Lachlan Star Limited

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18 January 2011
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LACHLAN STAR ANNOUNCES DRILL RESULTS FROM CMD GOLD MINE INCLUDING 13M GRADING 5.72 G/T AU, 25M GRADING 1.02 G/T AU, AND 35M GRADING 0.59% CU

NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR RELEASE, PUBLICATION, DISTRIBUTION OR DISSEMINATION DIRECTLY, OR INDIRECTLY, 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 further drill results from the Tres Perlas and Toro deposits at its 100% owned CMD Gold Mine in Chile.

Highlights from the drill program include:

Toro Deposit

13 m grading 5.72 g/t Au from 8 m downhole and 25m grading 1.02 g/t Au from 59 m downhole in RCH 2011229,
12 m grading 0.65 g/t Au from 30 m downhole in DDH 2011-193

Tres Perlas Deposit

40m at 0.34g/t from 25m downhole; 86m at 0.47g/t from 70m downhole; 20m at 0.40g/t from 163m downhole; and 5m at 0.58g/t from 195m with the hole ending in mineralisation in RCH 2011-239.
35m grading 0.59 % Cu (including 7m grading 2.02 % Cu) from 0m downhole and 78 m grading 0.37 g/t Au from 70m downhole, in DDH 2011-226
87 m grading 0.44 g/t Au from 29m downhole, 27m grading 0.27 % Cu from 29m downhole, 13m grading 0.30% Cu from 102 m downhole and 8m grading 0.32% Cu from139 m downhole in DDH 2011-230
109 m grading 0.39 g/t Au from 62 m downhole in RCH 2011-215, including 21 m grading 1.14 g/t Au from 39 m downhole

La Laja Deposit

43 m grading 0.64 g/t Au from 150 m downhole in RCH 2011-233

Table 1 below contains a full list of recent drill results for the CMD Gold Mine. Approximate true widths are estimated to be 85% of the downhole interval.

Toro Deposit

The Toro Deposit is located at the western side of the CMD Gold Mine tenements as shown in Figure 1 below and is being mined in three active pits.

FIGURE 1 – Location of Tres Perlas and Toro Deposits

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Exploration at the CMD Gold Mine has been focussed on expanding the mineral resources and upgrading the confidence level of the resources. The Toro mineral resource was recently updated and now contains 348,000 ounces of gold in the

Indicated category and 135,000 ounces of gold in the Inferred category (Refer to Table 2). Total combined gold ounces have increased by 78% over the previous resource estimate.

The result of 13 m grading 5.72 g/t Au from 8 m downhole and 25m grading 1.02 g/t Au from 59 m downhole in RCH 2011-229 continues to demonstrate the potential for new mineralisation within the Toro area.

The mineral resource is open in all directions and drilling will recommence once the current program at the Tres Perlas deposit is completed. As can be seen in Figure 2, the 2011 drill program has still left substantial gaps in the data on the western side of the deposit that are planned to be drilled in 2012.

FIGURE 2 –Toro Deposit Section 2000m N

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Tres Perlas Deposit

Drilling has recently recommenced at the Tres Perlas Deposit to test for extensions of the mineralisation.

The gold mineralisation at Tres Perlas is up to 200m thick at a cut off grade of 0.15 g/t Au and the 2011 Coffey mineral resource contains 252,000 ounces of gold in the Indicated category and a further 333,000 ounces of gold in the Inferred category (Refer to Table 2). The gold mineralisation is open down dip to the east, and sits beneath copper mineralisation that is the extension of the copper deposit being mined at the adjacent Carmen de Andacollo mine by Teck.

Current drilling is targeted to test the down dip and along strike extension of the gold mineralisation in historical holes 8956 (131 m grading 0.77 g/t Au from 0 m downhole which ended in mineralisation) and 94008 (208 m grading 0.51 g/t Au from 0 m downhole which ended in mineralisation) and the recent drill result of 130m grading 0.52 g.t Au from 39m in RCH 2011-219.

The result of 40m at 0.34g/t from 25m downhole; 86m at 0.47g/t from 70m downhole; 20m at 0.40g/t from 163m downhole; and 5m at 0.58g/t from 195m in drill hole RCH 2011 continues to demonstrate thick intervals of near surface mineralisation at the Tres Perlas deposit. The top 25m of this drill hole was through backfilled pit that was previously mineralised.

As seen in Figure 3, the gold mineralisation is from surface and continues to depths of 200m. Waste to ore ratios for this mineralisation is low, especially considering the potential to recover copper from the oxide copper mineralisation sitting above the gold mineralisation. Copper results such as 35m grading 0.59 % Cu (including 7m grading 2.02 % Cu) from 0m downhole in DDH 2011-226 indicate the potential to mine copper from the material sitting on top of the gold mineralisation.

FIGURE 3 – Tres Perlas Deposit Section 3560m N

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The results from the Tres Perlas drilling are significant in that they demonstrate the presence of near surface bulk tonnage gold and copper mineralisation. The current mine plan for Tres Perlas is based around a limited cut back of the pit walls, with no mining planned for the zone between Tres Perlas West and Churrumata pits. The Company continues to drill in this area with the aim of establishing additional mineral resources that can be used for mine planning purposes.

The 2011 drill program has been successful in expanding the mineralisation envelope between the Churrumata, Tres Perlas and El Sauce deposits that will now be modelled as one deposit.

La Laja Deposit

The La Laja deposit is located to the west of the leach pads and the north of the Chisperos deposit currently being mined (refer Figure 1). Only limited exploration has been carried out at La Laja and results from an initial drill program in 2011 have now been received.

The result of 43 m grading 0.64 g/t Au from 150 m downhole in RCH 2011-233 is thought to be the extension of the Mariposa structure that is being mined approximately 1km to the south in the Churrumata pit. There is limited drilling

along the Mariposa structure between La Laja and the Churrumata pit and the potential for mineralisation along this strike length is still to be tested. The Mariposa structure is a major regional structure that has been mapped for over 3km on surface now and the 2012 drill program plans to test the full strike length of this mineralised structure.

Declan Franzmann, Managing Director, commented “ drilling continues to demonstrate the potential to expand the mineral resources and reserves at the CMD Gold Mine, and the combination of the Churrumata, Tres Perlas and El Sauce deposits into one major deposit will facilitate mine planning for one large pit on the eastern side of our tenements. This pit will contain substantial oxide copper mineralisation at grades similar to that being mined at the adjacent Teck Carmen de Andacollo mine which indicate the potential to extract value from this material.”

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]

T able 1 – CMD Gold Mine Drill Results

Hole ID	Grid_N	Grid_E	Grid_Elev	Azimuth	Dip	From	To	Interval	g/t Au
DDH-2011-119	2256.8	5985.9	1170.2	47.5	-89.1	14	20	6	0.25
						29	33	4	1.16
						42	43	1	0.87
						163	169	6	0.38
						173	175	2	0.38
DDH-2011-121	2500.1	6372.2	1123.8	93.7	-89.1	10	11	1	1.40
						15	17	2	0.18
						107	110	3	0.32
						116	124	8	0.24
DDH-2011-122	2569.7	6496.6	1118.6	0.0	-86.9	4	7	3	0.31
						9	11	2	0.32
						67	71	4	0.21
						149	157	8	0.21
DDH-2011-128	2830.7	6749.6	1124.7	250.6	-89.6	3	6	3	0.22
						12	18	6	0.15
						27	30	3	0.93
						35	38	3	0.18
						77	80	3	0.46
						178	185	7	0.78
						191	194	3	0.48
						198	201	3	0.18
						236	238	2	0.18
DDH-2011-133	1760.6	5803.4	1170.1	323.1	-89.8	54	70	16	0.96
						93	101	8	0.24
						173	174	1	1.82
DDH-2011-144	2340.4	6340.8	1123.9	74.1	-89.6	110	117	7	0.38
						192	205	13	0.33
						209	212	3	0.22
DDH-2011-146	2229.0	6015.5	1159.5	139.9	-89.5	59	60	1	0.50
						162	168	6	0.63
						220	228	8	0.31
DDH-2011-147	2233.9	5855.5	1183.8	55.0	-89.5	22	25	3	0.33
						32	33	1	0.67
						63	67	4	0.20
						92	93	1	0.25
						98	102	4	0.33
						199	200	1	0.31
DDH-2011-193	1876.3	6084.6	1141.2	236.3	-89.7	8	16	8	0.16
						30	42	12	0.65
						53	54	1	0.71
						82	85	3	0.90
DDH-2011-203	3342.0	7781.3	1044.6	309.8	-89.1	13	14	1	0.44
						24	28	4	1.22
						47	50	3	1.68
DDH-2011-206	3396.8	7564.4	1093.6	333.4	-89.8	No Mineralisation Intercepted

Hole ID	Grid_N	Grid_E	Grid_Elev	Azimuth	Dip	From	To	Interval	g/t Au	Cu
DDH-2011-207	3401.0	7690.4	1076.6	315.0	-90.0	15	17	2	0.97
						35	36	1		0.29
DDH-2011-211A	3480.0	7700.1	1070.8	135.0	-89.8	139	141	2	0.33
DDH-2011-213	3520.3	7734.4	1069.4	92.7	-65.0	1	15	14	0.34
						39	41	2	0.25
						48	49	1	0.78
						64	66	2	0.26
						108	113	5	0.25
						117	119	2	0.32
						134	137	3	0.17
DDH-2011-214	3439.0	7769.8	1060.3	91.2	-64.9	3	4	1		0.32
						5	9	4	0.18
						11	12	1	0.23
						34	37	3	0.42
						119	122	3	0.28
DDH-2011-215	3540.5	8239.9	1063.3	184.8	-89.6	14	34	20	0.34
						42	48	6	0.19
						62	171	109	0.39
						63	71	8		0.22
						76	78	2		0.20
						88	97	9		0.21
						103	107	4		0.29
						112	116	4		0.25
						193	204	11	0.35
						231	234	3	0.25
DDH-2011-216	3480.9	7742.6	1067.4	97.0	-64.0	10	11	1	0.25
						26	29	3	0.37
						34	39	5	0.27
						47	50	3	0.20
DDH-2011-218	3280.2	7840.8	980.4	277.1	-89.7	6	9	3	0.45
						19	28	9	0.31
						36	38	2	0.23
RCH-2011-224	3067.9	6857.9	1137.9	25.0	-89.5	123	125	2	0.18
						132	133	1	0.20
						141	142	1	0.61
DDH-2011-225	3319.4	8090.2	1014.8	351.9	-89.5	13	37	24	0.28
						14	15	1		0.54
						46	53	7	0.67
						74	80	6	0.50
DDH-2011-226	3400.0	8164.8	1054.6	75.3	-89.5	2	14	12	0.22
						0	20	20		0.32
						27	65	38	0.28
						28	35	7		2.02
						70	148	78	0.37
						93	95	2		0.32
						124	134	10		0.17
						147	151	4		0.16
						162	173	11	0.28

Hole ID	Grid_N	Grid_E	Grid_Elev	Azimuth	Dip	From	To	Interval	g/t Au	Cu
RCH-2011-227	1920.0	6259.8	1126.1	31.6	-89.6	1	3	2	0.53
						32	33	1	0.30
						72	75	3	0.33
RCH-2011-228	1980.1	6180.2	1133.5	130.6	-89.4	0	5	5	0.43
						12	14	2	0.41
						28	31	3	0.23
						40	42	2	0.19
						54	67	13	0.41
						74	78	4	0.90
RCH-2011-229	1940.4	6183.5	1132.7	326.3	-89.7	8	21	13	5.72
						59	84	25	1.02
						87	90	3	0.33
						100	102	2	1.02
DDH-2011-230	3440.0	6165.0	1053.9	252.1	-89.1	3	6	3		0.18
						19	24	5	0.16
						29	116	87	0.44
						29	56	27		0.27
						72	76	4		0.22
						93	97	4		0.16
						102	115	13		0.30
						126	145	19	0.40
						139	147	8		0.32
						151	164	13	0.28
						161	165	4		0.18
						173	175	2		0.27
						174	189	15	0.25
						193	197	4	0.53
DDH-2011-231	3400.0	8125.0	1024.3	131.1	-89.1	0	3	3		0.17
						0	6	6	0.23
						21	32	11	0.20
						23	24	1		0.23
						46	77	31	0.47
						47	48	1		0.21
						53	54	1		0.22
						85	91	6	0.51
						102	108	6	0.56
						126	132	6	0.29
RCH-2011-232B	4140.3	6752.7	1138.0	47.4	-89.2	92	93	1	0.27
						136	137	1	0.24
						158	159	1	0.27
RCH-2011-233	4139.9	6800.6	1136.7	93.6	-59.0	142	144	2	0.21
						150	193	43	0.64
RCH-2011-234	1986.6	5814.1	1186.3	292.1	-88.4	80	92	12	0.76
						118	122	4	0.23
						148	152	4	1.58
RCH-2011-235	2041.8	6146.8	1137.7	176.6	-88.9	30	35	5	0.27
						39	43	4	0.25
						54	62	8	0.47

Hole ID	Grid_N	Grid_E	Grid_Elev	Azimuth	Dip	From	To	Interval	g/t Au	Cu

RCH-2011-236	3280.8	7740.8	1044.9	91.9	-59.6	8	11	3	0.38
RCH-2011-237	3245.4	7743.1	1041.1	90.0	-60.0	0	4	4	0.28
RCH-2011-239	3400.0	8125.0	1024.3	131.1	-89.1	25	65	40	0.34
						70	158	88	0.47
						74	78	4		0.19
						81	94	13		0.20
						103	109	6		0.25
						118	121	3		0.31
						124	127	3		0.28
						130	143	13		0.28
						163	183	20	0.40
						195	200	5	0.58
RCH-2012-01	3210.0	7763.4	1038.8	90.2	-58.6	No Mineralisation Intercepted

Table 2 – CMD Gold Mine Coffey Mineral Resources (Jan 2012)[1 ]


	Indicated Inferred

Deposit	Tonnes(Mt) Grade(Au) Ounces(Kozs) Tonnes(Mt) Grade(Au) Ounces(Kozs)
Las Loas	2.86 0.8 73	1.5 0.8 37
El Sauce	0 - 0	7.1 0.7 156
Toro	17.5 0.6 348	11.6 0.36 135
Tres Perlas	15.6 0.5 252	19 0.5 333
Churrumata	0.6 0.8 16	8.7 0.8 219
Chisperos	1.0 1.1 36	1.4 1.0 43
Total	37.6 0.6 725	49.8 0.6 923

Reported above 0.3 g/t Au all except Toro deposit, which is reported above 0.15 g/t Au

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, El Sauce, Churrumata and Toro/Socorro 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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Lachlan Star Limited Capital/Financing Update 2012

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