Lachlan Star : December 2021 Quarterly Reports

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Lachlan Star Limited (ASX:LSA)

ACN 000 759 535

31 January 2022

QUARTERLY ACTIVITIES REPORT FOR THE PERIOD ENDED 31 DECEMBER 2021

Lachlan Star Limited (Lachlan Star or the Company) is pleased to present its quarterly activities report for the December quarter.

HIGHLIGHTS:

• Lachlan Star has commenced a maiden reverse circulation ("RC") drilling program at Killaloe with an initial 1,200m program targeting:

1. Drilling has commenced at the extension of the "Barrel" prospect and historic Gold-Silver workings in E63/1018 with first drill hole to 120m completed

1. Drilling is also proposed to target the western ultramafic sequence with anomalous nickel mineralisation within E63/1018

• 1. Multiple high-grade gold trends within M63/117 to facilitate mineral resource review
• The Company remains well funded with ~$4.45 million cash on hand at the end of the December quarter.

OPERATIONS

Koojan Cu-Ni-PGE JV Project (LSA 75%)

On 26 June 2020, the Company announced that it had entered into a 6-month option with Coobaloo Minerals Pty Ltd (Coobaloo), granting Lachlan Star the right to purchase up to a 75% interest in the Koojan Project, a highly prospective Copper-Nickel-PGE Project in the New Norcia Region, Western Australia. Lachlan Star exercised its option over 50% of Coobaloo on 22 December 2020 and moved to a 75% interest on 7 September 2021.

Farm-in with Minerals 260

Lachlan Star and Minerals 260 Limited (Minerals 260) have a fram-in agreement where Minerals 260 can earn a 51% interest in the Koojan Project held by Coobaloo Minerals (LSA 75%) (Farm-in). Minerals 260 can acquire 51% equity in the Koojan Project by spending a total of $4 million on exploration within 5 years with a minimum expenditure commitment of $500,000 before having the right to withdraw. Upon Liontown earning 51% in the Koojan JV Project, the parties respective interests will be Minerals 260 (51%), Lachlan Star (24%), Wavetime Nominees (25%).

The Koojan Project is located in the New Norcia region of Western Australia (Figure 1), approx. 80km north of the recent Julimar Ni-PGE-Cu discovery by Chalice Gold Mines Ltd, and is located in a similar geological setting. The Koojan Project is located within the Western Gneiss Terrain of the Archaean Yilgarn Craton of south-west Western Australia. The prospective mafic/ultramafic bodies are hosted within the Jimperding

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Metamorphic belt - a belt up to 70km wide and bounded to the west by the Darling Fault, and to the east by Yilgarn craton units.

The Koojan Project is interpreted to be located within the same geophysical setting as the Julimar and Yarawindah Ni-Cu-PGE prospects. This setting is characterised as a zone of intrusive mafic to ultramafic rocks proximal to the margin of the Yilgarn craton and hosted within a complex structural setting on the margin of gravity anomalies. This structural zone is interpreted to have intruded the granite dominated terrain, and can be traced from the Julimar prospect through to the Koojan Project where filed reconnaissance and Government geological mapping has identified a series of mafic to ultramafic units within the project area.

Figure 1: Regional aeromagnetics and prospective zones highlighted

On 14 July 2021, the Company provided an update on the encouraging results from recent geochemical sampling at the Koojan Cu-Ni-PGE Project. Details of the anomalies defined by the Minerals 260 exploration activity have been provided in the ASX announcements of 6 May 2021 and 14 July 2021, and are summarised below:

The Mallory PGE-goldanomaly is defined by 200x200m spaced samples with a number of plus 100ppb (0.1g/t) PGE values recorded coincident with strongly anomalous gold, copper and nickel (Figure 2).

The coincident anomalous copper and nickel is interpreted to indicate possible sulphide-related mineralisation. Government geological mapping indicates that the underlying bedrock geology comprises poorly exposed mafic, metasedimentary and gneissic rock units.

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The Bourbana gold anomaly is an irregular shaped feature with multiple plus 50ppb Au peaks. The bedrock geology is obscured by shallow lateritic cover; however, the anomaly is coincident with linear magnetic highs, suggestive of the presence of iron-rich mafic units. The anomaly requires further geological evaluation including geophysical testing prior to reconnaissance drill testing.

Figure 2: Koojan JV Project location and Minerals 260 Moora project geochemical anomalies (source Liontown

Resources ASX announcement 14/07/2021)

Killaloe Gold Project

The Killaloe Project, located in southeast Western Australia approximately 600km east of Perth and 20- 30km northeast of the historic gold mining town of Norseman (Figure 3), comprises two, largely contiguous exploration licences (E63/1018 and E63/1713) and a separate mining licence (M63/177) covering a total combined area of 94km2. EL 63/1018 is subject to an agreement between Liontown and Cullen Exploration Pty Ltd (Cullen), with Cullen owning 20% of this tenement.

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Figure 3: Killaloe Gold Project - geology and prospect location

Princhester Magnesite Project

The Princhester Magnesite Project is located 85km north west of Rockhampton, Queensland and comprises two granted Mining Leases (ML), ML5831 and ML5832. The ML's are close to the Bruce Highway and are within 2 kilometres of the main north coast railway line.

No work was undertaken at the Princhester project during the December quarter.

CORPORATE

Annual General Meeting

The Company's Annual General Meeting was held on 29 November 2021, with all resolutions passing by way of a Poll.

Issue of Securities

On 26 November 2021, the Company issued 47,500,000 shares following the exercise of options at $0.005 per share, raising $237,500.

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