1172178--5/13/2010--LIBERTY_STAR_URANIUM_&_METALS

related topics

{stock, price, share}

{gas, price, oil}

{interest, director, officer}

{control, financial, internal}

{cost, contract, operation}

{debt, indebtedness, cash}

{personnel, key, retain}

{condition, economic, financial}

{provision, law, control}

{acquisition, growth, future}

Because of the speculative nature of the exploration of natural resource properties, there is substantial risk that this business will fail. If we cannot compete successfully for financing and for qualified managerial and technical employees, our exploration program may suffer. Exploration and exploitation activities are subject to comprehensive regulation which may cause substantial delays or require capital outlays in excess of those anticipated causing an adverse effect on our company. There are no known reserves of minerals on our mineral claims and we cannot guarantee that we will find any commercial quantities of minerals. Because the probability of an individual prospect ever having reserves is extremely remote, any funds spent on exploration will probably be lost. We were in default on the May 2007 Convertible Notes, August 2008 Convertible Notes, May 2009 Convertible Notes and the August 2009 Convertible Notes and as such the note holders may call the notes. The recent weakening of economic conditions in the U.S. and around the world could have harmful effects on our ability to sell shares of our common stock. These harmful effects have caused us to cease our exploration program and they may not start up again, as a result we could go out of business and our shareholders will likely lose their entire investment in our company. We have a limited operating history and as a result there is no assurance we can operate on a profitable basis. If we do not obtain additional financing, our business will fail and our investors could lose their investment. Because there is no assurance that we will generate revenues, we face a high risk of business failure. Our independent registered public accounting firm s report states that there is a substantial doubt that we will be able to continue as a going concern. The existence of our mining claims depends on our ability to fund exploratory activity or to pay fees. Because we will likely issue additional shares of our common stock, investment in our company could be subject to substantial dilution. The sale of our stock under the Convertible Notes and the common share purchase warrants could encourage short sales by third parties, which could contribute to the future decline of our stock price. Trading in our common stock on the OTC Bulletin Board is limited and sporadic making it difficult for our shareholders to sell their shares or liquidate their investments. Our By-laws contain provisions indemnifying our officers and directors against all costs, charges and expenses incurred by them. Our By-laws do not contain anti-takeover provisions which could result in a change of our management and directors if there is a take-over of our company. We do not intend to pay dividends on any investment in the shares of stock of our company and any gain on an investment in our company will need to come through an increase in our stock s price, which may never happen. Because our securities are subject to penny stock rules, you may have difficulty reselling your shares

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1172178--5/13/2010--LIBERTY_STAR_URANIUM_&_METALS_CORP.