Lachlan Star Limited — Capital/Financing Update 2009

Oct 18, 2009

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19 October 2009

LISTING OF LUIRI GOLD LIMITED ON ASX

Further to Lachlan Star Limited’s (“Lachlan Star”) announcement on 9 June 2009, the Company understands that Luiri Gold Limited (“Luiri Gold”) has now lodged a prospectus with ASIC to raise $8 million at 20c by issuing 40 million CHESS Depositary Interests (CDI’s) (the Offer).

Lachlan Star holds approximately 30.7% of the issued share capital of Luiri Gold. The Company has committed to subscribe for a further $1.8 million of CDI’s at 20c, which will result in the Company holding approximately 28% of Luiri Gold at the completion of the Offer.

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, an independent 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 several times larger than this figure.

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

For and on behalf of the Board

Mick McMullen Chairman

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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 30.7% holding in Luiri Gold.

Visit: www.lachlanstar.com.au

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