Lachlan Star Limited — Capital/Financing Update 2012

Apr 3, 2012

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LACHLAN
STAR
LIMITED
4 April 2012
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**LACHLAN

STAR
LIMITED
COMPLETES
PRIVATE
PLACEMENT TO
RAISE
GROSS
PROCEEDS
OF
CDN$17,560,000**

**NOT

FOR
DISTRIBUTION
TO
UNITED
STATES
NEWSWIRE
SERVICE
OR
FOR
RELEASE,
PUBLICATION,
DISTRIBUTION OR
DISSEMINATION
DIRECTLY,
OR
INDIRECTLY,
IN
WHOLE
OR
IN
PART,
IN
OR
INTO
THE
UNITED
STATES**

West
Perth,
Australia
–
April
4,
2012.
Lachlan
Star
Limited
(the
“Company”)
(ASX:LSA;
TSX:LSA)
today
announced
the completion
of
the
previously
announced
private
placement
of
10,975,000
special
warrants
(the
“Special
Warrants”)
at CDN$1.60
per
Special
Warrant,
raising
gross
proceeds
of
CDN$17,560,000
(the
“Offering”).

The
private
placement
was
sold
to
a
syndicate
of
underwriters
led
by
Macquarie
Capital
Markets
Canada
Ltd.
and
including Dundee
Securities
Ltd.,
Raymond
James
Ltd.
and
GMP
Securities
L.P.

Each
Special
Warrant
will
be
automatically
exercisable
into
one
ordinary
share
(an
“Ordinary
Share”)
of
the
Company
for
no additional
consideration
after
closing
on
the
earlier
of
(a)
the
date
on
which
a
receipt
for
a
final
prospectus
(the
“Qualifying Prospectus”)
qualifying
the
Ordinary
Shares
to
be
issued
upon
the
exercise
of
the
Special
Warrants
has
been
issued
by
the relevant
securities
commission(s),
or
(b)
120
days
following
closing.
The
Company
has
agreed
to
use
its
commercially reasonable
efforts
to
obtain,
within
30
days
after
closing
of
the
Offering,
a
receipt
for
a
Qualifying
Prospectus
qualifying
the Ordinary
Shares.

The
Toronto
Stock
Exchange
has
conditionally
approved
the
listing
of
the
Ordinary
Shares
issuable
upon
exercise
of
the Special
Warrants,
subject
to
the
Company
fulfilling
customary
post-­‐closing
deliveries.

The
Company
intends
to
use
the
net
proceeds
from
the
Offering
for
the
continued
development
of
the
Company’s
CMD
Gold Mine
and
for
general
working
capital
purposes.

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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: mick.mcmullen@lachlanstar.com.au Email: declan.franzmann@lachlanstar.com.au

**About

Lachlan
Star
Limited**

Lachlan
Star
Limited
is
a
gold
producing
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
forward-­‐looking 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
forward-­‐looking
information.
Lachlan
Star
does not
undertake
to
update
any
forward-­‐looking
information,
except
in
accordance
with
applicable
securities
laws.

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