Lodestar Minerals Limited provided the following initial assessment of the recent RC drilling program completed on the Ned's Creek Project JV. The program was designed to test a discrete magnetic anomaly within the mineralized Contessa shear zone, adjacent to the granite contact. The program comprised three holes completed to a maximum depth of 218m for a total of 594m.

The magnetic target is along strike from significant gold intersections in previous drilling and was interpreted as a mafic unit with potential to host gold in areas of brittle deformation or hydrothermal magnetite alteration related to mineralisation. The drilling intersected several zones of silica-pyrite alteration within diorite that have potential to host gold mineralisation. Hole locations and an interpreted geology cross section.

The target lies within a narrow, linear belt of greenstone, wedged between the Contessa granite and a smaller granite intrusion to the south, concealed beneath Proterozoic sediments, interpreted from airborne EM and aeromagnetic data. Hole LNRC102, targeted the south east dipping magnetic anomaly, intersecting an upper, intensely silicified shear zone above intermittently epidote, haematite and carbonate altered diorite. The key intervals include a zone of silicification and pyrite mineralisation from 142m to 145m and below 187m where haematite altered granite intrusives appear with silicified, pyritic diorite.

A hydrothermal molybdenite-pyrite vein marks the contact with sericite altered granite at 208m. The hole continued in altered granite, bearing veinlets of molybdenite-pyrite-fluorite, to the final depth of 218m. It is not known whether this granite represents the Contessa granite, which would indicate a southerly dip to the granite contact.

Hole LNRC103 was drilled as a scissor hole to LNRC102 to a depth of 212m. The hole intersected diorite to end of hole with the interval from 116m to 146m displaying partial silicification with trace of pyrite. Hole LNRC104 was drilled below LNRC103 and intersected the Contessa granite from surface to 48m.

An intensely silicified shear zone is developed below the granite contact. Silica-pyrite and chlorite altered diorite was intersected from 66m to 97m with a granite intrusion between 97m to 109m. Silica-pyrite altered diorite, with minor zones of epidote and carbonate alteration continued to 125m.

The hole terminated in partly silicified diorite at 164m. In summary, drilling intersected a diorite body, thought to be responsible for the magnetic signature, bounded by major shear zones. Intense alteration within the diorite occurs on or near the contacts with granitic intrusives and the observed alteration style is consistent with gold-hosting hydrothermal alteration zones within the known prospects at Contessa, Gidgee Flat and Contessa.

Samples from the program have been delivered to the laboratory and assay results will be announced when received.