Lachlan Star Limited — Capital/Financing Update 2009

Nov 18, 2009

19 November 2009

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LUIRI GOLD LIMITED LISTS ON ASX

The Company is pleased to announce that the CHESS Depositary Interests (CDI’s) of Luiri Gold Limited (“Luiri Gold”) have commenced trading on the ASX today under the code “LGM”. Luiri Gold raised a total of $8 million at 20c per CDI through a fully underwritten offer by Euroz Securities Limited. The offer was well received by investors and closed oversubscribed and approximately one week earlier than anticipated in the prospectus lodged by Luiri Gold.

Lachlan Star holds approximately 28% of Luiri Gold, has appointed two directors to the board of Luiri Gold and is providing technical and corporate assistance to Luiri Gold to assist in the advancement of its gold and iron assets in Zambia. The Company has invested a total of $4.7 million in Luiri Gold at an average cost of 15.2c per share/CDI.

Luiri Gold has two main assets which provide Lachlan Star with exposure to exciting

gold and iron ore assets:

• The Luiri Hill Gold Project includes 656,000 ounces of gold contained in 7.1 million tonnes at 2.9g/t for the Inferred category and 144,000 ounces of gold contained in 2.2 million tonnes at 2.1g/t for the Indicated category.

• At Nambala, a review by Coffey Mining indicated that on part of the mineralized body there exists the ‘mineral potential’ of between 100 and 300 million tonnes of iron at grades of 55-60% Fe. Interpretation of the regional geology indicates that the iron contained in this deposit could be significantly larger than this figure. Luiri is currently researching a range of options of how best to maximize the potential of this deposit. Note that the potential quantity and grade is conceptual in nature. There is insufficient exploration to define a mineral resource and therefore it is uncertain if further exploration will result in the target being delineated as a mineral resource.

Luiri Gold has approximately $10 million in treasury and an enterprise value of A$15/ounce of gold.

The Company believes that there is significant potential for the value of its investment in Luiri Gold to increase for the following reasons:

• An aggressive drilling program is underway to increase the Luiri Gold resource base with news flow expected in the near term

• The average enterprise value for Luiri Gold’s peer group is approximately A$80/ounce of gold compared to A$15/ounce for Luiri Gold on listing*

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• Significant potential for an increasing gold price due to the weakening of the USD and increased demand for gold as a currency switch from USD

• No value for the Nambala Iron Project currently ascribed to the Luiri Gold share price

• Prefeasibility study underway on the Luiri Gold Project

Additional information on these projects can be found on the Luiri Gold website.

For and on behalf of the Board

Mick McMullen Chairman

• Peer Group includes Azumah, Castle, Gryphon, Perseus, Adamus Resources As at 17 November 2009

Source: IRESS

Competent Persons Statement

The information in this report that relates to Exploration Results, Mineral Resources or Ore Reserves is based on information compiled Mr Michael Sperinck, who is a Member of The Australasian Institute of Mining and Metallurgy. Mr Sperinck is a employed by Luiri Gold Limited. Mr Sperinck 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 Sperinck consents to the inclusion in the report of the matters based on her information in the form and context in which it appears.

About Lachlan Star Limited

Lachlan Star Limited is an emerging minerals exploration and development company headquartered in Perth, Western Australia. The company is focused on acquiring and developing assets within the gold, copper and bulk commodities sectors within Australia and overseas. The company has a board of directors and management team with an impressive track record of advancing resource projects through to production.

Lachlan Star’s current projects include the Bushranger copper and gold project in NSW and the Princhester magnesite deposit in QL as well as a 28% holding in Luiri Gold.

Visit: www.lachlanstar.com.au

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