralised Pb + Zn + Ag mineralisation. Preliminary interpretations of the data indicate that there is a strong correlation between the magnetics and the known distribution of the faults from the reconnaissance mapping (Figure 2). This correlation will be used to develop further sampling targets in the area.

Name Easting Northing	Historic target Ag ppm Cu ppm Pb ppm Zn ppm Pb + Zn %
MP00514 330156 6673510	Gladstone 124.4 360 5994 5124 1.11
MP00515 330138 6673278	Gladstone 203 1639 50323 22631 7.30
MP00516 330165 6673344	Gladstone 23 1136 18665 94030 11.27
MP00517 330158 6673324	Gladstone 10.8 59 10046 7493 1.75
MP00518 330145 6673122	Gladstone 48 29 17931 2313 2.02
MP00519 330145 6673093	Gladstone 0.5 310 7311 4323 1.16
MP00569 332914 6672472	Emily 12.1 395 32285 12354 4.46
MP00570 332906 6672497	Emily 3.5 5541 1743 14861 1.66
MP00573 332831 6672691	Emily 24.2 420 38457 7938 4.64
MP00576 332910 6672480	Emily 12.1 2501 9213 124168 13.34
MP00581 335204 6671851	BigHill 8.7 40 1462 13528 1.50
MP00582 335204 6671851	Big Hill 2.6 53 1220 15569 1.68
MP00584 335220 6672000	BigHill 1.6 217 4891 6657 1.15
MP00585 335203 6671938	Big Hill 5.9 141 17436 6049 2.35
MP00586 335189 6671846	BigHill 9.7 345 4140 6100 1.02

Table 2: Rock chip assays from EL 5015 Yerelina with combined lead and zinc assays above 1%

Notes to Table 2:

Au: FA25//AA Lead Collection Fire Assay: Ag, Pb: 4A/MS 4 Acid Digest Mass Spectrometry:

Cu, Zn: 4A/OE 4 Acid Digest Inductively Coupled Plasma Optical Emission Spectrometry

The presence of this mapped surface mineralisation and alteration may or may not extend at depth and this can only be confirmed by drilling

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 2. Outcrop samples with significant silver, lead and zinc assays and historic working locations overlain on magnetic image, EL 5015.

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Figure 3. Outcrop samples with significant silver, lead and zinc assays and historic working locations overlain on satellite image, EL 5015.

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

Future Work Program

Further mapping and sampling is planned at this tenement in 2012 and will include mapping and sampling at the fourth historical workings (Great Northern) and at other potential extensions of gossan identified from interpretations of satellite imagery and newly acquired airborne magnetic data.

Core will undertake petrophysical analysis of the mineralised samples in an attempt to develop geophysical methods that could map mineralisation at depth. This data, in conjunction with surface mapping and sampling, will allow the company to develop a targeted drilling program focusing on near surface high grade mineralisation in 2013.

Core will also utilise existing and new data to evaluate the tenement for extensions to the shear hosted copper +/- uranium and gold mineralisation model that it has developed providing drill ready magnetic targets within the adjacent Fitton tenement.

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 4: Core’s new EL 5015 Yerelina in and EL 4569 Fitton and surrounding mineral occurrences and mines, northern South Australia.

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 5: Looking south from northern end of sampled mullock at Great Gladstone. Workings and brecciated fault zone are highlighted on the next ridge southward.

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