You have made an investment in a risky stock. No doubt about it. Over the last few years we have experienced share price volatility. This is a fairly typical exitence for most of us in the exploration sector.

During one period of volatility in 2010 our stock went from a low of $0.00098 to $0.19. That is a nearly 20,000% increase; not because we began a drilling program in Alaska, but because we announced that we would work with Northern Dynasty on a $6 million JV deal, plus paying down our note ($5 million) with the lenders at the time. Nearly 20,000% rise without a completed agreement nor a drill bit piercing the ground.

This time with Phase 1 at Hay Mountain we could see multiple, dramatic rises in share price:

1)When we announce funding for Hay Mountain drilling

2)When we begin to drill

3)If we hit ore grade material

4) If we hit very high grade material in skarn (limestone replacement deposits), which is a real possibility. Bisbee, which is only 15 miles to the south had underground ore grades of 3% to 30% copper with gold when it first encountered underground minable ore.

5) . Near surface copper oxide mineral body(s) may be encountered which can be processed by heap or in situ leaching and electrowinning (SXEW – see our glossary for definitions) on a shorter time line and at a much lower costand potentially very profitable, and thensulfide miningwill come later.

We may not be able to duplicate that fantastic rise in 2010, but each of us here at Liberty Star is working on getting funding for Phase 1 at Hay Mountain.

While we recently have shown the door to 3 large companies that refused to sign a suitable non-compete agreement, we have said "hello" to two new large potential funders. We are not through.

Best of luck to our current shareholders and our new shareholders.

Tracy Myers

LBSR IR 520-425-1433