CORE LITHIUM LTD — Capital/Financing Update 2015

Aug 17, 2015

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17[th] August 2015

Dear Shareholder

Core Exploration Limited Share Purchase Plan

On 23 July, Core Exploration Limited (ACN 146 287 809) ( Company ) announced that it was undertaking a Share Purchase Plan ( SPP or Plan ) which is targeting to raise $1,000,000. Details of the Plan are set out in the SPP Terms and Conditions lodged with ASX and sent to Eligible Shareholders.

The Plan is partially underwritten by Pulse Markets Pty Ltd to the value of $600,000. The SPP issue price is 2.5 cents per New Share. The SPP opened on the date of the announcement (23 July 2015) and is scheduled to close on 26 August 2015[1] .

It is intended that the funds raised from the SPP will be used as follows:

a) Undertake maiden drilling programs at Jervois Domain Project (NT) and Yerelina Zinc Project (SA);

• b) Further geological field work at Albarta Project (NT); and

• c) Provide the Company with working capital to enable it to support its current operations.

The Company has made considerable progress at Jervois and Yerelina since the SPP was announced.

At the Jervois Project , the Company has now received all approvals required to commence the 4,000m shallow RC drill program. The drill rig is scheduled to arrive on site next month with 14 potential drill targets to be tested along a 15km strike length.

Diamond core drill holes targeted under the known outcropping high grade zinc, lead and silver mineralisation are scheduled to commence in the next few weeks on Core’s Yerelina Zinc Project in SA. Core believes that the mineralised zones, identified at surface and at depth in the historic mining, are part of a much larger mineralised system active over a broad area. The Company has been awarded a co-funded drilling grant of $75,000 as part of the SA Government’s PACE Discovery Drilling 2015 program.

The enclosed Overview of Major Projects document provides additional information about the Company’s exciting Jervois and Yerelina Projects .

On behalf of the Board, I invite you to participate in the Plan and to consider this opportunity to increase your investment in the Company[2] .

Yours faithfully Greg English

• 1 These dates are indicative only. The Company may vary the dates and times of the Offer by lodging a revised notice with ASX.

2 If you are uncertain whether New Shares are a suitable investment for you, then you should consult your financial or other professional adviser.

A 26 Gray Court, Adelaide SA 5000 | T (08) 7324 2987 | E info@coreexploration.com.au www.coreexploration.com.au

Competent Person Statement

The information in this report that relates to Exploration Results and Mineral Resources is based on information compiled by Stephen Biggins (BSc(Hons)Geol, MBA) as Managing Director of Core Exploration Ltd 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. He has sufficient experience which is relevant to the styles of mineralisation and types of deposits under consideration and to the activities being undertaken to qualify as a Competent Person as defined in the 2012 Edition of the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves”. Mr. Biggins consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

The report includes results that have previously been released under JORC 2012 by Core.

16/06/2015 Further Zinc Mineralisation Found at Yerelina 02/06/2015 10m wide gossan found at Yerelina Zinc Project 13/05/2015 Multiple Drill Targets Identified at Jervois Domain, NT 05/05/2015 New zinc target identified at Black Gate Prospect 21/10/2014 Additional Silver Lead Mineralisation Discovered at Inkheart

And by KGL Resources Ltd on 21/07/2014 “Further Jervois results inc. 11.55% copper and 55.7g/t silver” and on 30/07/2015 “KGL to drill test multiple 3DIP targets to extend Jervois copper-lead-zinc” and Rox Resources Ltd on 20/10/2014 “Exceptional Copper Assays From Bonya Mine Drilling”. The Company has not done sufficient work to verify these results.

This report also includes exploration information that was prepared and first disclosed by Core under the JORC Code 2004. It has not been updated since to comply with the JORC Code 2012 on the basis that the information has not materially changed since it was last reported. The information in all previous announcements has been compiled by Mr Stephen Biggins as the Competent Person and who provided his consent for all previous announcements. The information that was reported in announcements previously released under JORC Code 2004 are announcements dated 13/05/2012 titled Thick and High Grade Uranium Intersections, Fitton Project, SA. and 19/03/2013 titled “High Grade Lead-Zinc-Silver Assays from S.A. Project”.

The Company is not aware of any new information that materially affects the information included in this announcement.

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Core Exploration offers an investment opportunity into several of the world’s leading mining and exploration provinces.

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NT
QLD
Albarta Jevois
WA
SA
Yerelina Fitton
NSW
VIC
TAS
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Corporate

Capital structure

Shares on issue 150.5M Share price (3 August 2015) $0.025 Market capital (3 August 2015) $3.76M

ASX code: CXO

Directors

Stephen Biggins

MBA, BSc (Hons) Geol, MAusIMM Managing Director

Greg English

BE (Hons) Mining, LLB Non-Executive Chairman

Heath Hellewell

BSc (Hons) MAIG Non-Executive Director

Core Exploration Ltd

ACN 146 287 809

26 Gray Court Adelaide SA 5000

PO Box 12025, Sturt Street Adelaide SA 5000

Telephone: +61 (0)8 7324 2987 admin@coreexploration.com.au www.coreexploration.com.au

Core Exploration’s has 2 drilling campaigns commencing in some of the most prospective geological terrains for base metals and uranium in Australia. www.coreexploration.com.au

Overview of major projects Zinc and Copper

Yerelina Zinc Project, South Australia

1,000m diamond drilling about to commence to test outcropping gossans with rock chip sampling assays up to 14.7% zinc.

Jervois Domain Project, Northern Territory

4,000m of RC drilling starting in September to test strong targets adjacent to KGL’s Jervois Project.

Albarta Zinc Project, Northern Territory

Core’s drilling in 2014 discovered a new silver lead zinc sulphide system on the Albarta project.

Core awarded NTGS funding for 1,000m diamond drilling of deep targets.

Uranium

Fitton Project, South Australia

Core has made an outstanding discovery of high-grade uranium on the 100% owned Scott Lee Prospect in South Australia.

Zinc and copper

Yerelina Zinc Project

Core has a 1,000m diamond drilling program scheduled to commence in coming weeks to test high grade zinc targets.

Six mineralised structures have been identified to date with up to 14.7 % zinc, 11.7% lead and 567g/t silver in separate rock chip sampling.

Magnetic surveys and remote sensing imagery shows numerous anomalies coincident with outcropping mineralisation and aligned to historical workings. Similar outcropping mineralisation can be mapped over hundreds to thousands of metres in repetitious gossanous vein sets over an area of 8km by 2km.

Of the 38 samples taken along a 1 km section of fault zone at Great Gladstone, 34 returned combined zinc and lead values excess of 1% and 1g/t silver with the best assays at 14.7% zinc, 11.7% lead and 567g/t silver.

Core has been awarded a SA government co-funding to the cost of the planned diamond drilling.

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Location of sample lines over RTP helimagnetic image.

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Zinc and Copper NT
QLD
Jevois
WA
SA
400,000 mE 500,000 mE 600,000 mE
GEORGINA BASIN NSW
7,500,000 mN AILERON PROVINCE (Cambrian) VIC
(Early Proterozoic)
Jervois Domain TAS
Selins IRINDINA PROVINCE
Brumby Dam (U) (Late Proterozoic)
Daic os (U)
Albarta Project
Y ambla (U)
Mord or Jay
7,500,000 mN Black Gate Major road Stratiform chargeable
Minor road zone which displays
characristics of a
Alice Springs Railway
Blueys Core’s Exploration Licences (EL) Sedex/VHMS Type deposit
Core’s Exploration Licence
Application (ELA)
AMADEUS BASIN Core Prospect
(Late Proterozoic) 50 kilometres KGL Jervois Project
CE Illogwa 18 EROMANGA BASIN Location of multiple magnetic, conductive and
chargeable features at large prospect scale.
Plenty Highway
Sandover
H
ighway
Adelaide-Darwin railway
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Location of the Albarta and Jervois Project licenes.

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KGL Resources Ltd
13m @ 5.75% Cu
Rox Resources Ltd
38m @ 4.4% Cu
EL 29581 geophysical modelled
drill target.
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Jervois Domain Project, Northern Territory

Core is planning to commence a 4,000m RC drilling campaign in September on the Company’s Jervois Domain Project.

14 potential drill targets have been identified within a 15km strike length of the prospective Big-J fold.

The high priority targets have a range of geophysical characteristics consistent with the Sedex/VHMS style of mineralisation identified at KGL’s nearby Jervois project.

Core is applying similar geophysical tools that have also been used to characterise and define the nearby Jervois copper and base-metal mineralisation by KGL Resources and Rox Resources (38m @ 4.4% Cu) in the same host Bonya Metamorphics geology.

Location of KGL Resources’ and Rox Resources’ copper intersections.

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KGL has recently announced plans to commence drilling of new geophysical targets in the Bellbird area. KGL’s previous intersection of 13m @ 5.75% Cu at Bellbird was drilled only 500m from the boundary of Core tenure.

Core’s drilling program starting in September is planned to comprise traverses of shallow RC vertical holes over prospective target zones and specific high priority geophysical targets Specific targets A1 to G1 have been modelled on a series of sections along the strike length of the prospective Big-J curve target zone.

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EL 29580 geophysical modelled
drill target.
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Location of 14 potential drill targets.
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Zinc and Copper

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West 475,050mE 475,150mE 475,250mE East
12m@31g/t Ag and 0.6% Pb (63-75m) 6m@46g/t Ag and 0.8% Pb (63-69m)
6m@64g/t Ag and 2% Pb (78-84m) 5m@159g/t Ag, 4.2% Pb and 2.0% Zn (110-115m)
Recent sediments
3m@269g/t Ag and 8.1% Pb (39-42m)
Artnapa Igneous Complex (Overthrust basement)
IKRC002 ?
IKRC007 IKRC013
IKRC022 IKRC006 IKRC003
550mRL
IKRC016 IKRC013
? IKRC022
IKRC014
IKRC016 IKRC001 6m@96g/t Ag and 2.1% Pb (111-117m) ?
IKRC022
IKRC001 IKRC007
? IKRC002
Heavitree Quartzite
12m@82g/t Ag and 1.4% Pb (102-114m)
IKRC006 Intersections
IKRC014 Grade (g/t Ag) x thickness (m)
450mRL IKRC006 >200
?
15m@38g/t Ag and 0.6% Pb (108-123m) 100-200
6m@42g/t Ag and 1.1% Pb (162-168m) <100
?
Mineralised zone
350mRL Bitter Springs Formation
INKHEART PROSPECT
0 100
metres Longitudinal section
Looking north
Inkheart 02a Fault Fault
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Albarta Zinc Project, Northern Territory Inkheart Prospect

Core has been awarded $96,000 of funding for planned diamond drilling of silver, lead and zinc mineralisation at Inkheart Prospect on the Albarta Project in the NT.

Core’s drilling at the Inkheart Prospect in 2014 discovered a new silver lead zinc sulphide system on the Albarta Project.

Up to 1,000g/t silver and 17% zinc and lead was intersected in the drilling and reflects very high grades of silver at surface up to 4.5kg/t (4,500 g/t).

The 500m long sulphide system drilled and open at depth and along strike at Inkheart.

The proposed co-funded diamond drilling at Inkheart will enable Core to drill through the key sites for mineralisation at both the upper and lower boundaries of the reactive Bitter Springs host-rocks that may control higher grade mineralisation.

Albarta region zinc exploration Soil sampling and mapping for analogues to Inkheart-style mineralisation on Core’s adjacent tenure have commenced to test and

confirm the potential for a large-scale, Proterozoic sediment hosted silverlead-zinc mineralising system in the NT.

with silver and lead results comparable to Inkheart.

On the strength of these new results and previous discovery drilled at Inkheart, Core has built a tenure position covering over 100km strike of the target Bitter Springs Formation host geology targeting Proterozoic sediment hosted zinc deposits in the NT. The NT hosts world class Proterozoic sediment hosted zinc deposits including the Mcarthur River Mine.

Early results have led to the new discovery of the Black Gate Prospect hosted in the same geological setting as Inkheart on EL 27709 – 25km kilometres west of Inkheart.

Core is especially enthused with Black Gate, which has returned elevated zinc values an order of magnitude higher than those returned from Inkheart and

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450,000 mE 460,000 mE 470,000 mE 480,000 mE 490,000 mE
Basement - BSF contact
Bitter Springs Formation Gillen Member
Heavitree Quartzite
Proterozoic basement
Core’s Exploration Licences (EL)
Core’s Exploration Licence Application (ELA)
Black Gate Core major prospectProspective zones
Pattersons
Mordor
Inkheart
Blueys
450,000 mE 460,000 mE 470,000 mE 480,000 mE 490,000 mE
Albarta regional geology showing prospective zones for zinc mineralisation.
7,410,000 mN
7,410,000 mN
7,400,000 mN
7,400,000 mN
7,390,000 mN
7,390,000 mN
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Uranium

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Uranium in Australia

• Australia is endowed with the world’s largest resources of uranium and is the world’s third biggest exporter.

• 90% of Australia’ uranium resources are in South Australia and Northern Territory.

• Core has high grade uranium mineralisation within a large footprint in world-class, low-risk uranium mining, export and exploration jurisdictions.

Fitton Project, South Australia

Core has made an outstanding discovery of high grade uranium on the 100% owned Fitton Project in South Australia.

This is a significant “new” discovery with genuine upside.

The Fitton Project is located in a world-class, low-risk uranium mining, exploration and export jurisdiction.

Core’s uranium discovery at Scott Lee in the Fitton Project area is only 25km from three operating uranium mines:

• Beverley Mine

• Beverly North Mine

• Four Mile Mine

This area is also host to the new uranium deposit at Four Mile North East.

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300,000mE 350,000mE 400,000mE
6,700,000mN
Fitton Project
Scott Lee Prospect
New Four Mile North East
Four Mile Mine
Mt Gee Beverley Mine
6,650,000mN
Area reserved
from mining
0 20 LAKE FROME
Valkathunha - Gammon Ranges Kilometres
National Park
Fitton 09
Core EL
SOUTH
Core ELA AUSTRALIA
SOUTH AUSTRALIA
Quasar (Heathgate) licences
FITTON PROJECT
Quasar/Alliance JV
Quasar/Paladin JV Location of tenure and
Uranium occurrence major uranium deposits
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Core’s exploration and drilling to date has confirmed the following:

• uranium mineralisation outcrops (up to 0.30% U3O8 at surface)

• uranium mineralisation has high grade at depth (up to 4m @ 0.31% U3O8)

• indications of uranium mineralisation over substantial intersections (60m @ 0.05% U3O8)

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

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

• uranium mineralisation close to major unconformity.

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NT
QLD
WA
SA
Fitton
NSW
VIC
TAS
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Scott Lee Prospect, South Australia

Mineralisation has been consistently intersected in the host structure over a strike length of 1km. This mineralisation is open to both the east and west and at depth.

Many additional structures close to the major unconformity in the region are still to be tested.

Drilling has confirmed thick and high grade uranium intersections as shown in the table below.

Hole SLRC017	21m @ 384ppm (0.04%) U3O8 from 40m inc. 6m @ 978ppm (0.10%) U3O8from 54m
Hole SLRC022	19m @ 487ppm (0.05%) U3O8from 79m inc. 6m @ 1,112ppm (0.11%) U3O8from 89m
Hole SLRC028	60m @ 482ppm (0.05%) U3O8 from 53m inc. 35m @ 750ppm (0.08%) U3O8from 53m inc. 4m @ 3,100ppm (0.31%) U3O8 from 55m
Hole SLRC029	75m @ 268ppm (0.03%) U3O8 from 82m inc. 31m @ 452ppm (0.05%) U3O8from 126m

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6,686,950mN 6,686,900mN 6,686,850mN
North South
1m @355ppm U3O8 from 25m 150mRL
21m@384ppm U3O8 from 40m
including 6m@978ppm U3O8 from 54m
Granite
100mRL
19 m@487ppm U3O8 from 79m
including 6m@1112ppm U3O8 from 89m
Granite
60m@482ppm U3O8 from 53m
in cluding 35m@750ppm U3O8 from 53m
with 4m@3100ppm U3O8 from 55m
50mRL
Doleritic
schist SOUTH AUSTRALIA
FITTON PROJECT
0 metres 30 Cross section 365575 SCOTT LEE PROSPECT Looking east
? ?
124m
87m
112m
42m
SLRC003 SLRC022
SLRC017
SLRC028
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Fitton 04
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