Lachlan Star Announces Record Gold Ounces Stacked in April Since Taking Ownership, Decision to Move to Owner Mining and Drill Results from its CMD Gold Mine Including 99m Grading 1.47 g/t Au

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PERTH, WESTERN AUSTRALIA -- (Marketwire - May 1, 2012) - Gold Miner, Lachlan Star Limited ("Lachlan or the Company") (TSX:LSA) (ASX:LSA) announces record gold ounces stacked in April since taking ownership, decision to move to owner mining and drill results from its CMD Gold Mine including 99m grading at 1.47g/t Au.


Gold Stacked During April

- Gold stacked of 6,000 ounces in April, a record under Lachlan Star ownership

- Ore mining resumed at both the Chisperos and Las Loas pits in the last week of April

- Average ore grade for April increased to 0.61g/t Au


Mining Strategy

- Evaluation of mining options results in Lachlan Star selecting owner mining as preferred mining method going forward

- Conditional purchase order placed for new 100t truck fleet and associated equipment

- Expected mining costs in the range of US$1.70-$1.80/t moved, a substantial saving over current costs

- Reduction in mining contractors from three to one completed to reduce unit rates from May onwards

- New mining strategy expected to deliver cash cost savings of US$100-US$150 per ounce


Tres Perlas Deposit Drill Results

- 16m grading 0.65 g/t Au from 30m downhole and 99m grading 1.47 g/t from 190m downhole in RCH 2012-52

- 62m grading 0.94 g/t Au from 228m downhole in RCH 2012-60

- Sampling of El Sauce waste dump return encouraging results including:
-- 30m grading 0.26 g/t Au from 10m downhole in RCH 2012-60
-- 20m grading 0.19 g/t Au from 0m downhole in RCH 2012-56

The full announcement can be viewed on the Company's website at www.lachlanstar.com.au and at the link below:

http://www.lachlanstar.com.au/images/LSA_April_Operations_Update_Final_010512.pdf.



Contact Information

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