ASX ANNOUNCEMENT

7 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 OfficeLevel 2, 55 Carrington Street Nedlands, WA 6009

PO Box 985

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

RC DRILLING UNDERWAY AT BIG SKY HIGH‐GRADE GOLD TARGET

• RC drill program to test high‐grade gold discovery at the Big Sky target within Camel Hills project has commenced.

• Program consists of 1,400 metres of drilling to depths of up to 160 metres and is expected to take approximately seven days to complete, subject to weather conditions.

• Drilling will target a 150 metre geochemical anomaly surrounding the high‐grade lode discovery.

• On the current schedule assay results are expected to be available by late March.

West Australian gold explorer Lodestar Minerals Limited (ASX:LSR, "Lodestar" or the "Company") advises that RC drilling has started at the Company's 100%‐owned Big Sky gold prospect within the Camel Hills project, 170 kilometres north west of Meekatharra, Western Australia.

A program of 20 holes will test a 150 metre long gold geochemical anomaly defined by close‐spaced auger sampling, as outlined in Lodestar's ASX announcement dated 2 February 2016. Approximately 20 drill holes at an average depth of 70 metres will be completed for 1,400 metres of drilling.

It is anticipated, on the basis of the current schedule, that the first assay results from the program will be available by late March. Lodestar will inform shareholders when the drill program has been completed.

Bill Clayton Michael Vaughan

Managing Director Fivemark Partners [email protected] [email protected] T: +61 8 9423 3200 M: +61 422 602 720

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 2012 in the ASX announcements dated 20th October 2015 "Big Sky RC Drilling Results high‐grade gold" and 2nd February 2016 "Auger sampling extendsBig Sky gold target". 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.

About Camel Hills

The Camel Hills project is located 170 kilometres northwest of Meekatharra and 60 kilometres south and east of Gascoyne Resource's Glenburgh gold deposits (1Moz Au). The Errabiddy Shear Zone is 5 to 20 kilometres wide and is linked at depth to the Cardilya Fault, a major tectonic boundary between the Archaean Narryer Terrane and the accreted Palaeoproterozoic Glenburgh Terrane to the north. Re‐worked craton margins are a favourable location for the formation of world‐class orebodies, including orogenic gold deposits (e.g. Tropicana). The Errabiddy Shear Zone was reactivated during the collision of the Yilgarn and Pilbara cratons and is intensely deformed. Recent mineral systems prospectivity mapping by the GSWA has identified the Errabiddy Shear Zone as a favourable site for large‐scale gold mineralisation, this view is supported by historic surface sampling that has identified strong gold anomalies associated with outcropping gneiss in the Big Sky area.

Big Sky

Figure 1 Location Plan - Big Sky prospect