Lachlan Star Limited

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12 December 2012

DELIVERY OF 100 TONNE TRUCK FLEET COMMENCES

NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR RELEASE, PUBLICATION, DISTRIBUTION OR DISSEMINATION DIRECTLY, OR DIRECTLY, IN WHOLE OR IN PART, IN OR INTO THE UNITED STATES

Perth, Western Australia: Gold miner, Lachlan Star Limited (“Lachlan” or the “Company”) (ASX and TSX: LSA) is pleased to announce that delivery of the owner operated fleet has commenced with the delivery and assembly of the following equipment:

2 x HD785 trucks (Figure 2),
1 x D275 dozer (Figure 3),
2 x WA900 loaders (Figure 4),
1 x GD675 Grader (Figure 5) and;
1 x WD 600 wheeled dozer (Figure 6)

Operator training on this equipment has commenced with the first intake expected to be certified prior to Xmas and the second intake to be certified by mid January 2013.

The remaining 5 x HD 785 trucks will be delivered prior to Xmas, which is in line with the previous guidance on delivery of the owner mining fleet.

The Maintenance and Repair Contract (MARC) with Komatsu has been executed and includes the provision of a major component exchange pool and an on site spare parts consignment stock.

Once operational and sufficient operators have been certified to operate the equipment, the fleet will gradually be phased into mining at the Tres Perlas pit. In the interim, mining has continued using contractors with 30t trucks and has successfully mined 2Mt total movement/month for each of the past 3 months, a record since 2006. The addition of the 100 tonne Komatsu fleet is expected to provide both cost savings and the ability to ramp up total mining movements.

PO Box 1523 West Perth, WA 6872 Tel +61 8 9481 0051 Fax +61 8 9481 0052 www.lachlanstar.com.au

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Implementation of the continuous improvement program continues to yield results with the focus on blasting practices having seen the cost of blasting reduced materially during 2012. During November, explosive consumption (powder factors) has been reduced to the lowest in 2012 as can be seen in Figure 1 below. This has been achieved through better planning, improved blasting practices and working with the Company’s explosive supplier to optimise blasting practices.

Figure 1 – Powder Factor During 2012 at CMD Gold Mine

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Powder Factor (g/t)
400
350
300
250
200
Jan-12 Feb-12 Mar-12 Apr-12 May-12 Jun=12 Jul-12 Aug-12 Sep-12 Oct-12 Nov-12
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Figure 2 – HD785 Trucks at CMD Gold Mine

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Figure 3 – D275 Dozer at CMD Gold Mine

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Figure 4 – WA900 Loader at CMD Gold Mine

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Figure 5 – GD675 Grader at CMD Gold Mine

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Figure 6 – WD600 Wheeled Dozer at CMD Gold Mine

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For and on behalf of the Board

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Mick McMullen Chairman

For further information please visit www.lachlanstar.com.au or contact:

Mick McMullen Declan Franzmann Chairman Managing Director Lachlan Star Lachlan Star Tel: +61(0)8 9481 0051 Tel: +61(0)8 9481 0051 Email: [email protected] Email: [email protected]

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 and copper sectors within Australia and Chile. 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 a 100% interest in the CMD Gold Mine in Chile, a 100% interest in the Bushranger Copper Project in New South Wales (subject to Newmont earning 51%) and a 100% interest in the Princhester magnesite deposit in Queensland.

Competent Persons Statement

The information in the news release that relates to the Mineral Resources of Tres Perlas, Chisperos, Las Loas, and Toro is based on information compiled by David Slater, who is a Chartered Professional Member of The Australasian Institute of Mining and Metallurgy. Mr. Slater is employed full time by Coffey Mining Pty Ltd. The information in the news release that relates to exploration results is based on information approved by Declan Franzmann, who is a Chartered Professional Member of The Australasian Institute of Mining and Metallurgy. Mr. Franzmann is employed by Citraen Pty Ltd and is an officer of the Company. Each of Mr. Slater and Mr. Franzmann 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 Mineral Resources and Ore Reserves” and to qualify as a “Qualified Person” under NI 43-101. Each of Mr. Slater and Mr. Franzmann consents to the inclusion in the news release of the matters based on his information in the form and context in which it appears.

Caution Regarding Forward Looking Information:

This report contains forward-looking information, which is based on assumptions and judgments of management regarding future events and results. Such forwardlooking information includes but is not limited to information with respect to future exploration and drilling, procurement of financing and procurement of necessary regulatory approvals.

Forward-looking information involves known and unknown risks, uncertainties, and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any anticipated future results, performance or achievements expressed or implied by such forward-looking information. Such factors include, among others, the actual market price of gold, the actual results of current exploration, the actual results of future exploration, changes in project parameters as plans continue to be evaluated, as well as those factors disclosed in the Company's publicly filed documents. The Company believes that the assumptions and expectations reflected in the forward-looking information are reasonable. Assumptions have been made regarding, among other things, the Company’s ability to carry on its exploration and development activities, the timely receipt of required approvals, the price of gold, the ability of the Company to operate in a safe, efficient and effective manner and the ability of the Company to obtain financing as and when required and on reasonable terms. Readers should not place undue reliance on forwardlooking information. Lachlan Star does not undertake to update any forward-looking information, except in accordance with applicable securities laws.

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AI assistant

Lachlan Star Limited Capital/Financing Update 2012

46929_rns_2012-12-11_5df9a33f-481e-4c92-87ff-fac2ce8cfe08.pdf