LAKE RESOURCES N.L. — Capital/Financing Update 2008

Oct 30, 2008

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A.B.N. 49 079 471 980

3-7 Maud Street, Newstead, Brisbane, Qld,4006, Ph: 61 7 32571111

Manager, Company Announcements ASX Limited.

Notice under Section 708AA of the Corporations Act 2001

On the 14 November, 2008 Lake Resources N.L. (“the company”) is proposing to dispatch to eligible shareholders the Entitlement Form in respect of the non renounceable offer of up to 27,270,295 fully paid ordinary shares each at an issue price of $0.10 per share to raise up to $2,727,029 on the basis of 1 share for every share held on the record date of 11 November,2008.

The issue is not underwritten. In the event there is a shortfall in the take up of the Entitlements, the Directors reserve the right, as allowed within the Listing Rules, to place the shortfall at their absolute discretion within three months of the Closing Date to maximise the amount of funds raised. The shortfall, if any, will not be placed to Directors or any of their associates. It is not expected that any change in the percentage holding will have any material consequences on the control of the Company.

The Company hereby gives notice under section 708AA(2)(f) of the Corporations Act 2001 (“Act”) that:

1. the Company will offer the shares without disclosure under Part 6D.2 of the Act;

2. at the date of this notice, the Company has complied with:

   • (a)provisions of Chapter 2M of the Act as they apply to the Company; and (b)section 674 of the Act

3. at the date of this notice, there is no information to be disclosed which is excluded information (as defined in section 708AA98) of the Act) that is reasonable for investors and their professional advisors to expect to find in a disclosure document; and

4. on completion of the share issue, it is not anticipated that there shall be a material change in the control of the Company

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PJ Gilchrist, Secretary.

31 October,2008.