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UNITED STATESSECURITIES AND EXCHANGE COMMISSION
Washington, D.C.
20549

FORM 10-K/A
(Amendment No. 2)

(Mark One)

[X] ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934

For the fiscal year ended January 31, 2014

[   ] TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from
______________to______________

Commission file number 000-50071

LIBERTY STAR URANIUM & METALS
CORP.(Exact name of registrant as specified in its
charter)

|Nevada                                           | 90-0175540                       
|------------------------------------------------ | ---------------------------------
|(State or other jurisdiction of incorporation or | (IRS Employer Identification No.)
|organization)                                    |                                  

5610 E Sutler Lane, Tucson, Arizona 85712(Address of principal executive offices)

520.731.8786(Registrants telephone
number, including area code)

Not Applicable(Former name, former
address and former fiscal year, if changed since last report)

|Securities registered pursuant to Section 12(b) of the Act: |                                          
|----------------------------------------------------------- | -----------------------------------------
|Title of each class                                         | Name of each exchange on which registered
|Nil                                                         | Nil                                      

Securities registered pursuant to Section 12(g) of the Act:

Common Stock, par value $0.00001(Title of class)

Indicate by check mark if the registrant is a well-known
seasoned issuer, as defined in Rule 405 of the Securities ActYes
[   ]      No [X]

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2

Indicate by check mark if the registrant is not required to
file reports pursuant to Section 13 or 15(d) of the Act. [   ]
Note: Checking the box above will not relieve any registrant required to
file reports pursuant to Section 13 or 15(d) of the Exchange Act from their
obligations under those Sections.

Indicate by check mark whether the registrant (1) has filed all
reports required to be filed by Section 13 or 15(d) of the Exchange Act during
the preceding 12 months (or for such shorter period that the registrant was
required to file such reports), and (2) has been subject to such filing
requirements for the past 90 days.Yes [X]      No
[   ]

Indicate by check mark whether the registrant has submitted
electronically and posted on its corporate Web site, if any, every Interactive
Data File required to be submitted and posted pursuant to Rule 405 of Regulation
S-T (§232.405 of this chapter) during the preceding 12 months (or for such
shorter period that the registrant was required to submit and post such
files).Yes [X]      No [   ]

Indicate by check mark if there is disclosure of delinquent
filers pursuant to Item 405 of Regulation S-K (§229.405 of this chapter) is not
contained in herein, and will not be contained, to the best of registrants
knowledge, in definitive proxy or information statements incorporated by
reference in Part III of this Form 10-K or any amendment to this Form 10-K.
[   ]

Indicate by check mark whether the registrant is a large
accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller
reporting company. See the definition of large accelerated filer, accelerated
filer and smaller reporting company in Rule 12b-2 of the Exchange Act.

|Large accelerated filer [   ]                 | Non-accelerated
      filer           
      [   ]
|--------------------------------------------- | --------------------------------------------------
|Accelerated
      filer           [ 
       ] | Smaller reporting company [X]                     

Indicate by check mark whether the registrant is a shell
company (as defined in Rule 12b-2 of the Exchange Act).Yes [  
]      No [X]

State the aggregate market value of the voting and non-voting
common equity held by non-affiliates computed by reference to the price at which
the common equity was sold, or the average bid and asked prices of such common
equity, as of the last business day of the registrants most recently completed
second fiscal quarter.

Note: If a determination as to whether a particular person or
entity is an affiliate cannot be made without involving unreasonable effort and
expense, the aggregate market value of the common stock held by non-affiliates
may be calculated on the basis of assumptions reasonable under the
circumstances, provided that the assumptions are set forth in this form.

823,918,971 shares of Common Stock @ $0.0186 (1)=
$15,324,891

(1)Adjusted for retroactive effect of 1 for 4
reverse stock split on September 1, 2009. Closing price on July 31, 2013 was
$0.0186.

Indicate the number of shares outstanding of each of the
registrants classes of common stock, as of the latest practicable date.

866,445,497 shares of Common Stock issued and outstanding as of
May 14, 2014.

DOCUMENTS INCORPORATED BY REFERENCE

Not applicable.

EXPLANATORY NOTE

The Company is  filing this Amendment No. 2 to its Form 10-K in its entirety to include  additional detail and correction regarding our mineral claims under Part I,  Item 2. Properties, including claim descriptions.

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TABLE OF CONTENTS

|FORWARD-LOOKING
      STATEMENTS                                                                                                 | 4 
|-------------------------------------------------------------------------------------------------------------------------------- | --
|PART I                                                                                                                           | 5 
|ITEM 1
      Business                                                                                                            | 5 
|Item
      1A. Risk Factors.                                                                                                     | 8 
|Item
      1b. Unresolved Staff Comments                                                                                         | 8 
|Item 2.
      Properties                                                                                                         | 8 
|Item
      3. Legal Proceedings                                                                                                  | 14
|Item
      4. Mine Safety Disclosures                                                                                            | 14
|PART
      II                                                                                                                    | 15
|Item
      5. Market for Registrants Common Equity, Related Stockholder Matters and
      Issuer Purchases of Equity Securities | 15
|Item
      6. Selected Financial Data                                                                                            | 17
|Item
      7. Management's Discussion and Analysis of Financial Condition and Results
      of Operations                        | 17
|Item
      7A. Quantitative and Qualitative Disclosures About Market Risk                                                        | 22
|Item
      8. Financial Statements and Supplementary Data                                                                        | 22
|Item
      9. Changes In and Disagreements With Accountants on Accounting and
      Financial Disclosure                         | 43
|Item
      9A. Controls and Procedures                                                                                           | 43
|Item
      9B. Other Information                                                                                                 | 43
|PART
      III                                                                                                                   | 44
|Item
      10. Directors, Executive Officers and Corporate Governance                                                            | 44
|Item
      11. Executive Compensation                                                                                            | 48
|Item
      12. Security Ownership of Certain Beneficial Owners and Management and
      Related Stockholder Matters              | 50
|Item
      13. Certain Relationships And Related Transactions, And Director
      Independence                                   | 52
|Item
      14. Principal Accountants Fees and Services                                                                           | 52
|Item
      15 Exhibits, Financial Statement Schedules                                                                            | 53
|SIGNATURES                                                                                                                       | 55

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FORWARD-LOOKING STATEMENTS

This annual report contains forward-looking statements. These
statements relate to future events or our future financial performance. In some
cases, you can identify forward-looking statements by terminology such as "may",
"should", "expects", "plans", "anticipates", "believes", "estimates",
"predicts", "potential" or "continue" or the negative of these terms or other
comparable terminology. These statements are only predictions and involve known
and unknown risks, uncertainties and other factors, including the risks in the
section entitled "Risk Factors", that may cause our or our industry's actual
results, levels of activity, performance or achievements to be materially
different from any future results, levels of activity, performance or
achievements expressed or implied by these forward-looking statements.

While these forward-looking statements, and any assumptions
upon which they are based, are made in good faith and reflect our current
judgment regarding the direction of our business, actual results will almost
always vary, sometimes materially, from any estimates, predictions, projections,
assumptions or other future performance suggested herein. Although we believe
that the expectations reflected in the forward-looking statements are
reasonable, we cannot guarantee future results, levels of activity, performance
or achievements. Except as required by applicable law, including the securities
laws of the United States, we do not intend to update any of the forward-looking
statements to conform these statements to actual results.

Our consolidated financial statements are stated in United
States Dollars (US$) and are prepared in conformity with accounting principles
generally accepted in the United States of America (GAAP). The following
discussion should be read in conjunction with our consolidated financial
statements and the related notes that appear elsewhere in this annual report.

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As used in this annual report, the terms "we", "us", the
Company and "Liberty Star" mean Liberty Star Uranium & Metals Corp. and
our subsidiary Big Chunk Corp., unless otherwise indicated. All dollar amounts
refer to U.S. dollars unless otherwise indicated.

PART I

ITEM 1. BUSINESS.

Business development

Liberty Star Uranium & Metals Corp. was formerly Liberty
Star Gold Corp. and formerly Titanium Intelligence, Inc. (Titanium). Titanium
was incorporated on August 20, 2001 under the laws of the State of Nevada. On
February 5, 2004 we commenced operations in the acquisition and exploration of
mineral properties business. Big Chunk Corp. (Big Chunk) is our wholly owned
subsidiary and was incorporated on December 14, 2003 in the State of Alaska. Big
Chunk is engaged in the acquisition and exploration of mineral properties
business in the State of Alaska. Redwall Drilling Inc. (Redwall) was our
wholly owned subsidiary and was incorporated on August 31, 2007 in the State of
Arizona. Redwall performed drilling services on our mineral properties. Redwall
ceased drilling activities in July 2008 and was dissolved on March 30, 2010. In
April 2007, we changed our name to Liberty Star Uranium & Metals Corp. to
reflect our current general exploration for base and precious metals. We are
considered to be an exploration stage company, as we have not generated any
revenues from operations.

Our current business

We are an exploration stage company engaged in the acquisition
and exploration of mineral properties in the States of Arizona and Alaska.
Claims in the State of Alaska are held in the name of our wholly-owned
subsidiary, Big Chunk Corp. Claims in the State of Arizona are held in the name
of Liberty Star. We use the term Super Project to indicate a project in which
numerous mineral targets have been identified, any one or more of which could
potentially contain commercially viable quantities of minerals. Our significant
projects are described below.

North Pipes Super Project (North Pipes and NPSP):Located in Northern Arizona on the Arizona Strip, we plan to ascertain
whether the NPSP claims possess commercially viable deposits of uranium and
associated co-product metals. We have not identified any ore reserves to date.

Big Chunk Super Project (Big Chunk):Located in the
Iliamna region of Southwestern Alaska, we plan to ascertain whether the Big
Chunk claims possess commercially viable deposits of copper, gold, molybdenum,
silver, palladium rhenium and zinc. We have not identified any ore reserves to
date.

Tombstone Super Project (Tombstone)(formerly referred to
as Tombstone Porphyry Precious Metals Project): Tombstone is located in
Cochise County, Arizona and the Super Project covers the Tombstone caldera and
its environs. Within the Tombstone Caldera is the Hay Mountain target where we
are concentrating our work at this time. We plan to ascertain whether the
Tombstone, Hay Mountain claims possess commercially viable deposits of copper,
molybdenum, gold, silver, lead, zinc, manganese and other metals including Rare
Earth Elements (REEs). We have not identified any ore reserves to date.

East Silver Bell Porphyry Copper Project (East Silver
Bell):Located northwest of Tucson, Arizona, we plan to ascertain whether
the East Silver Bell claims possess commercially viable deposits of copper. We
have not identified any ore reserves to date.

Title to mineral claims involves certain inherent risks due to
difficulties of determining the validity of certain claims as well as potential
for problems arising from the frequently ambiguous conveyancing history
characteristic of many mineral properties. We have investigated title to all the
Companys mineral properties and, to the best of its knowledge, title to all
properties are in good standing.

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The mineral resource business generally consists of three stages: exploration, development and production. Mineral resource companies that are in the exploration stage have not yet found mineral resources in commercially exploitable quantities, and
are engaged in exploring land in an effort to discover them. Mineral resource companies that have located a mineral resource in commercially exploitable quantities and are preparing to extract that resource are in the development stage, while those
engaged in the extraction of a known mineral resource are in the production stage. We are in the exploration stage – as we have not found any mineral resources in commercially exploitable quantities.

There is no assurance that a commercially viable mineral deposit exists on any of our properties, and further exploration is required before we can evaluate whether any exist and, if so, whether it would be economically feasible to develop or
exploit those resources. Even if we complete our current exploration program and we are successful in identifying a mineral deposit, we would be required to spend substantial funds on further drilling and engineering studies before we could know
whether that mineral deposit will constitute an ore reserve (an ore reserve is a commercially viable mineral deposit).

To date, we have not generated any revenues and we remain in the exploration stage. Our ability to pursue our business plan and generate revenues is subject to our ability to obtain additional financing, and we cannot give any assurance that we will
be able to do so.

Competition

We are a mineral resource exploration stage company engaged in the business of mineral exploration. We compete with other mineral resource exploration stage companies for financing from a limited number of investors that are prepared to make
investments in mineral resource exploration stage companies. The presence of competing mineral resource exploration stage companies may impact our ability to raise additional capital in order to fund our property acquisitions and exploration
programs if investors are of the view that investments in competitors are more attractive based on the merit of the mineral properties under investigation and the price of the investment offered to investors.

We also compete for mineral properties of merit with other exploration stage companies. Competition could reduce the availability of properties of merit or increase the cost of acquiring additional mineral properties.

Many of the resource exploration stage companies with whom we compete may have greater financial and technical resources than we do. Accordingly, these competitors may be able to spend greater amounts on acquisitions of properties of merit and on
exploration of their properties. In addition, they may be able to afford greater geological expertise in the targeting and exploration of resource properties. This competition could result in our competitors having resource properties of greater
quality and interest to prospective investors who may finance additional exploration and to senior exploration stage companies that may purchase resource properties or enter into joint venture agreements with junior exploration stage companies. This
competition could adversely impact our ability to finance property acquisitions and further exploration.

Compliance with Government Regulation

We will be required to comply with all regulations, rules and directives of governmental authorities and agencies applicable to the exploration of minerals in the States of Arizona and Alaska.

We are required to perform annual assessment work in order to maintain the Big Chunk Alaska State mining claims. If annual assessment work is not performed we must pay the assessment amount in cash in order to maintain the claims. Completion of
annual assessment work in the amount of $400 per 1/4 section (160 acre) claim or $100 per 1/16 section (40 acre) claim extends the claims for a one year period. Assessment work performed in excess of the required amount may be carried
forward for up to 4 years to reduce future obligations for assessment work. We estimate that the required annual assessments to maintain the claims will be approximately $19,200.

The annual state rentals for the Big Chunk Alaska State mining claims vary from $70 to $280 per mineral claim and escalate with the age of the mining claim. The rental period begins at noon September 1stthrough the following September 1stand annual rental payments are due on November 30thof each year. Annual rent is due in full within 45 days of staking a new claim and covers the period from staking until the next September 1st. The
rentals of $30,640 to extend the Big Chunk claims through September 1, 2014 were paid in November 2013. The estimated state rentals due for the Big Chunk claims by November 30, 2014 for the period from September 1, 2014 through September 1, 2015
are $30,640. Alaska State production royalty is three percent of net income. State law prescribes that after a 3.5 -year exemption from state taxes a metal mine is liable for a 15% state licensing tax on net income from the mine.

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Our North Pipes claims are Federal lode mining claims located on U.S. Federal Lands and administered by the Department of Interior, Bureau of Land Management. The Bureau of Land Management (“BLM”) has prepared an environmental impact
statement (“EIS”) addressing potential for contamination of significant amounts of uranium leaking into the Colorado River. The EIS indicated the danger of such contamination insignificant. Regardless, the United States Secretary of the
Interior, Kenneth Salazar, through executive order has withdrawn Federal lands from locatable mineral exploration and mining North of the Grand Canyon along the Utah border in Arizona, the so-called “Arizona Strip”. Nearly 1 million
acres of land managed by the BLM and the Forest Service were segregated in July 2009 by the Secretary of Interior. The executive order has resulted in the withdrawal of an area of the Arizona Strip from mining in particular, and the moratorium now
is instated for the next 20 years. However, the moratorium permits existing claims and mines to continue as before, including our North Pipes lode mining claims.

We are required to pay annual rentals to maintain our North Pipes Federal lode mining claims in good standing. The rental period begins at 12:01 PM on September 1stthrough the following September 1stat 12:00 and rental
payments are due by the first day of the rental period starting at 12:01 PM. The annual rental is $140 per claim. Additional fees of $45 per claim are due in the first year of filing a Federal lode mining claim along with the first
year’s rent. The rentals of $54,600 for the period from September 1, 2013 to September 1, 2014 have been paid. The annual rentals due by September 1, 2014 of $54,600 are required to maintain the North Pipes claims for the period from
September 1, 2014 through September 1, 2015. There is no requirement for annual assessment or exploration work on the Federal lode mining claims, this having been supplanted by the rental fee. There are no royalties associated with the Federal lode
mining claims.

We are required to pay annual rentals for our Federal lode mining claims for our East Silver Bell project in the State of Arizona. The rental period begins at noon on September 1stthrough the following September 1stand rental
payments are due by the first day of the rental period. The annual rental is $140 per claim. The rentals fees of $3,640 for the period from September 1, 2013 to September 1, 2014 have been paid. The annual rentals due by September 1, 2014 of
$3,640 are required to maintain the East Silver Bell claims are for the period from September 1, 2014 through September 1, 2015. There is no requirement for annual assessment or exploration work on the Federal lode mining claims, this having
been supplanted by the rental fee. There are no royalties associated with the Federal lode mining claims.

We are required to pay annual rentals for our Federal lode mining claims for our Tombstone project in the State of Arizona. The rental period begins at noon on September 1stthrough the following September 1st and rental
payments are due by the first day of the rental period. The annual rental is $140 per claim. Additional fees of $45 per claim are due in the first year of filing a Federal lode mining claim along with the first year’s rent. The rentals
and initial filing fees for the period from September 1, 2013 to September 1, 2014 have been paid. The annual rentals due by September 1, 2014 of $ $13,860 are required to maintain the Tombstone claims for the period from September 1, 2014
through September 1, 2015. There is no requirement for annual assessment or exploration work on the Federal lode mining claims, this having been supplanted by the rental fee. There are no royalties associated with the Federal lode mining claims.
Beginning September 1, 2011 at 12:01 PM, Liberty Star started and subsequently completed staking 9 Federal lode mining claims along the east edge of old patented mining claims in the main producing part of the old Tombstone mining area. These new
claims are adjacent to the south end of the Walnut Creek TS claim block and are also named the TS claims. These claims occupy fractional land areas open to location by federal lode claim

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We are required to pay annual rentals for our Arizona State Land Department (“ASLD”) Mineral Exploration Permits (“AZ MEP”) at our Tombstone Hay Mountain Project in the State of Arizona. A mineral exploration permit is
permission from ASLD to prospect and explore for minerals on State Trust land. Exploration is any activity conducted for the purpose of determining the existence of a valuable mineral deposit, such as: geologic mapping, drilling, geochemical sampling, and geophysical surveys. Prior to exploration, the Plan of Operations must be approved by ASLD. The
permitting process for an exploration permit takes a minimum of sixty (60) days. If the application is approved, the initial rent is $2 per acre. If renewed, no additional rents are due for the second year. Rents are set at $1 per acre for
years 3 thru 5. Work expenditure requirements are: $10 per acre for years 1-2; and $20 per acre for years 3-5. Removal of any minerals or materials from State Trust land without the appropriate lease or permit is prohibited. The permit is
valid for one year from the due date of the rental and bond. If renewal requirements are met, the permit can be renewed annually for up to five years. If discovery of a valuable mineral deposit is made, the permitee must apply for a mineral lease
before actual mining activities can begin. A mineral lease permits the mining of minerals discovered under the exploration permit. The approval process takes a minimum of six (6) months. The mineral lease is issued for a term of twenty (20) years.
Leases may be renewed for an additional term. Both rents and royalties are determined by appraisal. Royalties may be based on: 1) a fixed rate subject to annual adjustment; or 2) a sliding-scale rate which is linked to a commodity index price and
the operation's break-even price. There is a statutory minimum royalty rate of 2% of gross value. These AZ MEPs require a reclamation bond of $3,000 which we currently hold. The first year’s rental has been paid for these MEPs and the
escalating rental is due on the anniversary of the MEP each year. After the end of the 4th year, the MEPs must transition to a State Mineral Lease upon satisfaction of the State Mineral Inspector that economic indications of a minable deposit exist.
After commencement of mining, the State of Arizona shall be paid a minimal net smelter return after taking into consideration any extenuating mining challenges royalty but not less than a 2% gross royalty. The rental period begins on September
30ththrough the following September 29thand rental payments are due by the first day of the rental period. We hold AZ MEP permits for 7,515 acres at our Tombstone project. We paid initial rental fees from the date of
application through September 29, 2012 of $8,254. Required minimum work expenditures for the period ended September 29, 2014 are$157,578. The annual rentals due by September 30, 2014 to maintain the AZ MEP permits are $7,515.

With respect to the foregoing properties, additional approvals and authorizations may be required from other government agencies, depending upon the nature and scope of the proposed exploration program. The amount of these costs is not known at this
time as we do not know the size, quality of any resource or reserve at this time, and it is extremely difficult to assess the impact of any capital expenditures on earnings or our competitive position.

Personnel

Currently we employ one full time geologist who is also our CEO, CFO, and Chairman of the Board, James Briscoe. We also employ one full time executive, one full time executive assistant/accountant, one as-needed PhD consulting geologist specializing
in GIS computer mapping and database creation, one full time geo-tech, who is also our manager of field operations, one investor relations representative, and one CPA on an as needed basis. We hire consultants for investor relations, exploration and
administrative functions also on an as needed basis.

Item 1A. Risk Factors.

Not Required.

ITEM 1B. UNRESOLVED STAFF COMMENTS

Not Applicable.

ITEM 2. PROPERTIES.

Our offices

We rent the premises for our principal office located at 5610 E Sutler Lane, Tucson, Arizona 85712. We rent this office space which is located in the home of our Chief Geologist and CEO for $522 per month plus a pro rata share of taxes and
maintenance. Our employees work either from our principal office or from offices maintained in their homes.

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We believe that our existing office facilities are adequate for our needs. Should we require additional space at that time, or prior thereto, we believe that such space can be secured on commercially reasonable terms.

Our warehouse

On June 1, 2011 we rented a warehouse located at Building No. 1, 7900 South Kolb Road, Tucson, Arizona 85706. We rent this warehouse space for $3,645 per month. The lease is in effect until May 31, 2014 with an option to extend for two
additional years. In addition to using the warehouse for standard purposes, such as storage of our exploration equipment, supplies and samples, the warehouse space also includes office facilities for the use of field geologists and geotechs.

Our mineral claims

All of the Companys claims for mineral properties are in good standing as of January 31, 2014.

North Pipes Super Project (North Pipes and NPSP):

We hold a 100% interest in 376 (unpatented) Federal lode mining claims strategically placed on the Arizona Strip. The 376 unpatented Federal lode mining claims with an area of 7,761 acres include breccia pipe targets (Pipes). Breccia
pipes are cylindrical formations in the earths crust sometimes identified by a surface depression, or surface bump or no visible surface expression at all, and contain a high concentration of fragmented rock breccia sometimes
cemented by uranium and other minerals. We plan to ascertain whether our North Pipes claims possess commercially viable deposits of uranium. Due to the moratorium of location of lode mining claims on the Arizona Strip and the low price of U3O8 we
have no current exploration plans and will not until the uranium price increases and the moratorium expires in about 15 years. We intend to hold a
strategic position until such time that it is economically feasible to mount a
new drilling program. We want to take advantage of more than a million dollars
of exploration data which was acquired by Liberty Star when uranium prices were
higher and before the moratorium was instituted.

North Pipes is located on the Arizona Strip, which is located
approximately 10 miles south of the town of Fredonia, AZ. Access is by Hwy 389
and various dirt roads, some of which are maintained and some that are very
primitive. 4WD vehicles are necessary for the primitive dirt roads. Some of the
claims cannot be driven to and require hiking to their location or under an
approved plan of operation it is possible to create an access road.

North Pipes-AZ Claims23 BC Claims
    
    8 JN
      Claims
    
    
    6 SA
      Claims2 BP Claims
    
    10 JT Claims
    
    
    56 SG Claims7 BR Claims
    
    29 LA
      Claims
    
    
    14 SR
      Claims1 BT Claim
    
    3 LC Claims
    
    
    28 ST Claims2 CV Claims
    
    14 LR
      Claims
    
    
    3 VP
      Claims4 FT Claims
    
    9 NT Claims
    
    
    9 WB Claims14 GN Claims
    
    12 PE
      Claims
    
    
    2 WC
      Claims7 GP Claims
    
    7 RC Claims
    
    
    11 WR Claims8 HC Claims
    
    44 RW
      Claims
    
    
    2 WS
      Claims3 HR Claims
    
    32 RX Claims
    
    
    6 WZ Claims376 Claims - 7,761 Acres




Our NPSP claims are undeveloped. There are neither open-pit nor
underground mines, nor is there any mining plant or equipment located on the
properties. There is no power supply to the properties. We have not found any
mineral resources on any of our claims. The Arizona Strip was an active
exploration district in the 1970s and 1980s with multiple producing uranium
mines. No evidence of
actual development work has been found on any of our properties and no significant exploration activities have been performed on our NPSP claims since 2008 due to many factors including the lowered uranium prices and the moratorium on locating
claims. Below is a summary of prior exploration activities performed on our NPSP claims:

Geophysics:We have completed PEM (Pulse Electro-magnetic) geophysical  surveys on some of our NPSP claims. Two types of PEM surveys were conducted in  2007: (i) Downhole PEM and (ii) In-Loop PEM. We have also used CSAMT and NSAMT  (Controlled and Natural Source Audio-range Magneto Tellurics), run on the  ground and executed by Zonge Engineering of Tucson AZ. A survey was also  completed on an approximately six square mile area by VTEM helicopter borne  electromagnetic survey along right angle crossing grid lines spaced 100 meters  apart, which was performed by Geotech of Aurora, Ontario, Canada. Significant  anomalies resulted from this survey. Preliminary drilling on one of Liberty  Star’s anomalies intersected strong breccia, alteration and pyrite  mineralization. The holes did not penetrate down to the elevation where uranium  mineralization would be expected, but are targets for future work. As of this  date we have not developed any uranium resources on the Arizona Strip.

Stereoscopic geologic color air photo interpretation (photo-geology):Stereoscopic geologic interpretation of 1:24,000 (1 inch = 2,000 feet) high resolution color air photographs were contracted for and completed by Dr. Karen Weinrich and
Edward Ulmer, a Registered Professional Geologist. Dr. Weinrich worked on the Arizona Strip uranium bearing breccia pipes almost exclusively during her twenty three year tenure with the United States Geological Survey from which she is now retired.
During this period of study she authored many professional papers on breccia pipes of the Grant Canyon area, and is considered a foremost expert on them. Mr. Ulmer worked on the Arizona Strip in the mid to late 1970s working on both imagery
interpretation and surface geology.

Geologic field mapping on the surface:Geological field mapping was conducted in the fall of 2005 through 2007 by our staff geologists as well as contracted geologists. Approximately 180 of the breccia pipe target areas have been mapped in
detail 1:5,000 (1 inch = 417 feet). Several detailed measured stratigraphic sections have also been completed.

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10

Geochemical sampling:A comprehensive soil geochemical survey was completed in 2007. We have collected approximately 14,000 soil samples over all identifiable breccia pipes, both those with known ore and those that are yet to be proven by
drilling. A strict chain of custody procedures were followed and quality assurance/quality control (QA/QC) samples were inserted regularly into the sample stream. The samples were assayed for 63 elements. Assay analyses were conducted by a Certified
Assay Lab, Acme Analytical Laboratories of Vancouver, British Columbia, Canada. We believe that these samples allow us to identify potential uranium bearing breccia pipes versus barren or non-uranium bearing breccia pipes.

Drilling:In 2007 a drilling program was undertaken using both rotary drilling and core drilling. Rotary drilling was contracted by Boart Longyear. Diamond core drilling was completed by Redwall Drilling Inc., a former wholly owned subsidiary
of Liberty Star. A total of 22 holes were drilled for a total of 16,226 feet of drilling. Important intersections of rock generally associated with producing breccia pipes were made. We did not intersect any ore mineralization during the drilling
program.

Total costs including claim staking  (initially in 2005), claim maintenance (see PART I ITEM1. Business. “Compliance  with Government Regulation” in each Form 10K for the years ended January 31, 2006 through January  31, 2014) and a drilling program (exploratory) in calendar years 2007 and 2008,  are $5,220,794.

Beginning  in 2006, Certified  Professional Geologist Dr Karen Wenrich and a dozen other well regarded  geoscientists engaged in an exploratory program centering on the region’s  breccia pipes. By the time Dr. Wenrich came to work on the North Pipes project,  she had 27 years with the USGS working on breccia pipe research and was a  member of a Nobel Peace Prize winning team of UN atomic science specialists.  The Liberty Star team worked with high resolution color aerial photographs and  other reconnaissance covering approximately 2,000 square miles to format geological maps of the  terrain. In addition to geology, geophysics gamma ray spectroscopy, approximately  14,000 soil samples were collected and analyzed by a certified lab for 63  elements. These were located precisely as they were collected using GPS. The  results were compiled and plotted using GIS software, and various contouring  and interpretation techniques. Expenses included food and lodging and a daily  commute of approximately 100 miles. Road conditions were extreme and resulted  in vehicle expenses of approximately $2.00 per mile. Various contractors were used in claim  staking, and other contract work in sample collection. Helicopters and light  planes were used for various transportation tasks. Home office support also  involved permanent and contract support.

Exploratory drilling includes costs of  travel, food and lodging, payments on the drill rig, drill bits, fuel, drilling  permits, and maintenance costs of the drill rig and of support vehicles. Also  included are the costs of reclamation bonds and reclamation costs of lands  disturbed by drilling, as well as the costs of conducting archaeological  surveys to identify prehistoric remains of human habitation or human activity.

Currently there are no planned costs  for the North Pipes Super Project unless commodity prices, specifically for  uranium, increase sufficiently to make exploration financially tenable. The  Moratorium on acquiring any additional land has also negatively affected the  current investment climate for such work.

Big Chunk Super Project (Big Chunk)  Location, claims,
geology and technical studies:

We hold a 100% interest in 54 State mining claims in the
Iliamna region of Southwestern Alaska with an area of 7,680 acres, located on
the north side of the Cook Inlet, approximately 265 miles southwest of the city
of Anchorage, Alaska. We plan to ascertain whether the Big Chunk claims possess
commercially viable deposits of copper, gold, molybdenum, silver, palladium,
rhenium and zinc. Due to decisions made by the EPA regarding the nearby Pebble
Deposit we have no immediate exploration plans, however, we intend to hold our
land position until such a time we determine it is clear that exploration is
economically viable again.

Big Chunk-AK ClaimsBC  641 - BC 648
    
    
    BC  797-798BC  677
    
    
    BC 817-818BC  684 -691
    
    
    BC 822BC  713
    
    
    BC 837-846BC  720- 721
    
    
    BC 864BC  727
    
    
    BC 1011-1014BC  757
    
    
    BC 1017-1018BC  767 - 768
    
    
    BC 1021-1022BC  787
    
    
    BC 1104-1105BC 1113-111554 BC Claims- 7,680
      acres




Our  Big Chunk claims are undeveloped. Big Chunk is in the Iliamna region of  Southwestern Alaska, located on the north side of the Cook Inlet, approximately  265 miles southwest of the city of Anchorage Alaska. The claims are located in  a remote area of Southwestern Alaska near Lake Iliamna, Alaska’s largest lake.  The claims are immediately adjacent and contiguous to the Pebble mine property  and about 3 miles north east from the Pebble Porphyry copper, gold, molybdenum,  silver, palladium, rhenium and zinc mineral deposit which is reportedly one of  the largest of its type in the world. Two or more Air Taxi services connect to  the village of Iliamna roughly 240 miles distant from Anchorage. At Iliamna,  approximately 27 miles southeast of Big Chunk, there is a major regional  airport, Fixed Base Operator (FBO), fuel, bush planes and, periodically, helicopters  for rent with pilot. Air is the only practical way to the property either by  float plane, ski plane in the winter, or helicopter. Ground travel is unsafe  and impractical in the summer due to the dense population of black bears, grizzly  bears, bogs and small lakes. Winter access by snow machine could be possible, although  difficult.

In 2011, the Company engaged the international firm of SRK
Consulting, Engineering and Scientist of Tucson (SRK) through its Tucson,
Arizona office to prepare a Technical Report in the same format of the
internationally accepted Canadian National Instrument NI 43-101. Because the
Companys stock does not trade on any Canadian stock exchanges, this Technical
Report was not submitted to SEDAR, the electronic system for the official filing
of documents by public companies and investment funds across Canada. In their
report which encompasses some 194 pages of technical data, they compared the
Northern Dynasty NI 43-101 geologic and drill data, published on the Northern
Dynasty web site in its entirety, to results of Liberty Stars technical work on
the Big Chunk ground. They concluded amongst other things: (1) Twenty seven
scout diamond drill holes drilled by Liberty Star in 2004  2005 intersected the
same rock types as were intersected in the exploration drilling on the Pebble
deposit (2) All drill holes, which were spaced over some 500 square miles,
intersected the outer shell or propylitic halo of multiple porphyry copper
systems, which is the model co-developed by our director, Dr. John Guilbert; and
(3) Copper and molybdenum sulfides along with low grade gold were intersected in
two drill holes in the White Sox target area. This mineralization and
associated alteration may indicate a porphyry Cu-Mo system (SRK Big Chunk
Technical Report- page 109, 11.2 Results of Drilling, available on the Liberty
Star Web Site. The area of the Big Chunk Claims is largely covered by glacial
debris, soil, and tundra. There are no open-pit or underground mines, nor is
there any mining plant or equipment located on the properties. There is no power
supply to the properties. There is no road access to the properties, but such
public road access is planned for the Pebble mine, and as currently planned,
that road will cross the Companys land, and be accessible for the Companys
use. Extensive geotechnical data on the Big Chunk claims has been acquired
between startup of 2004 and the current time. Extensive geophysical data has
been acquired by the Company of several types, which includes the following:

(1) an extensive air borne magnetic
survey flown by McPhar Geosurveys Ltd., Newmarket, Ontario Canada over 18,243
line kilometers covering 3,646 square kilometers using: (a) a draped survey with
a mean elevation of the instrument above the terrain of 200 meters (600 feet)
feet; (b) a line spacing of 250 meters (800 feet); (c) and a sample interval of
8 meters (26.4 feet). State of the art magnetometer, GPS, radar altimeter, and
computer recording of data were used and in our opinion no other survey of this
quality and precision is available in the area.

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11

(2) one hundred twenty seven linear
miles of Induced Polarization (IP) was run by Zonge Engineering of Tucson AZ. Of
necessity lines were brushed of all trees and undergrowth and all access was by
helicopter, however, the lines themselves were done on the ground by foot. All
data was recorded on appropriate computers, downloaded each evening and sent to
the Zonge Office in Tucson and to our consulting geophysicist Mr. Jan Klein in
Vancouver, BC, Canada. Mr. Klein supervised all IP and other geophysical surveys
over the Pebble for Cominco who sold the Pebble Project to Northern Dynasty.
Thus, we believe Mr. Klein has had more experience in the geophysics of the area,
which includes over 2,000 square miles, than any other geophysicist. The results
were interpreted and sent back to the Alaska headquarters every night.

(3) Liberty Star contracted with
Geotech Limited of London, Ontario, Canada to run their ZTEM Electro Magnetic
(EM) airborne survey equipment over the Big Chunk project. This thoroughly
tested system can look down 2,000 meters (6,000 feet) in to the crust of the
earth and detect sulfide mineralization associated with porphyry copper-gold
systems, as well as other geologic features. This survey was completed in August
2009. The survey covered 315.2 sq kilometers (121.7 sq miles) and consisted of
north-south lines spaced 250 meters apart on our Big Chunk Super Project mineral
claims. In May 2010, Liberty Star received feedback from Geotech Ltd. that its
interpretation showed at least 4 to 7 signatures that are consistent with
porphyry copper responses. The 2D computer model shows typical low responsive
areas, which could correspond to an ore mineral core zones with a surrounding
responsive cylinders representing a pyrite halos typical of Porphyry copper
systems. For control, Geotech flew a survey the day after completing the Big
Chunk survey, over the Pebble mineral deposit. The anomalies on Big Chunk show
strong similarities to the Pebble.

During the field seasons of 2004 and 2005 Liberty collected
approximately eleven thousand geochemical samples. The sampling program was
designed by both consulting geochemist, Shea Clark Smith, of MEG Laboratories in
the Reno area of Nevada, and Liberty Chief Geologist, James Briscoe. The
sampling program was based on many years of geochemical studies and sampling
throughout the world by Mr. Smith and his Masters Degree
thesis on sampling tundra plants and detecting metals in their woody stems
reflecting metals at depth. Further, Mr. Smith and Mr. Briscoe used this
technique to locate buried porphyry copper deposits in the Silver Bell district
(see discussion of the East Silver Bell Project in this report) near Tucson,
Arizona in 1996 -1998. The methodology was conceived, discovered and proven in a
well-known porphyry district south of Tucson, Arizona between the period 1950 to
1955. At Big Chunk the samples collected included: (1) stream sediment; (2)
stream water; (3) pond and small-lake water; (4) soil samples; and (5)
vegetation sampling new growth of woody plants. These samples were analyzed by
Acme Labs, a Certified Assayer in Canada for 64 elements for each sample. For the eleven thousand samples, this resulted in approximately seven hundred thousand separate analyses including blanks, repeat and control samples part of the QA/QC (Quality Assurance Quality
Control) procedures. Because of the overload worldwide in all assay labs at the time, turnaround time for the assays was up to three or more months. After receipt of the samples, they were processed using computer techniques and the results analyzed
and interpreted. Known indicator elements, including porphyry copper-gold mineral center elements, formed typical porphyry copper center anomaly zones. Additionally, samples taken by Liberty Star over the Pebble deposit, with the permission of
Northern Dynasty, indicated that mineral body to be detectable by these methods. The geochemical methodology was used by the US Geological Survey, under contract for the Pebble partnership over the Pebble mineral zone, and data was published in
2010. It was again shown to be effective in indicating the Pebble deposit mineralization at depth. The anomalies generated by both deep looking ZTEM and geochemistry by Liberty Star have been tested by published results from drilling in the Pebble
mineral body. The same types of targets in the Liberty Star Big Chunk have yet to be tested by drilling.

We are unaware of any previous claim ownership anywhere on our Big Chunk claims in Alaska. No historical drilling resulting in mineral resources or reserves appears in the published literature concerning the property. Minor exploration was conducted
by Teck Cominco Alaska, and Anaconda Mining Inc. The United States Geological Survey does not do exploration but they had done minor geological mapping in the north part of the Big Chunk caldera, along with widely spaced aeromag surveys in the same
area. We are not aware of any prior exploration that was conducted on our Big Chunk claims in Alaska prior to January 10, 2004, when our aerial magnetic survey began.

We have not defined mineral resources on any of our claims at Big Chunk.

Letter Agreement and Secured Convertible Note with Northern Dynasty Minerals Ltd. With Respect to Big Chunk

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12

On July 15, 2010, we issued a secured convertible promissory note (the 2010 Convertible Note) to Northern Dynasty Minerals Ltd (Northern Dynasty). The original advanced amount is $4,000,000 and bears interest at a rate of
10% per annum compounded monthly (the Loan). On August 17, 2010, we transferred 95 of our Alaska State mineral claims from the Big Chunk Super Project to Northern Dynasty for consideration of $1,000,000 of the original advanced
amount under the Convertible Note, leaving $3,000,000 of the Loan amount outstanding. No interest accrued on the $1,000,000 of the original advanced amount. Effective September 1, 2011, the agreement with Northern Dynasty was amended to
increase the 2010 Convertible Note by $561,816 to reimburse Northern Dynasty for assessment work, rental fees, cash in lieu of assessment work and filing fees on the mineral claims that was paid in fiscal 2011 and fiscal 2012 because we could
not come to an agreement on an earn-in option and joint venture agreement with Northern Dynasty. On February 29, 2012, with effect from November 30, 2011, we executed an additional convertible promissory note (the 2011 Convertible Note
and together with the 2010 Convertible Note, the Convertible Notes) in the amount of $168,358 in reimbursement to Northern Dynasty of assessment work, rental fees and filing fees on our mineral claims.

As part of the transactions noted above, we entered into a letter agreement with Northern Dynasty whereby, subject to negotiating and signing a definitive earn-in option and joint venture agreement, Northern Dynasty could earn a 60% interest in our
Big Chunk and Bonanza Hills projects in Alaska (the Joint Venture Claims) by spending $10,000,000 on those properties over six years. The outstanding loan amounts from Northern Dynasty could be applied as part of Northern
Dynastys earn-in requirements. Northern Dynastys minimum annual expenditures under the earn-in would be the minimum level necessary to keep the Joint Venture Claims in good standing. Northern Dynasty could elect to abandon the earn-in at
any time on 30 days notice, so long as sufficient annual labor was performed, or a cash payment in lieu of labor was made, in order to fulfill the annual labor requirements for the Joint Venture Claims for a minimum of 12 months after
termination of the earn-in.

On November 13, 2012, we signed a loan settlement agreement with Northern Dynasty which would have discharged the $3,730,174 principal balance and $972,617 of accrued interest for the 2010 Convertible Note and would have terminated Northern
Dynastys earn-in rights. In exchange for the settlement, we initiated transfer of 199 Alaska mining claims to Northern Dynastys subsidiary, U5 Resources. The transaction was not closed at that time, pending resolution to a lien placed by
MBGS, LLC.. In March 2014 Liberty Star and Big Chunk entered into a settlement agreement with MBGS, LLC, following a resolution conference conducted in Anchorage, Alaska whereby all claims involving Northern Dynastys 199 claims recorded by
MBGS, LLC were released. The company has now completed its loan settlement agreement with Northern Dynasty and discharged the principal balance and accrued interest for the 2010 Convertible Note and Northern Dynastys earn-in-rights are
terminated.

Tombstone Super Project (Tombstone):

Our CEO and Chief Geologist, James Briscoe, has long experience
in the Tombstone district, southeast Arizona, where he first worked in 1972. In
the mid-1980s, he concluded that much earlier regional geologic work had reached
erroneous conclusions and that Tombstone was a large and ancient (72 million
years before the present  or Laramide in age) volcanic structure  a caldera.
He brought this to the attention of the US Geological Survey caldera experts,
who after study concluded that Briscoe was correct. Subsequently, more than
seventeen calderas of various ages have been identified in Arizona by the US Geological survey, the Arizona Geological Survey and others.
Such calderas of Laramide age are all associated with porphyry alteration and
copper and associated mineralization; many of these have become very large
copper mines. Studies by Mr. Briscoe over the years, and more recently using
advanced technology, have indicated that alteration associated mineralization at
Tombstone is much more extensive than originally thought. This alteration lies
largely under cover and is indicated by geochemistry, geophysics and projection
of known geology into covered areas.

We hold 99 unpatented standard Federal lode mining claims with
an area of 1878.68 acres located due east and southeast of the town of
Tombstone, Arizona. The Walnut Creek Project is located immediately east of the
town of Tombstone. The Hay Mountain Project is located 6.5 miles southeast of
Tombstone; access is by Hwy 89 and Davis Rd. We also hold Arizona State Mineral
Exploration Permits (MEPs) covering (7,515 acres) or 11.74 square miles in the
same area. We also hold an option to explore 33 unpatented standard Federal lode
mining claims located in the same region. We also hold an option to explore 33
unpatented standard Federal lode mining claims (684 acres out of the total
1878.68 acres) located in the same region. On April 29, 2008 Liberty Star
announced that it had leased, with an option to purchase, three properties from
JABA US Inc. in Arizona and Nevada, USA. Liberty Star President James A. Briscoe
controls JABA US INC and Dr. J. M. Guilbert, Director of the Company, holds a
small stock position as well. The properties in Arizona are part of the
Tombstone and the 26 claims East Silver Bell projects. The option covering the
property in Nevada was sold in October, 2008 to NPX Metals. Proceeds from that
sale were loaned immediately back to Liberty Star by Mr. Briscoe. For the
remaining claims, according to the option agreement, Liberty Star could earn up to
100% interest by keeping up annual assessment work and spending $175,000 in
exploration expenditures on the properties between April 2008 and January 1,
2011. This provision payment of assessment and related expenses has been met and
option agreement has been maintained over the Tombstone and East Silver Bell
Claims.

LIBERTY STAR
      TOMBSTONE-AZ
    JABA Optioned
      ClaimsFederal Unpatented
      ClaimsClaim NamesHM 87-143
    TS 125- 152TS 168-176
    TS 163- 167Claim Acreage57 HM Claims- 1095.18 acres
    33 TS Claims- 684 acres9 TS Claims- 99.5 acresState Exploration
      Permits15 State MEP's- 7,515 acres




At Hay Mountain (HM), weplan to ascertain whether the HM lodemining claims and AZ MEPs possess commercially viable deposits of copper, gold, molybdenum,silver, zinc, rare earth metals and other valuable metals. We have a
phased exploration plan that involves diamond core drilling of multiple holes over targets determined by analysis of geochemical sampling and ZTEM electromagnetic and magnetic survey. Initial phase 1 drilling is planned to take approximatelyone year.Should results indicate the viability of the project, additional phased work, both exploration and development, is planned over the course of seven total years to define the nature and size of an ore body(s) and move toward
mining. Any exploration plans are dependent on acquiring suitable funding. No part of the phased program is currently funded.

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13

The Tombstone claims are undeveloped. However significant amounts of aeromagnetic surveys, IP (Induced Polarization Surveys), geologic mapping by the USGS and others, and geochemical surveys including soil, rock and vegetation sampling have been
conducted at various times by various parties, over the last 60 years. When compiled and analyzed these various data suggest a compelling series of anomalies that are typical of buried, dirt and rock covered porphyry copper system(s). Below is a
summary of prior exploration activities performed on our Tombstone claims:

Technical Report: In mid-March 2011, Liberty Star contracted SRK to prepare three (3) Technical studies and Reports in a form similar to mineral reports prescribed under NI 43-101. Members of SRKs engineering/scientific staff supervised
by a Qualified Person as defined under NI 43-101 and SRKs Tucson Office Principal Geologist, Corolla Hoag, and geologist Dr. Jan Rasmussen have visited the Tombstone property. This information was combined with historic technical reports going
back to 1878 and more recent data up to August 2011 (the date of their reports). The three Technical Reports are entitled: (1) Walnut Creek Exploration Report, Tombstone District, Arizona August 31, 2011, 147 pages; (2) The Tombstone Caldera
South Exploration Report, Tombstone District, Arizona August 31, 2011, 144 pages; and (3) Hay Mountain Exploration Report, Tombstone District, Arizona  August 31 2011, 155 pages. Because the Companys stock does not trade on any
Canadian stock exchanges, these three Technical Reports were not submitted to SEDAR, the electronic system for the official filing of documents by public companies and investment funds across Canada. We had also requested that SRK prepare a report
on the Tombstone Consolidated Mines patented claims. These claims covered the entirety of historic productive area of the Tombstone mines which date to their discovery in 1877. However, before that report could be completed a competitor acquired a
lease on those lands. These Technical Reports thoroughly summarize and illustrate the salient geotechnical data of the Tombstone Mining District covering about 250 square miles and present much data in computer map format. In such context, they
analyze Liberty Stars exploration programs as related to the entire area, make estimates and recommend execution of proposed Company exploration programs. Because of competitive pressure and the unique nature of the data which includes 40+
years of private report compilation by James Briscoe, our CEO, these reports are considered confidential and will not be released for the foreseeable future.

Geochemical sampling at the Hay Mountain Project: In 2011 and early 2012 we collected nearly 1,800 rock, soil and vegetation samples over 621 sample sites over approximately 14 square miles centered on the Hay Mountain property. These samples
have been assayed for 63 elements generating about 113,000 analyses. The
samples were prepared by MEG Inc. and have been shipped to ALS Minerals
(ALS-Chemex) a Certified (under NI 43-101 criteria and approved by regulatory
processes) geochemical analysis lab in Vancouver, British Columbia. Assay
results are being sent to our Tucson office and when all assays are received our
geology team will be able to generate computer analyses that allow
interpretation of the data.

ZTEM EM Survey: We have requested and have received a
cost estimate from Geotech of Aurora (Toronto area) Ontario, Canada, which is
the only purveyor of this helicopter borne electromagnetic (EM) geophysical
method. This geophysical method has the ability to look down into the crust of
the earth about 2,000 meters (6,000 feet) and detect sulfides which may be
associated with porphyry copper systems. Test work over known Safford, Arizona
porphyry copper deposits along with thousands of verifying drill holes show the
geometry of such mineral systems can be determined, thus identifying whether it
is a porphyry copper system or some other mineral system. When
combined with our geochemical data, we can determine the position of the
copper-moly center of the system and design our drill program to efficiently
test and define mineralization. We flew ZTEM in July 2013 and the analysis
report was received in February 2014.

East Silver Bell Porphyry Copper Project (East Silver Bell
or ESB):

Located northwest of Tucson, Arizona, these claims currently are
within the Ironwood National Monument, which was established after the claims
were staked and validated by numerous drill holes in addition to extensive
technical studies. We plan to ascertain whether the East Silver Bell claims
possess commercially viable deposits of copper. We hold an option to explore 26
unpatentedstandard Federal lode mining claims with an area of 536.03
acres located in the same region. The optioned mineral claims are owned by JABA
US Inc., a corporation in which two of our directors are owners. On April 29,
2008 Liberty Star announced that it had leased, with an option to purchase,
three properties from JABA US Inc. in Arizona and Nevada, USA. The properties in
Arizona, are part of the Tombstone (and the 26 claims) East Silverbell projects.
The option covering the property in Nevada was sold in October, 2008 to NPX
Metals, and the proceeds were paid by JABA US Inc. as a loan to Liberty Star.
According to the option agreement, Liberty Star can earn up to 100% interest by
keeping up annual assessment work and spending $175,000 in exploration
expenditures on the properties between April 2008 and January 1, 2011. This
provision has been met for the assessment work and other related expense
payments, and even though the work commitment is now in arrears, the option
agreement has been maintained over the Tombstone and East Silver Bell
Claims.

JABA Optioned PropertiesEast
      Silver Bell-AZ ClaimsESB 180-191ESB 193ESB 195ESB 238ESB 240ESB 242-245ESB 247-251ESB 30126 ESB Claims- 536.03 acres




Located approximately 30 miles  northwest of Tucson, Arizona, 18 miles from the Avra Valley road off ramp and  then 18 miles west, just north of that road on dirt roads (accessible with a 2 wheel  drive vehicle), the claims currently are within the Ironwood Forest National  Monument, which was created after the claims were staked, underwent detailed  geochem and geophysical studies and drilled with numerous drill holes revealing  a mineralized body. We plan to ascertain whether the East Silverbell claims  possess commercially viable deposits of copper. Due to difficulty of doing work  on the Ironwood Forest National Monument, which was created after drill  definition of a mineral body on our claims, we are negotiating with an adjacent  fee-simple, land-owner on which half of the mineral zone lies, to explore in  detail to develop a viable ore body.

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14

The East Silver Bell claims are undeveloped. The ESB block of claims were staked circa 1994 about five miles east of the ASARCO Solvent-Extraction-Electro-Winning (SXEW) plant. The East Silver Bell claims are directly adjacent and contiguous to the
ASARCO Patented (fee simple) lands. Circa 1994 JABA (US) Inc. compiled geophysics consisting of existing, widely spaced airborne magnetics, collected soil and vegetation geochemical samples, performed detailed photo interpretation from high
resolution color aerial photography, mapped surface geology, breccia pipes and performed detailed mapping and interpretation of leached capping and performed very closely spaced man borne magnetic surveys over alteration and projection of the edge
of the Silver Bell caldera and associated mineral belt that includes the Silver Bell porphyry copper mines that could be seen on the color air photos. The surface magnetic survey was interpreted by geophysicist Edward DeRidder, who pointed out a
magnetic low that he interpreted as a porphyry copper magnetic low. Subsequently, north-south Induced Polarization (IP) lines were run and interpreted by Zonge engineering, to show a sulfide response at 900 to 1,000 feet below the surface. All of
this data was plotted in 3D images showing overlapping and mutually reinforcing geochemical, ground magnetic and IP geophysics, and geologic- alteration mapped anomalies. Half of this responsive area lies on the adjacent ASARCO ground and half lies
on JABA (US) ground. Subsequent to these studies, the ground was lease-optioned to Valarie Gold Exploration Inc., (Valarie) a Canadian exploration company. They drilled 6 holes to a predetermined depth of 600 feet, using a rotary drill and recovered
drill chips, sampled at 5 foot intervals. The drilling penetrated and recovered classic chalcocite leached capping typical of that material occurring over ore bodies in the Silver Bell mines of North Silver Bell, El Tiro and Oxide open pit mines.
Geochemical assays of the cuttings showed three to four relict ghost copper enriched zones to the final arbitrary depth of six hundred feet. These holes did not penetrate the leached chalcocite capping rock and did not enter sulfides. Valarie
relinquished their lease. Latter Kennecott Copper Corp. optioned the claims and drilled three rotary drill holes. Of these holes two twisted off the drill bits at shallow depth and had to be abandoned while in the leached chalcocite capping. One
hole penetrated to a depth of 1,000 feet but poor sampling procedures negated any meaningful data from this hole, when primary samples were irretrievably lost. These two drill attempts were predictably not successful but geochemistry from the
Valarie drill holes did
show shadow geochemical copper enrichment indicating chalcocite enrichment in the sulfide blanket below and the Kennecott effort did recover some chalcocite (enriched copper sulfide) Circa 1998 the Ironwood National Monument was created over
JABAs valid mining claims. The surface of these claims cannot be used to extract the copper mineral body below by the open pit mining method. Since half of the of the geophysically, geochemically, geologically, alteration indicated mineral
body is located on ASARCO patented land and because the ASARCO SXEW plant is only five miles to the west, it is believed that this mineral body can be extracted from the ASARCO property by underground  in situ leach technology at some point in
the future. To date we have not identified any ore reserves on the East Silver Bell Project.

We have not found any mineral resources on any of our claims.

Sampling Protocols for all projects

Liberty Star trains all employees/contractors conducting sample collection to use a handheld digital mobile device to record all aspects of each individual sample. The handheld mobile device leads the sampler through a series of dropdown menu
windows with various description capabilities and the ability to record a GPS coordinate. Data from the device is uploaded to our database daily. Liberty Star also uses professionally created video training to teach samplers the proper techniques of
obtaining a proper sample whether it is soil, rock or vegetation and instruction on avoiding contamination. After samples are collected they are stored in a secure location under lock and key until they are shipped via FedEx or UPS using chain of
custody guidelines to a professional sample prep lab in Washoe Valley, Nevada run by Shea Clark Smith, MSc/ Geochemist. Mr. Smith prepares the samples by crushing, mixing, pulverizing and homogenizing. Then a 200 gram sample is scientifically split
for shipment to a Certified Assay Laboratory of each original sample. Standards, blanks and duplicates are added to the sample stream, including such Quality Assurance Quality Control (QA/QC) every 10th assay sample. Before being sent to a
certified assay lab using ICP-MS analysis the samples are randomized. Once Liberty Star gets the analysis data back from the laboratory, checks for quality assurance and control are made using data from the blanks, standards and duplicates. The
results are sent to Liberty Star by email and a paper copy mailed for verification and as a permanent record. The data are then de- randomized and processed for interpretation by various software programs designed for the purpose.

ITEM 3. LEGAL PROCEEDINGS

A civil action was  pending in the Alaska Superior Court in Anchorage, Alaska at 1.31.2014, that concerned title to some Alaska state mining claims owned by Big Chunk Corp.,  a subsidiary of Liberty Star. In this action Big Chunk and Liberty Star were requesting a judicial determination that  certain lien claim notices recorded by a party named MBGS, LLC, against the  mining claims were void; and MBGS was seeking an order enforcing the lien claims. In March 2014, prior to trial date, a settlement  mediation in Alaska was held and the civil action was settled. We currently have no outstanding litigation.

ITEM 4. MINE SAFETY DISCLOSURES.

Under Section 1503(a) of the Dodd-Frank Wall Street Reform and
Consumer Protection Act and under the SEC's recently adopted Item 104 of
Regulation S-K, each operator of a coal or other mine is required to include
disclosures regarding certain mine safety results in its periodic reports filed
with the SEC. The operation of our mine(s) that may be developed in the future
would be subject to regulation by the federal Mine Safety and Health
Administration (MSHA) under the Federal Mine Safety and Health Act of 1977. We
do not own any mines in the United States and as a result, this information is
not required.

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15

PART II

ITEM 5. MARKET FOR REGISTRANTS COMMON EQUITY, RELATED
  STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES.

Our common stock was listed and commenced trading on the OTC
  Bulletin Board on July 15, 2003 when our corporate name was Titanium
  Intelligence Inc. On February 3, 2004, we merged with our subsidiary and changed
  our name to Liberty Star Gold Corp. and traded under the symbol "LBTS.OB". On
  April 16, 2007 we again changed our name to Liberty Star Uranium & Metals Corp. and our
stock changed its trading symbol to LBSU.OB. On September 1, 2009 we effected
a one for four reverse stock split of our authorized and issued and outstanding
common stock. As a result our authorized capital decreased to 1,250,000,000
shares of common stock with a par value of $0.00001. Our stock is traded under a
new symbol LBSR as of the opening of trading on September 1, 2009.

The following table sets forth, for the periods indicated, the
high and low bid prices for our common stock on the OTC Bulletin Board:

OTC Bulletin Board(1)Quarter Ended
    High
    LowJanuary 31, 2014
    $0.0290
    $0.0145October 31, 2013
    $0.0366
    $0.0185July 31, 2013
    $0.0233
    $0.0080April 30, 2013
    $0.0165
    $0.0093January 31, 2013
    $0.024
    $0.0109October 31, 2012
    $0.0345
    $0.022July 31, 2012
    $0.0405
    $0.017April 30, 2012
    $0.0387
  $0.0202


| | (1) | These bid prices were taken from OTC Markets quarterly
      trade and quote summary report. Such over-the-counter market quotations
      reflect inter-dealer prices, without retail mark-up, mark down or
      commission and may not necessarily represent actual
  transactions.
| | --- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

Our common stock is issued in registered form. The Nevada
Agency and Transfer Company, of Suite 880 Bank of America, 50 West Liberty
Street, Reno, Nevada 89501 USA (telephone: 775.322.0626; facsimile 775.322.5632)
is the registrar and transfer agent for our common stock.

On January 31, 2014, the shareholders' list for our common
stock showed 830,236,231 shares issued and outstanding with 96 registered
stockholders and approximately 8,500 stockholders whose names and contact
information we have and an unknown number of unregistered stockholders whose
shares are held in their brokerage accounts. The closing sale price for our
common stock on May 14, 2014, as reported on the OTC Bulletin Board, was $0.0125.

Recent Sales of Unregistered Securities

In April 2013, one investor exercised 3,033,618 of the May 2007
common stock purchase warrants using the cashless exercise provision. The
cashless exercise provision allows the investor, if the fair market value of one
share of common stock is greater than the exercise price, to elect to receive
shares equal to the value of the warrant less a portion of the warrant that is
cancelled using a specific formula. We issued 2,500,000 shares of common stock
and cancelled 633,618 common stock purchase warrants pursuant to the cashless
exercise provision. No cash proceeds were received. We issued these shares
pursuant to an exemption from registration set out in Section 4(2) of the
Securities Act of 1933.

---

16

In June 2013, one investor exercised 4,263,989 of the May 2007
common stock purchase warrants using the cashless exercise provision. The
cashless exercise provision allows the investor, if the fair market value of one
share of common stock is greater than the exercise price, to elect to receive
shares equal to the value of the warrant less a portion of the warrant that is
cancelled using a specific formula. We issued 3,587,165 shares of common stock
and cancelled 676,824 common stock purchase warrants pursuant to the cashless
exercise provision. No cash proceeds were received. We issued these shares pursuant to an exemption from registration set out in Section 4(2) of the Securities Act of 1933.

In August, 2013, we entered into a promissory note (the “August 2013 Note”) for a principal sum of $555,000 plus accrued and unpaid interest and any other fees. The consideration is up to $500,000, which would produce an original
issue discount of $55,000 if all the consideration is received. The lender paid $150,000 upon closing pursuant to the terms of the August 2013 Note. The August 2013 Note has a maturity of one year from the delivery of each payment. The
August 2013 Note may be convertible into shares of common stock of our company at any time from 180 days after the date of each payment of consideration, at a conversion price which is 70% of the average of the three lowest closing prices in the 20
trading days previous to the conversion. We may repay the August 2013 Note at any time on or before 90 days from the effective date of the August 2013 Note with an interest rate of 0%, after which we may not make any further payments on the August
2013 Note prior to the maturity date without written approval from the lender. If we elect not to repay the August 2013 Note on or before 90 days from the effective date of the August 2013 Note, a one-time interest charge of 12% will be applied to
the principal sum. On December 9, 2013, we received additional consideration of $75,000 pursuant to the terms of the August 2013 Note. As of January 31, 2014 we did not repay any portion of the note before 90 days from the effective date, and
since the 180 days hadn’t lapsed since the initial payment occurred, the note wasn’t convertible by the holder. As of April 21, 2014, $186,480 had been converted into shares of the our Common stock pursuant to the conversion terms of
the agreement.

Effective September 5, 2013, we agreed to grant stock options pursuant to our 2010 Stock Option Plan to certain directors and employees for the option to purchase an aggregate of 9,375,000 shares of our common stock at an exercise price of $0.03
per share, exercisable until September 5, 2013. The options granted will be 100% vested for directors and shall vest in 25% immediately and 25% over the next four year for employees. 1,951,376 of these options are reserved for future issuance when
room becomes available under our 2010 Stock Option Plan.

In September, 2013, we sold 2,157,497 units to one investor for gross proceeds of $50,000. Each unit consisted of one common share of our company and one non-transferable share purchase warrant. Each share purchase warrant entitles the investor
to purchase one additional common share of our company at a price of $0.0324 until September 5, 2016.

On October 30, 2013, the Company entered into an investment agreement in which with KVM Capital Partners LLC, a New York limited liability company (“KVM”). Pursuant to the agreement, KVM has agreed to purchase up to $8,000,000 of our
common stock over a period of up to thirty-six (36) months. The purchase price per share to be paid by KVM shall be calculated at a twenty percent (20%) discount to the lowest volume weighted average price of the common stock as reported by
Bloomberg, L.P. during the five (5) consecutive trading days immediately prior to the receipt by KVM of the put notice. We initially reserved 244,500,000 shares of our common stock for issuance under the KVM Investment Agreement. In connection with
the KVM Investment Agreement, we also entered into a registration rights agreement with KVM, pursuant to which we are obligated to file a registration statement with the SEC covering 244,500,000 shares of our common stock underlying the KVM
Investment Agreement within 21 days after the closing of the transaction. In addition, we are obligated to use all commercially reasonable efforts to have the registration statement declared effective by the SEC and maintain the effectiveness of
such registration statement until termination of the KVM Investment Agreement. On November 6, 2013, we filed form S-1 related to the KVM investment agreement. As of January 31, 2014, no shares were purchased by the investor.

On November 18, 2013, we entered into a securities purchase agreement, whereby we agreed to issue a convertible note to one lender in the principal amount of $250,000, discounted at issuance to the face value of $225,000. The Note is payable
in full on November 18, 2014 and bears no interest except in an event of default. The lender may, at its option, after the 183rd day following the closing date, convert the principal amount or any portion of such principal amount of the Note into
shares of common stock of our company at the price equal to the lesser of (a) 100% of the volume weighted average price (VWAP), as reported on the closing date (November 18, 2013), and (b) 70% of the average of the 5 day VWAP immediately prior to
the day of conversion.

All proceeds will be used for working capital and exploration expenses.

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17

Equity Compensation Plan Information

As of January 31, 2014, we had three compensation plans in
place, entitled "2004 Stock Option Plan", 2007 Stock Option Plan and 2010
Stock Option Plan. These plans have been approved by our security holders.
These plans have been given retroactive effect of the 1 for 4 reverse stock
split on September 1, 2009.

Plan category
    Total number of
     securities authorized
    Number of securities to
     be issued upon exerciseof outstanding options
     as at January 31, 2014(a)
    Weighted-average
     exercise price ofoutstanding options asat
      January 31, 2014(b)
    Number of securitiesremaining
      available forfurther issuance as atJanuary 31,
      2014(excluding securitiesreflected in column
      (a))(c)2004 Stock Option Plan
    962,500
    929,624
    $1.07
    32,8762007 Stock Option Plan
    2,500,000
    2,450,000
    $0.86
    50,0002010 Stock Option Plan
    95,500,000
    83,000,000
    $0.038
  12,500,000


On September 5, 2013, we granted incentive stock options and
non-qualified stock options to certain of our directors, officers, employees and
consultants to purchase an aggregate of 7,423,624 shares of our common stock at
an exercise price of $0.026 per share, with a ten year term expiring on September
5, 2023. The options have various vesting terms.

Dividends

We have never declared or paid any cash dividends on our common
stock. We currently intend to retain future earnings, if any, to increase our
working capital and do not anticipate paying any cash dividends in the
foreseeable future.

ITEM 6. SELECTED FINANCIAL DATA.

Not applicable.

ITEM 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS.

The following discussion should be read in conjunction with our
consolidated audited financial statements and the related notes that appear
elsewhere in this annual report. The following discussion contains
forward-looking statements that reflect our plans, estimates and beliefs. We
refer you to the cautionary statement regarding forward-looking statements
included at the beginning of this annual report. Our actual results could differ
materially from those discussed in the forward-looking statements. Factors that
could cause or contribute to such differences include, but are not limited to,
those discussed below and elsewhere in this annual report, particularly in the
section entitled "Risk Factors" included in this annual report.

Our consolidated audited financial statements are stated in
United States Dollars and are prepared in accordance with accounting principles
generally accepted in the United States of America.

Overview

We are an exploration stage company engaged in the acquisition
and exploration of mineral properties in the States of Arizona and Alaska.
Claims in the State of Alaska are held in the name of our wholly-owned
subsidiary, Big Chunk Corp. Claims in the State of Arizona are held in the name
of Liberty Star. We use the term Super Project to indicate a project in which
numerous mineral targets have been identified within a mineral province such as
the Arizona Strip or a large structural feature such as calderas which occur at Big Chunk, East Silver Bell, and Tombstone, any one or more of which could potentially contain commercially viable quantities of minerals.

---

18

Liquidity and Capital Resources

We had cash and cash equivalents in the amount of $55,089 as of January 31, 2014. We had negative working capital of $6,202,731 as of January 31, 2014. We had cash inflows from financing activities of $1,161,453 for the year ended
January 31, 2014. We will need additional funds in order to proceed with our planned exploration program.

Letter Agreement and Secured Convertible Notes with Northern Dynasty Minerals Ltd.

On July 15, 2010, we issued a secured convertible promissory note (the “2010 Convertible Note”) to Northern Dynasty Minerals Ltd (“Northern Dynasty”). The original advanced amount was $4,000,000 and bore interest at a
rate of 10% per annum compounded monthly (the “Loan”). On August 17, 2010, we transferred 95 of our Alaska State mineral claims from the Big Chunk Super Project to Northern Dynasty for consideration of $1,000,000 of the original
advanced amount under the Convertible Note, leaving $3,000,000 of the Loan amount outstanding. No interest accrued on the $1,000,000 of the original advanced amount. Effective September 1, 2011 the agreement with Northern Dynasty was amended
to increase the 2010 Convertible Note by $561,816 to reimburse Northern Dynasty for assessment work, rental fees, cash in lieu of assessment work and filing fees on the mineral claims that was paid in fiscal 2011 and fiscal 2012 because we could
not come to an agreement on an earn-in option and joint venture agreement with Northern Dynasty. On February 29, 2012, with effect from November 30, 2011, we executed an additional convertible promissory note (the “2011 Convertible Note”
and together with the 2010 Convertible Note, the “Convertible Notes”) in the amount of $168,358 in reimbursement to Northern Dynasty of assessment work, rental fees and filing fees on our mineral claims. Principal balance of the
Convertible Notes at January 31, 2014 and 2013 was $3,730,174. Accrued interest on the Convertible Notes at January 31, 2014 and 2013 was $1,465,059 and $972,617, respectively.

As part of the transactions noted above, we entered into a letter agreement with Northern Dynasty whereby, subject to negotiating and signing a definitive earn-in option and joint venture agreement, Northern Dynasty can earn a 60% interest in our
Big Chunk and Bonanza Hills projects in Alaska (the “Joint Venture Claims”) by spending $10,000,000 on those properties over six years. The outstanding loan amounts from Northern Dynasty may be applied as part of Northern
Dynasty’s earn-in requirements. Northern Dynasty’s minimum annual expenditures under the earn-in would be the minimum level necessary to keep the Joint Venture Claims in good standing. Northern Dynasty may elect to abandon the earn-in at
any time on 30 days’ notice, so long as sufficient annual labor is performed, or a cash payment in lieu of labor is made, in order to fulfill the annual labor requirements for the Joint Venture Claims for a minimum of 12 months after
termination of the earn-in. To date, no joint venture agreement has been agreed upon and as such, Northern Dynasty may demand payment of the funds due under the Convertible Notes at any time upon 45 days notice.

The Convertible Notes are secured against our Big Chunk and Bonanza Hills property. The Convertible Notes are due for repayment 45 days after the earlier to occur of: (i) Northern Dynasty’s completion of its earn-in to the Joint Venture Claims
unless it has elected to deem the entire outstanding balance of the Convertible Note (including interest thereon) to be part of the earn-in expenditure requirements and (ii) termination of Northern Dynasty’s earn-in right by voluntary
abandonment provided that $1,000,000 in expenditures has been made; or (iii) termination of Northern Dynasty’s earn-in right on account of a superior third party joint venture offer.

Provided a minimum of $1,000,000 has been expended by Northern Dynasty on earn in expenses, the Convertible Notes will be convertible until repaid or deemed repaid, into common shares of our company at the 5 day volume weighted average trading
price immediately prior to Northern Dynasty giving a notice of conversion less the maximum allowable discount applicable as if our shares were listed on the TSX Venture Exchange.

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19

On November 14, 2012, we signed a loan settlement agreement with Northern Dynasty which would have discharged the $3,730,174 principal balance and $972,617 of accrued interest for the 2010 Convertible Note and would have terminated Northern Dynasty’s earn-in rights. In exchange for the settlement, we initiated transfer of 199 Alaska mining claims to Northern Dynasty’s subsidiary, U5 Resources. However, since a third party filed liens against
the claims and there is a dispute with Northern Dynasty regarding the effect of the liens, we have not recorded the settlement transaction as of January 31, 2014, pending resolution of the lien claims. Northern Dynasty takes the position that the
settlement is not complete while the lien claims are outstanding. In March 2014 Liberty Star and Big Chunk entered into a settlement agreement with MBGS, LLC, following a resolution conference  conducted in Anchorage, Alaska whereby all lien claims for the Northern Dynasty  transfer were released. As a result of those claims released by MBGS, LLC, in  May 2014 the company completed its loan settlement agreement with Northern  Dynasty and discharged the principal balance and accrued interest for the 2010  Convertible Note which also terminated Northern Dynasty’s earn-in-rights.

Financing Agreement with Fairhills Capital Offshore Ltd.

On January 19, 2012, we entered into a financing agreement (the “Fairhills Agreement”) with Fairhills Capital Offshore Ltd. (“Fairhills Capital”), whereby Fairhills Capital will provide for a non-brokered financing
arrangement of up to $10,000,000. The financing allows but does not require us to issue and sell up to the number of shares of common stock having an aggregate purchase price of $10,000,000 to Fairhills Capital. Subject to the terms and
conditions of the Fairhills Agreement and a registration rights agreement entered into concurrently (the “Registration Rights Agreement”), we may, in our sole discretion, deliver a notice to Fairhills Capital which states the dollar
amount which we intend to sell to Fairhills Capital on a certain date. The amount that we shall be entitled to sell to Fairhills Capital shall be equal to two hundred percent (200%) of the average daily volume (U.S. market only) of our shares of
common stock for the ten (10) trading days prior to the applicable notice date. Such shares of common stock will be valued at a 27.5% discount from the weighted average trading price of our stock for the five (5) trading days before Fairhills
Capital receives our notice of sale. The shares of common stock that we sell to Fairhills Capital must be registered stock, among other conditions of investment.

In connection with the Investment Agreement, we also entered into a registration rights agreement with Fairhills. Pursuant to this registration rights agreement, we registered with the Securities and Exchange Commission 185,000,000 shares of the
common stock underlying the Investment Agreement.

On  November 13, 2012, we signed a loan settlement agreement with Northern Dynasty  which would have discharged the $3,730,174 principal balance and $972,617 of  accrued interest for the 2010 Convertible Note and would have terminated  Northern Dynasty’s earn-in rights. In exchange for the settlement, we initiated  transfer of 199 Alaska mining claims to Northern Dynasty’s subsidiary, U5  Resources. However, since a third party filed liens against the claims and  there was a dispute with Northern Dynasty  regarding the effect of the liens, we had  not recorded the settlement transaction as of January 31, 2014, pending  resolution of the lien claims. Northern Dynasty took  the position that the settlement was not  complete while the lien claims were  outstanding.

In  March 2014 Liberty Star and Big Chunk entered into a settlement agreement with  MBGS, LLC, following a resolution conference conducted in Anchorage, Alaska  whereby all lien claims for the Northern Dynasty transfer were released. As a  result of those claims released by MBGS, LLC, in May 2014 the company completed  its loan settlement agreement with Northern Dynasty and discharged the  principal balance and accrued interest for the 2010 Convertible Note which also  terminated Northern Dynasty’s earn-in-rights.

In February, March and April, 2013, we issued 22,874,405 shares for gross proceeds of $200,000 related to the investment agreement with Deer Valley Management, LLC.

In May, June and July, 2013, we issued 31,270,958 shares for gross proceeds of $255,000 related to the investment agreement with Deer Valley Management, LLC. As of July 31, 2013, we had not yet received payment for one transaction valued at
$25,000.  As of October 31, 2013, we received the final payment for this transaction, plus $5,000 from Deer Valley Management, LLC for the inconvenience of paying late. In August 2013, we decided to terminate the investment agreement with
Deer Valley Management, LLC due to their violation of the payment terms pursuant to the investment agreement. As of the time of the termination of the investment agreement, we had issued a total of 113,815,732 and had received gross proceeds of
$1,635,000. No further shares issuances to Deer Valley Management, LLC are expected to occur.

---

20

In August, 2013, we entered into a promissory note (the “August 2013 Note”) for a principal sum of $555,000 plus accrued and unpaid interest and any other fees. The consideration is up to $500,000, which would produce an original
issue discount of $55,000 if all the consideration is received. The lender paid $150,000 upon closing pursuant to the terms of the August 2013 Note. The August 2013 Note has a maturity of one year from the delivery of each payment. The
August 2013 Note may be convertible into shares of common stock of our company at any time from 180 days after the date of each payment of consideration, at a conversion price which is 70% of the average of the three lowest closing prices in the 20 trading days previous to the conversion. We may repay the August 2013 Note at any time
on or before 90 days from the effective date of the August 2013 Note with an interest rate of 0%, after which we may not make any further payments on the August 2013 Note prior to the maturity date without written approval from the lender. If we
elect not to repay the August 2013 Note on or before 90 days from the effective date of the August 2013 Note, a one-time interest charge of 12% will be applied to the principal sum. On December 9, 2013, we received additional consideration of
$75,000 pursuant to the terms of the August 2013 Note. As of January 31, 2014 we did not repay any portion of the note before 90 days from the effective date, and since the 180 days hadn’t lapsed since the initial payment occurred, the
note wasn’t convertible by the holder. As of April 21, 2014, $186,480 had been converted into shares of the our Common stock pursuant to the conversion terms of the agreement.

On October 30, 2013, the Company entered into an investment agreement in which with KVM Capital Partners LLC, a New York limited liability company (“KVM”). Pursuant to the agreement, KVM has agreed to purchase up to $8,000,000 of our
common stock over a period of up to thirty-six (36) months. The purchase price per share to be paid by KVM shall be calculated at a twenty percent (20%) discount to the lowest volume weighted average price of the common stock as reported by
Bloomberg, L.P. during the five (5) consecutive trading days immediately prior to the receipt by KVM of the put notice. We initially reserved 244,500,000 shares of our common stock for issuance under the KVM Investment Agreement. In connection with
the KVM Investment Agreement, we also entered into a registration rights agreement with KVM, pursuant to which we are obligated to file a registration statement with the SEC covering 244,500,000 shares of our common stock underlying the KVM
Investment Agreement within 21 days after the closing of the transaction. In addition, we are obligated to use all commercially reasonable efforts to have the registration statement declared effective by the SEC and maintain the effectiveness of
such registration statement until termination of the KVM Investment Agreement. On November 6, 2013, we filed form S-1 related to the KVM investment agreement. As of January 31, 2014, no shares were purchased by the investor. Between February 2014 and April 2014, pursuant to the investment agreement, KVM
purchased 15,593,934 shares for proceeds of $220,250.

On November 18, 2013, we entered into a securities purchase agreement, whereby we agreed to issue a convertible note to one lender in the principal amount of $250,000, discounted at issuance to the face value of $225,000. The Note is payable
in full on November 18, 2014 and bears no interest except in an event of default. The lender may, at its option, after the 183rd day following the closing date, convert the principal amount or any portion of such principal amount of the Note into
shares of common stock of our company at the price equal to the lesser of (a) 100% of the volume weighted average price (VWAP), as reported on the closing date (November 18, 2013), and (b) 70% of the average of the 5 day VWAP immediately prior to
the day of conversion. As of January 31, 2014, we have not made any repayments on this convertible note and the note has not been converted.

We also entered into certain private investment agreements where we received a total of $732,043 in proceeds.

Results of Operations for the year ended January 31, 2014

We had a net loss of $2,318,047 for the twelve-month period ended January 31, 2014 compared to a net loss of $2,644,787 for the twelve-month period ended January 31, 2013. The two periods were comparable, and there were no significant
changes in the level of expenditures by category.

Off-Balance Sheet Arrangements

We have no off-balance sheet arrangements that have or are reasonably likely to have a current or future effect on our financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures
or capital resources that are material to stockholders.

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21

Presentation of Financial Information

Our consolidated financial statements for the period ended January 31, 2014 reflect financial information for the twelve month period ending January 31, 2014, as well as from inception through January 31, 2014 and for the twelve-month period ended
  January 31, 2013.

Since we have not generated any revenue, we have included a reference to our ability to continue as a going concern in connection with our consolidated financial statements for the years ended January 31, 2014 and 2013. Our accumulated
stockholders’ equity (deficit) at January 31, 2014, was $(6,159,649) and the net loss for the year ended January 31, 2014 was $2,318,047. All of our exploration costs are expensed as incurred.

These consolidated financial statements have been prepared on the going concern basis, which assumes that adequate sources of financing will be obtained as required and that our assets will be realized, and liabilities settled in the ordinary course
of business. Accordingly, these consolidated financial statements do not include any adjustments related to the recoverability of assets and classification of assets and liabilities that might be necessary should we be unable to continue as a going
concern.

In order to continue as a going concern, we require additional financing. There can be no assurance that additional financing will be available to us when needed or, if available, that it can be obtained on commercially reasonable terms. If we are
not able to continue as a going concern, we would likely be unable to realize the carrying value of our assets reflected in the balances set out in the preparation of the consolidated financial statements.

Critical Accounting Policies

Our consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America. Our significant accounting policies are described in Note 2 to the consolidated financial
statements included in Item 8 in this Form 10-K. The critical accounting policies adopted by our company are as follows:

Going Concern

Since we have not generated any revenue, we have negative cash flows from operations, and negative working capital we have included a reference to the substantial doubt about our ability to continue as a going concern in connection with our
consolidated financial statements for the period ended January 31, 2014. Our total stockholders’ equity (deficit) at January 31, 2014 was $(6,159,649).

These consolidated financial statements have been prepared on the going concern basis, which assumes that adequate sources of financing will be obtained as required and that our assets will be realized, and liabilities settled in the ordinary course
of business. Accordingly, these consolidated financial statements do not include any adjustments related to the recoverability of assets and classification of assets and liabilities that might be necessary should we be unable to continue as a going
concern.

Mineral claims

We account for costs incurred to acquire, maintain and explore mineral properties as charged to expense in the period incurred until the time that a proven mineral resource is established at which point development of the mineral property would be
capitalized. Currently, we do not have any proven mineral resources on any of our mineral properties.

Convertible promissory notes

We reviewed the convertible promissory notes and the related subscription agreements to determine the appropriate reporting within the financial statements. We report convertible promissory notes as liabilities at their carrying value less
unamortized discounts in accordance with the applicable accounting guidance. We bifurcate conversion options and detachable common stock purchase warrants and report them as liabilities at fair value at each reporting period when required in accordance with the applicable accounting guidance. No gain or loss is reported when the notes are converted into shares of our common stock in accordance with the note’s terms.

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22

Common stock purchase warrants

We report common stock purchase warrants as equity unless a condition exists which requires reporting as a derivative liability at fair market value. For common stock purchase warrants reported as a derivative liability, as well as new and modified
warrants reported as equity, we utilize the Black-Scholes valuation method in order to determine fair value.

Changes in officers and directors

On August 28, 2013, Larry Liang, resigned as the president and a director of our company. On the same date, we reappointed James Briscoe as president of our company.

ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK.

Not applicable.

ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA.

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23

LIBERTY STAR URANIUM & METALS CORP.

TABLE OF CONTENTS

|                                                                                                                                                                                                                 | Page
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ----
|                                                                                                                                                                                                                 |     
|REPORT OF INDEPENDENT
      REGISTERED PUBLIC ACCOUNTING FIRM                                                                                                                                                    | 24  
|                                                                                                                                                                                                                 |     
|CONSOLIDATED
      FINANCIAL STATEMENTS                                                                                                                                                                          | 25  
|                                                                                                                                                                                                                 |     
|Consolidated Balance Sheets as of January 31, 2014 and
      2013                                                                                                                                                | 25  
|                                                                                                                                                                                                                 |     
|Consolidated Statements of Operations for the twelve
      months ended January 31, 2014, the twelve months ended January 31, 2013
      and the period from inception (August 20, 2001) to January 31, 2014     | 26  
|                                                                                                                                                                                                                 |     
|Consolidated Statements of Stockholders Equity (Deficit)
      for the period from inception (August 20, 2001) to January 31, 2014                                                                              | 27  
|                                                                                                                                                                                                                 |     
|Consolidated Statements of Cash Flows for the twelve
      months ended January 31, 2014, the twelve months ended January 31, 2013
      and for the period from inception (August 20, 2001) to January 31, 2014 | 28  
|                                                                                                                                                                                                                 |     
|NOTES TO CONSOLIDATED
      FINANCIALS STATEMENTS                                                                                                                                                                | 29  

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24

Report of Independent Registered Public Accounting Firm

Board of Directors and Stockholders ofLiberty Star Uranium
& Metals Corp.

We have audited the accompanying consolidated balance sheets of
Liberty Star Uranium & Metals Corp. and its subsidiaries (an exploration
stage company) (collectively, the Company) as of January 31, 2014 and 2013,
and the related consolidated statements of operations, stockholders equity
(deficit), and cash flows for the years then ended. These consolidated financial
statements are the responsibility of the Companys management. Our
responsibility is to express an opinion on these consolidated financial
statements based on our audits.

We conducted our audits in accordance with the standards of the
Public Company Accounting Oversight Board (United States). Those standards
require that we plan and perform the audits to obtain reasonable assurance about
whether the financial statements are free of material misstatement. The Company
is not required to have, nor were we engaged to perform, an audit of internal
control over financial reporting. Our audits include consideration of internal
control over financial reporting as a basis for designing audit procedures that
are appropriate in the circumstances, but not for the purpose of expressing an
opinion on the effectiveness of the Companys internal control over financial
reporting. Accordingly, we express no such opinion. An audit also includes
examining, on a test basis, evidence supporting the amounts and disclosures in
the financial statements, assessing the accounting principles used and
significant estimates made by management, as well as evaluating the overall
financial statement presentation. We believe that our audits provide a
reasonable basis for our opinion.

In our opinion, the consolidated financial statements referred
to above present fairly, in all material respects, the financial position Star
Uranium & Metals Corp. and its subsidiaries as of January 31, 2014 and 2013,
and the results of their operations, changes in stockholders equity (deficit),
and their cash flows for the years then ended in conformity with accounting
principles generally accepted in the United States of America.

The accompanying consolidated financial statements have been
prepared assuming that the Company will continue as a going concern. As
discussed in Note 3 to the consolidated financial statements, the Company is in
the exploration stage, has suffered recurring losses from operations, and
requires additional funds for further exploratory activity prior to attaining a
revenue generating status. In addition, the Company may not find sufficient ore
reserves to be commercially mined. These conditions raise substantial doubt
about the Companys ability to continue as a going concern. Managements plans
in regard to these matters are also described in Note 3. The consolidated
financial statements do not include any adjustments that might result from the
outcome of these uncertainties.

/s/ MaloneBailey, LLPHouston, Texas

May 16, 2014

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25

LIBERTY STAR URANIUM & METALS CORP.(AN
EXPLORATION STAGE COMPANY)CONSOLIDATED BALANCE SHEETS

|                                                                                                                                                     |   | January 31, |   |   | January 31, |  
|---------------------------------------------------------------------------------------------------------------------------------------------------- | - | ----------- | - | - | ----------- | -
|                                                                                                                                                     |   | 2014        |   |   | 2013        |  
|                                                                                                                                                     |   |             |   |   |             |  
|Assets                                                                                                                                               |   |             |   |   |             |  
|                                                                                                                                                     |   |             |   |   |             |  
|Current:                                                                                                                                             |   |             |   |   |             |  
|Cash and cash equivalents                                                                                                                            | $ | 55,089      |   | $ | 117,716     |  
|Advances                                                                                                                                             |   | 1,000       |   |   | -           |  
|Deferred Financing Costs                                                                                                                             |   | 38,052      |   |   | -           |  
|Prepaid expenses
      and supplies                                                                                                                  |   | 9,109       |   |   | 8,662       |  
|Total current assets                                                                                                                                 |   | 103,250     |   |   | 126,378     |  
|                                                                                                                                                     |   |             |   |   |             |  
|                                                                                                                                                     |   |             |   |   |             |  
|Property and equipment, net                                                                                                                          |   | 49,792      |   |   | 81,200      |  
|Total assets                                                                                                                                         | $ | 153,042     |   | $ | 207,578     |  
|                                                                                                                                                     |   |             |   |   |             |  
|Liabilities and Stockholders' Deficit                                                                                                                |   |             |   |   |             |  
|                                                                                                                                                     |   |             |   |   |             |  
|Current:                                                                                                                                             |   |             |   |   |             |  
|Current portion
      of long-term debt                                                                                                              | $ | 5,594       |   | $ | 5,089       |  
|Convertible promissory note, net
      of debt discount of $34,584                                                                                   |   | 4,193,090   |   |   | 3,730,174   |  
|Accounts payable
      and accrued liabilities                                                                                                       |   | 254,261     |   |   | 151,480     |  
|Accrued wages to related parties                                                                                                                     |   | 340,992     |   |   | 276,992     |  
|Accrued interest                                                                                                                                     |   | 1,465,059   |   |   | 972,617     |  
|Warrant liability                                                                                                                                    |   | 46,985      |   |   | 15,112      |  
|Total current
      liabilities                                                                                                                      |   | 6,305,981   |   |   | 5,151,464   |  
|                                                                                                                                                     |   |             |   |   |             |  
|Long-term debt, net of current portion                                                                                                               |   | 6,710       |   |   | 12,305      |  
|                                                                                                                                                     |   |             |   |   |             |  
|Total
      liabilities                                                                                                                              |   | 6,312,691   |   |   | 5,163,769   |  
|                                                                                                                                                     |   |             |   |   |             |  
|Stockholders' deficit                                                                                                                                |   |             |   |   |             |  
|Common stock - $.00001
      par value; 1,250,000,000 shares authorized;
            830,236,231 and 740,710,265
      shares issued and outstanding |   | 8,302       |   |   | 7,408       |  
|Additional
      paid-in capital                                                                                                                     |   | 49,026,144  |   |   | 47,912,449  |  
|Deficit accumulated during the
      exploration stage                                                                                               |   | (55,194,095 | ) |   | (52,876,048 | )
|Total
      stockholders' deficit                                                                                                                    |   | (6,159,649  | ) |   | (4,956,191  | )
|                                                                                                                                                     |   |             |   |   |             |  
|Total
      liabilities and shareholders' deficit                                                                                                    | $ | 153,042     |   | $ | 207,578     |  

The Accompanying Notes are an Integral Part of the Consolidated
Financial Statements

---

26

LIBERTY STAR URANIUM & METALS CORP.(AN
EXPLORATION STAGECOMPANY)CONSOLIDATED STATEMENTS OF
OPERATIONS

|                                                           |   |                             |   |   |                      |   |   | Period from Inception |  
|---------------------------------------------------------- | - | --------------------------- | - | - | -------------------- | - | - | --------------------- | -
|                                                           |   | For the Twelve Months Ended |   |   | (August 20, 2001)    |  
|                                                           |   | January 31,                 |   |   | to January 31, 2014) |  
|                                                           |   | 2014                        |   |   | 2013                 |   |   | (unaudited)           |  
|Revenues                                                   | $ | -                           |   | $ | -                    |   | $ | -                     |  
|Expenses:                                                  |   |                             |   |   |                      |   |   |                       |  
|Geological and geophysical costs                           |   | 463,124                     |   |   | 1,105,960            |   |   | 15,828,664            |  
|Salaries and
      benefits                                |   | 513,418                     |   |   | 352,159              |   |   | 4,781,933             |  
|Public relations                                           |   | 210,776                     |   |   | 78,729               |   |   | 1,065,987             |  
|Depreciation                                               |   | 32,827                      |   |   | 41,610               |   |   | 953,968               |  
|Legal                                                      |   | 177,472                     |   |   | 72,754               |   |   | 1,144,803             |  
|Professional
      services                                |   | 51,115                      |   |   | 107,540              |   |   | 1,427,243             |  
|General and administrative                                 |   | 268,236                     |   |   | 430,877              |   |   | 2,671,549             |  
|Travel                                                     |   | 46,268                      |   |   | 31,129               |   |   | 319,904               |  
|Settlement expense                                         |   | -                           |   |   | -                    |   |   | 13,241,020            |  
|Loss on sale of
      assets                               |   | -                           |   |   | 12,119               |   |   | 54,572                |  
|Impairment loss                                            |   | -                           |   |   | -                    |   |   | 16,092,870            |  
|Net operating expenses                                     |   | 1,763,236                   |   |   | 2,232,877            |   |   | 57,582,513            |  
|Loss from operations                                       |   | (1,763,236                  | ) |   | (2,232,877           | ) |   | (57,582,513           | )
|                                                           |   |                             |   |   |                      |   |   |                       |  
|Other income (expense):                                    |   |                             |   |   |                      |   |   |                       |  
|Interest income                                            |   | 15                          |   |   | 134                  |   |   | 198,773               |  
|Interest expense                                           |   | (522,953                    | ) |   | (450,880             | ) |   | (6,898,109            | )
|Debt conversion
      expense                              |   | -                           |   |   | -                    |   |   | (103,437              | )
|Gain (loss) on change in fair value of warrant liability   |   | (31,873                     | ) |   | 38,836               |   |   | (3,667,071            | )
|Other income                                               |   | -                           |   |   | -                    |   |   | 1,350,390             |  
|Income from Elle Venture                                   |   | -                           |   |   | -                    |   |   | 300,000               |  
|Foreign exchange
      gain                                |   | -                           |   |   | -                    |   |   | 505                   |  
|Gain on settlement of debt to related party                |   | -                           |   |   | -                    |   |   | 7,366                 |  
|Total other income (expense)                               |   | (554,811                    | ) |   | (411,910             | ) |   | (8,811,583            | )
|Net loss                                                   |   | (2,318,047                  | ) |   | (2,644,787           | ) |   | (66,394,096           | )
|                                                           |   |                             |   |   |                      |   |   |                       |  
|Basic and diluted net loss
      per share of common stock |   | (0.00                       | ) |   | (0.00                | ) |   | N/A                   |  
|Basic and diluted weighted average number of
      shares  |   |                             |   |   |                      |   |   |                       |  
|of
      common stock outstanding                          |   | 803,439,114                 |   |   | 677,767,166          |   |   | N/A                   |  

The Accompanying Notes are an Integral Part of the Consolidated
Financial Statements

---

27

LIBERTY STAR URANIUM & METALS CORP.(AN
EXPLORATION STAGECOMPANY)CONSOLIDATED STATEMENTS OF STOCKHOLDERS
EQUITY (DEFICIT)

|                                                                                   |  |              |   |  |         |   |  | Additional  |   |  | Deficit accumulated |   |  | Total            |  
|---------------------------------------------------------------------------------- |  | ------------ | - |  | ------- | - |  | ----------- | - |  | ------------------- | - |  | ---------------- | -
|                                                                                   |  | Common stock |   |  | paid-in |   |  | during the  |   |  | stockholders       |  
|                                                                                   |  | Shares       |   |  | Amount  |   |  | capital     |   |  | exploration stage   |   |  | equity (deficit) |  
|Balance, August 20, 2001 (Date of
      inception)(unaudited)                      |  | -            |   |  | -       |   |  | -           |   |  | -                   |   |  | -                |  
|Common stock issued for cash                                                       |  | 5,000,000    |   |  | 50      |   |  | 99,950      |   |  | -                   |   |  | 100,000          |  
|Net loss for the period from
      inception, August 20, 2001, to January 31, 2004 |  | -            |   |  | -       |   |  | -           |   |  | (132,602            | ) |  | (132,602         | )
|Balance, January 31, 2004 (unaudited)                                              |  | 5,000,000    |   |  | 50      |   |  | 99,950      |   |  | (132,602            | ) |  | (32,602          | )
|Acquisition, February 3, 2004                                                      |  | 4,375,000    |   |  | 44      |   |  | 15,924,956  |   |  | -                   |   |  | 15,925,000       |  
|Issuance of common stock and warrants private
      placement                      |  | 650,000      |   |  | 7       |   |  | 2,999,993   |   |  | -                   |   |  | 3,000,000        |  
|Options issued for services                                                        |  | -            |   |  | -       |   |  | 94,350      |   |  | -                   |   |  | 94,350           |  
|Return of shares                                                                   |  | (1,750,000   | ) |  | (18     | ) |  | (11,199,982 | ) |  | 11,200,000          |   |  | -                |  
|Net loss for the year ended January
      31, 2005                                 |  | -            |   |  | -       |   |  | -           |   |  | (18,392,024         | ) |  | (18,392,024      | )
|Balance, January 31, 2005 (unaudited)                                              |  | 8,275,000    |   |  | 83      |   |  | 7,919,267   |   |  | (7,324,626          | ) |  | 594,724          |  
|Issuance of common stock and warrants
      private placement                      |  | 972,172      |   |  | 10      |   |  | 5,052,722   |   |  | -                   |   |  | 5,052,732        |  
|Net loss for the year ended January 31, 2006                                       |  | -            |   |  | -       |   |  | -           |   |  | (4,627,965          | ) |  | (4,627,965       | )
|Balance, January 31, 2006
      (unaudited)                                        |  | 9,247,172    |   |  | 93      |   |  | 12,971,989  |   |  | (11,952,591         | ) |  | 1,019,491        |  
|Issuance of common stock private placement                                         |  | 990,596      |   |  | 10      |   |  | 2,545,985   |   |  | -                   |   |  | 2,545,995        |  
|Issuance of common stock for services                                              |  | 37,500       |   |  | -       |   |  | 93,000      |   |  | -                   |   |  | 93,000           |  
|Expenses of common stock issuance                                                  |  | -            |   |  | -       |   |  | (320,000    | ) |  | -                   |   |  | (320,000         | )
|Options granted to consultants and
      employees                                 |  | -            |   |  | -       |   |  | 832,343     |   |  | -                   |   |  | 832,343          |  
|Net loss for the year ended January 31, 2007                                       |  | -            |   |  | -       |   |  | -           |   |  | (3,267,948          | ) |  | (3,267,948       | )
|Balance, January 31, 2007
      (unaudited)                                        |  | 10,275,268   |   |  | 103     |   |  | 16,123,317  |   |  | (15,220,539         | ) |  | 902,881          |  
|Issuance of common stock private placement                                         |  | 429,700      |   |  | 4       |   |  | 1,074,413   |   |  | -                   |   |  | 1,074,417        |  
|Issuance of common stock for services                                              |  | 28,000       |   |  | -       |   |  | 54,540      |   |  | -                   |   |  | 54,540           |  
|Issuance of common stock for conversion of promissory
      note                   |  | 99,884       |   |  | 1       |   |  | 259,698     |   |  | -                   |   |  | 259,699          |  
|Options granted to employees and
      consultants                                 |  | -            |   |  | -       |   |  | 358,646     |   |  | -                   |   |  | 358,646          |  
|Issuance of common stock purchase warrants                                         |  | -            |   |  | -       |   |  | 1,421,538   |   |  | -                   |   |  | 1,421,538        |  
|Beneficial conversion feature of
      convertible promissory notes                |  | -            |   |  | -       |   |  | 1,842,734   |   |  | -                   |   |  | 1,842,734        |  
|Net loss for the year ended January 31, 2008                                       |  | -            |   |  | -       |   |  | -           |   |  | (5,697,935          | ) |  | (5,697,935       | )
|Balance, January 31, 2008
      (unaudited)                                        |  | 10,832,852   |   |  | 108     |   |  | 21,134,886  |   |  | (20,918,474         | ) |  | 216,520          |  
|note                                                                               |  | 37,646,325   |   |  | 376     |   |  | 1,839,135   |   |  | -                   |   |  | 1,839,511        |  
|Issuance of common stock for
      inducement to convert promissory note           |  | 7,500        |   |  | -       |   |  | 9,000       |   |  | -                   |   |  | 9,000            |  
|note                                                                               |  | -            |   |  | -       |   |  | 94,437      |   |  | -                   |   |  | 94,437           |  
|Stock based compensation                                                           |  | -            |   |  | -       |   |  | 576,244     |   |  | -                   |   |  | 576,244          |  
|Common stock purchase warrants exercise price
      reduction                      |  | -            |   |  | -       |   |  | 67,700      |   |  | -                   |   |  | 67,700           |  
|Net loss for the year ended January
      31, 2009                                 |  | -            |   |  | -       |   |  | -           |   |  | (4,176,066          | ) |  | (4,176,066       | )
|Balance, January 31, 2009 (unaudited)                                              |  | 48,486,677   |   |  | 484     |   |  | 23,721,402  |   |  | (25,094,540         | ) |  | (1,372,654       | )
|note                                                                               |  | 199,170,302  |   |  | 1,992   |   |  | 603,661     |   |  | -                   |   |  | 605,653          |  
|Beneficial conversion feature of convertible
      promissory notes                |  | -            |   |  | -       |   |  | 330,366     |   |  | -                   |   |  | 330,366          |  
|Net loss for the year ended January
      31, 2010                                 |  | -            |   |  | -       |   |  | -           |   |  | (2,809,843          | ) |  | (2,809,843       | )
|Balance, January 31, 2010 (unaudited)                                              |  | 247,656,979  |   |  | 2,476   |   |  | 24,655,429  |   |  | (27,904,383         | ) |  | (3,246,478       | )
|note                                                                               |  | 187,127,678  |   |  | 1,872   |   |  | 273,105     |   |  | -                   |   |  | 274,977          |  
|Issuance of common stock and warrants private
      placement, net                 |  | 31,778,484   |   |  | 318     |   |  | 1,284,363   |   |  | -                   |   |  | 1,284,681        |  
|Exercise of common stock purchase
      warrants                                   |  | 135,848,741  |   |  | 1,358   |   |  | 1,880,588   |   |  | -                   |   |  | 1,881,946        |  
|Issuance and modification of common stock purchase
      warrants                  |  | -            |   |  | -       |   |  | 15,089,884  |   |  | -                   |   |  | 15,089,884       |  
|Stock based compensation                                                           |  | -            |   |  | -       |   |  | 2,530,750   |   |  | -                   |   |  | 2,530,750        |  
|Net loss for the year ended January 31, 2011                                       |  | -            |   |  | -       |   |  | -           |   |  | (19,865,419         | ) |  | (19,865,419      | )
|Balance, January 31, 2011
      (unaudited)                                        |  | 602,411,882  |   |  | 6,024   |   |  | 45,714,119  |   |  | (47,769,802         | ) |  | (2,049,659       | )
|Cashless exercise of common stock purchase warrants                                |  | 22,687,507   |   |  | 227     |   |  | (227        | ) |  | -                   |   |  | -                |  
|Issuance of common stock and warrants
      private placement, net                 |  | 10,800,000   |   |  | 108     |   |  | 253,012     |   |  | -                   |   |  | 253,120          |  
|Stock based compensation                                                           |  | -            |   |  | -       |   |  | 103,950     |   |  | -                   |   |  | 103,950          |  
|Recognition of derivative liabilities
      into Additional Paid-In Capital        |  |              |   |  |         |   |  | (72,376     | ) |  |                     |   |  | (72,376          | )
|Net loss for the year ended January 31, 2012                                       |  | -            |   |  | -       |   |  | -           |   |  | (2,461,459          | ) |  | (2,461,459       | )
|Balance, January 31, 2012                                                          |  | 635,899,389  |   |  | 6,359   |   |  | 45,998,478  |   |  | (50,231,261         | ) |  | (4,226,424       | )
|Cashless exercise of common stock purchase warrants                                |  | 20,555,571   |   |  | 205     |   |  | (205        | ) |  | -                   |   |  | -                |  
|Issuance of common stock and warrants
      private placement, net                 |  | 17,225,537   |   |  | 173     |   |  | 512,711     |   |  | -                   |   |  | 512,884          |  
|Issuance of common shares for cash pursuant to
      investment agreement          |  | 59,670,369   |   |  | 597     |   |  | 1,174,403   |   |  | -                   |   |  | 1,175,000        |  
|Issuance of common stock for third
      party service                             |  | 7,359,399    |   |  | 74      |   |  | 91,066      |   |  |                     |   |  | 91,140           |  
|Stock based compensation                                                           |  | -            |   |  | -       |   |  | 135,996     |   |  | -                   |   |  | 135,996          |  
|Net loss for the year ended January
      31, 2013                                 |  | -            |   |  | -       |   |  | -           |   |  | (2,644,787          | ) |  | (2,644,787       | )
|Balance, January 31, 2013                                                          |  | 740,710,265  |   |  | 7,408   |   |  | 47,912,449  |   |  | (52,876,048         | ) |  | (4,956,191       | )
|Cashless exercise of common stock
      purchase warrants                          |  | 6,087,165    |   |  | 61      |   |  | (61         | ) |  | -                   |   |  | -                |  
|Issuance of common stock and warrants private
      placement, net                 |  | 23,606,957   |   |  | 236     |   |  | 271,807     |   |  | -                   |   |  | 272,043          |  
|Issuance of common shares for cash
      pursuant to investment agreement          |  | 54,145,363   |   |  | 541     |   |  | 459,459     |   |  | -                   |   |  | 460,000          |  
|Stock issued in exchange for services                                              |  | 2,934,763    |   |  | 29      |   |  | 61,909      |   |  | -                   |   |  | 61,938           |  
|Shares issued for deferred financing
      cost                                    |  | 1,225,000    |   |  | 12      |   |  | 30,151      |   |  | -                   |   |  | 30,163           |  
|Shares issued for settlement of accounts payable                                   |  | 1,526,718    |   |  | 15      |   |  | 19,985      |   |  | -                   |   |  | 20,000           |  
|Warrants issued for services                                                       |  | -            |   |  | -       |   |  | 29,823      |   |  | -                   |   |  | 29,823           |  
|Stock based compensation                                                           |  |              |   |  |         |   |  | 240,622     |   |  | -                   |   |  | 240,622          |  
|Net loss for the year ended January
      31, 2014                                 |  | -            |   |  | -       |   |  | -           |   |  | (2,318,047          | ) |  | (2,318,047       | )
|Balance, January 31, 2013                                                          |  | 830,236,231  |   |  | 8,302   |   |  | 49,026,144  |   |  | (55,194,095         | ) |  | (6,159,649       | )

The accompanying notes are an integral part of the consolidated
financial statements.

---

28

LIBERTY STAR URANIUM & METALS CORP.(AN
EXPLORATION STAGECOMPANY)CONSOLIDATED STATEMENTS OF CASH
FLOWS

|                                                                                  |   |                                |   |   |                     |   |   | Period from Inception |  
|--------------------------------------------------------------------------------- | - | ------------------------------ | - | - | ------------------- | - | - | --------------------- | -
|                                                                                  |   |                                |   |   |                     |   |   | (August 20, 2001)     |  
|                                                                                  |   | For the Year Ended January 31, |   |   | to January 31, 2014 |  
|                                                                                  |   | 2014                           |   |   | 2013                |   |   | (unaudited)           |  
|                                                                                  |   |                                |   |   |                     |   |   |                       |  
|Cash flows from operating
      activities:                                       |   |                                |   |   |                     |   |   |                       |  
|Net loss                                                                          | $ | (2,318,047                     | ) | $ | (2,644,787          | ) | $ | (66,394,096           | )
|Adjustments to
      reconcile net loss to net cash used in operating activities: |   |                                |   |   |                     |   |   |                       |  
|Depreciation                                                                      |   | 32,827                         |   |   | 41,610              |   |   | 953,968               |  
|Amortization of
      deferred financing charges                                  |   | 7,611                          |   |   | -                   |   |   | 550,327               |  
|Amortization of original
      issuance discount                                  |   | 12,916                         |   |   | -                   |   |   | 3,645,911             |  
|Mineral claim costs                                                               |   | -                              |   |   | -                   |   |   | 343,085               |  
|Impairment loss                                                                   |   | -                              |   |   | -                   |   |   | 16,092,870            |  
|Expenses capitalized to debt                                                      |   | -                              |   |   | -                   |   |   | 730,174               |  
|(Gain) loss on
      sale of fixed assets                                         |   | -                              |   |   | 12,119              |   |   | 54,572                |  
|(Gain) loss on change in fair value of warrant liability                          |   | 31,873                         |   |   | (38,836             | ) |   | 3,667,071             |  
|Share based
      compensation                                                    |   | 240,622                        |   |   | 135,996             |   |   | 4,778,551             |  
|Fair value of the warrants issued for services                                    |   | 29,823                         |   |   | -                   |   |   | 29,823                |  
|Share and warrant
      based payments                                            |   | -                              |   |   | -                   |   |   | 13,795,973            |  
|Common shares issued for third party services                                     |   | 61,938                         |   |   | 91,140              |   |   | 153,078               |  
|Non-cash other
      incom from sale of mineral claims                            |   | -                              |   |   | -                   |   |   | (1,000,000            | )
|Interest paid through issuance of debt                                            |   | -                              |   |   | -                   |   |   | 282,569               |  
|Changes in assets
      and liabilities:                                          |   |                                |   |   |                     |   |   |                       |  
|Prepaid expenses and supplies                                                     |   | (447                           | ) |   | 5,489               |   |   | 33,338                |  
|Other current assets                                                              |   | (1,000                         | ) |   | -                   |   |   | (8,875                | )
|Other assets                                                                      |   | -                              |   |   | -                   |   |   | (25,000               | )
|Certificate of deposit                                                            |   | -                              |   |   | -                   |   |   | (11,435               | )
|Accounts payable and accrued expenses                                             |   | 122,780                        |   |   | 139,010             |   |   | 268,245               |  
|Accrued wages related parties                                                     |   | 64,000                         |   |   | 93,625              |   |   | 340,992               |  
|Accrued interest                                                                  |   | 492,442                        |   |   | 445,646             |   |   | 1,873,260             |  
|Cash flows from operating activities:                                             |   | (1,222,662                     | ) |   | (1,718,988          | ) |   | (19,845,599           | )
|                                                                                  |   |                                |   |   |                     |   |   |                       |  
|Cash flows from investing activities:                                             |   |                                |   |   |                     |   |   |                       |  
|Proceeds from
      the sale of fixed assets                                      |   | -                              |   |   | -                   |   |   | 407,327               |  
|Proceeds from redemption of
      certificate of deposit                          |   | -                              |   |   | 3,000               |   |   | 216,232               |  
|Purchase of
      certificate of deposit                                          |   | -                              |   |   | -                   |   |   | (204,797              | )
|Purchase of equipment                                                             |   | (1,418                         | ) |   | (5,419              | ) |   | (1,186,111            | )
|Net cash used in investing activities                                             |   | (1,418                         | ) |   | (2,419              | ) |   | (767,349              | )
|                                                                                  |   |                                |   |   |                     |   |   |                       |  
|Cash flows from financing
      activities:                                       |   |                                |   |   |                     |   |   |                       |  
|Payments on long-term debt                                                        |   | (5,090                         | ) |   | (4,630              | ) |   | (510,036              | )
|Cash paid on
      deferred financing costs                                       |   | (15,500                        | ) |   |                     |   |   | (15,500               | )
|Principal activity on capital
      lease obligation                              |   | -                              |   |   | -                   |   |   | (39,298               | )
|Principal
      activity on convertible promissory notes                          |   | 450,000                        |   |   | -                   |   |   | 163,773               |  
|Proceeds from the issuance of
      common stock, net of expenses                 |   | 732,043                        |   |   | 1,687,884           |   |   | 15,097,802            |  
|Proceeds from
      the sale of convertible promissory notes                      |   | -                              |   |   | -                   |   |   | 5,772,371             |  
|Proceeds from long-term debt                                                      |   | -                              |   |   | -                   |   |   | 198,925               |  
|Net cash provided by financing activities                                         |   | 1,161,453                      |   |   | 1,683,254           |   |   | 20,668,037            |  
|                                                                                  |   |                                |   |   |                     |   |   |                       |  
|Increase (decrease) in cash
      and cash equivalents                            |   | (62,627                        | ) |   | (38,153             | ) |   | 55,089                |  
|Cash and cash equivalents, beginning of
      period                              |   | 117,716                        |   |   | 155,869             |   |   | -                     |  
|Cash and cash equivalents,
      end of period                                    | $ | 55,089                         |   | $ | 117,716             |   | $ | 55,089                |  
|                                                                                  |   |                                |   |   |                     |   |   |                       |  
|                                                                                  |   |                                |   |   |                     |   |   |                       |  
|Income tax paid                                                                   | $ | -                              |   | $ | -                   |   | $ | -                     |  
|Interest paid during the
      period                                             | $ | 17,595                         |   | $ | 5,234               |   | $ | 209,518               |  
|Original issue discounts                                                          | $ | 47,500                         |   | $ | -                   |   | $ | -                     |  
|Exercise of common stock
      purchase warrants                                  | $ | 61                             |   | $ | 206                 |   | $ | 61                    |  
|Settlement of accounts payable through
      issuance of common stock             | $ | 20,000                         |   | $ | -                   |   | $ | 20,000                |  
|Shares issued for deferred
      financing cost                                   | $ | 30,163                         |   | $ | -                   |   | $ | 30,163                |  

The Accompanying Notes are an Integral Part of the Condensed
Consolidated Unaudited Financial Statements

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29

LIBERTY STAR URANIUM & METALS CORP.(AN
EXPLORATION STAGE COMPANY)NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS

NOTE 1  Organization

Liberty Star Uranium & Metals Corp. (the Company, we or
Liberty Star) was formerly Liberty Star Gold Corp. and formerly Titanium
Intelligence, Inc. (Titanium). Titanium was incorporated on August 20, 2001
under the laws of the State of Nevada. On February 5, 2004 we commenced
operations in the acquisition and exploration of mineral properties business.
Big Chunk Corp. (Big Chunk) is our wholly owned subsidiary and was
incorporated on December 14, 2003 in the State of Alaska. Big Chunk is engaged
in the acquisition and exploration of mineral properties business in the State
of Alaska. Redwall Drilling Inc. (Redwall) was our wholly owned subsidiary and
was incorporated on August 31, 2007 in the State of Arizona. Redwall performed
drilling services on the Companys mineral properties. Redwall ceased drilling
activities in July 2008 and was dissolved on March 30, 2010. In April 2007, we
changed our name to Liberty Star Uranium & Metals Corp. We are considered to
be an exploration stage company, as we have not generated any revenues from
operations.

These consolidated financial statements include the results of
operations and cash flows of Liberty Star Uranium & Metals Corp. and its
wholly owned subsidiaries, Big Chunk and Redwall, from the dates of acquisition.
All significant intercompany accounts and transactions were eliminated upon
consolidation.

These consolidated financial statements have been prepared in
conformity with accounting principles generally accepted in the United States of
America (GAAP) with the on-going assumption that we will be able to realize
our assets and discharge our liabilities in the normal course of business.
However, certain conditions noted below currently exist which raise substantial
doubt about our ability to continue as a going concern. These consolidated
financial statements do not include any adjustments to the amounts and
classifications of assets and liabilities that might be necessary should we be
unable to continue as a going concern. Our operations have primarily been funded
by the issuance of common stock and debt. Continued operations are dependent on
our ability to complete equity financings or generate profitable operations in
the future. Managements plan in this regard is to secure additional funds
through future equity financings, joint venture agreements or debt. Such
financings may not be available, or may not be available on reasonable terms.

NOTE 2  Summary of significant accounting policies

The summary of significant accounting policies presented below
is designed to assist in understanding the Company's consolidated financial
statements. Such consolidated financial statements and accompanying notes are
the representations of the Companys management, who is responsible for their
integrity and objectivity. These accounting policies conform to accounting
principles generally accepted in the United States of America in all material
respects, and have been consistently applied in preparing the accompanying
consolidated financial statements. The significant accounting policies adopted
by the Company are as follows:

Use of estimatesThe preparation of financial
statements in conformity with generally accepted accounting principles in the
United States of America requires management to make estimates and assumptions
that affect the reported amount of assets and liabilities and the disclosure of
contingent assets and liabilities at the date of the financial statements and
the reported amount of revenues and expenses during the reporting period. Actual
results could differ from those estimates.

The valuation of stock-based compensation, classification and
valuation of common stock purchase warrants, classification and value of
embedded conversion options, value of beneficial conversion features, valuation
allowance on deferred tax assets, the determination of useful lives and
recoverability of depreciable assets, accruals, and contingencies are
significant estimates made by management. It is at least reasonably possible
that a change in these estimates may occur in the near term.

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30

Principles of consolidationThe consolidated
financial statements include the accounts of the Company and its wholly-owned
subsidiaries, Big Chunk and Redwall, from the dates of acquisition, February 5,
2004 and August 31, 2007, respectively. All significant intercompany accounts
and transactions have been eliminated upon consolidation.

Cash and cash equivalentsWe consider cash held at
banks and all highly liquid investments with original maturities of three months
or less to be cash and cash equivalents. We maintain our cash in bank deposit
accounts which, for periods of time, may exceed federally insured limits. At
January 31, 2014 and 2013, we had cash in bank deposit accounts that exceeded
federally insured limits of $0 and $0, respectively.

Mineral claim costsWe account for costs incurred to
acquire, maintain and explore mineral properties as a charge to expense in the
period incurred until the time that a proven mineral resource is established, at
which point development of the mineral property would be capitalized. Currently,
we do not have any proven mineral resources on any of our mineral
properties.

Long-lived AssetsProperty and equipment is stated at
cost. We capitalize all purchased equipment over $500 with a useful life of more
than one year. Depreciation is calculated using the straight line method over
the estimated useful lives of the assets. Leasehold improvements are stated at
cost and are amortized over their estimated useful lives or the lease term,
whichever is shorter. Maintenance and repairs are expensed as incurred while
betterments or renewals are capitalized. Property and equipment is reviewed
periodically for impairment. The estimated useful lives range from 3 to 7 years.

We review long-lived assets for impairment whenever events or
changes in circumstances indicate that the carrying amount may not be
recoverable. Recoverability of a long-lived asset group to be held and used in
operations is measured by a comparison of the carrying amount to the sum of the
undiscounted cash flows expected to result from the use and eventual disposition
of the asset group. If such asset group is considered to be impaired, the
impairment loss is measured as the amount by which the carrying amount of the
asset group exceeds its fair value. Long-lived assets to be disposed of are
carried at the lower of cost or fair value less the costs of disposal.

Convertible promissory notesWe report convertible
promissory notes as liabilities at their carrying value less unamortized
discounts, which approximates fair value. We bifurcate conversion options and
detachable common stock purchase warrants and report them as liabilities at fair
value at each reporting period when required in accordance with the applicable
accounting guidance. When convertible promissory notes are converted into shares
of our common stock in accordance with the debts terms, no gain or loss is
recognized. We account for inducements to convert as an expense in the period
incurred, included in debt conversion expense.

Common stock purchase warrantsWe report common
stock purchase warrants as equity unless a condition exists which requires
reporting as a derivative liability at fair market value. For common stock
purchase warrants reported as a derivative liability, as well as new and
modified warrants reported as equity, we utilize the Black-Scholes valuation
method in order to estimate fair value.

Environmental expendituresOur operations have been
and may in the future be affected from time to time in varying degree by changes
in environmental regulations, including those for future removal and site
restoration costs. The likelihood of new regulations and their overall effect
upon us are not predictable. We provide for any reclamation costs in accordance
with the accounting standards codification section 410-30. It is managements
opinion that we are not currently exposed to significant environmental and
reclamation liabilities and have recorded no reserve for environmental and
reclamation expenditures as of January 31, 2014 and 2013.

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31

Fair Value of Financial Assets and LiabilitiesThe
Company measures and discloses certain financial assets and liabilities at fair
value. Authoritative guidance defines fair value as the exchange price that
would be received for an asset or paid to transfer a liability (an exit price)
in the principal or most advantageous market for the asset or liability in an
orderly transaction between market participants on the measurement date.
Authoritative guidance also establishes a fair value hierarchy which requires an
entity to maximize the use of observable inputs and minimize the use of
unobservable inputs when measuring fair value. The standard describes three
levels of inputs that may be used to measure fair value:

Level 1- Quoted prices in active markets for identical
assets or liabilities.

Level 2- Observable inputs other than Level 1 prices
such as quoted prices for similar assets or liabilities; quoted prices in
markets that are not active; or other inputs that are observable or can be
corroborated by observable market data for substantially the full term of the
assets or liabilities.

Level 3- Unobservable inputs that are supported by
little or no market activity and that are significant to the fair value of the
assets or liabilities.

Income taxesIncome taxes are recorded using the
asset and liability method. Under the asset and liability method, tax assets and
liabilities are recognized for the tax consequences attributable to differences
between financial statement carrying amounts of existing assets and liabilities
and their respective tax bases. Future tax assets and liabilities are measured
using the enacted tax rates expected to apply when the asset is realized or the
liability settled. The effect on future tax assets and liabilities of a change
in tax rates is recognized in income in the period that enactment occurs. To the
extent that the Company does not consider it more likely than not that a future
tax asset will be recovered, it provides a valuation allowance against the
excess. Interest and penalties associated with unrecognized tax benefits, if
any, are classified as additional income taxes in the statement of operations.
With few exceptions, we are no longer subject to U.S. federal, state and local
examinations by tax authorities for years before 2009.

Net loss per shareBasic net loss per share is
computed by dividing net loss attributable to common shareholders by the
weighted average number of shares of common stock outstanding during the period.
Diluted net loss per share takes into consideration shares of common stock
outstanding (computed under basic loss per share) and potentially dilutive
shares of common stock that are not anti-dilutive. At January 31, 2014 and 2013,
potentially dilutive instruments were not included in the determination of
diluted loss per share as their effect was anti-dilutive.

Statement PresentationCertain amounts in the
prior-year financial statements have been reclassified for comparative purposes
to conform with the presentation in the current-year financial statements.

Recently issued accounting standardsThere are no
recent pronouncements that are expected to have a material impact on our
financial position and results of operations.

NOTE 3  Going concern

The Company is in the exploration stage, has incurred losses
from operations, requires additional funds for further exploratory activity and
to maintain its claims prior to attaining a revenue generating status. There are
no assurances that a commercially viable mineral deposit exists on any of our
properties. In addition, the Company may not find sufficient ore reserves to be
commercially mined. As such, there is substantial doubt about the Companys
ability to continue as a going concern.

Management is working to secure additional funds through the
exercise of stock warrants already outstanding, equity financings, debt
financings or joint venture agreements. The consolidated financial statements do
not include any adjustments that might result from the outcome of these
uncertainties.

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32

NOTE 4 Mineral claims

At January 31, 2014 we held a 100% interest in 376 standard
Federal lode mining claims on the Colorado Plateau Province of Northern Arizona
(the North Pipes Claims).

At January 31, 2014 we held a 100% interest in 99 standard
Federal lode mining claims located in the Tombstone region of Arizona. 33
Federal lode mining claims are owned by JABA US Inc, an Arizona Corporation in
which two of our directors are owners and 66 Federal lode mining claims belong
to Liberty Star Uranium & Metals Corp. At January 31, 2014 we held Arizona
State Land Department Mineral Exploration Permits covering 4,126.9 acres in the
Tombstone region of Arizona.

At January 31, 2014 we held an option to explore 26 standard
Federal Lode mining claims located in the East Silver Bell region of northwest
Tucson, Arizona. The mineral claims are owned by JABA US Inc., an Arizona
Corporation in which two of our directors are owners.

At January 31, 2014 we held a 100% interest in 54 Alaska State
mining claims in the Iliamna region of Southwestern Alaska, located on the north
side of the Cook Inlet, approximately 200 miles southwest of the city of
Anchorage, Alaska (the Big Chunk Claims). The transaction for  199 claims transferred  to Northern Dynasty in conjunction with our loan settlement agreement has now  closed, and is no longer pending.

Title to mineral claims involves certain inherent risks due to
difficulties of determining the validity of certain claims as well as potential
for problems arising from the frequently ambiguous conveyance history
characteristic of many mineral properties.

All of  the Company’s claims for mineral properties are in good standing as of January  31, 2014.

NOTE 5  Property and equipment

The balances of our major classes of depreciable assets and
useful lives are:

| |                                                       |   | January 31, 2014 |   |   | January 31, 2013 |  
| | ----------------------------------------------------- | - | ---------------- | - | - | ---------------- | -
| | Geology Equipment (3 to 7
      years)                | $ | 260,521          |   | $ | 260,521          |  
| | Vehicles and transportation equipment (5
      years) |   | 50,180           |   |   | 50,180           |  
| | Office furniture and
      equipment (3 to 7 years)   |   | 75,404           |   |   | 73,985           |  
| |                                                       |   | 386,105          |   |   | 384,686          |  
| | Less: accumulated
      depreciation and amortization |   | (336,313         | ) |   | (303,486         | )
| |                                                       | $ | 49,792           |   | $ | 81,200           |  

Depreciation expense was $32,827 and $41,610 for the years
ended January 31, 2014 and January 31, 2013, respectively.

NOTE 6  Long-term debt

Note payable to Ford Credit payable in monthly installments of
$544 including interest at a fixed rate of 9.49% through maturity in February
2016. Principal balance at January 31, 2014 and 2013 is $12,304 and $17,394,
respectively. Carrying amount of a vehicle that serves as collateral is $14,410
and $21,928 at January 31, 2014 and 2013, respectively.

The following is a summary of the principal maturities of
long-term debt during the next five years:

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33

Minimum future debt payments

For the twelve months ending January 31,:2014
    $
    5,5942015
    
    6,1492016
    
    5612017
    
    -2018 and thereafter
    
    -$
    12,304Less: current maturities
    
    5,594$
    6,710


NOTE 7  Convertible promissory notes

We issued convertible promissory notes in private placements of
our securities to institutional investors pursuant to exemptions from
registration set out in Rule 506 of Regulation D under the Securities Act of
1933.

On July 15, 2010 we issued a secured convertible promissory
note bearing interest at a rate of 10% per annum compounded monthly (the
Convertible Note) to Northern Dynasty Minerals Ltd (Northern Dynasty).
During the year ended January 31, 2012 the agreement with Northern Dynasty was
amended to issue additional secured convertible promissory notes totaling
$730,174 to reimburse Northern Dynasty for assessment work, rental fees, cash in
lieu of assessment work and filing fees on the mineral claims that was paid in
fiscal 2011 and fiscal 2012 because we could not come to an agreement on the
earn-in option and joint venture agreement with Northern Dynasty. Principal
balance of the Convertible Notes at January 31, 2014 and 2013 was $3,730,174.
Accrued interest on the Convertible Notes at January 31, 2014 and 2013 was
$1,465,059 and $972,617, respectively.

As part of the transaction noted above, Northern Dynasty could
earn a 60% interest in our Big Chunk project in Alaska (the Joint Venture
Claims) by spending $10,000,000 on those properties over six years. The
borrowings from Northern Dynasty could be applied as part of Northern Dynastys
earn-in requirements. Northern Dynastys minimum annual expenditures under the
earn-in would be the minimum level necessary to keep the Joint Venture Claims in
good standing. Northern Dynasty could elect to abandon the earn-in at any time
on 30 days notice, so long as sufficient annual labor was performed, or a cash
payment in lieu of labor was made, in order to fulfill the annual labor
requirements for the Joint Venture Claims for a minimum of 12 months after
termination of the earn-in. As of January 31, 2014, no such notice by Northern
Dynasty has been received.

On November 14, 2012, we signed a loan settlement agreement
with Northern Dynasty which would have discharged the $3,730,174 principal
balance and $972,617 of accrued interest for the 2010 Convertible Note and would
have terminated Northern Dynastys earn-in rights. In exchange for the
settlement, we initiated the transfer of 199 Alaska mining claims to Northern
Dynastys subsidiary, U5 Resources. However, since a third party filed liens
against the claims before the transfer could be completed, we have not recorded
the settlement transaction as of January 31, 2014, pending resolution of the
lien claims. In March 2014 Liberty Star and Big Chunk entered into a settlement
agreement with MBGS, LLC, following a resolution conference conducted in
Anchorage, Alaska whereby all Northern Dynasty claims recorded by  MBGS, LLC were released. As a
result of the claims release by MBGS, LLC, in May 2014 the company completed its
loan settlement agreement with Northern Dynasty and discharged the principal
balance and accrued interest for the 2010 Convertible Note and terminated
Northern Dynastys earn-in-rights.

In August, 2013, we entered into a promissory note (the August
2013 Note) for a principal sum of $555,000 plus accrued and unpaid interest and
any other fees. The consideration is up to $500,000, which would produce an
original issue discount of $55,000 if all the consideration is received. The
lender paid $150,000 upon closing pursuant to the terms of the August 2013 Note.
The August 2013 Note has a maturity of one year from the delivery of each
payment. The August 2013 Note may be convertible into shares of common stock of
our company at any time from 180 days after the date of each payment of
consideration, at a conversion price which is 70% of the average of the three
lowest closing prices in the 20 trading days previous to the conversion. We may
repay the August 2013 Note at any time on or before 90 days from the effective
date of the August 2013 Note with an interest rate of 0%, after which we may not make any further payments on the August 2013 Note prior to the maturity date without written approval from the lender. If we elect not to repay the August 2013 Note on or before 90 days from the effective date of
the August 2013 Note, a one-time interest charge of 12% will be applied to the principal sum. On December 9, 2013, we received additional consideration of $75,000 pursuant to the terms of the August 2013 Note. As of January 31, 2014 we did not
repay any portion of the note before 90 days from the effective date, and since the 180 days hadn’t lapsed since the initial payment occurred, the note wasn’t convertible by the holder. As of April 21, 2014, $186,480 had been
converted into shares of our Common stock pursuant to the conversion terms of the agreement.

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34

On November 18, 2013, we entered into a securities purchase agreement, whereby we agreed to issue a convertible note to one lender in the principal amount of $250,000, discounted at issuance to the face value of $225,000. The Note is payable
in full on November 18, 2014 and bears no interest except in an event of default. The lender may, at its option, after the 183rd day following the closing date, convert the principal amount or any portion of such principal amount of the Note into
shares of common stock of our company at the price equal to the lesser of (a) 100% of the volume weighted average price (VWAP), as reported on the closing date (November 18, 2013), and (b) 70% of the average of the 5 day VWAP immediately prior to
the day of conversion. As of January 31, 2014, we have not made any repayments on this convertible note and the note has not been converted.

NOTE 8 – Common stock

Our common shares are all of the same class, are voting and entitle stockholders to receive dividends as defined. Upon liquidation or wind-up, stockholders are entitled to participate equally with respect to any distribution of net assets or any
dividends that may be declared.

In December 2012 and January 2013, we issued 7,359,399 units, at prices ranging from $0.0116 to $0.0156 per unit, to contractors who had provided services, directly or indirectly, on our Alaska properties. These units were issued in lieu of
cash payments and in satisfaction of claims for services provided. Each unit consisted of one common share of our company and one non-transferable common stock purchase warrant. Each common stock purchase warrant entitles the investors to purchase
one additional common share of our company at prices ranging from $0.0162 to $0.0218 until January 17, 2016. The fair value of the shares and warrants issued were $91,140 and $84,156, respectively.

In August and September 2012, we sold 6,156,153 units, at prices ranging from $0.027 to $0.031 per unit, to investors for gross proceeds of $180,000. Each unit consisted of one common share of our company and one non-transferable common
stock purchase warrant. Each common stock purchase warrant entitles the investors to purchase one additional common share of our company at prices ranging from $0.038 to $0.044 until August 29, 2015. In May and July 2012, we sold 4,859,073
units, at prices ranging from $0.027 to $0.033 per unit, to investors for gross proceeds of $150,004. Each unit consisted of one common share of our company and one non-transferable common stock purchase warrant. Each common stock
purchase warrant entitles the investors to purchase one additional common share of our company at prices ranging from $0.027 to $0.047 until July 23, 2015. In May and July 2012, investors exercised 19,861,870 of the May 2007 common stock
purchase warrants using the cashless exercise provision. We issued 18,033,814 shares of common stock and cancelled 1,828,056 common stock purchase warrants pursuant to the cashless exercise provision. No cash proceeds were received. We issued these
shares pursuant to an exemption from registration set out in Section 4(2) of the Securities Act of 1933. The remaining 855,314 common stock purchase warrants from May 2007 expired on May 11, 2012 without exercise.

In March 2012, we sold 2,000,000 units at a price of $0.02844 per unit to one investor for gross proceeds of $56,880. Each unit consisted of one common share of our company and one non-transferable common stock purchase warrant. Each common
stock purchase warrant entitles the investor to purchase one additional common share of our company at a price of $0.03982 until March 14, 2015. In March 2012, one investor exercised 84,615 of the May 2007 common stock purchase warrants using
the cashless exercise provision. The cashless exercise provision allows the investor, if the fair market value of one share of common stock is greater than the exercise price, to elect to receive shares equal to the value of the warrant less a
portion of the warrant that is cancelled using a specific formula. We issued 21,757 shares of common stock and cancelled 62,858 common stock purchase warrants pursuant to the cashless exercise provision. No cash proceeds were received. In February
2012, we sold 2,209,596 units at a price of $0.03168 per unit to one investor for gross proceeds of $70,000. Each unit consisted of one common share of our company and one non-transferable share purchase warrant. Each share purchase warrant entitles the investor to
purchase one additional common share of our company at a price of $0.04435 until February 23, 2015. In February 2012 we sold 2,000,715 units at a price of $0.02799 per unit to one investor for gross proceeds of $56,000. Each unit
consisted of one common share of our company and one non-transferable share purchase warrant. Each share purchase warrant entitles the investor to purchase one additional common share of our company at a price of $0.03919 until February 3, 2015.
In February 2012 one investor exercised 2,646,199 of the August 2009 common stock purchase warrants using the cashless exercise provision. The cashless exercise provision allows the investor, if the fair market value of one share of common stock is
greater than the exercise price, to elect to receive shares equal to the value of the warrant less a portion of the warrant that is cancelled using a specific formula. We issued 2,500,000 shares of common stock and cancelled 146,199 common stock
purchase warrants pursuant to the cashless exercise provision. No cash proceeds were received.

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35

On January 19, 2012, we entered into a financing agreement with Fairhills Capital Offshore Ltd., whereby Fairhills Capital will provide for a non-brokered financing arrangement of up to $10,000,000. The financing allows but does not require us
to issue and sell up to the number of shares of common stock having an aggregate purchase price of $10,000,000 to Fairhills Capital. Subject to the terms and conditions of the financing agreement and a registration rights agreement, we may, in
our sole discretion, deliver a notice to Fairhills Capital which states the dollar amount which we intend to sell to Fairhills Capital on a certain date. The amount that we shall be entitled to sell to Fairhills Capital shall be equal to two hundred
percent (200%) of the average daily volume (U.S. market only) of the common stock for the ten (10) trading days prior to the applicable notice date. Our common stock will be valued at a 27.5% discount from the weighted average trading price of our
stock for the five (5) trading days before Fairhills Capital receives our notice of sale. The shares that we sell to Fairhills Capital must be registered stock, among other conditions of investment.

In connection with the Investment Agreement, we also entered into a registration rights agreement with Fairhills. Pursuant to this registration rights agreement, we registered with the Securities and Exchange Commission 185,000,000 shares of the
common stock underlying the Investment Agreement.

On November 13, 2012, we filed a 424B prospectus with the Securities Exchange Commission, acknowledging the assignment of all the rights under our investment agreement with Fairhills Capital Offshore Ltd. (Fairhills) to Deer Valley Management, LLC
(Deer Valley). The Investment Agreement and other associated agreements were assigned by Fairhills to Deer Valley on November 6, 2012, and Liberty Star consented to the assignment. Fairhills and Deer Valley share the same ownership and management
and there has not been any substantial change to our arrangement under the Investment Agreement as a result of the Assignment.

In February, March and April, 2013, we issued 22,874,405 shares for gross proceeds of $200,000 related to the investment agreement with Deer Valley Management, LLC.

In February, 2013, we sold 3,448,276 units to one investor for gross proceeds of $40,000. Each unit consisted of one common share of our company and one non-transferable share purchase warrant. Each share purchase warrant entitles the investor
to purchase one additional common share of our company at a price of $0.0162 until February 7, 2016.

In February, 2013, we issued 1,526,718 units to one vendor in exchange for the settlement of accounts payable of $20,000. Each unit consisted of one common share of our company and one non-transferable share purchase warrant. Each share purchase
warrant entitles the investor to purchase one additional common share of our company at a price of $0.0183 until February 15, 2016. The fair value of the warrants issue was $22,141.

In April, 2013, one investor exercised 3,033,618 of the May 2007 common stock purchase warrants using the cashless exercise provision. We issued 2,500,000 shares of common stock and cancelled 533,618 common stock purchase warrants pursuant to the
cashless exercise provision. No cash proceeds were received.

In May, June and July, 2013, we issued 31,270,958 shares for gross proceeds of $255,000 related to the investment agreement with Deer Valley Management, LLC. As of July 31, 2013, we had not yet received payment for one transaction valued at $25,000.  As of October 31, 2013, we received the final payment for this transaction, plus $5,000 from Deer Valley Management, LLC for the inconvenience of paying late. In August 2013, we decided to terminate the
investment agreement with Deer Valley Management, LLC due to their violation of the payment terms pursuant to the investment agreement. As of the time of the termination of the investment agreement, we had issued a total of 113,815,732 and had
received gross proceeds of $1,635,000. No further shares issuances to Deer Valley Management, LLC are expected to occur.

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36

In May, June and July, 2013, we sold 18,001,184 units to six investors for gross proceeds of $182,043. Each unit consisted of one common share of our company and one non-transferable share purchase warrant. The share purchase warrants entitle
the investors to purchase one additional common share of our company at prices ranging between of $0.0116 and $0.0173 until July 30, 2016.

In June, 2013, one investor exercised 4,263,989 of the May 2007 common stock purchase warrants using the cashless exercise provision. We issued 3,587,165 shares of common stock and cancelled 678,824 common stock purchase warrants pursuant to the
cashless exercise provision. No cash proceeds were received.

In August and September, 2013, we issued 2,934,763 shares to two individuals in exchange for services valued at $61,938. Additionally, warrants with a fair value of $7,682 were also issued to one of these individuals.  The warrant were to
purchase 423,135 shares of the Company’s common stock and have an exercise prices of $0.0263. The warrants have a term of three years and expire August 2, 2016.

In September, 2013, we sold 2,157,497 units to one investor for gross proceeds of $50,000. Each unit consisted of one common share of our company and one non-transferable share purchase warrant. Each share purchase warrant entitles the investor
to purchase one additional common share of our company at a price of $0.0324 until September 5, 2016.

On October 30, 2013, the Company entered into an investment agreement with KVM Capital Partners LLC, a New York limited liability company (“KVM”).  Pursuant to the agreement, KVM has agreed to purchase up to $8,000,000 of our common
stock over a period of up to thirty-six (36) months. The purchase price per share to be paid by KVM shall be calculated at a twenty percent (20%) discount to the lowest volume weighted average price of the common stock as reported by Bloomberg, L.P.
during the five (5) consecutive trading days immediately prior to the receipt by KVM of the put notice. We initially reserved 244,500,000 shares of our common stock for issuance under the KVM Investment Agreement. In connection with the KVM
Investment Agreement, we also entered into a registration rights agreement with KVM, pursuant to which we are obligated to file a registration statement with the SEC covering 244,500,000 shares of our common stock underlying the KVM Investment
Agreement within 21 days after the closing of the transaction. In addition, we are obligated to use all commercially reasonable efforts to have the registration statement declared effective by the SEC and maintain the effectiveness of such
registration statement until termination of the KVM Investment Agreement. On November 6, 2013, we filed form S-1 related to the KVM investment agreement. As of January 31, 2014, no shares were purchased by the investor.

In January, 2014, we issued 1,225,000 shares to an individual in exchange for services valued at $30,163. The company recorded the value as deferred financing cost.

NOTE 9 – Share-based compensation

The 2010 Stock Option Plan was approved and adopted by the Board of Directors on August 10, 2010. The plan allows for up to 95,500,000 shares to be granted to key employees and non-employee consultants after specific objectives are met. The 2007
Stock Option Plan was approved and adopted by the Board of Directors on December 10, 2007. The plan allows for up to 2,500,000 shares to be granted to key employees and non-employee consultants after specific objectives are met. The 2004 Stock
Option Plan was approved and adopted by the Board of Directors on December 27, 2004. The plan allows for up to 962,500 shares to be granted to key employees and non-employee consultants after specific objectives are met. Employees can receive
incentive stock options and non-qualified stock options while non-employee consultants can receive only non-qualified stock options. The options granted vest under various provisions using graded vesting, not to exceed four years. The options
granted have a term not to exceed ten years from the date of grant or five years for
options granted to more than 10% stockholders. The option price set by the Plan
Administration shall not be less than the fair market value per share of the
common stock on the grant date or 110% of the fair market value per share of the
common stock on the grant date for options granted to greater than 10%
stockholders. Options remaining available for grant under the 2010 Stock Option
Plan at January 31, 2014 and 2013 are 12,500,000 and 4,625,000. Options remaining
available for grant under the 2007 Stock Option Plan at January 31, 2014 and
2013 are 50,000 and 2,287,500, respectively. Options remaining available for
grant under the 2004 Stock Option Plan at January 31, 2014 and 2013 are 32,876
and 511,125, respectively.

---

37

In December 2012 and January 2013, we issued 7,359,399 units,
at prices ranging from $0.0116 to $0.0156 per unit, to contractors who had
provided services, directly or indirectly, on our Alaska properties. Each unit
consisted of one common share of our company and one non-transferable common
stock purchase warrant. Each common stock purchase warrant entitles the
investors to purchase one additional common share of our company at prices
ranging from $0.0162 to $0.0218 until January 17, 2016. The fair value of the
warrants issued was $84,156 and was expensed immediately.

In September 2013, there were 7,423,624 stock options granted
at an exercise price of $0.0257 per share, exercisable until September 5, 2023
with a fair value net of forfeitures, at grant date of $210,300. The options granted were 100%
vested for directors and shall vest in 25% immediately and 25% over four years increments on a yearly basis over the
next four years for employees. In order to calculate the fair value of stock
options at the date of grant, we use the Black-Scholes option pricing model. The
volatility used was based on our historical volatility. The expected term was
determined based on the simplified method outlined in Staff Accounting Bulletin
No. 110. The risk-free interest rate for periods within the contractual life of
the option is based on the U.S. Treasury yield curve in effect at the time of
grant. Remaining stock option expense to be recognized in future periods related
to the award is $40,688.

The following tables summarize the Companys stock option
activity during the years ended January 31, 2014 and 2013.

Incentive stock options to employees outstanding at January 31,
2014 are as follows:

|                              |  |                   |   |   |                  |  |  | Weighted       |  |   |                 | 
|----------------------------- |  | ----------------- | - | - | ---------------- |  |  | -------------- |  | - | --------------- | 
|                              |  |                   |   |   |                  |  |  | average        |  |   |                 | 
|                              |  |                   |   |   | Weighted average |  |  | remaining life |  |   | Aggregate       | 
|                              |  | Number of options |   |   | exercise price   |  |  | (years)        |  |   | intrinsic value | 
|Outstanding, January 31, 2012 |  | 93,260,375        |   | $ | 0.047            |  |  |                |  | $ | -               | 
|Granted                       |  | -                 |   |   | -                |  |  |                |  |   |                 | 
|Cancelled                     |  | (2,625,000        | ) |   | 0.037            |  |  |                |  |   |                 | 
|                              |  |                   |   |   |                  |  |  |                |  |   |                 | 
|Outstanding, January 31, 2013 |  | 90,635,375        |   | $ | 0.047            |  |  |                |  | $ | -               | 
|Granted                       |  | 7,423,624         |   |   | 0.026            |  |  |                |  |   |                 | 
|Cancelled                     |  | (12,582,875       | ) |   | 0.041            |  |  |                |  |   |                 | 
|                              |  |                   |   |   |                  |  |  |                |  |   |                 | 
|Outstanding, January 31, 2014 |  | 85,476,124        |   | $ | 0.047            |  |  | 2.26           |  | $ | -               | 
|Exercisable, January 31, 2014 |  | 83,595,473        |   | $ | 0.047            |  |  | 2.69           |  | $ | -               | 

The aggregate intrinsic value is calculated based on the
January 31, 2014 stock price of $0.0195 per share.

We estimate the fair value of option awards on the grant date
using the Black-Scholes valuation model. The Company uses historical volatility,
disregarding identifiable periods of time in which share price was
extraordinarily volatile due to certain events that are not expected to recur
during the expected term, as its method to estimate expected volatility. The
Company used the following assumptions to estimate the fair value of stock
option grants to employees and non-employees:

ExpectedExpected
    
    dividend
    
    
    
    Risk-free interestGrant date
    
    volatility
    
    yield
    
    Expected term
    
    rate
    
    Forfeiture rateJanuary 10, 2012
    
    128%
    
    0%
    
    10 years
    
    2%
    
    10%December 13, 2012
    
    174%
    
    0%
    
    3 years
    
    0.34%
    
    0%January 1, 2013
    
    173%
    
    0%
    
    3 years
    
    0.36%
    
    0%January 1, 2013
    
    171%
    
    0%
    
    3 years
    
    0.41%
    
    0%September 5, 2013
    
    221%
    
    0%
    
    6.25 years
    
    2.15%
    
  20%


---

38

Share-based compensation expense is reported in our statement
of operations as follows:

January 31, 2014
    
    
    January 31, 2013Geological and geophysical
      costs
    $
    2,610
    
    $
    624Salaries and benefits
    
    236,509
    
    
    50,592Investor relations
    
    1,503
    
    
    624General and administrative
    
    -
    
    
    84,156$
    240,622
    
    $
    135,996


At January 31, 2014 there is $40,688 unrecognized share-based
compensation for all share-based awards outstanding with a weighted average
remaining period for amortization of 3.6 years.

|                              |  |                   |  |   |                  |  |  | Weighted       |  |   |                 | 
|----------------------------- |  | ----------------- |  | - | ---------------- |  |  | -------------- |  | - | --------------- | 
|                              |  |                   |  |   |                  |  |  | average        |  |   |                 | 
|                              |  |                   |  |   | Weighted average |  |  | remaining life |  |   | Aggregate       | 
|                              |  | Number of options |  |   | exercise price   |  |  | (years)        |  |   | intrinsic value | 
|Outstanding, January 31, 2012 |  | 903,500           |  | $ | 0.376            |  |  |                |  | $ | -               | 
|Granted                       |  | 7,359,399         |  |   | 0.017            |  |  |                |  |   |                 | 
|                              |  |                   |  |   |                  |  |  |                |  |   |                 | 
|Outstanding, January 31, 2013 |  | 8,262,899         |  | $ | 0.057            |  |  |                |  | $ | -               | 
|Granted                       |  | -                 |  |   | -                |  |  |                |  |   |                 | 
|                              |  |                   |  |   |                  |  |  |                |  |   |                 | 
|Outstanding, January 31, 2014 |  | 8,262,899         |  | $ | 0.057            |  |  | 1.99           |  | $ | -               | 
|Exercisable, January 31, 2014 |  | 8,262,899         |  | $ | 0.057            |  |  | 1.99           |  | $ | 19,413          | 

The aggregate instrinsic value is calculated based on the
January 31, 2014 stock price of $.0195 per share.

NOTE 10  Warrants

As of January 31, 2014, there were 51,082,330 whole share
purchase warrants outstanding and exercisable. The warrants have a weighted
average remaining life of 1.8 years and a weighted average exercise price of
$0.027 per whole warrant for one common share. Whole share purchase warrants
outstanding at January 31, 2014 and 2013 are as follows:

|                              |  | Number of whole share |   |   | Weighted average exercise | 
|----------------------------- |  | --------------------- | - | - | ------------------------- | 
|                              |  | purchase warrants     |   |   | price per share           | 
|Outstanding, January 31, 2012 |  | 92,922,691            |   | $ | 0.053                     | 
|Issued                        |  | 17,225,537            |   |   | 0.041                     | 
|Expired                       |  | (855,314              | ) |   | 0.020                     | 
|Exercised                     |  | (22,592,684           | ) |   | 0.026                     | 
|                              |  |                       |   |   |                           | 
|Outstanding, January 31, 2013 |  | 86,700,230            |   | $ | 0.058                     | 
|Issued                        |  | 25,556,792            |   |   | 0.016                     | 
|Expired                       |  | (46,579,478           | ) |   | 0.071                     | 
|Exercised                     |  | (14,595,214           | ) |   | 0.051                     | 
|Outstanding, January 31, 2014 |  | 51,082,330            |   | $ | 0.027                     | 
|Exercisable, January 31, 2014 |  | 51,082,330            |   | $ | 0.027                     | 

The weighted average intrinsic value for warrants outstanding
was $109,275 as of January 31, 2014.

---

39

NOTE 11  Income taxes

As of January 31 our deferred tax asset is as follows:

| |                          |   | January 31, 2014 |   |   | January 31, 2013 |  
| | ------------------------ | - | ---------------- | - | - | ---------------- | -
| | Deferred Tax Assets      | $ | 10,243,000       |   | $ | 9,513,000        |  
| | Less Valuation Allowance |   | (10,243,000      | ) |   | (9,513,000       | )
| |                          | $ | -                |   | $ | -                |  

Management has elected to provide a deferred tax asset
valuation allowance equal to the potential benefit due to our history of losses.
If we demonstrate the ability to generate taxable income, management will
re-evaluate the allowance. The change in the valuation allowance of $730,000 and
$832,000 in the years ended January 31, 2014 and 2013, respectively, primarily
represents the benefit of the change in net operating loss carry-forwards during
the period. As of January 31, 2014, our estimated net operating loss
carry-forward is approximately $30,127,508 and will expire beginning in 2025
through 2034.

Internal Revenue Code Section 382 limits the ability to utilize
net operating losses if a 50% change in ownership occurs over a three year
period. Such limitation of the net operating losses may have occurred but we
have not analyzed it at this time as the deferred tax asset is fully reserved.
We have federal and state net operating loss carry-forwards that are available
to offset future taxable income.

NOTE 12  Related party transactions

We entered into the following transactions with related
parties during the year ended January 31, 2014:

Paid or accrued $6,263 in rent. We rented an office from Jim
Briscoe, our Chairman of the Board, CEO and CFO, and President on a month-to-month basis for
$522 per month.

At January 31, 2014 we had a balance of accrued unpaid wages of
$325,367 to Jim Briscoe, our Chairman of the Board, CEO and CFO and President.

At January 31, 2014, we had a balance of accrued unpaid wages
of $15,625 to Larry Liang, our former President.

We recognized compensation expense of $67,500 for stock options
granted to an officer.

We have an option to explore 26 standard Federal lode mining
claims at the East Silver Bell project and 33 standard Federal lode mining
claims at the Walnut Creek project from JABA US Inc., an Arizona Corporation in
which two of our directors are owners. We are required to pay annual rentals to
maintain the claims in good standing. During the year ended January 31, 2014 we
paid $8,260 in rental fees to maintain the mineral claims in good standing. The
original option agreement was for the period from April 11, 2008 through January
1, 2011 and has been extended through June 1, 2013 and now to June 1, 2015. This
may additionally be extended in five year periods or increments in the future by
any JABA director.

We entered into the following transactions with related
parties during the year ended January 31, 2013:

Paid or accrued $6,785 in rent. We rented an office from Jim
Briscoe, our Chairman of the Board, CEO and CFO, on a month-to-month basis for
$522 per month.

At January 31, 2013 we had a balance of accrued unpaid wages of
$261,367 to Jim Briscoe, our Chairman of the Board, CEO and CFO.

At January 31, 2013, we had a balance of accrued unpaid wages
of $15,625 to Larry Liang, our President.

---

40

We recognized compensation expense of $49,500 for stock options granted to an officer.

We have an option to explore 26 standard Federal lode mining claims at the East Silver Bell project and 33 standard Federal lode mining claims at the Walnut Creek project from JABA US Inc., an Arizona Corporation in which two of our directors are
owners. We are required to pay annual rentals to maintain the claims in good standing. During the year ended January 31, 2013 we paid $8,254 in rental fees to maintain the mineral claims in good standing.

NOTE 13 – Commitments and Contingencies

We are required to perform annual assessment work in order to maintain the Big Chunk Alaska State mining claims. If annual assessment work is not performed the Company must pay the assessment amount in cash in order to maintain the claims.
Completion of annual assessment work in the amount of $400 per 1⁄4 section (160 acre) claim or $100 per 1⁄4 -1⁄4 section (40 acre) claim extends the claims for a one-year period from the staking of claims. Assessment work
performed in excess of the required amount may be carried forward for up to four years to satisfy future obligations. The Company estimates that the required annual assessments per year to maintain the claims from 2013 forward will be approximately
$19,200. Sufficient assessment work has been performed for Big Chunk to maintain the claims beyond the next labor year.

The annual state rentals for the Big Chunk Alaska State mining claims vary from $70 to $280 per mineral claim. The rental period begins at noon September 1st through the following September 1st and annual rental payments are due on November
30th of each year. The rentals of $30,640.00, to extend the Big Chunk claims through September 1, 2014 were paid in November 2013. The estimated state rentals due by November 30, 2014 for the period from September 1, 2014 through September 1,
2015 are $30,640.00. Alaska State production royalty is three percent of net income. State law prescribes that after a 3.5 -year exemption from state taxes a metal mine is liable for a 15% state licensing tax on net income from the mine.

We are required to pay annual rentals for our Federal lode mining claims for the North Pipes project in the State of Arizona. The rental period begins at noon on September 1st through the following September 1st and rental payments are due by the
first day of the rental period. The annual rentals are $140 per claim. The rentals of $60,340 for the period from September 1, 2013 to September 1, 2014 have been paid. The rentals due by September 1, 2014 for the period from September 1,
2014 through September 1, 2015 of $52,640 have not been paid.

We are required to pay annual rentals for our Federal lode mining claims for our East Silver Bell project in the State of Arizona. The rental period begins at noon on September 1st through the following September 1st and rental payments are due by
the first day of the rental period. The annual rental is $140 per claim. The rentals of $3,640 for the period from September 1, 2013 to September 1, 2014 have been paid. The annual rentals due by September 1, 2014 of $3,640 are required
to maintain the East Silver Bell claims are for the period from September 1, 2014 through September 1, 2015 have not been paid. There is no requirement for annual assessment or exploration work on the Federal lode mining claims. There are no
royalties associated with the Federal lode mining claims.

We are required to pay annual rentals for our Federal lode mining claims for the Tombstone project in the State of Arizona. The rental period begins at noon on September 1st through the following September 1st and rental payments are due by the
first day of the rental period. The annual rentals are $140 per claim. The rentals and initial filing fees of $13,860 for the period from September 1, 2013 to September 1, 2014 have been paid. The rentals due by September 1, 2014 for the
period from September 1, 2014 through September 1, 2015 of $13,860 have not been paid.

We are required to pay annual rentals for our Arizona State Land Department Mineral Exploration Permits (“AZ MEP”) at our Tombstone Hay Mountain project in the State of Arizona. AZ MEP permits are valid for 1 year and renewable for up to
5 years. The rental fee is $2.00 per acre for the first year, which includes the second year, and $1.00 per acre per year for years three through five. The minimum work expenditure requirements are $10 per acre per year for years one and
two and $20 per acre per year for years three through five. If the minimum work expenditure requirement is not met the applicant can pay the equal amount in fees to the Arizona State Land Department to keep the AZ MEP permits current. The rental
period begins on September 30th through the following September 29th for our Phase 1 permits, and September 14th through September 13th for our Phase 2 permits. On February 7, 2014 we added a new AZ MEP with 480 acres and an
initial rental payment of $960.00 with estimated work expenditures of $4,800 due
by February 6, 2015 Rental payments are due by the first day of the rental
period. We hold AZ MEP permits for 7,995 acres at our Tombstone project. We will
need to pay rental fees for our Phase 1 AZ MEPs before September 29, 2014 in
the amount of $8,254. Required minimum work expenditures for the period ended
September 29, 2014 is $82,538. The annual rental due by September 30, 2014 to
maintain the Phase 2 AZ MEP permits is $7,627. We will need $75,040 to cover
minimum work expenditure requirements before September 30, 2014 to maintain our
Phase 2 AZ MEP permits.

---

41

A civil action was pending in the Alaska  Superior Court in Anchorage, Alaska, that concerned title to some  Alaska state mining claims owned by Big Chunk Corp., a subsidiary of Liberty  Star. In that action Big Chunk and Liberty Star requested a  judicial determination that certain lien claim notices recorded by a party  named MBGS, LLC, against the mining claims were void; and MBGS sought an order enforcing the lien claims. Liberty Star  and Big Chunk filed a motion for summary judgment to invalidate the lien  claims. As was anticipated, MBGS opposed this motion. The lien claims were  based on a debt alleged by MBGS to be due from Liberty Star. The existence of  this alleged debt was disputed.

In March 2014 Liberty Star and Big Chunk  entered into a settlement agreement with MBGS, LLC, following a resolution  conference conducted in Anchorage, Alaska whereby all lien claims for the Northern Dynasty transfer were  released. As a result of those claims released by MBGS, LLC, in May 2014 the  company completed its loan settlement agreement with Northern Dynasty and  discharged the principal balance and accrued interest for the 2010 Convertible  Note which also terminated Northern Dynasty’s earn-in-rights.

On June 1, 2011 we rented a warehouse located at Building No.
1, 7900 South Kolb Road, Tucson, Arizona 85706. We rent this warehouse space for
$3,645 per month. The lease is in effect until May 31, 2014 with an option to
extend for two additional years. In addition to using the warehouse for standard
purposes, such as storage of our exploration equipment, supplies and samples,
the warehouse space also includes office facilities for the use of field
geologists and geotechs.

NOTE 14  Fair value of financial instruments

Our financial instruments consist of cash and cash equivalents,
accounts payable, accrued liabilities, convertible notes payable, notes payable,
and warrant liability. It is management's opinion that we are not exposed to
significant interest, currency or credit risks arising from these financial
instruments. With the exception of the warrant liability, the fair value of
these financial instruments approximates their carrying values based on their
short maturities or for long-term debt based on borrowing rates currently
available to us for loans with similar terms and maturities. Gains and losses
recognized on changes in estimated fair value of the warrant liability are
reported in other income (expense) as gain (loss) on change in fair value.

We estimate the fair value of the warrant liability using level
3 inputs and the Black-Scholes valuation model. We use historical volatility as
a method to estimate expected volatility. At January 31, 2014 and 2013 we had
2,500,000 whole share purchase warrants outstanding that contain a full ratchet
down anti-dilution provision which is triggered if we enter into any lower
priced issuance than $0.0264 per common share. As a result of these provisions,
these warrants are not considered indexed to our common stock and are classified
as liabilities under ASC 815. We used the following assumptions to estimate the
fair value of the warranty liability at January 31, 2014 and 2013:

Expected
    Expected dividend
    Expected
    Risk-free interestDescription
    volatility
    yield
    term
    rateWarrant liability at January 31, 2014
    209.37%
    0%
    2.5
    0.69%Warrant liability at January 31, 2013
    99.80%
    0%
    3.59 years
    0.65%


---

42

|                                      |   |                  |  |  | Fair
      value measurements at reporting date using: | 
|------------------------------------- | - | ---------------- |  |  | ------------------------------------------------------ | 
|                                      |   |                  |  |  | Quoted prices in                                       | 
|                                      |   |                  |  |  | active markets for                                     | 
|                                      |   |                  |  |  | identical liabilities                                  | 
|Description                           |   | Fair
      Value |  |  | (Level 1)                                              | 
|Warrant liability at January 31, 2014 | $ | 46,985           |  |  | -                                                      | 
|Warrant liability at January 31, 2013 | $ | 15,112           |  |  | -                                                      | 

|                                           |   | Fair value measurements using  |  
|------------------------------------------ | - | ------------------------------ | -
|                                           |   | unobservable inputs (Level 3): |  
|Description                                |   | Warrant liability              |  
|Balance, January 31, 2012                  | $ | 53,948                         |  
|Total (gains) or losses                    |   | (38,836                        | )
|Purchases,
      issuances and settlements |   | -                              |  
|Transfers in or out of Level 3             |   | -                              |  
|Balance, January 31, 2013                  | $ | 15,112                         |  
|Total (gains) or losses                    |   | 31,873                         |  
|Purchases,
      issuances and settlements |   | -                              |  
|Transfers in or out of Level 3             |   | -                              |  
|Balance, January 31, 2014                  | $ | 46,985                         |  

NOTE 15  Changes in officers and directors

On August 28, 2013, Larry Liang, resigned as the president and a director of our company. On the same date, we appointed James Briscoe as president of our company until are placement is named.

NOTE 16  Subsequent events

In March 2014 Liberty Star and Big Chunk entered into a
settlement agreement with MBGS, LLC, following a resolution conference
conducted in Anchorage, Alaska whereby all claims recorded by MBGS, LLC will be
released. As a result of the claims release by MBGS, LLC, in May 2014 the
company completed its loan settlement agreement with Northern Dynasty (See Note
8) and discharged the principal balance and accrued interest for the 2010
Convertible Note and terminated Northern Dynastys earn-in-rights.

In May 2014, we sold 1,203,704 shares to one investor for gross
proceeds of $13,000.

Between February 2014 and May 2014, $186,480 of the August 2013
Note were converted into  17,937,915 shares of the Companys common stock.

Between February 2014 and April 2014, pursuant to the investment  agreement with KVM, KVM purchased 15,593,934 shares for proceeds of $220,250.

In March 2014, the company issued 1,000,000 units of common  stock to a designee of MBGS, LLC, pursuant to the settlement agreement. Each unit consists of one share of the  Company’s common stock and a warrant to purchase one-half share of the  Company’s common stock. The value of the  shares issued is $20,000. The 500,000  warrants have an exercise price of $0.028 and have a two year term.

ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON
ACCOUNTING AND FINANCIAL DISCLOSURE.

None.

ITEM 9A. CONTROLS AND PROCEDURES.

Evaluation of Disclosure Controls and Procedures

---

43

As
of the end of the period covered by this report, our Company evaluated the
effectiveness and design and operation of its disclosure controls and
procedures. Our Companys disclosure controls and procedures are the controls
and other procedures that we designed to ensure that our Company records,
processes, summarizes, and reports in a timely manner the information that it
must disclose in reports that our Company files with or submits to the
Securities and Exchange Commission. Our principal financial officer, principal
accounting officer and principal executive officer, Mr. James Briscoe, conducted
this evaluation. Based on this evaluation, Our principal financial officer,
principal accounting officer and principal executive officer made the
determination that its disclosure controls and procedures were not effective.

Management's Report on Internal Control Over Financial
Reporting

Our
management is responsible for establishing and maintaining adequate internal
control over financial reporting, as such term is defined in Exchange Act Rules
13a-15(f) and 15d-15(f). Our principal financial officer, principal accounting
officer and principal executive officer conducted an evaluation of the
effectiveness of our internal controls over financial reporting based on the
framework in Internal Control -Integrated Framework issued by the Committee of
Sponsoring Organizations of the Treadway Commission ("COSO"). Based on this
evaluation, management has concluded that our internal control over financial
reporting was not effective as of January 31, 2014.

The
Company's internal control over financial reporting includes policies and
procedures that (1) pertain to maintenance of records that, in reasonable
detail, accurately and fairly reflect transactions and dispositions of the
assets of the Company; (2) provide reasonable assurance that transactions are
recorded as necessary to permit preparation of financial statements in
accordance with generally accepted accounting principles, and that receipts and
expenditures of the Company are being made only in accordance with
authorizations of management and directors of the Company; and (3) provide
reasonable assurance regarding prevention or timely detection of unauthorized
acquisition, use, or disposition of the Company's assets that could have a
material effect on the financial statements.

Our
management, including our principal financial officer, principal accounting
officer and principal executive officer, Mr. James Briscoe, does not expect that
our disclosure controls or our internal control over financial reporting will
prevent or detect all errors and all fraud. A control system, no matter how well
designed and operated, can provide only reasonable, not absolute, assurance that
the control system's objectives will be met. Internal control over financial
reporting is a process that involves human diligence and compliance and is
subject to lapses in judgment and breakdowns resulting from human failures. In
addition, the design of any system of controls is based in part on certain
assumptions about the likelihood of future events, and controls may become
inadequate if conditions change. There can be no assurance that any design will
succeed in achieving its stated goals under all potential future conditions.

This
annual report does not include an attestation report of the Companys
independent registered public accounting firm regarding internal control over
financial reporting. Managements report was not subject to attestation by the
Companys registered public accounting firm pursuant to rules of the Securities
and Exchange Commission that permit the Company to provide only managements
attestation in this annual report.

Identified Material Weakness

A material weakness in our internal control over financial reporting is a  control deficiency, or combination of control deficiencies, that results in  more than a remote likelihood that a material misstatement of the financial  statements will not be prevented or detected.

Management identified the following material weakness during its assessment  of internal controls over financial reporting as of January 31, 2014:

Segregation of duties:Due  to thesmall size of the Company, there is a lack of segregation  of duties.

Complex accounting issue review:The  Company lacked multiple reviews on complex accounting issues which occurred  during the year.

Management’s Remediation Initiatives

The Company will hire additional personnel as finances will allow to enhance  segregation of duties.  The Company will obtain  an appropriate level of expert review from their outside consulting firm  regarding complex accounting transactions as they occur during the period specifically  for each situation.

Changes in Company Internal Controls

No change in our Companys internal control over
financial reporting occurred during our fourth fiscal quarter that has
materially affected, or is reasonably likely to materially affect, our internal
control over financial reporting.

ITEM 9B. OTHER INFORMATION.

None.

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44

PART III

ITEM 10. DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE
GOVERNANCE.

All directors of our company hold office until the next annual
meeting of the stockholders or until their successors have been elected and
qualified. The officers of our company are appointed by our board of directors
and hold office until their death, resignation or removal from office. Our
directors, executive officers and significant employees, their ages, positions
held, and duration as such, are as follows:

Name
    Position Held
      with theCompany
    Age
    Date First Elected
     or AppointedJames Briscoe
    Chief
      Executive Officer, Chief Financial Officer, Chairman of the Board and
      Director, President
    72
    February 3, 2004Larry Liang
    President and
      Director (1)
    34
    December 29, 2009Gary Musil
    Secretary and
      Director
    62
    October 23, 2003John Guilbert
    Director
    82
    February 5, 2004Keith Brill
    Director
    36
    December 23, 2009PeterOHeeron
    Director
    50
    September6,2012


(1)Effictive August 28th, 2013 L:arry Liang
resigned from office of President and Board of Directors for our company.

Business Experience

James Briscoe - Chief Executive Officer, Chief Financial
Officer and Chairman of the Board and Director and President

Mr. Briscoe was appointed as our Chief Executive Officer,
President, Chairman and a director on February 3, 2004. Mr. Briscoe became the
interim Chief Financial Officer on July 31, 2008. Mr. Briscoe is a Registered
Professional Geologist in the states of Arizona and California. From 1996 to
April 2005, Mr. Briscoe was the Vice President of Exploration, and Chairman of
the Board of JABA Exploration Inc., a TSX Venture Exchange Canadian public
company. Mr. Briscoe was also the President, Chief Executive Officer and a
Geologist of JABA (US) Inc. and President of Compania Minera JABA, S.A. de C.V.
in Mexico. Compania Minera JABA, S.A. de C.V. is no longer active and is in the
process of dissolution. During the periods of time indicated below, Mr. Briscoe
served in the positions listed for the following two Canadian public companies:

|Company      | Title          | From         | To          
|------------ | -------------- | ------------ | ------------
|             |                |              |             
|1. Excellon  | VP Exploration | April 1994   | January 1996
|2. JABA Inc. | CEO            | January 1980 | April 2005  

We believe Mr. Briscoe is qualified to serve on our board of
directors because of his knowledge of our companys history and current
operations, which he gained from working for our company as described above, in
addition to his

Gary Musil  Secretary and Director

Mr. Gary Musil was appointed as one our directors on October
23, 2003 and is presently our corporate Secretary. Mr. Musil was our Chief
Executive Officer and Chief Financial Officer from October 23, 2003 to February
3, 2004. Mr. Musil has more than 30 years of management and financial consulting experience. Mr. Musil has served as an officer and director on numerous public mining companies since 1988. This experience has resulted in his overseeing exploration projects
in Peru, Chile, Eastern Europe (Slovak Republic), British Columbia, Ontario, Quebec and New Brunswick (Canada). Prior to this, he was employed for 15 years with Dickenson Mines Ltd. and Kam-Kotia Mines Ltd. as a controller for the producing
silver/lead/zinc mine in the interior of British Columbia, Canada. Mr. Musil currently serves as an officer/director of four TSX Venture Exchange public companies in Canada. Mr. Musil has been the President, Chief Executive Officer, Chief Financial
Officer and a director of International Montoro Resources Inc., a TSX Venture company and a reporting issuer in Canada, since February 1999. Mr. Musil has been the chief financial officer and secretary and a director of Belmont Resources Inc., a TSX
Venture company and a reporting issuer in Canada, since August 1992. Mr. Musil has been the chief financial officer and a director of Megastar Development Corp, a TSX Venture company and a reporting issuer in Canada, since July 2006. Mr. Musil has
been the Chief Financial Officer and secretary of Highbank Resources Ltd., a TSX Venture company and a reporting issuer in Canada, since December 1988.

---

45

We believe Mr. Musil is qualified to serve on our board of directors because of his knowledge of our company’s history and current operations, which he gained from working for our company as described above, in addition to his education and
business experience as described above.

John Guilbert – Director

Dr. Guilbert was appointed as one of our directors on February 5, 2004. Dr. Guilbert is a Professor Emeritus at the University of Arizona and is a world-renowned geologist and author of the book The Geology of Ore Deposits, a popular 900 page text
used throughout the world and a co-developer of the Lowell-Guilbert porphyry copper model and recipient of two mining awards, the R.A.F. Penrose Medal and the D.C. Jackling Award. These gold medal awards, the most coveted in American Mining, were
awarded back-to-back in seccesive years. Dr. Guilbert has served as a director of Excellon Inc. a Vancouver Stock Exchange listed company from 1992 – 1996. Dr. Guilbert has served as a Board Chairman and director for JABA Inc., an Alberta
Stock Exchange (later CDNX then TSX) listed company from 1996 – 2002.

We believe Dr. Guilbert is qualified to serve on our board of directors because of his knowledge of our company’s history and current operations, which he gained from working for our company as described above, in addition to his education and
business experience as described above.

Keith Brill – Director

Mr. Brill was appointed as one of our directors on December 23, 2009. Mr. Brill received an International Master of Business Administration (IMBA) from the Moore School of Business, University of South Carolina in May 2005. He graduated from the
South Carolina Honors College, University of South Carolina in May 2003 with a Bachelor of Science, magna cum laude, major in Economics and Finance, minor in Spanish. Mr. Brill has been a management consultant with PA Consulting Group, Inc., a
leading global consulting firm, since 2004. He has provided multinational Fortune 500 companies with consulting advice on topics including cost reduction, operational efficiency, and IT strategy. Mr. Brill has extensive experience in conducting ROI
analysis, developing business cases, and providing strategic financial advice on major business transformation programs.

We believe Mr. Brill is qualified to serve on our board of directors because of his knowledge of our company’s history and current operations, which he gained from working for our company as described above, in addition to his education and
business experience as described above.

Pete O’Heeron – Director

Mr. O’Heeron joined the board in September, 2012. Mr. O’Heeron leads an operational investment group which identifies early stage opportunities in the medical field with strong intellectual property positions. Through his 20+ years of
medical product development experience, Mr. O’Heeron brings together the resources from strategic disciplines necessary to commercialize unique technologies. Prior to founding Advanced Medical Technologies LLC, Mr. O’Heeron founded NeoSurg Technologies, Inc. to develop a minimally invasive access system. As a result of his efforts, NeoSurg Technologies was successful in developing the T2000 Minimally Invasive Access System, the world leader in
reposable surgical instrumentation. Mr. O’Heeron completed the sale of NeoSurg Technologies to CooperSurgical in 2005. Mr. O’Heeron graduated from Texas State University with a BS in Healthcare Administration and a minor in Business
Administration. He received his Masters in Healthcare Administration from the University of Houston. Mr. O’Heeron currently holds 5 patents and has 4 patents pending.

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46

Family Relationships

There are no family relationships among our directors or officers.

Board and Committee Meetings

The board of directors of our company held two formal meetings in the year ended January 31, 2014 and four formal meetings in the year ended January 31, 2013. All proceedings of the board of directors were conducted by resolutions consented to in
writing by all the directors and filed with the minutes of the proceedings of the directors. Such resolutions consented to in writing by the directors entitled to vote on that resolution at a meeting of the directors are, according to the Nevada
General Corporate Law and the By-laws of our company, as valid and effective as if they had been passed at a meeting of the directors duly called and held.

There have been no material changes to the procedures by which our shareholders may recommend nominees to our board of directors during the year ended January 31, 2014. Shareholders may contact our President, James Briscoe, to recommend nominees to
our board of directors.

For the year ended January 31, 2014 our only standing committee of the board of directors was our audit committee. We do not have a nominating committee or a compensation committee.

Audit Committee

Currently our audit committee consists of our entire board of directors. We do not have a separately-designated standing audit committee established in accordance with section 3(a)(58)(A) of the Exchange Act.

During fiscal years ended January 31, 2014 and January 31, 2013, there were no special meetings held by this committee. The business of the Audit Committee was conducted by resolutions consented to in writing by all the members of the board and
filed with the minutes of the proceedings of the board.

Audit Committee Financial Expert

Our board of directors has determined that it does not have a member of its board of directors or audit committee that qualifies as an "audit committee financial expert" as defined in Item 407(d)(5)(ii) of Regulation S-K, or who is "independent" as
the term is used in Item 7(d)(3)(iv) of Schedule 14A under the Securities Exchange Act of 1934, as amended.

We believe that the members of our board of directors are collectively capable of analyzing and evaluating our consolidated financial statements and understanding internal controls and procedures for financial reporting. In addition, we believe that
retaining an independent director who would qualify as an "audit committee financial expert" would be overly costly and burdensome and is not warranted in our circumstances given the early stages of our development and the fact that we have not
generated any material revenues to date.

Involvement in Certain Legal Proceedings

Our directors and executive officers have not been involved in any of the following events during the past ten years:

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47

|1. | any bankruptcy petition filed by or against any business of which such person was a general partner or executive officer either at the time of the bankruptcy or within two years prior to that time;                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
|-- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
|2. | any conviction in a criminal proceeding or being subject to a pending criminal proceeding (excluding traffic violations and other minor offences);                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
|3. | being subject to any order, judgment, or decree, not subsequently reversed, suspended or vacated, of any court of competent jurisdiction, permanently or temporarily enjoining, barring, suspending or otherwise limiting his
involvement in any type of business, securities or banking activities;                                                                                                                                                                                                                                                                                                                                                                                                             
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
|4. | being found by a court of competent jurisdiction (in a civil action), the Commission or the Commodity Futures Trading Commission to have violated a federal or state securities or commodities law, and the judgment has not been
reversed, suspended, or vacated.                                                                                                                                                                                                                                                                                                                                                                                                                                               
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
|5. | being the subject of, or a party to, any federal or state judicial or administrative order, judgment, decree, or finding, not subsequently reversed, suspended or vacated, relating to an alleged violation of: (i) any federal or
state securities or commodities law or regulation; or (ii) any law or regulation respecting financial institutions or insurance companies including, but not limited to, a temporary or permanent injunction, order of disgorgement or restitution, civil
money penalty or temporary or permanent cease- and-desist order, or removal or prohibition order; or (iii) any law or regulation prohibiting mail or wire fraud or fraud in connection with any business entity; or,
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
|6. | being the subject of, or a party to, any sanction or order, not subsequently reversed, suspended or vacated, of any self- regulatory organization (as defined in Section 3(a)(26) of the Securities Exchange Act of 1934), any
registered entity (as defined in Section 1(a)(29) of the Commodity Exchange Act), or any equivalent exchange, association, entity or organization that has disciplinary authority over its members or persons associated with a member.                                                                                                                                                                                                                                           

Section 16(a) Beneficial Ownership Compliance

Section 16(a) of the Securities Exchange Act requires our executive officers and directors, and persons who own more than 10% of our common stock, to file reports regarding ownership of, and transactions in, our securities with the Securities and
Exchange Commission and to provide us with copies of those filings. Based solely on our review of the copies of such forms received by us, or written representations from certain reporting persons, we believe that during the year ended January 31,
2014, all filing requirements applicable to its officers, directors and greater than 10% percent beneficial owners were complied with.

Code of Ethics

Effective March 15, 2004, our company's board of directors adopted a Code of Business Conduct and Ethics that applies to, among other persons, our company's president and secretary (being our principal executive officer, principal financial officer
and principal accounting officer), as well as persons performing similar functions. As adopted, our Code of Business Conduct and Ethics sets forth written standards that are designed to deter wrongdoing and to promote:

|1. | honest and ethical conduct, including the ethical handling of actual or apparent conflicts of interest between personal and professional relationships;                                                    
|-- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|   |                                                                                                                                                                                                            
|2. | full, fair, accurate, timely, and understandable disclosure in reports and documents that we file with, or submit to, the Securities and Exchange Commission and in other public communications made by us;
|   |                                                                                                                                                                                                            
|3. | compliance with applicable governmental laws, rules and regulations;                                                                                                                                       
|   |                                                                                                                                                                                                            
|4. | the prompt internal reporting of violations of the Code of Business Conduct and Ethics to an appropriate person or persons identified in the Code of Business Conduct and Ethics; and                      

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48

|5. | accountability for adherence to the Code of Business
      Conduct and Ethics. Our Code of Business Conduct and Ethics requires,
      among other things, that all of our company's Senior Officers commit to
      timely, accurate and consistent disclosure of information; that they
      maintain confidential information; and that they act with honesty and
      integrity.
|-- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

In addition, our Code of Business Conduct and Ethics emphasizes
that all employees, and particularly Senior Officers, have a responsibility for
maintaining financial integrity within our company, consistent with generally
accepted accounting principles, and federal and state securities laws. Any
Senior Officer who becomes aware of any incidents involving financial or
accounting manipulation or other irregularities, whether by witnessing the
incident or being told of it, must report it to our company. Any failure to
report such inappropriate or irregular conduct of others is to be treated as a
severe disciplinary matter. It is against our company policy to retaliate
against any individual who reports in good faith the violation or potential
violation of our company's Code of Business Conduct and Ethics by another.

Our Code of Business Conduct and Ethics was filed with the
Securities and Exchange Commission on March 13, 2004 as Exhibit 14.1 to our
annual report. We will provide a copy of the Code of Business Conduct and Ethics
to any person without charge, upon request. Requests can be sent to: Liberty
Star Uranium & Metals Corp., 5610 E Sutler Ln, Tucson, Arizona 85712.

ITEM 11. EXECUTIVE COMPENSATION

Following are the particulars of all compensation paid or
accruing to our named executive officers for the last two fiscal years ended.

Summary Compensation Table

Name andPrincipal
     Position
    Year
    Salary(US$)
    Bonus(US$)
    StockAwards
     (US$)
    OptionAwards
     (US$)
    NonequityIncentive Plan
     Compensation(US$)
    Non-qualifiedDeferred
     **Compensation**Earnings(US$)
    All Other
     **Compensation**(US$)(1)
    Total(US$)JamesBriscoe,PrincipalExecutiveOfficer,
     CEO, CFO,
     Chairman, President andDirector
    2014    2013
    84,000
    70,000
    Nil
      Nil
    Nil
      Nil
    NilNil
    NilNil
    NilNil
    64,000(2)
    78,000(2)
    $148,000
      $148,000Larry Liang,President &Director
    2014
      2013
    –
      21,965
    NilNil
    NilNil
    NilNil
    NilNil
    NilNil
    –
      $15,625(3)
    –
      $37,590


|(1) | The value of perquisites and other personal benefits,
      securities and property for the officers that do not exceed the lesser of
      $10,000 or 10% of the total of the annual salary and bonus and is not
      reported herein.
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|    |                                                                                                                                                                                                                                         
|(2) | Mr. Briscoes other compensation represents accrued and
      unpaid wages during the twelve months ended January 31, 2013 and 2014 of
      $78,000, and $64,000 respectively.                                                         
|    |                                                                                                                                                                                                                                         
|(3) | Mr. Liangs other compensation represents accrued and
      unpaid wages during the twelve months ended January 31, 2013 of
      $15,625.                                                                                              

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49

Outstanding Equity Awards at Fiscal Year-End

The following table sets forth for each named executive officer
certain information concerning the outstanding equity awards as of January 31,
2014.

Option Awards
    Stock AwardsName
    Number of
     SecuritiesUnderlyingUnexercised
     OptionsExercisable
    Number of
     SecuritiesUnderlying**Unexercised**Options**Unexercisable**
    EquityIncentive
     PlanAwards:Number of
     Securities**Underlying**
     **Unexercised**Unearned
     **Options**
    Option
     ExercisePrice
    Option
     ExpirationDate
    Number of
     Shares orUnits ofStock thatHave
      NotVested
    MarketValue
     of Shares orUnits ofStockthat
      HaveNotVested
    Equity
     IncentivePlanAwards :Number
      ofUnearnedShares,Unitsor
      Other**Rights that**Have Not
     Vested
    Equity
     IncentivePlanAwards :Market
      orPayoutValueof
     **Unearned**Shares,Units
     or Other**Rights that**Have Not
     VestedJames Briscoe
    52,500,000
    Nil
    Nil
    $0.038
    8/10/2015
    Nil
    Nil
    Nil
    NilJames Briscoe
    75,000
    Nil
    Nil
    $0.88
    5/21/2018
    Nil
    Nil
    Nil
  Nil


COMPENSATION PLANS

As of January 31, 2014, we had three compensation plans in
place, entitled "2004 Stock Option Plan", 2007 Stock Option Plan and 2010
Stock Option Plan. These plans have been approved by our security holders.
These plans have been given retroactive effect of the 1 for 4 reverse stock
split on September 1, 2009.

Plan category
    Total number of
     securities authorized
    Number of securities to
     be issued upon exerciseof outstanding options
     as at January 31, 2014(a)
    Weighted-average
     exercise price ofoutstanding options asat
      January 31, 2014(b)
    Number of securitiesremaining
      available forfurther issuance as atJanuary 31,
      2014(excluding securitiesreflected in column
      (a))(c)2004 Stock Option Plan
    962,500
    929,624
    $1.07
    32,8762007 Stock Option Plan
    2,500,000
    2,450,000
    $0.86
    50,0002010 Stock Option Plan
    95,500,000
    83,000,000
    $0.036
  12,500,000


On September 5, 2013, we granted incentive stock options and
non-qualified stock options to certain of our directors, officers, employees and
consultants to purchase an aggregate of 7,423,624 shares of our common stock at
an exercise price of $0.03 per share, with a ten year term expiring on September
5, 2023. The options have various vesting terms.

Long-Term Incentive Plans

There are no arrangements or plans in which we provide pension,
retirement or similar benefits for directors or executive officers, except that
our directors and executive officers receive stock options at the discretion of
our Board. We do not have any material bonus or profit sharing plans pursuant to
which cash or non-cash compensation is or may be paid to our directors or
executive officers, except that stock options may be granted at the discretion
of our Board.

---

50

We have no plans or arrangements in respect of remuneration
received or that may be received by our executive officers to compensate such
officers in the event of termination of employment (as a result of resignation,
retirement, change of control) or a change of responsibilities following a
change of control, where the value of such compensation exceeds $60,000 per
executive officer.

Employment Contracts

We have not entered into any written employment agreements or
compensation arrangements with any of our named executive officers. We have
entered into a verbal agreement with James Briscoe, CEO, CFO and Director for
annual salary of $148,000.

On August 28, 2013, Larry Liang, resigned as the president and
a director of our company. On the same date, we appointed James Briscoe as
president of our company until a replacement is named.

Compensation of Directors

We have no formal plan for compensating our directors for their
service in their capacity as directors, although such directors are expected in
the future to receive stock options to purchase common stock as awarded by our
board of directors or (as to future stock options) a compensation committee
which may be established. Directors are entitled to reimbursement for reasonable
travel and other out-of-pocket expenses incurred in connection with attendance
at meetings of our board of directors. Our board of directors may award special
remuneration to any director undertaking any special services on our behalf
other than services ordinarily required of a director. No director received
and/or accrued any compensation for their services as a director, including
committee participation and/or special assignments.

Incentive stock options were granted to directors during the
fiscal year ended January 31, 2014. There was no compensation paid or accruing
to any director, unless such director is also a named executive officer, during
the fiscal year ended January 31, 2014.

Name
    Year
    FeesEarned orPaid
      inCash(US$)
    StockAwards
     (US$)
    OptionAwards
     (US$)
    NonequityIncentive
     PlanCompensation(US$)
    Non-qualifiedDeferred
     CompensationEarnings(US$)
    All Other
     Compensation(US$)(1)
    Total(US$)John Guilbert
    2014
    Nil
    Nil
    Nil
    Nil
    Nil
    Nil
    $0Gary Musil
    2014
    Nil
    Nil
    Nil
    Nil
    Nil
    Nil
    $0Keith Brill
    2014
    Nil
    Nil
    Nil
    Nil
    Nil
    Nil
    $0Pete O'Heeron
    2014
    Nil
    $165,405
    Nil
    Nil
    Nil
    Nil
  $165,405


(1)The value of perquisites and other personal
benefits, securities and property for the officers that do not exceed the lesser
of $10,000 or 10% of the total of the annual salary and bonus and is not
reported herein.

ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND
MANAGEMENT AND RELATED STOCKHOLDER MATTERS.

We have set forth in the following table certain information
regarding our common stock beneficially owned on January 31, 2014 for (i) each
shareholder we know to be the beneficial owner of 5% or more of our outstanding
common stock, (ii) each of our executive officers and directors, and (iii) all
executive officers and directors as a group. In general, a person is deemed to
be a "beneficial owner" of a security if that person has or shares the power to
vote or direct the voting of such security, or the power to dispose or to direct
the disposition of such security. A person is also deemed to be a beneficial
owner of any securities of which the person has the right to acquire beneficial
ownership within 60 days. All percentages are calculated based upon a total
number of 830,236,231 shares of common stock issued and outstanding as of
January 31, 2014, plus, in the case of the individual or entity for which the calculation is made, that number of options or
warrants owned by such individual or entity that are currently exercisable or
exercisable within 60 days.

---

51

Name and Address of BeneficialOwner
    Amount and Nature ofBeneficial
      Ownership
    Percentageof
      Class(1)James Briscoe5610 E Sutler Lane
     Tucson AZ 85712USA
    54,762,500 (2)(3)
    6.20%Gary Musil3577 Marshall Street
     Vancouver BC V5N 4S2Canada
    7,547,000(3)
    0.90%John Guilbert961 E Linda Vista Blvd.
     Tucson AZ 85727USA
    15,052,500(3)
    1.78%


Name and Address of BeneficialOwner
    Amount and Nature ofBeneficial
      Ownership
    Percentageof
      Class(1)Keith Brill250 Central Ave Apt B204
     New York, NY 11559USA
    2,500,000(3)
    0.30%Pete OHeeron17300 El Camino Real #110
     Houston, TX 77058USA
    7.767,973(3)
    0.93%Cede & CompanyPO Box 20Bowling
      Green StationNew York, NY 10274
    784,240,218
    94.46%Directors and Executive Officers as a
     Group
    87,629,973
  9.59%


|(1) | Based on 830,236,231 shares of common stock issued and
      outstanding as of January 31, 2014. Beneficial ownership is determined in
      accordance with the rules of the Securities and Exchange Commission and
      generally includes voting or investment power with respect to securities.
      Except as otherwise indicated, we believe that the beneficial owners of
      the common stock listed above, based on information furnished by such
      owners, have sole investment and voting power with respect to such shares,
      subject to community property laws where applicable.
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
|(2) | There are 2,187,500 shares that are held by Alaska Star
      Minerals LLC. James Briscoe beneficially owns 100% of the membership
      interest in Alaska Star Minerals LLC. There are 52,575,000 incentive stock
      options granted to James Briscoe under the 2004, 2007 and 2010 stock
      option plans that are exercisable at January 31, 2014.                                                                                                                                                                                                                                               
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
|(3) | Includes incentive stock options granted under the 2004,
      2007 and 2010 stock option plans that are
exercisable at January 31, 2014.                                                                                                                                                                                                                                                                                                                                                                                                                                                                 

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52

ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND
DIRECTOR INDEPENDENCE.

Certain Relationships and Related Transactions

We have not been a party to any transaction, proposed
transaction, or series of transactions in which the amount involved exceeds
$60,000, and in which, to our knowledge, any of our directors, officers, five
percent beneficial security holder, or any member of the immediate family of the
foregoing persons has had or will have a direct or indirect material interest.

Director Independence

We have no directors who meet the definition set forth in Rule
5605(a)(2) of the Listing Rules of the NASDAQ, which defines an independent
director generally as a person other than an executive officer or employee of
the company, or any other individual having a relationship which, in the opinion
of the companys board of directors, would interfere with the exercise of
independent judgment in carrying out the responsibilities of a director.

ITEM 14. PRINCIPAL ACCOUNTANTS FEES AND SERVICES

Audit Fees

On January 28, 2013, the Board of Directors of our company
dismissed by mutual agreement, Semple, Marchal & Cooper, LLP, as its
principal independent accountant. On January 28, 2013, we engaged Malone Bailey
LLP as our principal independent accountant. The audit committee of our company
approved the dismissal of Semple, Marchal & Cooper, LLP and the engagement
of Malone Bailey LLP as its independent auditor. We incurred $20,000 in fees
from Malone Bailey LLP during the fiscal year ended January 31, 2013.

For the fiscal year ended January 31, 2013, the aggregate fees
billed by Semple, Marchal & Cooper, LLP for professional services rendered
for the audit of our annual consolidated financial statements included in our
annual report on Form 10-K and for the reviews of our consolidated financial
statements included in Forms 10-Q were $85,270. For the fiscal year ended
January 31, 2012, the aggregate fees billed by Semple, Marchal & Cooper, LLP
for professional services rendered for the audit of our annual consolidated
financial statements included in our annual report on Form 10-K and for the
reviews of our consolidated financial statements included in Forms 10-Q were
$62,228.

For the fiscal year ended January 31, 2014, the aggregate fees
billed by Malone Bailey, LLP for professional services rendered for the audit of
our annual consolidated financial statements included in our annual report on
Form 10-K and for the reviews of our consolidated financial statements included
in Forms 10-Q were $20,000.

Audit Related Fees

For the fiscal year ended January 31, 2014, the aggregate fees
billed for assurance and related services by Malone Bailey, LLP relating to the
performance of the audit of our consolidated financial statements which are not
reported under the caption "Audit Fees" above, was $0.

For the fiscal year ended January 31, 2013, the aggregate fees
billed for assurance and related services by Semple, Marchal & Cooper, LLP
relating to the performance of the audit of our consolidated financial
statements which are not reported under the caption "Audit Fees" above, was $0.

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53

Tax Fees

For the fiscal years ended January 31, 2014 and 2013, there
  were no aggregate fees billed by Malone Bailey, LLP for other non-audit
  professional services, other than those services listed above, was $0.

For the fiscal years ended January 31, 2013, the aggregate fees
billed by Semple, Marchal & Cooper, LLP for other non-audit professional
services, other than those services listed above, was $0.

All Other Fees

We do not use and audit firm for financial information system
design and implementation. These services, which include designing or
implementing a system that aggregates source data underlying the financial
statements or generates information that is significant to our consolidated
financial statements, are provided internally or by other service providers. We
do not engage an audit firm to provide compliance outsourcing services.

Effective May 6, 2003, the Securities and Exchange Commission
adopted rules that require that before our auditors are engaged by us to render
any auditing or permitted non-audit related service, the engagement be:

- approved by our audit committee (which consists of our entire board of
  directors); or
- entered into pursuant to pre-approval policies and procedures established
  by the board of directors, provided the policies and procedures are detailed
  as to the particular service, the board of directors is informed of each
  service, and such policies and procedures do not include delegation of the
  board of directors' responsibilities to management.

The board of directors pre-approves all services provided by
our independent auditors. All of the above services and fees were reviewed and
approved by the board of directors before the respective services were rendered.

The board of directors has considered the nature and amount of
fees billed by Malone Bailey, LLP and Semple, Marchal & Cooper, LLP and
believes that the provision of services for activities unrelated to the audit is
compatible with maintaining Malone Bailey, LLPs independence.

ITEM 15 EXHIBITS, FINANCIAL STATEMENT SCHEDULES

ExhibitNumber
    Description of Exhibit3.1
    Articles of
      Incorporation13.2
    Bylaws 23.3
    Certificate of Change to
Authorized Capital 3


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54

ExhibitNumber
    Description of Exhibit3.4
    Articles of Merger 310.1
    Letter Agreement dated November
      14, 2011 with Northern Dynasty 410.2
    Form of Investment Agreement
      dated January 19, 2012 with Fairhills Capital Offshore Ltd 510.3
    Form of Registration Rights
      Agreement dated January 19, 2012 with Fairhills Capital Offshore Ltd
  510.4
    Form of Subscription Agreement
      610.5
    Form of Stock Option Agreement
      710.6
    Form of Warrant Certificate
      810.7
    Settlement Agreement dated
      November 13, 2012 with Northern Dynasty Minerals Ltd. 914.1
    Code of Ethics321.1
    Subsidiaries: Big Chunk Corp31.1*
    Section 302 Certification under
      Sarbanes-Oxley Act of 2002 of James Briscoe32.1*
    Section 906 Certification under
      Sarbanes-Oxley Act of 2002 of James Briscoe101.INS
    XBRL INSTANCE DOCUMENT 10101.SCH
    XBRL TAXONOMY EXTENSION SCHEMA  10101.CAL
    XBRL TAXONOMY EXTENSION
      CALCULATION LINKBASE 10101.DEF
    XBRL TAXONOMY EXTENSION
      DEFINITION LINKBASE 10101.LAB
    XBRL TAXONOMY EXTENSION LABEL
      LINKBASE 10101.PRE
    XBRL TAXONOMY EXTENSION
      PRESENTATION LINKBASE 10


* Filed herewith.

__________________________________________1Filed as an exhibit to our Registration Statement on Form SB-2, filed with
the SEC on May 14, 2002.2Filed as an exhibit to our Quarterly
Report on Form 10-QSB, filed with the SEC on December 14, 2007.3Filed as
an exhibit to our Current Report on Form 8-K, filed with the SEC on September 1,
2009.4Filed as an exhibit to our Current Report on Form 8-K,
filed with the SEC on November 25, 2011.5Filed as an exhibit to
our Current Report on Form 8-K, filed with the SEC on January 19, 2012.
6Filed as an exhibit to our Current Report on Form 8-K, filed
with the SEC on December 13, 2011.7Filed as an exhibit to our
Current Report on Form 8-K, filed with the SEC on January 23, 2012.8Filed as an exhibit to our Current Report on Form 8-K, filed with the SEC
on July 30, 2012.9Filed as an exhibit to our Current Report on
Form 8-K, filed with the SEC on November 15, 2012.10Filed  as an exhibit to our Annual Report on Form 10-K, filed with the SEC on May 16,  2014.

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55

SIGNATURES

In accordance with Section 13 or 15(d) of the Exchange Act, the
registrant caused this report to be signed on its behalf by the undersigned,
thereunto duly authorized.

LIBERTY STAR URANIUM & METALS CORP.

By: /s/ James A. Briscoe

James A. BriscoeChief Executive Officer, Director and
Chief Financial Officer(Principal Executive Officer)(Principal
Financial Officer and Principal Accounting Officer)
Dated: April 21, 2015

Pursuant to the requirements of the Exchange Act, this report
has been signed below by the following persons on behalf of the registrant and
in the capacities and on the dates indicated.

By: /s/ James A. Briscoe

James A. BriscoeChief Executive Officer, Director
andChief Financial Officer(Principal Executive Officer)(Principal
Financial Officer and Principal Accounting Officer)
Dated: April 21, 2015

|By: /s/ John Guilbert | By: /s/ Gary Musil    
|--------------------- | ----------------------
|                      |                       
|Dr. John Guilbert     | Gary Musil            
|Director              | Secretary and Director
|Dated: April 21, 2015 | Dated: April 21, 2015 
|                      |                       
|                      |                       
|By: /s/ Pete O'Heeron | By: /s/ Keith Brill   
|                      |                       
|Pete O'Heeron         | Keith Brill           
|Director              | Director              
|Dated: April 21, 2015 | Dated: April 21, 2015 

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