Mr. Harold Smith reports

DRILLING AND RESULTS UPDATE, JUBILEE REEF GOLD PROJECT, NORTHERN TANZANIA

Liontown Resources Ltd. has released the following press release in regard to Currie Rose Resources Inc.'s joint venture in Tanzania.

Liontown Resources is pleased to advise that a new program of drilling is under way at its flagship Jubilee Reef gold project in northern Tanzania, following receipt of final outstanding results from its June/July, 2012, drilling program.

Results from a series of cross-holes (drilled at 90 degrees to the original drill lines) in the Central zone at the Masabi Hill prospect designed to confirm the orientation of previously reported mineralized intersections returned up to 21 metres of 1.24 grams per tonne gold from 35 m and 13 m of 1.43 g/t gold from 110 m within broad lower-grade envelopes of 62 m of 0.75 g/t gold from one m and a further 40 m of 0.86 g/t gold from 110 m.

The cross-holes suggest the Central zone mineralization forms a pipe-like structure with a steep easterly dip and a steep southerly plunge.

Drilling in the Central zone has previously defined a zone of mineralization including:

• 27 m of 2.76 g/t gold from 42 m in JBRRC018 (drilled in 2011);
• 21 m of 4.66 g/t gold from 70 m in JBRRC041 (this program);
• 68 m of 1.5 g/t gold from 132 m in JBRRC061 (this program).

Diamond drill hole JBRDD001, located between JBRRC010 and JBRRC041, reported an intercept of 87.25 m of 0.94 g/t gold, including an interval of 28.8 m of 1.14 g/t gold from 63.5 m and one m of 10.05 g/t gold from 60.75 m.

Reverse-circulation drilling on the Southern zone, targeting anomalous aircore results from the 2011 program, reported results including 20 m of 2.33 g/t gold from 12 m and 23 m of 2.93 g/t gold from 50 m, all within a zone of 74 m of 1.8 g/t gold from eight m.

Results from JBRDD002, a diamond drill hole located behind JBRRC045, reported several zones of anomalous gold, including low-grade envelopes of 23.4 m of 0.34 g/t gold from 17.2 m, 15.2 m of 0.37 g/t gold from 59.3 m and 15.78 m of 1.36 g/t gold from 77.22 m. While the diamond drill hole grades are lower than the original grades in JBRRC045, the geology and mineralized envelopes match those in the original hole, suggesting a shallow south dip, with the structure open along strike.

Further work is required to resolve the variation in grade between the diamond drill holes and neighbouring RC holes, including further drilling to constrain geological and orientation factors.

A fence of RC drill holes was completed across the Eastern margin, testing beneath significant aircore intersections reported in 2011. Gold results confirm the extensive gold anomalism in the system, including 64 m of 0.4 g/t gold from 28 m in JBRRC073, 60 m of 0.56 g/t gold from 12 m in JBRRC074 and 68 m of 0.29 g/t gold from 12 m in JBRRC075. These intersections are hosted in syenitic, dioritic and doleritic rocks.

The results of the initial 2012 drill program suggest that, within the Central zone syenite and marginal diorite, a gold-mineralized envelope is defined over an area of 600 m by 350 m, which remains open to the east and north under transported cover.

Within the Southern zone intersections in JBRRC045 and JBRDD002, intersections in aircore hole JLRB581 (12 m of 1.51 g/t gold from 16 m, reported previously), suggest a mineralized zone that is open over 400 m of strike, with only two drill lines testing this zone.

Liontown is encouraged by these latest drilling results, which support previous conclusions that the Jubilee Reef project has potential to host significant widths and grades of gold mineralization.

A follow-up 14,000-metre drilling has commenced, with an aircore drill rig starting Aug. 25, 2012, and an RC rig expected in early September.

The information in this report that relates to exploration results is based on information compiled by David Richards, a full-time employee of Liontown Resources, who is a member of the Australian Institute of Geoscientists. Mr. Richards has sufficient experience in the field of activity being reported to qualify as a competent person as defined in the 2004 edition of the Australian Code for Reporting of Exploration Results, Minerals Resources and Ore Reserves, and consents to the release of information in the form and context in which it appears here.

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