LACHLAN STAR LIMITED 17 October 2014 ADDITIONAL INFORMATION IN RESPECT OF PRIVATE PLACEMENT

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Perth, Western Australia: Gold miner, Lachlan Star Limited ("Lachlan Star" or the "Company") (ASX and TSX: LSA) wishes to provide, in accordance with Listing Rule 3.10.5A, further information with respect to the private placement ("Placement") of 16,403,486 fully paid ordinary shares announced on 16 October 2014:

1) 12,799,841 shares have been issued within its remaining 15% approval limit under Listing Rule 7.1 and
3,603,645 shares under the additional 10% approval limit approved by shareholders at the last Annual
General Meeting under Listing Rule 7.1A.
2) The Company has elected to raise the additional funds needed by way of private placement pursuant to its
10% capacity under ASX Listing Rule 7.1A rather than a rights issue for the following reasons:

Rights issues are not widely used in North America (where the bulk of the Company's shareholders reside) compared to Australia

Pricing the offer at the current share price would not have been possible had the Company elected to raise the funds by way of a rights issue given that typically rights issue incorporate a larger discount

The timetable of a rights issue would have exposed the Company to pricing risk on the financing

3) The issue is not underwrittten and there are no fees payable in connection with the issue.

PO Box 1523 West Perth, WA 6872 Tel +61 8 9481 0051 Fax +61 8 9481 0052

www.lachlanstar.com.au

4) Once the Company issued the 12,799,841 ordinary shares within its remaining 15% approval limit under ASX Listing Rule 7.1 there were 160,432,114 ordinary shares on issue. The issue of the additional 3,603,645 ordinary shares within its 10% approval limit under ASX Listing Rule 7.1A resulted in a dilution of 2.2%.
RA Anderson
Company Secretary
For further information please visit http://www.lachlanstar.com.au/www.lachlanstar.com.auor contact:
Bob Anderson Company Secretary Lachlan Star
Tel: +61(0)8 9481 0051
Email: bob.anderson@lachlanstar.com.au

About Lachlan Star Limited

Lachlan Star Limited is a gold mining company headquartered in Perth, Western Australia. The Company is focused on optimizing free cash flow from its CMD Gold Mine in Chile. The Company has a board of directors and management team with an impressive track record of advancing resource projects through to production.

Lachlan Star's current projects include a 100% interest in the CMD Gold Mine in Chile, a 49% interest in the Bushranger Copper Project in New South Wales and a 100%

interest in the Princhester magnesite deposit in Queensland.

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