ASX ANNOUNCEMENT

8th August 2016 Electronic lodgement

COMPANY SNAPSHOT

LODESTAR MINERALS LIMITED ABN: 32 127 026 528

CONTACT DETAILS

Bill Clayton, Managing Director

+61 8 9423 3200

Registered and Principal OfficeLevel 2, 55 Carrington Street

Nedlands, WA 6009

PO Box 985

Nedlands, WA, 6909 [email protected]u www.lodestarminerals.com.au

CAPITAL STRUCTURE

Shares on Issue:

386,224,233 (LSR)

Options on Issue:

43,550,127 (unlisted)

ASX: LSR

PROJECTS

Peak Hill - Doolgunna: Camel Hills - gold Neds Creek - gold Marymia - gold

Imbin - gold and base metals

Gold Target Extended at Brumby

HIGHLIGHTS

• Rock sampling returns up to 2.08g/t gold from a new zone of mineralisation at Brumby.

• Anomalous rock samples overlap with a >50ppb gold lag geochemical anomaly extending for 400m.

• Anomaly represents a significant new drill target east of previous aircore drilling.

• Samples from earlier RC drill hole at Brumby submitted for assaying.

West Australian gold explorer Lodestar Minerals Limited (ASX:LSR; "Lodestar" or "the Company") advises that detailed mapping of the Contessa granite and the Brumby prospect has resulted in the discovery of new gold anomalous rock chip samples in an area where lag sampling completed in 2013 reported values greater than 0.1g/t gold along a 400m trend. The Brumby prospect is located within Lodestar's 100% - owned Ned's Creek project on the northern Yilgarn margin, 170 km north of Meekatharra, Western Australia and 4.7km west of the Contessa gold prospect (see Figure 1).

Recent mapping of the Contessa granite, completed by Lodestar's geological consultant, Dr Walter Witt, has identified new gold anomalous rock samples in an area of limited outcrop, located east of Lodestar's drilling (see Figure 2).

At Brumby, the granite consists predominantly of two types of intrusive: a granodiorite-monzogranite located on the western extremity of the intrusion, enclosing two outcrops of syenite, and alkali granite which comprises the majority of the eastern interior of the granite. A 300m wide, north west trending transition zone of mixed composition (the central zone) separates these two dominant intrusions. The new gold

occurrence is located on the eastern margin of the central zone, parallel to the strongly developed northwest structural trend that may act as a local control on gold mineralisation.

Figure 1 Location Plan showing the Brumby gold prospect on the Ned's Creek project.

Figure 2 Geology map showing target outline east of current drilling.

Wide-spaced aircore drilling completed in 2013 reported low-level gold anomalism with higher grade intersections from the central zone1.

• LNR568 - 9m at 0.59g/t gold from 25m, including 1m at 1.59g/t gold from 29m

• LNR579 - 8m at 0.23g/t gold from 25m

• LNR581 - 9m at 0.27g/t gold from 16m and

• LNR598 - 1m at 6.24g/t gold from 13m; 1m at 18.4g/t gold from 15m and 7m at 0.46g/t gold from 18m.

Within the target area mineralised rock samples contain limonite (iron oxide) as disseminated relicts and veinlets in weathered granite, suggesting that gold occurs with disseminated sulphides. High grade gold associated with minor outcropping sulphide-rich quartz veins has also been discovered in the central zone2.

The granite composition, style of mineralisation and metal association seen at Brumby, although unusual, is similar to high-level, intrusion-related (I-type or mafic granite-related) gold systems and syenites that show a close spatial relationship with gold in the Yilgarn Craton (e.g. the 8Moz Wallaby deposit and Dacian Gold Limited's Jupiter gold prospect). These deposits characteristically have a strong structural control on the emplacement of intrusions and related mineralisation.

The discovery of gold mineralisation in the eastern domain is further evidence of a widespread mineralising event and there is considerable potential for several styles of gold mineralisation to occur in the Contessa-Brumby area. An extensive drilling program to test targets at Brumby and on the granite margins will be planned.

Shareholders are advised that samples from the hole completed at Brumby in early July and from the final hole from the four hole program at Contessa, have been submitted for assaying. Weather conditions in the region had delayed the transport of the samples from site; however the samples were retrieved in the first week of August. Assay results are expected in the second half of this month.

Bill Clayton Media Enquiries

Managing Director Michael Vaughan, Fivemark Partners [email protected] m: +61 422 602 720

1 See Lodestar's ASX announcement dated 30th April 2013.

2 See Lodestar's ASX announcement dated 27th November 2012.

P a g e | 3

Table 1: Rock chip assay results - Brumby Prospect.

Competent Person Statement

The information in this report that relates to Exploration Results is based on information compiled by Bill Clayton, Managing Director, who is a Member of the Australasian Institute of Geoscientists and has sufficient experience of relevance to the styles of mineralisation and the types of deposits under consideration, and to the activities undertaken, to qualify as a Competent Person as defined in the 2012 Edition of the Joint Ore Reserves Committee (JORC) Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Mr Clayton consents to the inclusion in this report of the matters based on the information in the form and context in which it appears.

The information in this announcement that relates to previously released exploration results was disclosed under JORC 2004 in the ASX announcement dated 27 November 2012, "Encouraging Gold Results from Brumby Quartz Vein System" and JORC 2012 in the ASX announcement dated 30 April 2013, "March 2013 Quarterly Activities and Cash Flow Report". These announcements are available to view on the Lodestar website. The company confirms that it is not aware of any new information or data that materially affects the information included in the original market announcement. The company confirms that the form and context in which the Competent Person's findings are presented have not been materially modified from the original market announcement.