CORE LITHIUM LTD — Interim / Quarterly Report 2012

Jan 30, 2012

==> picture [593 x 139] intentionally omitted <==

31 January 2012

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

QUARTERLY ACTIVITIES AND CASHFLOW REPORT 31 DECEMBER 2011

Please find attached the Quarterly Activities and Appendix 5B Quarterly Cash Flow Reports for the quarter ended 31 December 2011.

Yours faithfully

==> picture [134 x 41] 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

31 January 2012

QUARTERLY ACTIVITIES REPORT FOR THREE MONTHS ENDED 31 DECEMBER 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

E-MAIL:

info@coreexploration.com.au

Highlights

• Uranium and Copper targets extended by soils and rock-chips at Fitton, S.A.

• Airborne EM and infill gravity surveys completed in preparation for drilling on Yorke Peninsula, S.A.

Overview

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

WEBSITE:

www.coreexploration.com.au

Directors:

Greg English Non-Executive Chairman

Stephen Biggins Managing Director

Michael Schwarz

Executive Director Exploration

Issued Capital:

41,500,000 Ordinary Shares 8,575,000 Unlisted Options

ASX Code: CXO

Soil surveys and geological mapping on Core’s 100% owned Fitton Project in northern South Australia has extended the area of copper and uranium anomalism to over 1,500m. Rockchip sampling at Fitton, has also identified additional uranium mineralisation. The new shear zone sampled 121ppm uranium at surface and substantially widens the potential zone of mineralisation and related shearing.

Preparation for the drilling on the Yorke Peninsula in first quarter of 2012 included airborne electromagnetic (AEM) and infill gravity surveys.

Core Exploration maintains a strong balance sheet with A$3.44 million cash on hand as at 31 December 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

Projects

YORKE PENINSULA (SA) – ACTIVITY DURING THE QUARTER

Yorke Peninsula Airborne Electromagnetic (AEM) Survey

During the quarter a 375 line km heli-borne AEM survey spaced at 200m was flown by Core over the Palace Structural Zone on the Yorke Peninsula. (Figure 1).

==> picture [347 x 383] intentionally omitted <==

Figure 1. Flight line plan of AEM survey and photo of heli-borne system, Yorke Peninsula Project S.A.

Of note is a late channel conductive AEM anomaly highlighted by the survey on the north-east margin one of a key gravity/magnetic IOCG targets which the Company plans to drill next month (Figures 2a and 2b). This conductive body of rock may reflect an increase in sulphides associated with increased dense and magnetic rocks nearby (i.e. magnetite).

Further interpretation of the AEM data is currently underway with the modelling to be incorporated in the targeting process of the upcoming diamond and RC drilling.

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 <==

==> picture [249 x 352] intentionally omitted <==

==> picture [210 x 246] intentionally omitted <==

Figure 2a. Residual gravity image. 2b. zoomed area showing AEM conductivity at 100m depth (red = high conductivity) overlain on magnetics (greyscale) and residual gravity contours, Yorke Peninsula Project, S.A

Yorke Peninsula Infill Gravity Survey

An additional infill gravity survey was completed in December 2011 on Core’s Yorke Peninsula Project in South Australia. This new data was used to infill existing 500 x 500m gravity grid to 250 x 250m (Figure 3). The additional data brings the total to 1,435 gravity points within the survey area of 146 km[2] .

A key feature of the gravity targets defined by the higher resolution infill data is the consistency of the main linear gravity features on a 4-5 kilometre scale. These gravity features have an inconsistent magnetic character (Figure 2b) which fits well with Core’s interpretation of these targets as structurally controlled, dense, IOCG alteration with fluctuating magnetite (magnetic iron oxide) and hematite (non-magnetic iron oxide) content.

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 <==

==> picture [325 x 426] intentionally omitted <==

Figure 3. Gravity survey locations on new residual gravity image.

FITTON PROJECT – ACTIVITY DURING THE QUARTER

During the quarter, additional uranium mineralisation was identified on Core’s 100% owned Fitton Project (EL 4569) located 25km north of the Beverley uranium mine in northern South Australia.

Rock-chip sampling during the quarter of a newly recognized sheared porphyritic granite returned 121 ppm uranium. The sample occurs 200m north of the uranium-copper mineralized main shear zone previously identified by Core (Figure 4) and substantially widens the potential zone of mineralisation and related shearing.

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 <==

==> picture [460 x 306] intentionally omitted <==

Figure 4. New and previous rock chip sample locations and assays (Uranium and Copper), with main zone of shearing and new shear zone overlain on satellite imagery

The new samples, with high levels of uranium, are in addition to the previous high levels of copper and uranium found in surface rock chips collected as part of Core’s first exploration program at Fitton.

The high levels of uranium in the new and previous rock chip sampling correlate well with elevated uranium and copper in the soil surveys which extend over 1,500m long and 1,000m wide (Figure 5).

It is interpreted that a series of multi-directional zones of fracturing in the host granite have been intruded by a later porphyritic granite which have been the focus of shearing and uranium mineralization (Figure 6). This zone of shearing has been mapped for over 2,000m at surface. Uranium and copper in soil data indicate that the zone of anomalism related to shearing and mineralisation may be up to 1,000m wide (Figure 5).

Numerous smaller shear zones occur within the mapped envelope of shearing and vary individually in width from one metre to over 25 metres. Scintillometer measurements along the 2km structure indicate that the entire length is anomalously radioactive. However, the levels of uranium and copper, based on sampling to date from these shear zones, vary substantially.

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 <==

==> picture [442 x 281] intentionally omitted <==

Figure 5. New and previous rock chip sample locations and assays (Uranium and Copper), with main zone of shearing and new shear zone overlain on uranium in soils image.

==> picture [399 x 295] intentionally omitted <==

Figure 6. Outcrop of sheared porphyritic granite with anomalous uranium, 121 ppm uranium

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 <==

Corporate

CASH POSITION

Core Exploration had $3.44 million cash in hand as at 31 December 2011.

Outlook –March 2012 Quarter

Diamond and RC drilling on the Yorke Peninsula project is scheduled to commence in February 2012.

Infill soil sampling is planned over the main uranium and copper anomalies at Fitton in March 2012. Systematic and detailed rock chip sampling of the entire length of the mineralized shear zone is also planned to commence in March.

Drilling of priority targets on Fitton defined by these surveys is planned in the 2nd quarter of 2012.

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 Announcements

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

Date	Announcement
1 Nov 2011	Quarterly Activities Report and Appendix 5B
3 Nov 2011	Chairman’s Address to Shareholders 2011 AGM
3 Nov 2011	Managing Director’s Presentation to Shareholders 2011 AGM
3 Nov 2011	Results of 2011 Annual General Meeting
10 Nov 2011	Soil and rock chip surveys on Fitton Project
23 Nov 2011	Change of Director`s Interest Notice - S Biggins
30 Nov 2011	Copper and Uranium Target Extended at Fitton
2 Dec 2011	Presentation SAEMC Conference
13 Jan 2012	Additional Uranium Shear Zones found at Fitton, S.A.
30 Jan 2012	Exploration Licence granted 40km south of Olympic Dam

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 31 December 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 (6 Months) $A’000
	- (227) - - (208) - 56 - - - -	- (583) - - (419) - 168 - - - -
	(379)	(834)
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)	- - (8) - - - - - - -	- - (85) - - - - - - -
	(8)	(85)
	(387)	(919)

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)	(387)	(919)
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	- - - - - -	- - - - - (1)
	-	(1)
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	(387) 3,830 -	(920) 4,363 -
	3,443	3,443

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
		127
		-
1.25	Explanation necessary for an understanding of the transactions
	The amount above includes all payments to Directors and also includes payments to entities 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
		375
		-
		-
		187
	Total	562

• 4.1 Exploration and evaluation 4.2 Development 4.3 Production 4.4 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)	262	296
	3,181	3,534
	-	-
	-	-
ash at end of quarter(item 1.22)	3,443	3,830

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	29,900,000		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 Unlisted Options 7.8 Issued during quarter 7.9 Exercised during quarter 7.10 Expired during quarter	7,000,000 1,500,000 75,000	- - -	Exercise price 25 cents 25 cents 20 cents	Expiry date 30 Jun 2014 31 Oct 2014 19 Sep 2013
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 [127 x 83] intentionally omitted <==

Jarek Kopias Company Secretary

Date: 31 January 2012

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