Luiri Gold Zambian Mining Licence Reinstated

Emerging African gold developer Luiri Gold Limited (TSX VENTURE:LGL)(ASX:LGM)
("Luiri" or "Company") announces that the Zambian Ministry of Mines and Mineral
Development has reinstated the Company's Large Scale Mining License LML 48 ("LML
48"). LML 48 contains the Matala and Dunrobin gold deposits in the Company's
Luiri Hill Deposit. The Company is able to immediately recommence full-scale
exploration and development activities in Zambia. 


Under the terms of the settlement reached with the Government of Zambia and
other agreements with relevant stakeholders:




1.  The Cancellation Notice issued on 15 June 2010 in respect of LML 48 has
    been extinguished by the Government of Zambia, and the Company has
    discontinued its appeal against the decision of the Honourable Minister
    of Mines. Accordingly, the Government of Zambia has confirmed that LML
    48 is once again valid and effective as if the Cancellation Notice had
    never been issued.

2.  As a key part of the settlement, the Company has agreed to continue
    project development activities and to be in a position to commence
    construction of a mining project prior to December 31, 2013. The
    timeframe allows for two complete dry seasons in which to progress and
    complete field exploration. The directors of Luiri believe this provides
    the Company with sufficient time to complete the necessary exploration
    activities prior to commencing possible mine development. 

3.  The Company has also made meaningful commitments to the local community
    with the initial funding of a community development trust and the
    facilitation and funding of a community development committee, each as
    further described below.



The agreements are the result of extensive negotiations by the management team
of Luiri with the relevant Zambian Government departments and stakeholders to
resolve the various issues that had caused the Cancellation Notice. During the
negotiations, Luiri demonstrated good faith by continuing to employ 29 full time
workers and taking on additional personnel on short-term contracts to progress
exploration trenching in preparation for a new drilling program.


Management changes

To reflect the Company's renewed exploration activities, director Melissa
Sturgess will move into the role of Non-executive Chairman, while current
director Evan Kirby has been appointed as Luiri's CEO and Managing Director and
will also act as Chairman of Luiri's Zambian operating company, Luiri Gold Mines
Ltd. ("Luiri Zambia"). Additionally, Clinton White has been appointed Chief
Executive Officer, Country Manager, and General Manager for Luiri Zambia.


Exploration and Study Program

Luiri's management believes that the area comprising LML 48 is under-explored
and highly prospective for mineralization that could form the basis of
commercially viable mining operations. The proposed work program negotiated in
conjunction with the full reinstatement of LML 48 is a combination of
exploration and project evaluation study work. Additional exploration drilling
will be conducted with the express objectives of: 




(i)       Increasing the resource base, and                                 
(ii)      identifying a quantity of high-grade ore that is easily mineable  
          by open pit methods to support fast track development of mining   
          and production.                                                   



At the same time as the exploration drilling, study work will be progressed to
develop potential plans for mining and processing, to accurately evaluate costs
and revenue estimates and to assemble a project implementation plan and
development schedule. During this period, all necessary permitting for project
development will be sought. This work will support a definitive technical and
financial evaluation that will be used as the basis for project financing.


Exploration work is expected to be comprised of the following elements:



1.  The main drilling program will be undertaken during the 2012 dry season
    (May - November) with follow up/in-fill drilling being conducted in
    2013.  
2.  A comprehensive reorganisation, verification and audit of the existing
    exploration and resource database is currently being undertaken by
    Maxwell GeoServices. Maxwell have been contracted to manage the database
    on an ongoing basis including the import of new data as exploration
    results are received. 
3.  The Company has engaged Coffey Mining Associates to calculate a new JORC
    compliant resource assessment using the Maxwell-verified database. This
    new resource is expected to be announced by the end of 2011. 
4.  A professional Zambian geologist will be recruited to strengthen the in-
    country exploration team. 
5.  ArcGIS and Target geological software will be acquired to enable the
    most prospective unexplored targets to be identified. 
6.  Limited exploratory works will be continued during the forth-coming wet
    season (November 2011 - April 2012). It is anticipated that this work
    will include an airborne geophysical survey and the continuation of
    current target orientation trenching works. 
7.  Social and environmental studies will commence early 2012 to establish
    pre-development baseline conditions in preparation for full compliance
    with Equator Principles for mine development.



Community Development Trust

In conjunction with the settlement agreement with the Zambian government, Luiri
has made formal commitments to the local communities in the vicinity of LML 48
(the "Development Area") in relation to community-development programs during
the exploration phase of the project. These commitments of the Company include:




1.  Initial funding of a community development trust fund (the "Community
    Fund"), which has been established by His Royal Highness, Senior Chief
    Shakumbila, with the Company responsible for the following:

--  Payment of US$150,000 to the Community Fund, 
--  Issue (or transfer) to the Community Fund of shares in Luiri Gold having
    a value equivalent to 5% of the market value of the project, based on an
    independent valuation of the project at the date of issue. The issuance
    of such shares shall be subject to the approval of the TSX Venture
    Exchange (the "TSX-V") and, if necessary pursuant to the rules of the
    ASX, the Company's shareholders.

2.  Facilitation and funding of a local community development committee
    comprising no more than 12 members drawn from the Shakumbila Chiefdom.
    This committee will monitor and administer the funding of social
    development projects and activities within the Development Area. 



Successful establishment of mining operations is anticipated to provide
additional long-term benefits to all stakeholders, including those in the
Development Area.


Chairman of Luiri, Melissa Sturgess, commented, "We are of course very pleased
with this outcome. Thanks are due to the efforts of Luiri's new team and also to
the Government of Zambia, and its stakeholders, who have all been integral in
achieving an outcome which will see Luiri's exploration and development efforts
expand for the benefit of both the shareholders of Luiri and for the people of
Zambia."


On behalf of the Board of Directors of the Company,

Mike Langoulant, Director and Corporate Secretary

Cautionary Note Regarding Forward Looking Statements: Certain disclosure in this
release, including statements regarding the exploration and study program in
relation to the area comprising LML 48 and the Company's plans and intentions
with respect to the Company's exploration activities and obligations pursuant to
the settlement agreement with the Zambian government, constitute forward-looking
statements. In making the forward-looking statements in this release, the
Company has applied certain factors and assumptions that are based on the
Company's current beliefs as well as assumptions made by and information
currently available to the Company, including that LML 48 remains in good
standing, that the Company is able to obtain any other required government or
other regulatory approvals and adequate financing to complete the planned
exploration activities, that the Company is able to procure equipment and
supplies in sufficient quantities and on a timely basis, and that actual results
of exploration activities are consistent with management's expectations.
Although the Company considers these assumptions to be reasonable based on
information currently available to it, they may prove to be incorrect, and the
forward-looking statements in this release are subject to numerous risks,
uncertainties and other factors that may cause future results to differ
materially from those expressed or implied in such forward-looking statements.
Such risk factors may include, among others, actual results of the Company's
exploration activities being different than those expected by management, delays
in obtaining required government or other regulatory approvals or financing,
inability to procure equipment and supplies in sufficient quantities and on a
timely basis, and general market conditions. Readers are cautioned not to place
undue reliance on forward-looking statements. The Company does not intend, and
expressly disclaims any intention or obligation to, update or revise any
forward-looking statements whether as a result of new information, future events
or otherwise, except as required by law.


ARBN 139 588 926
Luiri Gold Limited (TSXV:LGL)
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