Classes from project cannot be found

This is starting to really mess my mind.

I have create a simple project, in Android Studio, that is only the initial Activity that it generates.

To this, I add a module which defines a single Class, Util, ad use its method in my activity.

When I try to build I get the following error:

CoreTest/app/src/main/java/com/foo/core/Example.java:17: error: cannot find symbol
         message = Util.findById(this, R.id.hello);
                   ^
   symbol:
 variable Util
   location: class Example
 1 error

My settings.properties looks like:

include ':app', ':core'
project(':core').projectDir = new File('core')

the root build.gradle is nothing special

the app/build.gradle is

apply plugin: 'com.android.application'
  android {
    compileSdkVersion 20
    buildToolsVersion "20.0.0"
      defaultConfig {
        applicationId "com.medweb.core"
        minSdkVersion 16
        targetSdkVersion 20
        versionCode 1
        versionName "1.0"
    }
    buildTypes {
        release {
            runProguard false
            proguardFiles getDefaultProguardFile('proguard-android.txt'), 'proguard-rules.pro'
        }
    }
}
  dependencies {
    compile fileTree(dir: 'libs', include: ['*.jar'])
    compile project(':core')
}

and the core/build.gradle is nothing special either:

apply plugin: 'com.android.application'
  android {
    compileSdkVersion 20
    buildToolsVersion "20.0.0"
      defaultConfig {
        applicationId "com.medweb.core"
        minSdkVersion 16
        targetSdkVersion 20
        versionCode 1
        versionName "1.0"
    }
    buildTypes {
        release {
            runProguard false
            proguardFiles getDefaultProguardFile('proguard-android.txt'), 'proguard-rules.pro'
        }
    }
}
  dependencies {
    compile fileTree(dir: 'libs', include: ['*.jar'])
}

I’ve gone through the debug logs and I find this line [org.gradle.api.internal.tasks.compile.NormalizingJavaCompiler] Compiler arguments: -source 1.6 -target 1.6 -d /Users/me/android/test/app/build/intermediates/classes/debug -g -encoding UTF-8 -bootclasspath /Applications/Android Studio.app/sdk/platforms/android-20/android.jar -classpath /Users/me/android/test/core/build/outputs/apk/core-release-unsigned.apk /Users/me/android/test/app/src/main/java/com/foo/core/Example.java /Users/me/android/test/app/build/generated/source/r/debug/com/foo/core/R.java /Users/me/android/test/app/build/generated/source/buildConfig/debug/com/foo/core/BuildConfig.java

and so I go to core-release-unsigned.apk and run dedexer on the classes.dex and I find that my Utils class is defined in there, as are its methods.

So what am I doing wrong?