Luiri Gold Limited
TSX VENTURE : LGL

Luiri Gold Limited

October 16, 2009 12:29 ET

Luiri Gold Lodges Prospectus for Secondary Listing on the ASX and to Raise C$7.6 Million

TORONTO, CANADA--(Marketwire - Oct. 16, 2009) - Luiri Gold Limited (TSX VENTURE:LGL) ("Luiri Gold") is pleased to announce that it has lodged a prospectus with the Australian Securities and Investment Commission ("ASIC") on October 16, 2009 for a fully underwritten A$8,000,000 (approximately C$7,640,000) capital raising and to undertake a secondary listing on the Australian Securities Exchange ("ASX").

Funds raised by the issue will be applied to advancing the Company's Luiri Hill Gold Project including over $4,000,000 for resource expansion and exploration. Funds will also be used to complete the pre-feasibility study and at the Nambala Iron Ore Project, in Zambia.

The offer is fully underwritten by Euroz Securities Limited and will consist of 40 million CHESS Depositary Interests (CDI's) at a price of A$0.20 per common CDI (approximately C$0.188). The CDI's will be listed on the ASX. Each CDI is equivalent to one Luiri Gold share.

Luiri Hill Gold Project includes 656,000 ounces gold contained in 7.1 million tonnes at 2.9g/t for the Inferred category and 144,000 ounces gold contained in 2.2 million tonnes at 2.1g/t for the Indicated category.

At Nambala, an independent review by Coffey Mining indicated that on part of the mineralized body there exists the 'mineral potential' of between 100 and 300 million tonnes of rock at grades of 55-60% Fe. Interpretation of the regional geology indicates that the mineral potential of this deposit could be several times larger than this figure. Note that the potential quantity and grade is conceptual in nature, and there has been insufficient exploration to define a mineral resource and it is uncertain if further exploration will result in the target being delineated as a mineral resource.

A 9,500m RC drill programme commenced early in August and will be completed in October. This programme included both infill drilling at the Matala and Dunrobin gold deposits and follow up drilling at other targets defined using the positive results from the most recent drilling. A second exploration drilling programme is planned to commence in November which will focus on expanding the gold resource base and expanding the size of the Nambala Iron Project.

The additional funding will also allow the company to begin developing medium term drilling targets based on positive results from the previous soil geochemical sampling programme over the rest of the Matala Dome mineralized structure. This work includes a number of targets which are in similar structural positions to the Matala and Dunrobin deposits (see Press Release February 6, 2008). Furthermore, Luiri Gold will also allocate funds to undertake further work on the Nambala Iron Project including drilling and scoping studies.

The prospectus is intended for use only in connection with the offer of Luiri Gold's securities in Australia and is not to be construed as an offering in Canada or any other jurisdiction. As Luiri Gold is incorporated in Canada, the successful applicants will be issued CDIs, rather than shares.

About Luiri Gold

Luiri Gold is a gold focused company with a strategy of creating shareholder value through building Luiri into a geographically diversified gold resource company in Africa with assets potentially ranging from near term production to exploration properties. The current focus is at Luiri Gold's wholly-owned Zambian subsidiary, Luiri Gold Mines Limited, which holds mineral tenements within southern-central Zambia covering approximately 1,200km2 of highly prospective exploration ground focused on the Dunrobin and Matala gold deposits. The Luiri Hill Project is situated approximately 120km west-northwest of the Zambian capital of Lusaka in Zambia's Central Province. Access to the Project area is by a newly-upgraded paved road from Lusaka.

The current Mineral Resource at the Luiri Hill Project includes 656,000 ounces gold contained in 7.1 million tonnes at 2.9g/t for the Inferred category and 144,000 ounces gold contained in 2.2 million tonnes at 2.1g/t for the Indicated category (reported in Press Release April 15, 2008).

In addition to the substantial gold resources the Luiri property also hosts the large, prominently outcropping hematitic Nambala iron deposit. A review by Coffey Mining indicated that on part of the mineralized body there exists the 'mineral potential' of between 100 and 300 million tonnes of rock at grades of 55-60% Fe. Interpretation of the regional geology indicates that the tonnes contained in this deposit could be several times larger than this figure. Note that the potential quantity and grade is conceptual in nature, and there has been insufficient exploration to define a mineral resource and it is uncertain if further exploration will result in the target being delineated as a mineral resource.

The Luiri Gold exploration programs and resource calculations are carried out under the supervision of Mr. Michael Sperinck, Member of AUSMIM. Mr. Sperinck is a qualified person (as defined by National Instrument 43-101) with more than 25 years of experience in the mining industry.

ON BEHALF OF THE BOARD OF DIRECTORS OF LUIRI GOLD LIMITED

Michael Sperinck, President and CEO

This press release contains forward-looking information which involves risks and uncertainties. Forward looking information represents management's current views and these may change significantly as new information comes to hand.

THE TSX VENTURE EXCHANGE HAS NOT REVIEWED AND DOES NOT ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.

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