Lachlan Star Provides Quarterly Activity Report for the Period Ending 30 September 2012

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PERTH, WESTERN AUSTRALIA -- (Marketwire - Oct. 29, 2012) - Gold miner, Lachlan Star Limited ("Lachlan" or the "Company") (TSX:LSA)(ASX:LSA) provides its Quarterly Activities Report for the Period Ending 30 September 2012.


HIGHLIGHTS

CMD GOLD MINE (100% CHILE)

September 30, 2012 - Quarter Ending

- 17,696 ounces of gold mined, a 14% increase over the previous quarter;

- 10,374 ounces of gold produced, a 3% increase over the previous quarter;

- US$921 cash cost per ounce, a 6% decrease from the previous quarter;

- US$2.18 mining cost per tonne of ore, a 11% decrease from the previous quarter;

- US$20.92 stacking cost per tonne of ore, a 5% decrease from the previous quarter;

- 16,220 ounces of gold stacked onto the leach pad, a 6% increase over the previous quarter;

- US$638 cash cost per ounce in the month of September, a 35% decrease from the previous month, a new record under Lachlan's ownership;

- 472,082 tonnes of ore mined in month of September, a new record under Lachlan's ownership;

- 404,434 tonnes stacked in the month of September, a new record under Lachlan's ownership;

- US$6.78 per tonne processing costs in the month of September, a new record under Lachlan's ownership;

- Tres Perlas crushed ore returns a 22% overcall on grade and 34% overcall on ore tonnes for 61 % more ounces than planned;

- Run Of Mine (ROM) ore stockpiling has commenced in preparation for stacking on the leach pads;

- Delivery of owner mining fleet commences, cost savings estimated to be up to $150 per ounce of gold produced;

- Mineral Resources upgraded to 2.06 million ounces of gold in the Indicated category, plus 1.35 million ounces of gold in the Inferred category.


October 2012 Update

- 1,100 to 1,240 ounces of gold produced on average per week, a 40 to 55% increase over the September quarter average and a new record under Lachlan's ownership;

- 57,000 to 64,000 ounces of gold production based on the current run rate annualized;

- 15,000 tonnes of ore being crushed and stacked on average per day.


BUSHRANGER COPPER PROJECT (100%, NSW)

- Mapping and sampling program commenced by Newmont.


CORPORATE

- General Manager, Engineering Manager and Drilling & Blasting Superintendent hired;

- 5.24 million warrants and options exercised or submitted for exercise post quarter for proceeds of A$6.29 million.


A full copy of the announcement is available on the Company's website www.lachlanstar.com.au or at the link below: http://www.lachlanstar.com.au/images/LSA_quarterly_report__sept_12_final.pdf.



Contact

Lachlan Star Limited
Sarah Beardmore
+61(8) 9481 6006
sarah.beardmore@lachlanstar.com.au
www.lachlanstar.com.au