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 info@lodestarminerals.com.au www.lodestarminerals.com.au

CAPITAL STRUCTURE

Shares on Issue:

334,579,909 (LSR)

Options on Issue:

20,750,000 (unlisted) 36,044,068 (listed ‐ 31 Mar 2016)

ASX: LSR

PROJECTS

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

Imbin - gold and base metals

7 October 2015 Electronic lodgement

MARYMIA EXPLORATION UPDATE

HIGHLIGHTS

• 3,000m RAB drilling program to test Marymia gold and multi‐ element geochemical anomalies.

  
  

• The anomalies lie beyond the limit of historic systematic drilling, approximately 1.2 kilometres to the north west.

  
  

• Located on southern margin of the Plutonic Well Greenstone Belt, and 32 kilometres east of the Plutonic Gold Mine, within a prolific gold producing terrane.

  
  

• Program of Work and heritage clearances have been submitted for approval.

West Australian gold and base metals explorer Lodestar Minerals Limited (ASX: LSR; Lodestar or the Company) advises that initial reconnaissance RAB drilling is planned to test recently identified gold targets on Marymia tenements E52/2734 and E52/2493. The Marymia tenements form part of Lodestar's Ned's Creek project, located 170 kilometres north of Meekatharra and cover approximately 5 kilometres of strike along the tectonic southern margin of the Plutonic Well Greenstone Belt. The newly identified gold prospect is located 32 kilometres east of the Plutonic Gold Mine operated by Northern Star Resources Limited (Figure 1).

Marymia gold target

Figure 1 Location plan showing Lodestar's Ned's Creek project tenements and Marymia gold target.

RAB drilling will initially test an area of 2 square kilometres in which ironstone and quartz‐haematite veining reported anomalous gold to 1.5g/t Au in surface sampling (Figure 2). The area has limited exposure, is deeply weathered and strongly deformed; Lodestar's planned drilling will be the first to test the basement geology in this area.

The target is located in a major gold province with combined production and resources in the Marymia area exceeding 1.3Moz Au. The drilling will test a zone of magnetic complexity where the dominant northeast structural trend is deflected into an east‐ west orientation. If these structures were active at the time of gold mineralisation they can represent significant regional exploration targets as dilational zones that focus the flow of mineralised fluids. The presence of quartz‐haematite breccia veining and sericite and/or biotite alteration noted in mapping provides supporting evidence for a significant hydrothermal system within the target area.

Lodestar has submitted a program of work to meet statutory and heritage requirements and intends to commence drilling at the earliest opportunity, once approvals have been received.

Marymia gold target

Figure 2 Marymia gold target showing gold endowment (production and resources), background magnetic image RTP 1VD, MGA94 Zone 50.

* see Dampier Gold (ASX:DAU) ASX release dated14th October 2013.

**see Ord River Resources/ Vango Mining (ASX:VAN) ASX release dated 1st October 2014.

*** see Northern Star Resources (ASX:NST) ASX release dated 23rd December 2013.

Bill Clayton

Managing Director

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.

About Lodestar Minerals

Lodestar Minerals Limited is a Perth‐based active explorer with projects in the Peak Hill district and bordering the northern Yilgarn or Capricorn margin. The Ned's Creek project forms the core of Lodestar's project portfolio and represents a strategic landholding of 830 square kilometres over the north eastern margin of the Yerrida Basin and the Jenkin Fault, a fundamentally significant regional fault system that is adjacent to the DeGrussa Cu‐Au deposit.

The Ned's Creek tenements are located 170 kilometres north east of Meekatharra, 7 kilometres east of the Thaduna‐ Green Dragon copper mines being evaluated by Ventnor Resources and Sandfire Resources and 5 kilometres east of Sandfire Resources and Sipa Resources' Enigma copper discovery. The Yerrida Basin contains thick volcano‐ sedimentary sequences that are bounded by major structures, the Jenkin and McDonald Well Faults and there is good potential for large‐scale base metal and gold mineralisation adjacent to these structures.

In 2013 Lodestar discovered significant gold mineralisation at the Contessa prospect. Contessa lies within a 5 kilometre long gold anomaly overlying Archaean greenstone, on the southern margin of the Marymia inlier. Lodestar believes that this structural position marks a major crustal break, a highly favourable environment for magma‐ driven metal accumulation during cyclic reactivation of a former continental margin represented by the northern boundary of the Yilgarn Craton.

The region has potential to host a number of styles of base metal and gold deposits and Lodestar has embarked on an aggressive exploration program to assess the potential of the Ned's Creek project. Recent exploration by Lodestar on its Marymia tenements has located gold anomalies on the southern margin of the Plutonic Well Greenstone Belt, a prolific gold producing province.

The exploration concepts developed on the Ned's Creek project have been applied elsewhere along the northern margin of the Yilgarn Craton, specifically targeting palaeo‐arc and back arc settings at Camel Hills and Imbin where historic exploration has identified gold and copper mineralisation, respectively. Early exploration of the Camel Hills tenements has yielded significant gold anomalies in shallow trenching at Big Sky. The Imbin tenements host extensive copper - gold geochemical anomalies in rocks related to a back‐arc environment believed to be of similar age to the Bryah Basin. The Imbin tenements have received very limited exploration in comparison.

Lodestar's projects on the Capricorn Margin