CORE LITHIUM LTD — Capital/Financing Update 2013

Apr 8, 2013

ASX ANNOUNCEMENT

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ASX : CXO
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9[th] April 2013

Substantial new drill intersections extend strike length and depth of uranium mineralisation on Fitton project, S.A

HIGHLIGHTS

• Highly anomalous scintillometer measurements of current RC drill samples include:

• SLRC 017 8m averaging 1393 cps (max 4120 cps)

• SLRC 022 9m averaging 1234 cps (max 3551 cps)

• SLRC 028 11m averaging 2404 cps (max 6190 cps)

• o SLRC 029 77m averaging 442 cps (max 2545 cps)

• Drilling has confirmed mineralisation is open below 150m 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

• Drill assays to be received by early May

Core Exploration (ASX: CXO) announces new substantial drill intersections with highly anomalous scintillometer readings in follow-up RC drilling at its Fitton project, which is located in a proven world-class uranium mining region, 500 kilometres north of Adelaide in South Australia.

The current drill program at Fitton has extended the strike length and increased the depth of the mineralisation discovered at Scott Lee prospect by Core’s first drill program in 2012.

High-grade uranium intersections during Core’s discovery drilling program at Scott Lee (completed November 2012) include 11m @ 0.13% U3O8 including 5m at 0.25% U3O8 (SLRC008).

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

• uranium mineralisation outcrops (up to 0.3% uranium at surface)

• uranium mineralisation has been drilled and is open below 150m 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

• the Scott Lee structure controlling mineralisation has been drilled over 1km of strike and is open in both directions

Cores current RC drill program was focussed on the Scott Lee prospect, with 20 holes drilled at the time of preparing this update. Drill holes SLRC028 and SLRC029 were drilled down dip of the mafic schist to test the depth extent of mineralisation.

Anomalous scintillometer counts per second (cps) readings have consistently been intersected in both drilling programs at Scott Lee with uranium mineralisation concentrated at or near the contact between sheared mafic schist and the surrounding host–rock granite, with the magnetic mafic schist the dominant host for the mineralisation.

Results from the first round drilling in 2012 showed a correlation between high cps readings and high uranium assay grades. Therefore, the Company is buoyed from the high cps readings with the current drilling and the potential for additional high grade drill intersections.

Hole ID	Easting MGA94	Northing MGA94	from	to	min (cps)	max (cps)	Interval (m)	Average (cps)
SLRC016	365690	6686895	12	17	300	490	5	396
SLRC017	365578	6686887	52	60	430	4120	8	1393
SLRC018	365528	6686897	36	40	300	520	4	370
			54	57	520	920	3	713
SLRC021	365507	6686858	113	118	340	1330	5	674
SLRC022	365572	6686866	78	80	350	1600	2	975
			88	97	320	3551	9	1234
SLRC023	365625	6686870	46	52	360	820	6	600
SLRC026	365105	6686997	26	28	400	5500	2	2950
SLRC028	365579	6686930	53	64	330	6190	11	2404
			53	60	1280	6190	7	3445
			71	87	330	2545	16	885
SLRC029	365500	6686937	81	158	174	1500	77	400
			81	98	277	660	17	458
			128	158	263	1500	30	519

Table 1. Highly anomalous scintillometer intersections from RC drilling Scott Lee prospect, Fitton S.A.

Note: Counts per second (cps) readings are not directly or uniformly related to uranium grades of the rock sample measured, and should be used only as a preliminary indication of the presence of uranium minerals. All intersections are down-hole widths and true thickness is yet to be determined. The natural gamma radiation in RC drill chips that is reported in this release was measured in counts per second (cps) using a RS-111 handheld gamma-ray scintillometer.

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

Core’s Fitton project is located in some of Australia’s premier uranium acreage, being just north of the Beverley (46Mlb U3O8 Resource 7.7Mt @ 0.27% (21,000T U3O8)); Four Mile (71Mlb U3O8 Resource 9.8Mt @ 0.33% (32,000T U3O8)); and Mt Gee (69Mlb U3O8 Resource 51.0 MT @ 0.06% (31,400T U3O8)) uranium deposits, project developments and mines (Figure 2).

Drilling operations are expected to be completed this week and all assays from the drilling to be received by early in May 2013.

For further information please contact:
Stephen Biggins	John Field
Managing Director	Field Public Relations
Core Exploration Ltd
08 7324 2987	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.

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Figure 1. Significant drill results and drillhole locations overlain on uranium in soils 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

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Scott Lee
Prospect
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Figure 2. 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