ASX ANNOUNCEMENT

historic

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:

352,157,030 (LSR)

Options on Issue:

43,550,127 (unlisted)

34,067,203 (listed - 31 Mar 2016)

ASX: LSR

PROJECTS

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

Imbin - gold and base metals

27th January 2016 Electronic lodgement

MARYMIA DRILLING RESULTS AND CAMEL HILLS UPDATE

HIGHLIGHTS

• First-pass aircore drilling of three gold targets at Marymia returned numerous lower grade intervals from 5 metre composite assays including:

  o 5 metres at 0.45g/t gold from 45 metres (hole LMR047); o 5 metres at 0.11g/t gold from 30 metres (LMR055); and o 5 metres at 0.1g/t gold from 25 metres (LMR046).

• Drilling intersected a complex, deformed geological sequence including discrete, intensely sheared intervals with associated alteration and oxidised relicts after disseminated sulphides; features that are characteristic of the Archaean lode gold environment.

• Detailed geochemical, structural and aeromagnetic analysis to be undertaken to further understand the gold targets at Marymia.

• Results from auger drill program completed at Big Sky prospect at Camel Hills to follow-up previous high-grade RC drill results expected this week.

West Australian gold and base metals explorer Lodestar Minerals Limited (ASX:LSR, "Lodestar" or "the Company") advises that assay results from the first-pass aircore drilling of the Marymia gold targets within the Ned's Creek project, have been received.

The targets are located on Marymia tenements E52/2734 and E52/2493, which include the southern margin of the Plutonic Well greenstone belt, located 200 kilometres northeast of Meekatharra, Western Australia (Figure 1) and south of the historic Marymia gold mine.

Marymia drill targets

Figure 1 Location plan showing area of Marymia drilling within Lodestar's Ned's Creek project tenements.

A total of 59 aircore holes for 3,464 metres tested three adjacent targets (Figures 2 and 3 and Tables 1 and 2) at Marymia. Holes were completed to blade refusal with an average depth of 58 metres achieved. Drilling was completed on traverses between 60 metres and 100 metres apart with holes spaced an average of 40 metres apart on section. This was a first-pass drilling program designed to test areas of anomalous surface geochemistry and an area where gold specimens have been recovered at surface.

Table 1 Anomalous Aircore Drill Intersections

Drilling in Areas A and B intersected discrete zones of intense shearing, silica, chlorite and biotite alteration and iron oxides after disseminated sulphide mineralisation. Widespread elevated copper to a maximum 2,460ppm (0.246% Cu) is associated with the gold anomalies in Area A drilling. Together, these features suggest proximity to a major shear and hydrothermal system in which economic mineralisation may be present.

Area C is located within a 1,000 metre long de-magnetised zone and appears more deeply weathered than Areas A and B. Area C also displays evidence of localised chlorite alteration and iron oxide pseudomorphs after disseminated sulphides.

Planned follow-up work will aim to determine the relationship between structures, alteration and the gold anomalies using multi-element geochemical indices to map the intensity of alteration and identify host rocks. Detailed (25 metre line spacing) aeromagnetic data will be re-processed to assist the interpretation of the structural setting of these initial gold targets, and the wider project area, in comparison to the nearby deposits of the Plutonic Well greenstone belt.

Anomalous intervals from the aircore drilling will be re-sampled as 1 metre split samples from the bagged samples and submitted for assay.

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Figure 2: Location plan of aircore drill hole collars (MGA94 Zone 50)