ASX ANNOUNCEMENT

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

9th May 2016 Electronic lodgement

IP SURVEY UNDERWAY AT CONTESSA GOLD PROSPECT

• Detailed gradient array IP geophysical survey underway and aeromagnetic survey completed at Contessa.

• IP survey testing 3km area of the Contessa shear zone where previous drilling has intersected extensive supergene gold mineralisation.

• IP survey designed to identify areas of gold-bearing sulphide mineralisation in areas showing high chargeability and co-incident magnetic lows.

• Results will increase geological understanding of the Contessa area and improve drill targeting.

West Australian gold explorer Lodestar Minerals Limited (ASX:LSR, "Lodestar" or "the Company") advises that a detailed gradient array induced polarisation (IP) survey has commenced at the Contessa gold prospect on the Company's 100%-owned Ned's Creek project (see Figure 1), located 170 km north of Meekatharra, Western Australia.

Contessa is located at a major structural discontinuity between Archaean basement of the Kalgoorlie Terrane and the Marymia Inlier. A complex geology lies within the north east-trending, gold mineralised shear zone, including mafic-ultramafic units and ellipsoidal, gold-bearing diorite and granite intrusions. Outcrop of the target sequence adjacent to the sheared southern granite margin is poor and large areas remain untested by drilling.

The large size of the Contessa anomaly and the association of sulphide- hosted gold mineralisation with pyrite, recognised in Lodestar's RC drill program in 2014, indicate that detailed aeromagnetic and IP surveys can be cost-effective methods for identifying bedrock gold targets.

Figure 1 Location of Contessa gold prospect, Ned's Creek project.

Aircore drilling of a Bi-Mo lag sampling anomaly at Contessa in mid-2013 encountered extensive supergene gold mineralisation including;

• 21m at 3.01g/t gold from 40m in LNR6561,

• 10m at 5.6g/t gold from 55m in LNR533,

• 10m at 1.2g/t gold from 50m in LNR545 and

• 15m at 3.1g/t gold from 40m in LNR546

In 2014 five widely spaced RC drill holes tested beneath the supergene gold mineralisation and intersected zones of silica-pyrite alteration up to 10m thick containing elevated gold, including narrow intervals at >1g/t gold2 (see Figures 2 and 3). The alteration and gold are hosted by a composite diorite intrusion greater than 2km long. The multi-element signature of this alteration contains elevated Mo and Bi and corresponds to the large geochemical anomaly developed near surface (see Table 1).

1 Refer Lodestar's ASX releases dated 18 March 2013 and 4 June 2013.

2 Refer Lodestar's ASX release dated 29 December 2014.

b

Figure 2 IP survey at Contessa gold prospect.

Figure 3 Drill section showing relationship between sulphur distribution (pyrite alteration) and gold mineralisation.

Table 1 Multi-element character of pyrite alteration zones.

Extensive pyritic alteration (locally up to 10% pyrite) is evidence of a large hydrothermal system operating within the intrusion at the time of gold mineralisation and indicates potential for the formation of economic lode-style mineralisation within preferred structural sites.

The IP survey is intended to detect concentrations of sulphides associated with gold mineralisation in the bedrock, as chargeability anomalies. The survey will cover the granite margin and diorite body in detail over a distance of 3km, including the sheared margins that are potential targets for lode style gold mineralisation.

The aeromagnetic survey was carried out over the same area to improve the interpretation of the main structural features and geological units and will assist in the definition of IP targets for follow up drilling.

Lodestar will provide a further update once the data interpretation is completed.

Bill Clayton Media Enquiries:

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