Liberty Star Pays out Creditors, Contracts with Northern Dynasty Minerals Ltd.

Liberty
Star Uranium & Metals Corp. (The 'Company?) (OTCBB: LBSR)
announces that it has tendered into escrow full payout to its Secured
Lenders under convertible notes issued on May 11, 2007, August 28, 2008,
May 21, 2009 and August 14, 2009. Those notes had been declared in
default (NR
94). All security held by the Secured Lenders is in the process of
being released against payment of the escrowed funds.

In order to pay out its former lenders, the Company has sold 60.7 square
kilometers (23.4 square miles out of the Company′s original 177 square
miles, or 13% of its Big Chunk and Bonanza Hills acreage) in
consideration for both $1,000,000 cash payment and a convertible loan
from Northern Dynasty Minerals Ltd. ('Northern Dynasty?) in the amount
of $3,000,000. The purchase of the claims and the loan are
interdependent. The loan is secured by the Company′s Big
Chunk and Bonanza Hills properties in Alaska and accrues interest at
10% per annum.

As part of the transaction noted above, subject to negotiating and
signing a definitive earn-in option and joint venture agreement,
Northern Dynasty can earn a 60% interest in the Company′s Big Chunk and
Bonanza Hills projects in Alaska by spending $10,000,000 on those
properties over six years. The borrowings from Northern Dynasty may be
applied as part of Northern Dynasty′s earn-in requirements.

Northern Dynasty is a public company trading on the TSX (NDM) and
NYSEAmex (NAK) and, together with Anglo American, is a 50% partner in
the Pebble Limited Partnership and the Pebble copper-gold-molybdenum
project in southwest Alaska. The Pebble property is located adjacent to
the Company′s Big Chunk properties.

The Company continues to search for capital so that it can maintain and
develop its Arizona properties, as well as the Alaska Big Chunk project.

For the board of directors,

'James A. Briscoe?

James
A. Briscoe, P. Geo.

President & CEO

Liberty Star
Uranium & Metals Corp.

SAFE HARBOR STATEMENT

Statements in this news release that are not historical are
forward-looking statements. Forward-looking statements in this news
release include: that the  Company  will negotiate and sign a joint
venture with Northern Dynasty and will secure financing to maintain and
develop its Arizona properties. Factors that may delay or prevent these
forward-looking statements from being realized include that the terms of
the joint venture cannot be agreed, and that no investors or lenders may
provide financing on terms that are acceptable to our company or at all.
In the event that no alternative financing is achieved, we may lose all
our assets. Readers should refer to the risk disclosures outlined in the
Company′s recent 10-KSB and the Company′s other periodic reports filed
from time to time with the Securities and Exchange Commission, and
review the terms of our outstanding debt obligations in documents filed
on EDGAR.

Liberty Star Uranium & Metals Corp., Tucson

Tracy Myers

Investor
Relations

520-731-8786

info@libertystaruranium.com