LIONTOWN LIMITED — Capital/Financing Update 2012

May 6, 2012

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May 7, 2012

Drilling starts at Jubilee Reef gold project in Tanzania

8000m program will follow up initial high-grade results

Liontown Resources (ASX: LTR) is pleased to advise that a second drilling campaign totalling approximately 8,000m has started at its Jubilee Reef Joint Venture in Tanzania, where the Company is following up a series of highly promising gold intersections.

Liontown has engaged Ausdrill to drill 20 RC and diamond holes at the key Masabi Hill prospect to test the potential for mineralisation below that intersected in the initial round of drilling last year.

Results from that drilling in 2011 highlighted the potential for a substantial mineralised system at Masabi Hill, which is estimated to cover a 1.2 by 1km area. In light of those results, Liontown will also drill 50 aircore holes in a bid to gain a better understanding of the limits of the mineralisation, which is open along strike and at depth.

The 5,000m program at Masabi Hill is expected to take about four weeks, with first results likely to be available in early July.

Liontown can earn up to 75 per cent of the Jubilee Reef Joint Venture, which is located in the Lake Victoria Goldfield in Northern Tanzania, which hosts several multi-million-ounce gold deposits, including African Barrick’s Bulyanhulu deposit and AngloGold’s Ashanti Geita deposit (see Figure 1).

The RC drilling program will also target the Panapendesa prospect at Jubilee Reef, where drilling last year also returned a number of significant gold intersections. The mineralisation has been outlined over a 250m strike length and remains open along strike and at depth.

RC drilling will also be undertaken at the Chela and Tembo prospects where exploration prior to Liontown entering into the Joint Venture defined strong gold anomalism (>1gpt) in shallow drilling and geochemical sampling.

Liontown Managing Director David Richards said: “ Jubilee Reef has strong potential to host a major discovery, offering investors the chance to be part of a highly leveraged exploration program. We already know there is gold at these targets, particularly Masabi Hill, and this drilling program is designed to establish the extent and controls of the mineralisation .”

Further details on the exploration results recorded to date at Jubilee Reef are provided in a Company presentation that has been released today.

In Australia, Ramelius Resources has recently begun a third drilling program at the Mount Windsor Joint Venture, where it can earn a 60 per cent stake from Liontown. Mt Windsor is in the prolific

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Charters Towers gold field of North Queensland, which hosts several multi-million-ounce mines such as Mt Leyshon, Ravenswood and Pajingo.

Ramelius’ 3500m program will test the potential for multi-million-ounce gold systems at targets identified by geophysical and geochemical surveys conducted last year.

For further information, contact:

David Richards Paul Armstrong Managing Director Read Corporate 08 9322 7431 08 9388 1474

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Figure 1: Jubilee Reef Joint Venture – Regional setting

The information in this report that relates to Exploration Results is based on information compiled by Mr David Richards, a full time employee of Liontown Resources Limited, who is a Member of the Australian Institute of Geoscientists. Mr Richards has sufficient experience in the field of activity being reported to quality as a Competent Person as defined in the 2004 edition of the Australasian Code for Reporting of Exploration Results, Minerals Resources and Ore Reserves, and consents to the release of information in the form an context in which is appears here.