CORE LITHIUM LTD — Interim / Quarterly Report 2011

Apr 27, 2011

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28[th] April 2011

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

QUARTERLY ACTIVITIES AND CASHFLOW REPORT 31 MARCH2011

Please find attached the Quarterly Activities and Appendix 5B Quarterly cash flow reports for the quarter ended March 31, 2011

Yours faithfully

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Stephen Biggins Managing Director

A Level 15, 45 Pirie Street, Adelaide SA 5000 | T (08) 8210 1254 | F (08) 8210 1234 | E info@coreexploration.com.au www.coreexploration.com.au

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ASX Release

QUARTERLY ACTIVITIES REPORT FOR THREE MONTHS ENDED 31 MARCH 2011

28[th] April 2011

CORE EXPLORATION LTD Level 15, 45 Pirie St Adelaide SA 5000

Contact:

Stephen Biggins Managing Director

JOSH WARD

Company Secretary jward@coreexploration.com.au

Highlights

• IPO closed oversubscribed raising $5m.

• Admitted to ASX lists in February 2011, (code “CXO”)

• Helimag survey completed at flagship Yorke Peninsula project

• 3D modelling identifies drill targets on Yorke Peninsula.

• Director, Michael Schwarz appointed as Exploration Manager.

E-MAIL:

info@coreexploration.com.au

WEBSITE: www.coreexploration.com.au

Directors:

Overview

The Board of Core Exploration Ltd (“Core”) is pleased to present its quarterly activities report for the period ended 31March 2011 .

This is the Company’s first quarterly report since its successful $5 million IPO and subsequent ASX listing in February 2011 .

Greg English

Non-Executive Chairman Stephen Biggins Managing Director Michael Schwarz Executive Director Exploration

Core’s exploration programs commenced during the quarter with airborne magnetic surveys on the Yorke Peninsula Project. Importantly, a number of definite drill targets were identified by subsequent 3D modelling.

Issued Capital:

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

ASX Code: CXO

During the quarter, Breakaway Research Group initiated coverage of Core and we welcome the increased profile that such coverage brings the Company.

The Group maintains a strong balance sheet with $4.76m cash in hand as at 31 March 2011.

A Level 15, 45 Pirie Street, Adelaide SA 5000 | T (08) 8210 1254 | F (08) 8210 1234 | E info@coreexploration.com.au www.coreexploration.com.au

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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 – ACTIVITY DURING THE QUARTER

Definite drill targets have been identified on Core’s Yorke Peninsula Project in South Australia, following the completion of three-dimensional (3D) modelling. The 3D modeling of the recently flown magnetic surveys has been completed, over the three areas of Core’s Yorke Peninsula tenement.

Interpretation of the 3D model has confirmed the presence of a number of structurally controlled magnetic bodies which are consistent with Iron Oxide Copper-Gold style mineralisation (Figure 1).

Many of the magnetic anomalies are of a similar scale and hosted in an analogous geological setting to the adjacent tenements in Rex Minerals’ Hillside Project. (Inferred Resource of 170Mt at 0.7% Copper)

The calibre of these targets strengthens Core’s view on its IOCG (Iron Oxide Copper Gold) exploration model on the Yorke Peninsula.

To further refine its chosen drill targets, Core is currently negotiating access to farming properties, prior to undertaking regional gravity and soil sampling surveys. Soil and gravity surveys will be underway shortly and drilling of high priority targets is planned for mid-June.

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Figure 1: 3D model of Area 3 magnetics, Yorke Peninsula Project (looking south-east)

A Level 15, 45 Pirie Street, Adelaide SA 5000 | T (08) 8210 1254 | F (08) 8210 1234 | E info@coreexploration.com.au

www.coreexploration.com.au

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YORKE PENINSULA – PROJECT SUMMARY

Core Exploration’s flagship Yorke Peninsula Copper Project (EL 4177) covers 243km[2] of the Olympic Dam Copper-Gold-Uranium Province of the Gawler Craton.

The Company is encouraged by the recent discovery of Rex Minerals’ (ASX:RXM) nearby Hillside Copper Project and the subsequent definition of an Inferred Resource of 170 million tonnes at 0.7% copper and 0.2g/t gold on its adjacent tenement.

At Hillside, the best mineralisation occurs below 200m. Therefore, the opportunities for new discoveries remain significant, due to most of the area being obscured by shallow cover sediment and much of the past exploration being completed prior to the development of modern under-cover exploration techniques.

Regionally important structures are believed to control the location of IOCG mineralisation within the region. Importantly, a number of south-westerly faults splay into the tenements held by Core. These fault zones will be the focus of exploration. (Figures 2a & 2b)

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Figure 2a & 2b: Regional magnetics and geology, Yorke Peninsula, South Australia

A Level 15, 45 Pirie Street, Adelaide SA 5000 | T (08) 8210 1254 | F (08) 8210 1234 | E info@coreexploration.com.au www.coreexploration.com.au

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ROXBY DOWNS PROJECT

The Company’s Roxby Downs (ELA 227/09) and Horse Well (Sandy Point) (ELA 55/10) tenement applications cover approximately 522km[2] of the Olympic Dam Copper-Gold-Uranium Province of the Gawler Craton. The tenements are located approximately 30km southwest of the world class Olympic Dam Cu – Au - U mine and within kilometres, of known IOCGU mineralisation at the Acropolis, Acropolis West and Aphrodite prospects.

The projects are located on the eastern margin of the Gawler Craton in South Australia, within the Olympic Iron-Oxide-Copper-Gold (IOCG) Province. The Olympic IOCG Province is host to the massive Olympic Dam mine, recently acquired by OZ Minerals Ltd. (Inferred Resource of 203 Mt at 1.3% copper and 0.6g.t gold.) (Figure 3)

A number of detailed gravity surveys were undertaken, by previous explorers, to determine potential targets for IOCGU mineralisation. Initial wide-spaced gravity surveys were completed across Core’s Roxby Downs and Horse Well tenements. Regions of interest were then covered with detailed gravity surveys to accurately define target for drill testing.

The tenements have a number of anomalies which Core considers are yet to be adequately drill tested.

The Acropolis West prospect, defined by gravity extends into ELA 227/09, although at depths in excess of 800m and with little apparent associated magnetic anomalism. If economic mineralisation is located at the Aphrodite or Horse Well prospects it may extend into ELA 55/10, while more subtle anomalies, which may prove to be due to mineralisation, may merit drill testing in their own right.

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Figure 3: Roxby Downs and Horse Well Tenements on Bouguer gravity image

A Level 15, 45 Pirie Street, Adelaide SA 5000 | T (08) 8210 1254 | F (08) 8210 1234 | E info@coreexploration.com.au

www.coreexploration.com.au

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MT PAINTER PROJECT

The Mt Painter Project comprises one exploration licence (EL 4569) covering 107km[2] adjacent to the Mt Painter Inlier, host to the large Mt Gee uranium project in the northern Flinders Ranges of South Australia.

Mt Gee is the fifth largest uranium resource in Australia comprising an Inferred Resource of 47.0Mt at 607 ppm for 28.5Kt U3O8 and an Indicated Resource of 4.0Mt at 706ppm for 2.8Kt U3O8 (total resource of 51Mt @ 615ppm). The region is well known for its numerous breccia complex uranium occurrences within the Mt Painter Inlier.

Core’s project area is located within 10 km of Mt Gee and 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 target for Core’s exploration activities. The Company interprets that the large channel that drains the western margin of the uranium rich Mt Painter Inlier northward through the project area, offers potential for secondary uranium mineralisation. Examples of nearby secondary uranium deposits are the Beverley and Beverley 4-mile deposits on the east. (Figure 4)

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Figure 4: Mt Painter Project on detailed geology

A Level 15, 45 Pirie Street, Adelaide SA 5000 | T (08) 8210 1254 | F (08) 8210 1234 | E info@coreexploration.com.au

www.coreexploration.com.au

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HONEYMOON SOUTH PROJECT

Core’s Honeymoon South Project comprises two granted exploration licences. (EL 4174 and EL 4568) The project covers approximately 340km[2] and is located 15km south of the Honeymoon ISL uranium mine (owned by Uranium One in Joint Venture with Mitsui) on the uranium rich Curnamona Province.

Recent exploration has better defined the Yarramba Palaeochannel which hosts the Honeymoon uranium deposit and ISL mine. The Yarramba palaeochannel now appears to lead upstream into Core’s EL 4174. (Figure 5)

The palaeochannel sediments within the Honeymoon South Project are believed to be derived from the same package of uranium-rich source rocks (Willyama Complex e.g. Radium Hill, Crockers Well) as the nearby Honeymoon deposit.

The Honeymoon South licences are prospective for various types of uranium mineralisation, both in older basement rocks and in the overlying younger sediment.

Core’s exploration for sedimentary uranium will be directed at the prospective Yarramba palaeochannel system where it enters licence EL 4174. There is also potential to trace known palaeochannels and to locate new channels in the southern area of the exploration licences.

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Figure 5: Honeymoon Mine and Palaeochannel Location, Curnamona Province, South Australia

A Level 15, 45 Pirie Street, Adelaide SA 5000 | T (08) 8210 1254 | F (08) 8210 1234 | E info@coreexploration.com.au www.coreexploration.com.au

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FROME PROJECT

The Company’s Frome Project comprises one exploration licence (EL 4379) that covers 331km[2] within the area of the Beverley and Honeymoon Uranium Mines, the Beverley Four Mile and Gould’s Dam and Oban uranium projects, and is situated in a similar geological setting.

Roll-front uranium deposits are located to the northwest and southeast of the Frome licences and Core considers it likely that palaeochannels, or even multiple palaochannels on different sedimentary horizons, cross the licence area. There is potential to locate roll-front type uranium mineralisation in these channels.

Exploration will comprise geophysical techniques to look for channels followed by shallow aircore or similar drilling with radiometric logging.

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Figure 6: Frome and Honeymoon South Project Location and Uranium Mines and Projects, Curnamona Craton South Australia

A Level 15, 45 Pirie Street, Adelaide SA 5000 | T (08) 8210 1254 | F (08) 8210 1234 | E info@coreexploration.com.au

www.coreexploration.com.au

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AMADEUS PROJECT

The Amadeus project comprises an exploration licence application in the Northern Territory (ELA 28349) within the Amadeus Basin, which was the centre of active uranium exploration during the 1970's, with the focus on roll front uranium mineralisation.

A number of significant uranium occurrences have been identified within the Amadeus Basin, including the sizeable Pamela Angela uranium project held in joint venture by Cameco and Paladin. The Pamela and Angela uranium projects are located along the northern basin margin approximately 10km west of the exploration licence application area and around 25km south of Alice Springs.

Past work in the Amadeus Basin has demonstrated the potential of the area to host significant uranium mineralisation. This, coupled with the limited exploration undertaken during the past 20 years, and the occurrence of anomalous zones at the Orange Creek Project, indicates the potential for further roll front uranium mineralisation within the relatively under-explored parts of the basin, covered by Core’s Amadeus Project.

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Figure 7: Amadeus Project and Pamela Angela Uranium Deposit Location, Amadeus Basin, Northern Territory, Australia

A Level 15, 45 Pirie Street, Adelaide SA 5000 | T (08) 8210 1254 | F (08) 8210 1234 | E info@coreexploration.com.au www.coreexploration.com.au

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Corporate

CASH POSITION

The Group had $4.76m cash in hand as at 31 March 2011.

KEY STAFF APPOINTMENTS

Core is pleased with the appointment of Director Michael Schwarz as Exploration Manager and Executive Director, Exploration. Michael is a qualified geologist with 15 years of experience in mineral exploration and prospectivity assessment.

As the founding Managing Director of Monax Mining Ltd (MOX), he built a portfolio of multicommodity projects, including iron oxide copper-gold (IOCG), uranium, gold and base metals. He was also a founding Director of uranium explorer, Marmota Energy Ltd (MEU).

Michael’s 15 years of experience includes mineral exploration within industry and government. He has extensive experience on South Australian and Gawler Craton geology and mineralisation styles and has led research projects with the SA Government, Geoscience Australia and various universities.

Michael has been responsible for building a portfolio of highly prospective tenements with a focus on iron-oxide copper-gold and uranium. During his time with Monax Mining, he was instrumental in the discovery of both the Punt Hill IOCG project and the Waddikee Manganese project.

Outlook – current June Quarter

The Company expects to commence drilling at its flagship Yorke Peninsula project in mid-June 2011.

Exploration on the Mt Painter and Honeymoon South uranium projects is expected to commence in May 2011.

A Level 15, 45 Pirie Street, Adelaide SA 5000 | T (08) 8210 1254 | F (08) 8210 1234 | E info@coreexploration.com.au www.coreexploration.com.au

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ASX Announcements

Since being admitted to the ASX lists, the Company made the following announcements during the quarter and to the date of this report:

Date	Announcement
13/04/2011	Drill Targets Identified at Yorke Peninsula,SA
10/03/2011	High PriorityTargets Identified at Yorke Peninsula Project
9/03/2011	Half Year Accounts
25/02/2011	Yorke Peninsula SurveyData Received/Initiation of Coverage
17/02/2011	Becominga substantial holder
17/02/2011	Becominga substantial holder
17/02/2011	Initial Directors Interest Notice x 3
10/02/2011	Appendix 1A ‐ ASX Listingapplication and agreement
10/02/2011	Constitution
10/02/2011	Corporate Governance Statement
10/02/2011	Escrow schedule
10/02/2011	Trading policy
10/02/2011	Statement regardingSturt Agreement
10/02/2011	Statement regardingstatus of renewals
10/02/2011	Statement regardingstatus of applications
10/02/2011	Statement regardingDBL Agreement
10/02/2011	Option terms
10/02/2011	Pro forma balance sheet
10/02/2011	Statement of Commitments
10/02/2011	Top20 shareholders
10/02/2011	Distribution schedule
10/02/2011	Pre‐Quotation disclosure
10/02/2011	Admission to the official list
10/02/2011	ASX Circular: Commencement of OfficialQuotation
8/12/2010	Prospectus

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 15, 45 Pirie Street, Adelaide SA 5000 | T (08) 8210 1254 | F (08) 8210 1234 | 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

Name of entity
Core Exploration Ltd
ABN 80 146 287 809	Quarter ended (“currentquarter”)
80 146 287 809	31 March 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 (9 Months) $A’000
	4 (66) - - (116) - 29 - - - (61)	4 (66) - - (164) - 31 - - - (61)
	(210)	(255)
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)	- - (21) - - - - - - -	- - (21) - - - - - - -
	(21)	(21)
	(231)	(276)

	Suite 2, 12 Parlia West Perth WA 6 PO Box 902 West Perth WA 6	T +61 8 9482 0 F +61 8 9482 0 www.epsilonene admin@epsilone ment Place 005 872
1.13 Total operating and investing cash flows (brought forward)	(231)	(276)
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) - Share subscriptions in previous quarters included in cash balance - Capital raising costs Net financing cash flows	5,000 (780) (368)	5,525 - (487)
	3,852	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	3,621 1,141 -	4,762 - -
	4,762	4,762

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 Aggregate amount of payments to the parties included in item 1.2 1.24 Aggregate amount of loans to the parties included in item 1.10	Current quarter $A'000
	38
	11
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 Michael Schwarz, 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. During the quarter, Core Exploration acquired 100% of the share capital of Sturt Exploration Pty Ltd and DBL Blues Pty Ltd for consideration of 10.5m Core Exploration shares and 4m options exercisable at 25 cents each on or before 30 June 2014. 2.2 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

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 Exploration and evaluation 4.2 Development 4.3 Production 4.4 Administration	$A’000
	740
	-
	-
	250
Total	990

Reconciliation of cash

Reconciliation of cash	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) - Subscriptions received included in cash			762			361
			4,000			-
			-			-
						780
Cash at end of quarter(item 1.22)			4,762			1,141
Changes in interests in mining tenements Tenement reference 6.1 Interests in mining tenements relinquished, reduced or lapsed 6.2 Interests in mining tenements acquired or increased EL 4177 EL 4174 EL 4568 EL 4569 ELA 55/10 ELA 227/09 EL 4379
	Tenement reference		Nature of interest (note (2)	Interest at beginning ofquarter		Interest at end of quarter
	EL 4177 EL 4174 EL 4568 EL 4569 ELA 55/10 ELA 227/09 EL 4379		Mineral rights Mineral rights Mineral rights Mineral rights Mineral rights Mineral rights Mineral rights	Nil Nil Nil Nil Nil Nil Nil		100% 100% 100% 100% 100% 100% 100%

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.

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 ofcapital, buy-backs	41,500,000	27,625,000
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
7.11 Debentures(totals only)
7.12 Unsecured 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.

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Joshua Ward Company Secretary

Date: 28 April 2011

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.

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