Lachlan Star Limited — M&A Activity 2010

Dec 20, 2010

==> picture [131 x 47] intentionally omitted <==

21 December 2010

POTENTIAL BID FOR LUIRI GOLD SHARES

Lachlan Star Limited (Lachlan) is pleased to announce that it has been approached by Carlton Resources PLC (Carlton) with respect to Lachlan’s 27.5% shareholding in Luiri Gold Limited (ASX: LGM) and that both companies are negotiating a Lock Up Agreement over Lachlan’s shares in Luiri Gold. The agreement is designed to facilitate Carlton making a takeover bid for Luiri Gold by securing a commitment to sell from the largest shareholder in that company.

Carlton is a public, unlisted company 28% owned by Nyota Minerals Limited, which is listed on the ASX and AIM and has a market capitalisation of approximately $180m.

Lachlan will provide further updates as and when circumstances change.

.

For and on behalf of the Board

Mick McMullen Chairman

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 27.5% holding in Luiri Gold Limited. Lachlan Star has an agreement to buy a 100% interest in the CMD Gold Mine in Chile.

Visit: www.lachlanstar.com.au

PERDM01_2473871_1