CORE LITHIUM LTD — Regulatory Filings 2016

Sep 5, 2016

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ASX ANNOUNCEMENT

ASX: CXO

6[th] September 2016

Substantial pegmatite intersections containing significant spodumene mineralisation in first two prospects drilled

HIGHLIGHTS

• Core’s first drilling campaign on the Finniss Lithium Project in the NT has hit substantial pegmatite intersections containing significant spodumene mineralisation

• Spodumene mineralisation has been observed in the two lithium prospects drilled so far, within:

• 60m pegmatite intersection at BP33 Prospect

• 52m pegmatite intersection drilled at Grants Prospect

• Drilling is continuing and is on schedule to be completed in midSeptember with assay results expected during October

• Core’s current RC drill program comprises 2,000m of RC drilling to test 5 high priority, large-scale lithium pegmatite drill targets

Core Exploration Ltd (ASX: CXO) (“Core” or the “Company”) is pleased to announce that its first lithium drilling program at the Finniss Lithium Project in the Northern Territory has hit substantial pegmatite intersections at the first two lithium prospects drilled to date.

Spodumene mineralisation has been identified at both BP33 and Grants Prospects drilled to date within broad pegmatite intersections. Spodumene has been positively identified as the main lithium mineral in the pegmatite systems drilled on Core’ Finniss Lithium Project (Figures 1 – 4).

Core’s current drilling program comprises approximately 2,000m of RC drilling and will test 5 high priority drill targets on granted EL 29698, being the BP 33, Grants, Far West Central, Ah Hoy and Hills prospects (Figure 4).

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Drilling at BP33 pegmatite has intersected the steeply dipping pegmatite over 60m downhole (34m-94m BPRC004 - approximately 30-40m true width). Significant levels of spodumene mineralisation have been observed regularly within broad pegmatite intersections in the four holes drilled so far at BP33 (Figures 1-2).

BP33 is located approximately 150m north of BP32 Pegmatite and 200m NE of BP32W Pegmatite (Figure 3). It is likely that all these pegmatite bodies are part of a larger interconnected pegmatite swarm.

Drilling at Grants has hit a steeply dipping pegmatite intersections up to 52m thick (69m121m GRRC002 TBC) (approximately 25-35m true width). Significant levels of spodumene mineralisation have also been observed regularly within broad pegmatite intersections in the two holes completed to date at Grants (Table 1 & Figure 4).

Greenbushes Ltd (Greenex) established series of trenches and a small pit at Grants in the 1980’s. The Grants pegmatite has been mapped for over 350m and is open along strike under shallow soils.

Spodumene presents itself at both prospects as coarse crystals which fluoresce pink under UV light (Figure 2).

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Figure 1. Sieved RC drill chips of pegmatite intersection (34m-94m) drillhole BPRC004 BP33 Pegmatite, EL 29698, Finniss Lithium Project, NT.

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Figure 2. Spodumene crystals (pink) in BP33 Pegmatite RC chips (BP33RC003 88m-91m) under normal (bottom) and UV (top) light.

**Prospect **	**Hole ID **	Pegmatite From	Pegmatite To	Pegmatite Intersection	East	North	RL	**Az. **	**Dip **	TD
BP33	BP01	50.5	91.5	41	694436	8593515	30	125	-55	111
BP33	BP02	64.5	106.5	42	694471	8593440	30	123	-55	113
BP33	BP03	67	121	54	694511	8593467	30	125	-55	136
BP33	BP04	34	94	60	694408	8593495	30	125	-55	106
Grants	GR01	18	55	37	693024	8599087	30	90	-55	66
Grants	GR02	69	121	52	693002	8599086	30	90	-55	131

Table 1. All RC drillholes completed to date, Finniss Lithium Project, NT.

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Core expects the current phase of RC drilling to be completed around mid-September with assay results expected during October 2016.

Discovery of high grade lithium with the drill program would be significant for Core given the scale of some new pegmatites identified by the Company’s current field programs are directly comparable to the scale of pegmatites hosting large lithium resources in the Pilgangoora region in Western Australia.

Core’s Finniss Lithium Project has substantial infrastructure advantages being close to grid power, gas and rail infrastructure and within easy trucking distance by sealed road to the multi-user port facility at Darwin Port - Australia’s nearest port to Asia.

Commenting on commencement of drilling, Core’s Managing Director, Stephen Biggins said:

“Initial drilling at Finniss is looking very promising given spodumene has been hit by Core within pegmatite intersections of substantial width in the targets drilled so far. We are continuing the drill programme at Finniss, which is yet to test the Hills, Far West Central, and Ah Hoy prospects, and we look forward to receiving the assays next month and to ascertain the lithium grade within these pegmatite systems”.

Finniss Lithium Project Background

Core’s Finniss Lithium Project covers a large portion of the Bynoe Tin-Tantalum-Lithium Pegmatite field. Bynoe is one of the most prospective areas for lithium in the NT and has many similarities to Greenbushes in WA, one of the world’s largest and highest grade spodumene deposits.

As with Greenbushes, before economic lithium was recognised, Core’s Finniss Lithium Project also has a 100 year history of tin and tantalum mining.

The Bynoe Pegmatite Field is a 15-20 kilometre wide belt of more than 90 tin and tantalum prospects and mines which stretches over a distance of 75 kilometres from Mount Tolmer to Port Darwin in the north with Core’s tenements covering the northern end of the Bynoe Pegmatite Field.

Core’s Finniss Lithium Project has substantial infrastructure advantages being close to grid power, gas and rail infrastructure and within easy trucking distance by sealed road to the multi-user port facility at Darwin Port - Australia’s nearest port to Asia.

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100m
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Figure 3. BP33, BP32 and BP32W Pegmatite locations showing recent drilling and previous mining, drilling and trenching work, Finniss Lithium Project, NT.

For further information please contact:

Stephen Biggins Managing Director Core Exploration Ltd 08 7324 2987 info@coreexploration.com.au

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Figure 4. Initial drill target locations, Finniss Lithium Project, NT.

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.

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JORC Code, 2012 Edition – Table 1 report template Section 1 Sampling Techniques and Data

(Criteria in this section apply to all succeeding sections.)

Criteria	JORC Code explanation	Commentary	Commentary
Sampling	 Nature and quality of sampling (eg cut channels, random chips, or		Sub surface chip samples have been collected by reverse
techniques	specific specialised industry standard measurement tools appropriate		circulation drilling techniques (see below).
	to the minerals under investigation, such as down hole gamma		Drill holes are oriented approximately perpendicular to the
	sondes, or handheld XRF instruments, etc). These examples should		interpreted strike of the mineralised trend.
	not be taken as limiting the broad meaning of sampling.		Rock samples comprise multiple chips considered to be
	 Include reference to measures taken to ensure sample representivity		representative of the horizon or outcrop being sampled.
	and the appropriate calibration of any measurement tools or systems		Samples submitted for assay typically weigh 2-3kg.
	used.		Historic sampling and drilling techniques not described in detail.
	 Aspects of the determination of mineralisation that are Material to the Public Report.		RC samples are homogenised by cone splitting prior to sampling and are then to be submitted for assay
	 In cases where ‘industry standard’ work has been done this would be
	relatively simple (eg ‘reverse circulation drilling was used to obtain 1
	m samples from which 3 kg was pulverised to produce a 30 g charge
	for fire assay’). In other cases more explanation may be required,
	such as where there is coarse gold that has inherent sampling
	problems. Unusual commodities or mineralisation types (eg
	submarine nodules) may warrant disclosure of detailed information.
Drilling	 Drill type (eg core, reverse circulation, open-hole hammer, rotary air		Drilling techniques used at Finniss comprises:
techniques	blast, auger, Bangka, sonic, etc) and details (eg core diameter, triple		Reverse Circulation (RC)/4.5”, face sampling hammer
	or standard tube, depth of diamond tails, face-sampling bit or other		RC drilling techniques completed by Greenbushes in 1995 not
	_type, whether core is oriented and if so, by what method, etc). _		documented in historic reports.
Drill sample	 Method of recording and assessing core and chip sample recoveries		Sample recoveries are visually estimated and recorded for each
recovery	and results assessed.		metre. To date sample recoveries have averaged >95%.
	 Measures taken to maximise sample recovery and ensure representative nature of the samples.		Drill collars are sealed to prevent sample loss and holes are normallydrilled drytopreventpoor recoveries and

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	Criteria JORC Code explanation Commentary
	 Whether a relationship exists between sample recovery and grade and whether sample bias may have occurred due to preferential loss/gain of fine/coarse material. contamination caused by water ingress. Wet intervals are noted in case of unusual result
	Logging  Whether core and chip samples have been geologically and geotechnically logged to a level of detail to support appropriate Mineral Resource estimation, mining studies and metallurgical studies.  Whether logging is qualitative or quantitative in nature. Core (or costean, channel, etc) photography.  The total length andpercentage of the relevant intersections logged. Geology of the RC drill chips is logged on a metre basis with attention to main rock forming minerals within the pegmatite intersections Pegmatite sections are also checked under UV light for spodumene identification on a metre by metre basis
	Sub- sampling techniques and sample preparation  If core, whether cut or sawn and whether quarter, half or all core taken.  If non-core, whether riffled, tube sampled, rotary split, etc and whether sampled wet or dry.  For all sample types, the nature, quality and appropriateness of the sample preparation technique.  Quality control procedures adopted for all sub-sampling stages to maximise representivity of samples.  Measures taken to ensure that the sampling is representative of the in situ material collected, including for instance results for field duplicate/second-half sampling.  Whether sample sizes are appropriate to the grain size of the material being sampled.  Non core samples are collected as 1 metre samples, cone split and then sieved for geological logging.  No drill assays have been received or reported to date
	Quality of assay data and laboratory tests  The nature, quality and appropriateness of the assaying and laboratory procedures used and whether the technique is considered partial or total.  For geophysical tools, spectrometers, handheld XRF instruments, etc, the parameters used in determining the analysis including instrument make and model, reading times, calibrations factors applied and their derivation, etc.  Nature ofquality controlprocedures adopted(eg standards, blanks,  No drill assays have been received or reported to date

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	Criteria JORC Code explanation Commentary
	duplicates, external laboratory checks) and whether acceptable levels of accuracy (ie lack of bias) andprecision have been established.
	Verification of sampling and assaying  The verification of significant intersections by either independent or alternative company personnel.  The use of twinned holes.  Documentation of primary data, data entry procedures, data verification, data storage (physical and electronic) protocols.  Discuss any adjustment to assay data.  Core’s experienced project geologists are supervised by Core’s Exploration Manager.  All field data is manually collected, entered into excel spreadsheets and validated  Hard copies are stored in the local office and electronic data is  stored on the server
	Location of data points  Accuracy and quality of surveys used to locate drill holes (collar and down-hole surveys), trenches, mine workings and other locations used in Mineral Resource estimation.  Specification of the grid system used.  Quality and adequacy of topographic control. All coordinate information was collected using hand held GPS utilizing GDA 94, Zone 52. RC holes are to be surveyed by a down hole camera
	Data spacing and distribution  Data spacing for reporting of Exploration Results.  Whether the data spacing and distribution is sufficient to establish the degree of geological and grade continuity appropriate for the Mineral Resource and Ore Reserve estimation procedure(s) and classifications applied.  Whether sample compositing has been applied.  Varies from prospect to prospect – initial program comprised 1-4 holes into each prospect  No compositing has been applied in information in this report.
	Orientation of data in relation to geological structure  Whether the orientation of sampling achieves unbiased sampling of possible structures and the extent to which this is known, considering the deposit type.  If the relationship between the drilling orientation and the orientation of key mineralised structures is considered to have introduced a sampling bias, this should be assessed and reported if material.  Drilling is typically oriented perpendicular to the interpreted strike of mineralisation
	Sample security  The measures taken to ensure sample security.  Company geologist supervises all sampling and subsequent storage in field.
	Audits or reviews  The results of any audits or reviews of sampling techniques and data. None completed

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Section 2 Reporting of Exploration Results

(Criteria listed in the preceding section also apply to this section.)

• Criteria JORC Code explanation Commentary Mineral  Type, reference name/number, location and ownership including  Drilling is being conducted on EL 29698 that is is currently held by Au tenement agreements or material issues with third parties such as joint Exploration Pty Ltd. Core has recently completed a purchase and land ventures, partnerships, overriding royalties, native title interests, transaction for EL 29698 (ASX 29/08/2016). Transfer documents tenure status historical sites, wilderness or national park and environmental have been executed and lodged and registered ownership of EL settings. 29698 is currently being transferred 100% to Core.

• The security of the tenure held at the time of reporting along with any  The area being drilled comprises Vacant Crown land known impediments to obtaining a licence to operate in the area.  There are no registered heritage sites covering the areas being drilled.

•  EL 29698 is in good standing with the NT DME Titles Division.

• Exploration  Acknowledgment and appraisal of exploration by other parties.  The history of mining in the Bynoe Harbour – Middle Arm area dates The history of mining in the Bynoe Harbour – Middle Arm area dates done by back to 1886 when tin was discovered by Mr C Clark. other parties  The records of production for many mines are not complete, and in The records of production for many mines are not complete, and in numerous cases changes have been made to the names of the mines and prospects which tend to confuse the records still further. In many cases the published names of mines cannot be linked to field occurrences.

 The history of mining in the Bynoe Harbour – Middle Arm area dates The history of mining in the Bynoe Harbour – Middle Arm area dates back to 1886 when tin was discovered by Mr C Clark.  The records of production for many mines are not complete, and in The records of production for many mines are not complete, and in numerous cases changes have been made to the names of the mines and prospects which tend to confuse the records still further. In many cases the published names of mines cannot be linked to field occurrences.  In the early 1980s the Bynoe Pegmatite field was reactivated during a period of high tantalum prices by Greenbushes Tin which owned and operated the Greenbushes Tin and Tantalite (and later spodumene) Mine in WA. Greenbushes Tin Ltd entered into a JV named the Bynoe Joint Venture with Barbara Mining Corporation, a subsidiary of Bayer AG of Germany.  Greenex (the exploration arm of Greenbushes Tin Ltd) explored the Bynoe pegmatite field between 1980 and 1990 and produced tin and tantalite from its Observation Hill Treatment Plant between 1986 and 1988.  They then tributed the project out to a company named Fieldcorp Pty Ltd who operated it between 1991 and 1995.

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	Criteria JORC Code explanation Commentary
	In 1996, Julia Corp drilled RC holes into representative pegmatites in the field, but like all of their predecessors, did not assay for Li. Since 1996 the field has been defunct until recently when exploration has begun on ascertaining the lithium prospectivity of the Bynoe pegmatites. The NT geological Survey undertook a regional appraisal of the field, which waspublished in 2004(NTGS Report 16,Frater 2004).
	Geology  Deposit type, geological setting and style of mineralisation. The tenements sampled cover the northern and southern portions of a swarm of complex zoned rare element pegmatite field, which comprises the 55km long by 10km wide West Arm – Mt Finniss pegmatite belt (Bynoe Pegmatite Field; NTGS Report 16). The main pegmatites in this belt include Mt Finniss, Grants, BP33, Hang Gong and Sandras The Finniss pegmatites have intruded early Proterozoic shales, siltstones and schists of the Burrell Creek Formation which lies on the northwest margin of the Pine Creek Geosyncline. To the south and west are the granitoid plutons and pegmatitic granite stocks of the Litchfield Complex. The source of the fluids that have formed the intruding pegmatites is generally accepted as being the Two Sisters Granite to the west of the belt, and which probably underlies the entire area at depths of 5-10 km. Lithium mineralisation has been identified as occurring at Bilato’s (Picketts), Saffums 1 (amblygonite) and more recently at BP33 and Sandras
	Drill hole Information  A summary of all information material to the understanding of the exploration results including a tabulation of the following information for all Material drill holes: o easting and northing of the drill hole collar o elevation or RL (Reduced Level – elevation above sea level in metres) of the drill hole collar o dip and azimuth of the hole Refer Table 1 in report.

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	Criteria JORC Code explanation Commentary
	o down hole length and interception depth o hole length.  If the exclusion of this information is justified on the basis that the information is not Material and this exclusion does not detract from the understanding of the report, the Competent Person should clearly explain why this is the case.
	Data aggregation methods  In reporting Exploration Results, weighting averaging techniques, maximum and/or minimum grade truncations (eg cutting of high grades) and cut-off grades are usually Material and should be stated.  Where aggregate intercepts incorporate short lengths of high grade results and longer lengths of low grade results, the procedure used for such aggregation should be stated and some typical examples of such aggregations should be shown in detail.  The assumptions used for any reporting of metal equivalent values should be clearly stated. No data has been aggregated
	Relationship between mineralisatio n widths and intercept lengths  These relationships are particularly important in the reporting of Exploration Results.  If the geometry of the mineralisation with respect to the drill hole angle is known, its nature should be reported.  If it is not known and only the down hole lengths are reported, there should be a clear statement to this effect (eg ‘down hole length, true width not known’). The true width is approximately 60- 70% of the reported intersection based on the early interpretation of these being steeply dipping pegmatites
	Diagrams  Appropriate maps and sections (with scales) and tabulations of intercepts should be included for any significant discovery being reported These should include, but not be limited to a plan view of drill hole collar locations and appropriate sectional views. See figures in release
	Balanced reporting  Where comprehensive reporting of all Exploration Results is not practicable, representative reporting of both low and high grades and/or widths should be practiced to avoid misleading reporting of Exploration Results. All intersections have been reported and are considered representative. Refer table of drill hole collars in report. No assays have yet been received from the laboratory
	Other  Other exploration data, if meaningful and material, should be reported  Seerelease details

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	Criteria JORC Code explanation Commentary
	substantive exploration data including (but not limited to): geological observations; geophysical survey results; geochemical survey results; bulk samples – size and method of treatment; metallurgical test results; bulk density, groundwater, geotechnical and rock characteristics; potential deleterious or contaminating substances.  All meaningful and material data reported
	Further work  The nature and scale of planned further work (eg tests for lateral extensions or depth extensions or large-scale step-out drilling).  Diagrams clearly highlighting the areas of possible extensions, including the main geological interpretations and future drilling areas, provided this information is not commercially sensitive. RC drill samples are to be submitted to laboratory for chemical assay Assay results are expected during October 2016

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