Gold, Copper Explorer Liberty Star Signs New Agreement with Northern Dynasty Minerals Ltd, Southwest Alaska

  Gold, Copper Explorer Liberty Star Signs New Agreement with Northern Dynasty
  Minerals Ltd, Southwest Alaska

Business Wire

TUCSON, Ariz. -- November 14, 2012

Liberty Star Uranium & Metals Corp. (“Liberty Star” or the “Company”)(LBSR:
OTCQB) is pleased to announce it has signed a binding loan settlement
agreement (the “Agreement”) with Northern Dynasty Minerals Ltd. (“Northern
Dynasty” or “NDM”) (NDM:TSX, NAK: NYSE MKT). The Agreement calls for the
settlement of Liberty Star’s entire debt to Northern Dynasty, termination of
the JV negotiations between the two companies, transfer of a portion of the
Company’s Big Chunk properties to Northern Dynasty and a new border for
Liberty Star’s land position on the Big Chunk Super Project, south block. This
effectively releases the need to raise approximately $5 million dollars to
repay the NDM note as well as releasing all pledged collateral. We will now
move forward unencumbered.

The relationship between the Company and Northern Dynasty originated in 2010
as an agreement in which Northern Dynasty acquired 60.7 KM or 13% of Liberty
Star’s land on the Big Chunk Super Project (“BCSP”) for $1,000,000, loaned to
Liberty Star an additional $3,000,000, and proposed a definitive earn in
option and binding joint venture agreement. The initial 2010 document provided
that the loan would be secured by the Company’s Big Chunk Super Project
property in Alaska and accrued interest at 10% per annum (NR 95). Further
interim loans were made by Northern Dynasty to Liberty Star over the past two

According to the newly signed loan settlement agreement the balance of the
loan (US$3,730,174 in principal, plus $872,543 accrued interest) from Northern
Dynasty is completely discharged and Northern Dynasty’s right to earn in the
remaining property is terminated. As settlement, Northern Dynasty’s subsidiary
U5 Resources receives 199 Alaska mining claims within the south block of the
Big Chunk Super Project. Liberty Star, through its Alaska subsidiary Big Chunk
Corp, retains 229 Alaska mining claims (55 sq. miles) within the BCSP’s south
block. Liberty Star also retains all claims within the BCSP North Block (184
Alaska mining claims). The transaction is scheduled to close by the end of

States Liberty Star CEO/Chief Geologist Jim Briscoe, “This is an important
breakthrough that satisfies both parties – a win-win situation. We retain a
major land position in the Big Chunk south claim block including eight drill
targets indicated by geochem and enhanced ZTEM data, as well as geology and
aeromagnetics. Our work of this past summer covers assessment work for two
assessment years. We will be able to continue exploration at Big Chunk within
the redrawn south block in our normal methodical, scientific way. Also, as we
approach potential JV partners we do it as a debt free company. This will be
particularly helpful in going forward with our Tombstone, Arizona Hay Mountain
Project, which is undergoing an archaeological survey, part of the permitting

“James A. Briscoe” James A. Briscoe, Professional Geologist, AZ CA
CEO/Chief Geologist
Liberty Star Uranium & Metals Corp.

Forward Looking Statements

Statements in this news release that are not historical are forward looking
statements. Forward-looking statements in this news release include: that we
will close our agreement with Northern Dynasty and become debt free. Factors
which may delay or prevent these forward-looking statements from being
realized include; we may not be able to agree on final terms with Northern
Dynasty; or raise sufficient funds to remain debt free. Despite encouraging
data there may be no commercially exploitable mineralization on our
properties. Readers should refer to the risk disclosures in the Company’s
recent 10-K and the Company’s other periodic reports filed from time to time
with the Securities and Exchange Commission.


Liberty Star Uranium & Metals Corp.
Tracy Myers, 520-425-1433
Investor Relations
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