Lodestar Minerals : Earaheedy Imbin - Exploration Update

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EARAHEEDY IMBIN - EXPLORATION UPDATE

HIGHLIGHTS

• Grant of key tenement E69/3533 over the 20km long Imbin corridor.

COPPER

• Interpretation of heli-EM survey data identified 31 late-time discrete conductors within the Imbin Cu-Ag-Au corridor.
• Follow up geochemical sampling planned, prioritising those conductors that have a spatial relationship with magnetic anomalies, a favourable structural setting and/or relationship to known mineralisation.
• Initial surface EM planned for conductors MC8, MC9 and SC3, located along strike from the Main Gossan Cu-Ag-Au sulphide occurrence.
• Drilling to follow geochemistry and modelling of surface EM.

ZINC-LEAD

• Coincident Ag-Pb-Zn association over the Frere arenite (basal unit of the Frere Formation) represents a priority exploration target with follow-upin-fill and extensional geochemistry planned.
• Drilling to follow in-fill geochemistry and target definition.

Lodestar Minerals Limited ("Lodestar" or "the Company") (ASX:LSR) provides the following update on progress at the Earaheedy-Imbin base metal project.

The recent grant of E69/3533, a key tenement that includes the 20km long Imbin Cu-Ag-Au corridor (see Figure 1), heralds the commencement of on-ground exploration over recently identified priority EM targets, subject to meeting heritage clearance requirements.

Interpretation of the heli-EM regional survey flown in July1 is complete, with numerous discrete late time conductors identified within the northwest trending Imbin corridor. Most conductors are located outside the area of historic exploration in areas of shallow sand cover and exploration targeting will be guided by planned geochemical sampling in combination with geological interpretation.

1 See Lodestar's ASX announcements dated 8th July 2021 and 2nd September 2021.

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Figure 1 Location plan showing Lodestar's Imbin project tenements.

Lodestar's 900 sq. km Imbin project, located on the northeastern margin of the emerging Earaheedy metallogenic province, demonstrates important geological characteristics that indicate a favourable environment for hosting base metal mineralisation.

• Of similar age to ore-forming events in the Bryah Basin, on the same tectonic margin.
• Mafic intrusives within the sedimentary sequence represent a source of heat and metals and are consistent with a model of crustal thinning and local rifting for the genesis of volcanic massive sulphide (VMS) mineralisation.
• Gravity high supports the concept of a magmatic centre beneath the Imbin corridor.
• Regional scale northwest trending shear zones (thrusts) may represent reactivated early faults and pathways for metal-bearing hydrothermal fluids.
• Epigenetic Cu-Ag-Au mineralisation intersected in drilling at Main Gossan prospect2 (e.g. 8m at 1.76% Cu, 9g/t Ag from 88m and 4m at 3.04% Cu from 104m in TCRC09- 06) confirms the base metal potential of the project.
• Includes the continuation of the important Frere unconformity that hosts a major discovery of Zn-Pb-Ag SEDEX mineralisation on the southwestern margin of the Earaheedy Basin.

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Xcite™ airborne electromagnetic (EM) discrete anomaly peaks were identified from imaged dB/dT Z channel 49 (late time) data and rated using the following criteria:

• Strike length of <600m.
• Discrete location.
• Fault association.
• Magnetic anomaly association.
• Minimal response in the early and mid-time channels.

A total of 31 conductors were identified as Priority 1 (12) and Priority 2 (19) targets from the initial interpretation. Two conductors are considered adequately tested as they had been traversed by historic drilling. The 29 EM targets selected for follow up appraisal have not been targeted by drilling or historic surface exploration and are shown in Figures 2 & 3.

Figure 2 Selected EM conductor targets on Xcite channel 49 image NE shade (MGA94 zone 51).

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(maximum) values of Au (180ppb), Cu (606ppm), Pb (110ppm), Zn (760ppm), As (848ppm) and Ag (2.5ppm).

ZINC - LEAD

First pass geochemical sampling over the interpreted Frere unconformity has identified multi-element anomalies associated with the concealed north-dipping arenite (sandstone) unit below the Frere iron formation. Soil sampling was completed over a 10 km long section of the Frere unconformity, with a total of 313 samples collected on a 500m by 100m grid. Samples were analysed for a suite of multi-elements using the Ultrafine™ assay method. The area covers the northern slopes of the Frere iron formation where extensive colluvial cover is developed over basement geology and expression of mineralisation is expected to be muted. Soil geochemistry results are summarised in Figure 3 and Table 1.

Figure 4 Soil sampling results showing distribution of the 95th percentile of Ag-Pb-Zn (MGA94 zone 51).

Table 1 Summary statistics for selected elements.