CORE LITHIUM LTD — Capital/Financing Update 2013

May 12, 2013

ASX ANNOUNCEMENT

ASX : CXO

13[th] May 2013

THICK AND HIGH GRADE URANIUM INTERSECTIONS FITTON PROJECT, S.A.

• Hole SLRC017 intersected:

o 21m @ 384ppm (0.04%) U3O8 from 40m

 Inc. 6m @ 978ppm (0.10%) U3O8 from 54m

• Hole SLRC022 intersected:

o 19m @ 487ppm (0.05%) from 79m to 98m

 Inc. 6m @ 1,112ppm (0.11%) U3O8 from 89m

• Hole SLRC028 intersected:

o 60m @ 482ppm (0.05%) U3O8 from 53m

 Inc. 35m @ 750ppm (0.08%) U3O8 from 53m

 Inc. 4m@ 3,100ppm (0.31%) U3O8 from 55m

• Hole SLRC029 intersected:

o 75m @ 268ppm (0.03%) U3O8 from 82m

 Inc. 31m @ 452ppm (0.05%) U3O8 from 126m

• Drilling has confirmed mineralisation to at least 150m downhole depth

• The Scott Lee structure has been drilled over 1km long and is open along strike in both directions

• Fitton Project located in proven, world-class uranium mining province

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

Summary

Core Exploration (ASX: CXO) announces further excellent drilling results from recent RC drilling at its 100% owned Fitton project (EL 4569), which is located in a proven world-class uranium mining region, 500 kilometres north of Adelaide in South Australia.

Core’s drilling has hit exceptionally thick and high grade uranium intercepts which have continued to extend uranium mineralisation at Fitton (Table 1 & Figure 1-3).

Core’s exploration work and drilling at Fitton has now confirmed that:

• uranium mineralisation outcrops

• uranium mineralisation contains both thick and high grade intersections

• uranium mineralisation extends to at least 150m downhole depth

• mineralised structure is over 1km long and open in both directions

Core’s Fitton project is located in some of Australia’s premier uranium acreage (Figure 4), being just north of:

• Beverley Mine (46Mlb U3O8 Resource 7.7Mt @ 0.27% (21,000T U3O8)

• Beverly North Mine (8.8Mlb U3O8 Resource 2.2Mt @ 0.18% (4,000T U3O8

• Four Mile project (71Mlb U3O8 Resource 9.8Mt @ 0.33% (32,000T U3O8)

• Mt Gee (69Mlb U3O8 Resource 51.0 MT @ 0.06% (31,400T U3O8))

The remainder of the assays from the recently-completed Core Exploration drilling program are to be received toward the end of May 2013.

Results

Core’s recent RC drill program, comprising 23 holes for a total of 1836m, was focussed on the Scott Lee prospect and has extended the strike length and increased the depth of the mineralisation discovered at Scott Lee prospect by Core’s first drill program in November 2012 (Figure 1).

Drill Section 365575E

Section Drill holes SLRC017 and SLRC022 were drilled to test the depth potential of previous elevated uranium anomalism in SLRC003 identified in the first drilling program at Scott Lee.

SLRC017 and SLRC022 consistently intersected high grade results mineralisation including 6m @ 978 and 6m @ 1112ppm respectively within a broad 20m wide mineralised zone.

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

SLRC028 was drilled at 75 degrees to the south from the northern contact of the dolerite in order to test for mineralisation at depth down the schist whilst still crossing the unit to test each side of the contact (Figure 2).

60m thick drill intersection of uranium mineralisation grading @ 482ppm (0.05%) was hit by SLRC028 from 53m depth (Table 1).

Cross sectional view across the Scott Lee prospect illustrates that the schist is steeply dipping to the south to sub vertical with the uranium mineralisation more prevalent on the southern contact of the schist with the granites (Figure 2).

Drill Section 365500E

Section Drill holes SLRC021 was drilled to test the depth potential of previous elevated uranium anomalism in SLRC008, 11 and 12 identified in the first drilling at Scott Lee.

SLRC021 intersected broad uranium intervals of 21m @ 230ppm toward the southern contact of the schist from 110m (Table 1).

SLRC029 was drilled at 75 degrees to the south from the northern contact of the dolerite in order to test for mineralisation at depth down the schist whilst still crossing the unit to test each side of the contact.

75m thick drill intersections of uranium mineralisation grading 268ppm (0.03%) U3O8 were hit by SLRC029 from 82m depth. The hole ended in schist with elevated uranium levels.

Interpretation of the data is similar to section 365575 with the schist is steeply dipping to the south to sub vertical with the uranium mineralisation more prevalent on the southern contact of the schist with the granites (Figure 2).

Geology

Core has been comparing uranium mineralisation at Fitton with geological analogies locally and around the globe.

Uranium mineralisation at Scott Lee is associated with a mafic/dolerite system (reductant) within and adjacent to structures which are interpreted to penetrate both the uranium rich crystalline basement and nearby uncomfortably overlying sediments.

Notably, Scott Lee prospect is positioned only a few hundred metres below the major unconformity between the uranium rich Mesoproterozoic Mt Painter Inlier granites and the overlying upper Proterozoic Adelaidean sediments (Figure 3).

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

Unconformity related uranium systems in the Athabasca in Canada and McArthur Basin region in Australia are large in scale and drive and host large high grade uranium mineralisation. Uranium mineralisation in these unconformity related terrains is hosted in both the uranium rich basement and overlying sediments.

In addition to the work to targeting high grade mineralisation identified in and around Scott Lee, Core will expand its exploration to test the large package of Adelaidean rocks within a few hundred metres of Scott Lee.

Hole Id	MGA East	MGA	Depth	Depth To	Interval	U3O8 ppm
		North	From		m
SLRC016	365690	6686895	10	18	8	320
SLRC017	365578	6686887	40	61	21	384
including			54	60	6	978
SLRC018	365528	6686897	54	57	3	353
SLRC019	365456	6686886	75	79	4	175
SLRC021	365507	6686858	110	131	21	230
including			112	117	5	588
SLRC022	365572	6686866	79	98	19	487
including			89	95	6	1112
SLRC023	365625	6686870	46	61	15	167
including			47	51	4	338
SLRC025	365359	6686968	11	15	4	160
SLRC026	365105	6686997	26	29	3	1233
SLRC028	365579	6686930	5	7	2	143
			23	27	4	155
			53	113	60	482
including			53	88	35	750
including			55	59	4	3100
including			71	74	3	1087
including			79	81	2	992
SLRC029	365500	6686937	82	157	75	268
including			126	157	31	452
			180	184	4	100

Table 1. Uranium assay intersections above 100ppm from Core’s recent RC drill program at Scott Lee Prospect, Fitton Project SA.

Note: Intervals are downhole and does not represent true widths. Uranium was assayed using a 4 acid digest on a (ICP-MS) Inductively Coupled Plasma Mass Spectrometer and copper was assayed using a 4 acid digest on a (ICP-OES) Inductively Coupled Plasma Optical Emission Spectrometer. U3O8 ppm calculated from U ppm. 100ppm cut-off with 5m internal dilution except SLRC029 with 15m. Coordinates are in MGA 94 Z54.

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

For further information please contact:

Stephen Biggins Managing Director Core Exploration Ltd 08 7324 2987 info@coreexploration.com.au

John Field Field Public Relations 08 8234 9555 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.

==> picture [464 x 288] intentionally omitted <==

----- Start of picture text -----

Drill Sections
----- End of picture text -----

Figure 1. Drillhole and section locations overlain on magnetic image, Scott Lee Prospect, Fitton Project, 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

==> picture [375 x 546] intentionally omitted <==

Figure 2: Cross section looking east at Scott Lee prospect, visualises the doleritic schist to be steeply south dipping with holes SLRC003, SLRC017 and SLRC022 drilled across strike with SLRC028 drilled dipping to the south test for consistency of grade and for any further mineralisation at depth.

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

==> picture [373 x 545] intentionally omitted <==

Figure 3: Cross section looking east at Scott Lee prospect, visualises the doleritic schist to be steeply south dipping with holes SLRC008, SLRC011, SLRC012 and SLRC021 drilled across strike with SLRC028 drilled dipping to the south test for consistency of grade and for any further mineralisation at depth.

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

==> picture [466 x 495] intentionally omitted <==

Figure 4. Core’s 100% owned Fitton project and world-class uranium deposits, mines and projects under development in the region.

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