ASX ANNOUNCEMENT

31st March 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 Office Level 2, 55 Carrington Street

Nedlands, WA 6009

PO Box 985

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

CAPITAL STRUCTURE

Shares on Issue:

374,450,548 (LSR)

Options on Issue:

43,550,127 (unlisted)

11,773,685 (listed - 31 Mar 2016)

ASX: LSR

PROJECTS

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

Imbin - gold and base metals

INITIAL GOLD RESULTS FROM BIG SKY RC DRILLING

• Initial assays received for eight of twenty two follow-up RC holes drilled at the Big Sky high-grade gold prospect.

• Partial results from drill holes testing 40 metre strike length in the immediate vicinity of discovery holes LLC011 and LLC0121.

• Anomalous gold to a maximum 0.85g/t reported from target zone, down-dip and along strike from initial high-grade intersections.

• Remaining assay results testing the wider (150 metre) anomalous gold zone at Big Sky expected to be received in April.

West Australian gold explorer Lodestar Minerals Limited (ASX:LSR, "Lodestar" or "the Company") advises that initial results have been received for the follow-up RC drill program at the Big Sky prospect, located within the Company's wholly-owned Camel Hills gold project (Figure 1).

A 22 hole RC program comprising 1525 metres of drilling was completed in March to test the depth and strike extent of high-grade gold intersections reported in LCC011 and LCC012. These previous holes had targeted a surface lode bearing coarse visible gold.

The recent RC program was designed to test an anomalous gold trend extending over a strike of 150 metres identified through auger sampling surrounding the discovery holes. Drilling was conducted to depths of up to 155m.

These initial results are reported from 8 drill holes that cover a 40 metre strike in the immediate vicinity of the high-grade intersections (see collar plan shown in Figure 2).

Anomalous results from the drilling are listed in Table 1 and all assay results are reported in the Annexure.

1 See Lodestar's ASX release dated 20th October 2016.

The distribution of anomalous gold is consistent with the position of the lode as reported in LCC011 and LCC012, within strongly sheared schists adjacent to the contact with the magnetic Petter Calc- silicate unit. The contact is identified by initial appearance of strongly magnetic units. Within this zone there are numerous narrow quartz veins that may carry sulphide and generally post-date the gold mineralisation, making visual identification of the gold system difficult. The holes were logged for magnetic susceptibility to locate the position of the contact.

Big Sky

Figure 1 Location Plan showing Big Sky prospect.

The better results to date are reported from LCC034, drilled directly below LCC012, however the exceptionally high gold grades reported in LCC012 have not been repeated (see section view shown in Figure 3).

The remaining assay results from the RC program are expected to be received during April and will be released to shareholders once received. Lodestar will await the receipt and interpretation of results from the remaining drill holes in order to conduct a more complete assessment of the future potential at Big Sky.

For more information please contact:

Bill Clayton Media Enquires: Michael Vaughan

Managing Director Fivemark Partners

E:[email protected] M: 0422 602 720

Table 1 Significant results in drilling (1m split samples greater than 100ppb (0.1g/t) gold).

Figure 2 Big Sky drill collar plan, showing holes for which assays have been received and drill hole traces (MGA94).