Lodestar Minerals : June 2022 Quarterly Activities and Cash Flow Report

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ASX ANNOUNCEMENT

25 July 2022

June 2022 Quarterly Activities Report

HIGHLIGHTS

Earaheedy-Imbin(LSR-100%)

• Commencement of wide-ranging soil geochemistry program to assess multiple potential base metal EM targets within the Earaheedy base metal province.
• Fixed loop EM surveys scheduled to commence late July.
• Collaboration with CSIRO and the Ultrafine Fraction Soil Project to enhance interpretation of soil geochemical data.

Jubilee Well (LSR-100%)

• Heritage clearance for the Jubilee Well gold target completed post the reporting period. RC drill program planned.

Ned's Creek JV (Vango Mining earning 51%)

• Discrete magnetic anomaly within the Contessa shear zone identified as priority drill target. RC drilling planned.

Coolgardie West (LSR-100%)

• Advanced negotiations proceeding with the native title claimants to expedite heritage clearance of lithium and gold drill targets.

Nepean Project (LSR - 20%)

• JORC2012 compliant resource update for the shallow Nepean nickel mineralisation underway.

Earaheedy-Imbin(LSR-100%,Cu-Zn-Pb)

The extensive program of multi-element soil geochemistry, comprising some 2,000 samples, commenced at the end of June following a delay imposed by unseasonal rainfall. The soil program is testing multiple late time electromagnetic (EM) conductors, many under shallow sand cover, identified by the Xcite EM survey completed in 20211. The sampling program is expected to be completed shortly and samples will be submitted for ultrafine UFF analysis, providing a very comprehensive suite of data from which to select priority drill targets. Lodestar will be assisted in the interpretation of the soil geochemistry results by the CSIRO and the Ultrafine Fraction Soil Project; a research project designed to fingerprint ore-related geochemical haloes in areas of surface cover.

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In addition, fixed loop EM surveys are scheduled to commence over the MC8, MC9 and SC3 conductors located along strike from the Main Gossan copper occurrence. Each of the conductors is associated with historic geochemical anomalies of base metal and pathfinder elements. The fixed loop surveys will define the orientation of the target conductors, from which the final drill hole locations will be determined. Drilling of the conductors is planned on receipt of Program of Work and heritage clearance approvals.

Jubilee Well (LSR-100%, Au)

Heritage clearance for the Jubilee Well gold target was received post the reporting period. Lodestar is now seeking to engage a drilling contractor to complete RC drilling of the target2, located 2km along strike from AngloGold's +100,000 oz Au Golden Delicious deposit .

Ned's Creek JV (Vango Mining earning 51%, Au)

Preparations are underway to drill test a discrete magnetic "bull's eye" adjacent to the southern contact of the Contessa granite3. The anomaly itself is untested but aircore drilling in the near vicinity of the anomaly has intersected significant alteration and elevated gold within the Contessa shear zone to a maximum 3.14g/t Au.

Modelling of the anomaly indicates a target 200m long and dipping at ~60deg to the southeast. The anomaly may represent the expression of a residual Fe-rich lithology (i.e. ultramafic-mafic and a potential host to gold mineralisation under conditions of brittle deformation) or a discrete zone of magnetite alteration related gold mineralisation within the Contessa hydrothermal system. A program of RC drilling is planned to test the anomaly and will commence once a suitable drilling contractor is engaged.

Coolgardie West (LSR-100%,Li-Au)

Negotiations with native title claimants over the Coolgardie West tenement are progressing and it is expected that access agreements will be concluded within the September quarter. Once the agreements are finalised heritage surveys can be completed over the priority lithium and gold targets thereby minimising delays.

Appendix 5B Disclosures

ASX LR 5.4.1: Exploration expenditure during the quarter totalled $258k.

ASX LR 5.4.3: Tenement schedule attached to activities report.

ASX LR 5.4.5: Payments to related parties totalled $103k and was in respect of Directors' salaries and superannuation payments, in addition to payments for corporate management services to Director related entities.

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Contacts

About Lodestar

Lodestar Minerals is an active Western Australian gold and base metal explorer.

Lodestar's projects comprise the advanced Nepean Nickel Project JV, the Ned's Creek JV and the 100% owned Camel Hills, Earaheedy-Imbin, Jubilee Well, Bulong and Coolgardie West projects.

The Earaheedy-Imbin Project is a major strategic land holding in the emerging Earaheedy Province, site of Rumble Resource's recent and potentially world-classZinc-Lead discoveries. The Imbin Project is located on the northern margin of the prospective basin and is the site of significant historic copper intersections in drilling and approximately 20km of strike of the target Yelma-Frere unconformity.

Lodestar discovered multiple zones of syenite intrusion-related gold mineralisation at the Ned's Creek Project on the Yilgarn craton margin, 150km west of Imbin. Vango Mining Limited is earning a 51% interest in the Ned's Creek JV by contributing $5M of expenditure over 3 years.

Bulong and Jubilee Well are recent acquisitions in highly endowed gold districts; first-pass drill programs have been planned. Coolgardie West, located 12km west of Coolgardie, has potential for greenstone hosted gold, nickel and LCT pegmatite mineralisation with priority lithium and gold drill targets identified by soil geochemistry.

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

• 9th April 2021 "Jubilee Well Acquisition- Along Strike from Sunrise Dam".
• 15th December 2021 "Earaheedy-Imbin Exploration Update".
• 9th June 2022 "Lodestar Exploration Update".

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.