CST Mining Group Ltd : ANNOUNCEMENT - Lady Annie Operations - New Discovery of Anthill West Deposit (in PDF)

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(Incorporated in the Cayman Islands with limited liability)

(Stock Code: 985) ANNOUNCEMENT Lady Annie Operations - New Discovery of Anthill West Deposit

• CST Mining is pleased to announce the discovery of a new zone of mineralisation to the west of the Anthill Deposit.

• Highlights include 10m @ 14.29% Cu from 80m.

• Exploration drilling has confirmed a target strike length in excess of

700m.

• Multiple significant intercepts of copper oxide mineralisation over broad widths at greater than 1% copper.

• This new mineralised zone has the potential to significantly increase the

Mineral Resource Estimate for the Anthill Deposit.

Significant new downhole intercepts from the Anthill West discovery include:

New Discovery

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CST Mining Group Limited ("CST Mining" or the "Company") is pleased to announce new results from exploration drilling at its Lady Annie Operations in northwest Queensland, Australia.

CST Mining has continued its exploration effort at the Anthill Deposit and environs throughout 2011 resulting in the discovery of a new zone of mineralisation two hundred and fifty meters to the west of the already defined Anthill Mineral Resource. The current Global Inferred and Indicated Copper Mineral Resource Estimate for the Anthill Deposit is 6.5 million tonnes at 0.86% copper for 55,900 tonnes of contained copper metal. This new discovery has the potential to significantly increase the Mineral Resource inventory at Anthill. The Anthill Deposit is forty five kilometres to the south of the Lady Annie Operations, Mt Kelly copper processing plant.

Introduction

When the Lady Annie Operations were acquired by CST Mining in 2010 the importance of the Anthill Project for the longer term life of mine was recognised. Subsequent to a review, a resource development and exploration drilling program was initiated. This program resulted in a 30% increase in the total contained copper metal for the project and the identification of numerous new but subtle copper anomalies outside of the known mineral resource area. A trial metallurgical program was also initiated. The results of the metallurgical testwork to date have been highly encouraging with the final results pending.
During 2011 further exploration, resource delineation and extension drilling was carried out. A total of 13,250m of drilling was completed comprising 2,270m of diamond drilling and 10,980m of reverse circulation drilling to end of September. A major portion of the diamond drilling was completed for quality control and assurance of the reverse circulation drilling.
Step out drilling to the west of the known mineral resource was undertaken to follow up low order copper mineralisation from 2010 drilling. The original target was a lower order historical trenching anomaly. The resultant discovery of a new zone of high grade oxide copper mineralisation is now called Anthill West. This new mineralisation appears to increase in tenor to the west and away from the current mineral resource at Anthill. The CST Exploration Geology team are excited that this mineralisation may represent a separate, new mineralised system with unknown maximum extent.
To date the new mineralised zone trends in a north-west strike over a strike length in excess of 700m. Anthill West remains open to the north-west, south and south east and remains open at depth for sulphide mineralisation potential.
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Geology and Mineralisation

Mineralisation is hosted in Proterozoic aged meta-sediments consisting of siltstones, dolomitic siltstones, carbonaceous shales and siltstones and dolomite. Mineralisation in the oxide zone consists of malachite, azurite with minor very fine disseminatednative copper. Transition zone mineralisation consists of chalcocite, malachite and minor covellite with sulphide mineralisation consisting predominantly of chalcopyrite and pyrite with minor bornite.
Oxide mineralisation forms a sub-horizontal zone of remobilised copper oxide sourced from deeper seated primary structures distributing laterally away from these structures. Mineralisation distribution in these zones is dependent on the inherent permeability and geochemical variability of the weathered host rocks. Transition and sulphide mineralisation is dominantly fault and structurally controlled with the transitional mineralisation distribution influenced by the geochemical variability of the host rocks and permeability.

Competent Person Statement

The information in this announcement that relates to Exploration Results and Mineral Resources is based on information compiled by Mr. Jay Klopper who is a member of The Australian Institute of Geoscientists. Mr. Klopper is a full time employee of CST Minerals Lady Annie Pty Ltd. and has sufficient experience which is relevant to the style of mineralisation under consideration to qualify as a competent person as defined in the "Australasian Code for the Reporting of Exploration Results, Mineral Resources or Ore Reserves" (JORC Code 2004

Edition). Mr. Klopper consents to the inclusion in this announcement of the matters based on his information in the form and context in which it appears.

Hong Kong, 4 January 2012
By order of the board

CST Mining Group Limited Yang Yi-fang

Executive Director and Chief Executive Officer

As at the date of this announcement, the Board of the Company comprises (i) Mr. Chiu Tao (Chairman), Mr. Owen L. Hegarty, Ms. Yang Yi-fang, Mr. Wah Wang Kei, Jackie, Mr. Hui Richard Rui, Mr. Kwan Kam Hung, Jimmy, Mr. Lee Ming Tung, Mr. Yeung Kwok Yu, Mr. Tsui Ching Hung and Mr. Chung Nai Ting as executive directors of the Company and (ii) Mr. Yu Pan, Ms. Tong So Yuet and Mr. Chan Shek Wah as independent non-executive directors of the Company.

For media or investor enquiries please contact:

In Hong Kong:

Ms. Lydia Yang
T.+852 2235 1318

In Melbourne:

Mr. Owen Hegarty
T.+613 8644 1330
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Figure 1 - Location plan of Anthill and Anthill West

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Figure 2 - Plan of Anthill and Anthill West Area, showing current resource area and exploration drilling 2011. Figure 3 - Plan of Anthill West, showing exploration drilling 2011.

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Figure 4 - Section A-A' through Anthill West, showing recent drillhole intersects and mineralisation. Figure 5 - Section B-B' through Anthill West, showing new drillhole intersects and copper mineralisation

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Appendix 1 - Selected Significant intercepts returned by exploration drilling at Anthill West. Intercepts are downhole lengths.

* Australian Map Grid 1984 zone 54

Parameters: Allow 2m consecutive internal waste, allow repeated zones of 2minternal waste, minimum grade of final intersection 0.3% Cu.

All analytical results presented are carried out by ALS laboratories in Townsville, Queensland, Australia. Industry standard QA-QC for analytical methods is adopted by both the laboratory and the Company. The intercepts presented are downhole intercepts.

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