CORE LITHIUM LTD — Interim / Quarterly Report 2011

Jul 28, 2011

==> picture [594 x 140] intentionally omitted <==

29 July 2011

Centralised Company Announcements Platform Australian Stock Exchange 10[th] floor, 20 Bond Street Sydney NSW 2000

QUARTERLY ACTIVITIES AND CASHFLOW REPORT 30 JUNE 2011

Please find attached the Quarterly Activities and Appendix 5B Quarterly Cash Flow Reports for the quarter ended 30 June 2011.

Yours faithfully

==> picture [100 x 31] intentionally omitted <==

Stephen Biggins Managing Director

==> picture [596 x 29] intentionally omitted <==

A Level 2, 143 Hutt Street, Adelaide SA 5000 | T (08) 7324 2987| F (08) 8312 2002| E info@coreexploration.com.au www.coreexploration.com.au

==> picture [165 x 52] intentionally omitted <==

ASX Release

29 July 2011

QUARTERLY ACTIVITIES REPORT FOR THREE MONTHS ENDED 30 JUNE 2011

CORE EXPLORATION LTD

Level 2 143 Hutt Street Adelaide SA 5000

CONTACT:

Stephen Biggins Managing Director

Jarek Kopias Company Secretary jkopias@coreexploration.com.au

Highlights

• Large-scale gravity and magnetic drill targets identified on Yorke Peninsula Project (SA).

• Copper and uranium mineralisation identified in shear zone on Fitton (Mt Painter) Project (SA).

• Drilling to commence in next few days on Yorke Peninsula Project.

E-MAIL:

Overview

info@coreexploration.com.au

WEBSITE:

www.coreexploration.com.au

The Board of Core Exploration Ltd (“Core”) is pleased to present its quarterly activities report for the period ended 30 June 2011 .

Directors:

Greg English Non-Executive Chairman

Stephen Biggins Managing Director

Michael Schwarz

Executive Director Exploration

Drilling is planned to commence shortly on the gravity and magnetic targets identified by Core’s surveys during the period on the Yorke Peninsula Project in South Australia.

Rock chips collected as part of Core’s first exploration program at Fitton (Mt Painter) assayed to 10.5% copper and 624ppm uranium. The rocks were sourced from a shear zone that varies from a few metres up to 25m wide and was mapped by the Company for a strike length of over 650m.

Issued Capital:

41,500,000 Ordinary Shares 8,500,000 Unlisted Options

The Group maintains a strong balance sheet with A$4.36 million cash on hand as at 30 June 2011.

ASX Code: CXO

A Level 2, 143 Hutt Street, Adelaide SA 5000 | T (08) 7324 2987| F (08) 8312 2002| E info@coreexploration.com.au

www.coreexploration.com.au

Projects

The company’s exploration portfolio in South Australia and the Northern Territory comprises approximately 2,000km[2] of tenements, in highly prospective copper and uranium mining provinces.

YORKE PENINSULA (SA) – ACTIVITY DURING THE QUARTER

Yorke Peninsula Drill Program

During the reporting period, infill gravity surveys were undertaken to better define the large-scale set of magnetic and gravity drill targets identified within the 12km long, 2-4km wide, Palace Structural Zone (Figure 2).

==> picture [96 x 76] intentionally omitted <==

These large-scale gravity and magnetic drill targets are hosted in an analogous geological setting to Rex Minerals’ (ASX:RXM) Hillside Project (Inferred and Indicated Resource of 217Mt at 0.7% copper and 0.2g/t gold) on the adjacent tenement (Figure 1).

The semi coincident magnetic and gravity anomalies identified by Core are strong indicators of magnetite/hematite iron oxide alteration systems and potentially IOCG (Iron Oxide Copper Gold) style mineralisation.

Figure 1: Core Exploration’s Yorke Peninsula Project, South Australia

Results from this gravity survey work have led to the Board’s decision to double

the size of Core’s maiden drill program. The upcoming air-core drill program has been increased to 4,000m as a result of the company’s increasing level of confidence in the IOCG (Iron Oxide Copper Gold) potential of the Yorke Peninsula Project.

The drill contractor to Core’s first drilling program, on the Yorke Peninsula Project, advised that it will be arriving on site in the next few days and drilling will commence early next week.

A Level 2, 143 Hutt Street, Adelaide SA 5000 | T (08) 7324 2987| F (08) 8312 2002| E info@coreexploration.com.au www.coreexploration.com.au

==> picture [166 x 52] intentionally omitted <==

==> picture [405 x 650] intentionally omitted <==

Figure 2: Drill targets with residual gravity contours overlain on magnetics (RTP) Image Area 3, Yorke Peninsula Project, S.A.

A Level 2, 143 Hutt Street, Adelaide SA 5000 | T (08) 7324 2987| F (08) 8312 2002| E info@coreexploration.com.au www.coreexploration.com.au

==> picture [166 x 52] intentionally omitted <==

FITTON PROJECT (MT PAINTER) – ACTIVITY DURING THE QUARTER

Fitton Project (formerly Mt Painter) Rock Chip Sampling

During the reporting period, high levels of copper and uranium were identified in surface rockchips sampled from the Company’s Fitton (formerly Mt Painter) project in South Australia.

Rock chips collected as part of Core’s first exploration program, at Fitton, assayed to 10.5% copper and 624ppm uranium. The rocks were sourced from a shear zone that varies from a few metres up to 25m wide and was mapped by the Company for a strike length of more than 650m (Figure 3).

Core’s Fitton Project covers 106km² adjacent to the Mt Painter Inlier. The region is well known for its numerous breccia complex and large-scale secondary uranium occurrences. Examples of nearby secondary uranium deposits include the Beverley mine and Beverley 4-mile deposits to the east of the Core tenement (Figure 4).

The project covers areas of Radium Creek metamorphics and other prospective host rocks within the Mt Painter Inlier. The Radium Creek package of uranium-rich rocks is a very prospective exploration target for the Company’s exploration activities.

The first assays from Core’s initial rock chip samples are very encouraging. Core will soon return to the site to undertake more detailed mapping of this shear zone and to explore the surrounding prospective area for additional related shear zones. The program will also include systematic rock chip sampling along the extent of the exposed shear zone.

==> picture [406 x 303] intentionally omitted <==

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

Arkaroola Protection Area
----- End of picture text -----

Figure 3: Fitton Project EL 4569 geology and location, northern South Australia

A Level 2, 143 Hutt Street, Adelaide SA 5000 | T (08) 7324 2987| F (08) 8312 2002| E info@coreexploration.com.au

www.coreexploration.com.au

==> picture [166 x 52] intentionally omitted <==

==> picture [436 x 281] intentionally omitted <==

Figure 4: Copper and uranium assays and sample locations, Fitton Project, S.A.

==> picture [433 x 325] intentionally omitted <==

Figure 5: Radioactive outcrop of shear zone in northern tenement.

A Level 2, 143 Hutt Street, Adelaide SA 5000 | T (08) 7324 2987| F (08) 8312 2002| E info@coreexploration.com.au www.coreexploration.com.au

==> picture [166 x 52] intentionally omitted <==

Corporate

CASH POSITION

The Group had $4.36 million cash in hand as at 30 June 2011.

KEY STAFF APPOINTMENTS

Jarek Kopias was appointed as Company Secretary and Chief Financial Officer of the Company effective 21 June 2011. Adelaide-based Jarek brings 15 years of financial and commercial experience in the resource sector and is a Certified Practising Accountant and Chartered Secretary. Jarek replaces Josh Ward as the previous Company Secretary and Chief Financial Officer.

Outlook – current September Quarter

Core’s first drilling program on the Yorke Peninsula Project is to commence in the next few days.

In addition to assessment of the anticipated drill results, gravity modelling and inversions of the geophysical datasets on the Yorke Peninsula Project will continue during the next quarter.

A detailed soil sampling program is planned to commence in August on the Fitton Project, followed by mapping and rock chip sampling during the current September Quarter.

A Level 2, 143 Hutt Street, Adelaide SA 5000 | T (08) 7324 2987| F (08) 8312 2002| E info@coreexploration.com.au www.coreexploration.com.au

==> picture [166 x 52] intentionally omitted <==

ASX Announcements

The Company made the following announcements during the quarter and to the date of this report:

Date	Announcement
23/5/2011	Large Scale Gravity Targets – Yorke Peninsula
17/6/2011	Yorke Peninsula Drill Program Doubled to 4000m
21/6/2011	Change in Company Secretary and Chief Financial Officer
5/7/2011	Change in Registered Address
7/7/2011	Mineralised shear zone identified at Mt Painter Project, S.A.

The information in this report that relates to exploration results, mineral resources or ore reserves is based on information compiled by Mr Stephen Biggins who is a member of the Australasian Institute of Mining and Metallurgy. Mr Biggins is the Managing Director of Core Exploration Ltd. Mr Biggins has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Mr Biggins consents to the inclusion in this ASX Release of the matters based on his information in the form and context in which it appears.

A Level 2, 143 Hutt Street, Adelaide SA 5000 | T (08) 7324 2987| F (08) 8312 2002| E info@coreexploration.com.au www.coreexploration.com.au

Appendix 5B

Mining exploration entity quarterly report

Introduced 1/7/96. Origin: Appendix 8. Amended 1/7/97, 1/7/98, 30/9/2001.

Name of entity

Core Exploration Ltd ABN Quarter ended (“current quarter”) 80 146 287 809 30 June 2011

Consolidated statement of cash flows

Cash flows related to operating activities 1.1 Receipts from product sales and related debtors 1.2 Payments for: (a) exploration and evaluation (b) development (c) production (d) administration 1.3 Dividends received 1.4 Interest and other items of a similar nature received 1.5 Interest and other costs of finance paid 1.6 Income taxes paid 1.7 Other (provide details if material) - Prospectus costs Net Operating Cash Flows	Current Quarter (3 Months) $A’000	Year to date (12 Months) $A’000
	- (139) - - (238) - 21 - - - -	4 (205) - - (401) - 52 - - - (61)
	(356)	(611)
Cash flows related to investing activities 1.8 Payment for purchases of: (a) prospects (b) equity investments (c) other fixed assets 1.9 Proceeds from sale of: (a) prospects (b) equity investments (c) other fixed assets 1.10 Loans to other entities 1.11 Loans repaid by other entities 1.12 Other (provide details if material) Net investing cash flows 1.13 Total operating and investing cash flows (carried forward)	- - (43) - - - - - - -	- - (64) - - - - - - -
	(43)	(64)
	(399)	(675)

A Level 2, 143 Hutt Street, Adelaide SA 5000 | T (08) 7324 2987| F (08) 8312 2002| E info@coreexploration.com.au

www.coreexploration.com.au

1.13 Total operating and investing cash flows (broughtforward)	(399)	(675)
Cash flows related to financing activities 1.14 Proceeds from issues of shares 1.15 Proceeds from sale of forfeited shares 1.16 Proceeds from borrowings 1.17 Repayment of borrowings 1.18 Dividends paid 1.19 Other (provide details if material) - Capital raising costs Net financing cash flows	- - - - - -	5,525 - - - - (487)
	-	5,038
Net increase (decrease) in cash held 1.20 Cash at beginning of quarter/year to date 1.21 Exchange rate adjustments to item 1.20 1.22 Cash at end of quarter	(399) 4,762 -	4,363 - -
	4,363	4,363

Payments to directors of the entity and associates of the directors

Payments to related entities of the entity and associates of the related entities

1.23 1.24	Aggregate amount of payments to the parties included in item 1.2 Aggregate amount of loans to the parties included in item 1.10	Current quarter $A'000
		151
		-
1.25	Explanation necessary for an understanding of the transactions
	The amount above includes all payments to Directors and also includes payments to companies associated with Greg English and Stephen Biggins. The payments relate to executive services and directors fees on commercial terms.

Non-cash financing and investing activities

• 2.1 Details of financing and investing transactions which have had a material effect on consolidated assets and liabilities but did not involve cash flows.

2.2	n/a
	Details of outlays made by other entities to establish or increase their share in projects in which the reporting entity has an interest.
	n/a

A Level 2, 143 Hutt Street, Adelaide SA 5000 | T (08) 7324 2987| F (08) 8312 2002| E info@coreexploration.com.au

www.coreexploration.com.au

Financing facilities available

3.1 Loan facilities 3.2 Credit standby arrangements	Amount available $A’000	Amount used $A’000
	Nil	Nil
	Nil	Nil

Estimated cash outflows for next quarter

4.1 4.2 4.3 4.4	Exploration and evaluation Development Production Administration	$A’000
		778
		-
		-
		261
	Total	1,039

4.1 4.2 4.3 4.4	Exploration and evaluation Development Production Administration

Reconciliation of cash

Reconciliation of cash
Reconciliation of cash at the end of the quarter (as shown in the consolidated statement of cash flows) to the related items in the accounts is as follows.	Current quarter $A’000	Previous quarter $A’000
5.1 Cash on hand and at bank 5.2 Deposits at call 5.3 Bank overdraft Other (provide details)	349	762
	4,014	4,000
	-	-
	-	-
Cash at end of quarter(item 1.22)	4,363	4,762

Changes in interests in mining tenements

6.1 Interests in mining tenements relinquished, reduced or lapsed 6.2 Interests in mining tenements acquired or increased	Tenement reference	Nature of interest (note (2)	Interest at beginning of quarter	Interest at end of quarter
	Nil
	Nil

A Level 2, 143 Hutt Street, Adelaide SA 5000 | T (08) 7324 2987| F (08) 8312 2002| E info@coreexploration.com.au www.coreexploration.com.au

Issued and quoted securities at end of current quarter

Description includes rate of interest and any redemption or conversion rights together with prices and dates.

	Total number	Number quoted	Issue price per security (cents)	Amount paid upper security (cents)
7.1 Preference+securities (description) 7.2 Changes during quarter
7.3 +Ordinary securities 7.4 Changes during quarter (a) Increases through issues (b) Decreases through returns of capital, buy-backs	41,500,000	27,625,000		Fully paid
7.5 +Convertible debt securities (description) 7.6 Changes during quarter
7.7 Options (description and conversion factor) Unlisted Options Unlisted Class B Options 7.8 Issued during quarter 7.9 Exercised during quarter 7.10 Expired during quarter	7,000,000 1,500,000	- -	Exercise price 25 cents 25 cents	Expiry date 30 Jun 2014 31 Oct 2014
7.11Debentures(totals only)
7.12Unsecured notes(totals only)

Compliance statement

• 1 This statement has been prepared under accounting policies which comply with accounting standards as defined in the Corporations Act or other standards acceptable to ASX (see note 4).

• 2 This statement does give a true and fair view of the matters disclosed.

==> picture [126 x 84] intentionally omitted <==

Jarek Kopias Company Secretary

Date: 29 July 2011

A Level 2, 143 Hutt Street, Adelaide SA 5000 | T (08) 7324 2987| F (08) 8312 2002| E info@coreexploration.com.au

www.coreexploration.com.au

Notes

• 1 The quarterly report provides a basis for informing the market how the entity’s activities have been financed for the past quarter and the effect on its cash position. An entity wanting to disclose additional information is encouraged to do so, in a note or notes attached to this report.

• 2 The “Nature of interest” (items 6.1 and 6.2) includes options in respect of interests in mining tenements acquired, exercised or lapsed during the reporting period. If the entity is involved in a joint venture agreement and there are conditions precedent which will change its percentage interest in a mining tenement, it should disclose the change of percentage interest and conditions precedent in the list required for items 6.1 and 6.2.

3 Issued and quoted securities

The issue price and amount paid up is not required in items 7.1 and 7.3 for fully paid securities .

• 4 The definitions in, and provisions of, AASB 1022: Accounting for Extractive Industries and AASB 1026: Statement of Cash Flows apply to this report.

5 Accounting Standards

ASX will accept, for example, the use of International Accounting Standards for foreign entities. If the standards used do not address a topic, the Australian standard on that topic (if any) must be complied with.

== == == == ==

A Level 2, 143 Hutt Street, Adelaide SA 5000 | T (08) 7324 2987| F (08) 8312 2002| E info@coreexploration.com.au www.coreexploration.com.au