CORE LITHIUM LTD — Capital/Financing Update 2012

Aug 9, 2012

ASX ANNOUNCEMENT

ASX : CXO

10[th] August 2012

Ground magnetics identify exciting new targets at Fitton Project S.A.

HIGHLIGHTS

• New magnetic targets of similar magnetic response to the promising Scott Lee prospect found at Fitton

• Previous Scott Lee surface sampling of outcrop assayed up to 10.5% copper and 0.34% U3O8

• Follow-up mapping and outcrop sampling of new magnetic targets is underway

• First Fitton project drilling program planned later in 2012

Core Exploration Ltd (ASX:CXO) has identified a number of new targets with similar magnetic signature to the Scott Lee Prospect within the Company’s 100% owned Fitton Project (EL 4569), located 25km north of the Beverley uranium mine in northern South Australia.

Previous surface sampling by Core at the Scott Lee Prospect has assayed 10.5% copper and 0.34% U3O8. In addition, a number of samples contained highly anomalous uranium above 100ppm for a strike length of over 800m and a number of samples from the same shear zone graded above 1% copper over a strike length of 150m (Table 1, Figures 1 & 2).

Following the positive results of finding new outcropping copper mineralisation associated with magnetic minerals (magnetite), Core extended ground magnetics surveys to cover a larger area of the prospective basement of the Fitton tenement.

The magnetic survey highlighted a very good correlation between observed shear related copper mineralisation at surface at the Scott Lee Prospect and east-west trending magnetic anomalies in the gridded data (Figures 1 & 2).

Core’s survey also found a further two magnetic linear anomalies to the south of the Scott Lee prospect (Figures 1 and 2).

In addition, the broader survey has identified a much larger magnetic anomaly 2km southwest of the Scott Lee Prospect. While it is yet to be established if this 1,400m long and 250m wide anomaly is associated with the same mineralising system, it nevertheless presents an exciting target for further work (Figure 1).

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

Next Steps

Core has immediately commenced follow-up mapping, sampling and additional magnetic surveys of the highly prospective magnetics targets to confirm whether these new zones are mineralised. Initial results of this work are expected later in August.

Core’s first drill program on Fitton is planned to commence later in 2012, subject to necessary approvals.

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Figure 1. Ground magnetic image highlighting new targets south of the Scott Lee Prospect and also a larger anomaly 2km to the south west, Fitton Project, 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 2: Ground magnetic image of Scott Lee Prospect and two new potentially mineralised target zones to the south, Fitton Project, South Australia.

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

	Name	Zone	Easting	Northing	Sample	**Cuppm **	**Uppm **	U3O8ppm	**Aug/t **
	MP0009	54J	365712	6686800	Rock chip	155	51.29	60.48	X
	MP0010	54J	365699	6686831	Rock chip	103	624.43	736.33	X
	MP0011	54J	365552	6686859	Rock chip	16	83.59	98.57	X
	MP0011	54J	365455	6686935	Rock chip	105184	121.37	143.12	0.12
	MP00451	54J	366351	6688378	Rock chi	107	239	282	001
					p		.	.	.
	MP00459	54J	365842	6687056	Rock chip	16	120.99	142.67	X
	MP00467	54J	365306	6686951	Rock chip	200	157.41	185.62	X
	MP00473	54J	365336	6686984	Rock chip	33	132.25	155.95	X
	MP00474	54J	365442	6686928	Rock chip	963	35.31	41.64	X
	MP00476	54J	365458	6686931	Rock chip	75920	77.44	91.32	0.06
	MP00477	54J	365455	6686938	Rock chip	143	5.87	6.92	X
	MP00479	54J	365497	6686933	Rock chip	148	3.3	3.89	X
	MP00480	54J	365566	6686926	Rock chip	21718	426.96	503.47	0.08
	MP00481	54J	365556	6686927	Rock chip	185	15.01	17.70	X
	MP00482	54J	365657	6686878	Rock chip	X	2857.83	3369.95	X
	MP00486	54J	366737	6686592	Rock chip	234	2.2	2.59	X
	MP00492	54J	365857	6686686	Rock chip	571	239.7	282.65	X
	MP00493	54J	363551	6685728	Rock chip	680	10.55	12.44	0.91
	MP00496	54J	365105	6686983	Rock chip	219	499.34	588.82	0.37
	MP00497	54J	365214	6686964	Rock chip	64	62.43	73.62	X
	MP00498	54J	365312	6686960	Rock chip	111	268.33	316.41	X
	MP00499	54J	365406	6686937	Rock chip	160	37.06	43.70	X
	MP00500	54J	365450	6686924	Rock chip	19862	86.5	102.00	0.06
	MP00502	54J	365555	6686934	Rock chip	19257	217.06	255.96	0.02
	MP00503	54J	365500	6686931	Rock chip	7933	13.71	16.17	X
	MP00512	54J	365619	6686903	Rock chip	103	9.93	11.71	X

Table 1: Table of all rock chips samples collected by Core Exploration within EL 4569 with anomalous copper, uranium and/or gold values. The presence of this mapped surface mineralisation and alteration may or may not extend at depth and this can only be confirmed by drilling which is planned in the coming months.

When samples contain either Copper > 100ppm or Uranium > 50ppm or 100ppb/gold (From a total sample set of 69 samples). Au: FA25//AA Lead Collection Fire Assay: U: 4A/MS 4 Acid Digest Mass Spectrometry: Cu: 4A/OE 4 Acid Digest Inductively Coupled Plasma Opitical Emission Spectrometry. Of the 69 rock samples collected to date the range of values for copper vary from below detection (1ppm) to 10.5%, uranium varies from 0.4 ppm to 2858 ppm and gold varies from below detection (0.01 ppm to 0.91ppm)

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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Scott Lee
Prospect
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Figure 3. Location of Scott Lee Prospect and Fitton Project (EL 4569) and uranium occurrences and mines in the region, 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