Lachlan Star Limited Activity Statement and Cash Flow Statement for the Quarter Ending 31 March 2012

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PERTH, WESTERN AUSTRALIA -- (Marketwire - May 1, 2012) - Gold Miner, Lachlan Star Limited ("Lachlan or the Company") (TSX:LSA) (ASX:LSA) provides financial and operating results for the quarter ended 31 March 2012.


MARCH 2012 QUARTER HIGHLIGHTS

CMD GOLD MINE (100% CHILE)

- 11,906 ounces of gold produced plus 584 ounces of gold in inventory (up 5% quarter on quarter)

- Gross operating profit (as defined below) of US$2.66 million for the quarter (up 137% quarter on quarter)

- C1 cash cost of US$945 per ounce including US$110 per ounce inventory adjustment (up 18% quarter on quarter)

- Cost per tonne of ore increased to US$22.61 (up 22% quarter on quarter)

- Average price received for gold sales of US$1,682 per ounce (up 1% quarter on quarter)

- 13,274 ounces of gold stacked onto the leach pad (down 21% quarter on quarter)

- Mine production of 13,396 ounces (down 24% quarter on quarter)

- 46% of ore sourced from outside the Indicated mineral resource

- 27% of ore sourced from outside the mineral resource.

- Overall waste:ore ratio increased to 5:1 (3:1 operating waste:ore ratio)

- Agreement signed for solar power station and 2Mva diesel generator installed to secure power supply

- Final results for Toro metallurgical trials indicate recoveries of 46.5% for ROM and 66.5% for two stage crushed ore

- Updated NI 43101 Technical Report filed based on updated Indicated mineral resource of 1,788,000 ounces of gold and Inferred mineral resources containing a further 1,342,000 ounces of gold


BUSHRANGER COPPER PROJECT (100%, NSW)

- No material work by Newmont


CORPORATE

- Bought deal of 10,975,000 special warrants (the "Special Warrants") at CDN $1.60 per special warrant to raise gross proceeds of CDN $17,560,000 (the "offering")


The Company's full Quarterly Report and the related Appendix 5B are available on the Company's website at www.lachlanstar.com.au and at the links below:

http://www.lachlanstar.com.au/images/LSA_Quarterly_Report_March_2012.pdf

http://www.lachlanstar.com.au/images/LSA_App5b_March_12.pdf



Contact Information

Lachlan Star Limited
Sarah Beardmore
+61(8) 9481 0051
sarah.beardmore@lachlanstar.com.au
www.lachlanstar.com.au