Star Minerals : of the East gold project - Acquisition agreement

ASX ANNOUNCEMENT

28 JULY 2022

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"Star of the East" gold project Acquisition agreement

HIGHLIGHTS

• Star Minerals signs option to acquire "Star of the East" gold project.
• "Star of the East" is an exciting historical deposit.
• Complements near-by existing Tumblegum South mineral resource.
• Drilling program set to begin immediately.
• Existing non-JORC 2012 Resource estimate requires further drilling and resource work.

Star Minerals Limited (ASX: SMS, "the Company" or "Star Minerals") is pleased to announce that it has signed an option agreement to acquire the Star of the East gold project.

Star of the East is an historic high-grade gold mine in the Murchison, first mined in 1897 after discovery by prospectors. The tenement E51/1561 contains evidence of this historic work, with an old shaft and other remnants of previous activity. Records indicate that the mine produced around 27,700oz gold1, working along a main lode down to around 50m depth.

The Project lies only 2.2km from Star Minerals' existing Tumblegum South gold project has an existing Inferred Resource estimate which totals 600kt, at a grade of 2.2 g/t Au.2 where Star Minerals has just completed a phase 2 drilling programme and is in the process of upgrading the current mineral resources estimate.

Option Agreement

The deal is staged over 12 months, the initial option fee is $60,000 in cash.

The balance of $360,000 is to be paid in cash, shares (or a combination) at the election of the vendors at any stage during or at the end of the 12-month period after the completion of not less than 2,000m of RC drilling programmes.

Completion is at the exclusive election of Star Minerals.

1. The geology and mineral resources of a part of the Murchison Goldfield, Gibson, CG, GSWA 1904
2. Refer ASX Release: Star Minerals Limited commences drilling at Tumblegum South Gold Project, 21 Nov 2021`

Star Minerals Limited	Phone: [phone]	ASX: SMS
Level 1, 85 Havelock Street	Email: [e-mail]	ABN: 53 648 048 631
West Perth, WA 6005

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Figure 1 - Star of the East circa 1897

Star Minerals' CEO, Greg Almond comments:

"We are very excited to add this historical and very promising project to our portfolio, and are looking forward to getting straight into action. Our team has already developed plans and drilling targets and we're excited to test them out. We are keen to deploy our existing knowledge and expertise to this area, and consider this option to be a low-risk approach with potential for high rewards.

We expect to quickly build on the promising historical information to allow us to quickly target what we believe is exciting gold mineralisation.

Many of these historic mines, once believed to be mined out, prove to have a significant endowment once modern exploration techniques are employed, and we are confident that will be the case here.

Our shareholders should be encouraged by this news, as it demonstrates the Company's ability to leverage its land position and relationships to unlock additional assets, and shows that others in the market are looking towards Star Minerals as a partner.

Leveraging from our experience from Tumblegum South, we look forward to fast-tracking development of the exploration programme at Star of the East."

The plan below (Figure 2) shows the location of the two projects, with Figures 3a and 3b showing more detail of the Star of the East project area.

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Star of the East	Tumblegum South

Figure 2 - Star of the East and Tumblegum South location

Figure 3a - Star of the East tenement

Figure 3b - Star of the East - detail

As can be seen on the figures above, there is a large amount of remnant material on the surface - this is a mix of mullock (waste rock from mining) and processed material.

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Access to Project area via Meekatharra - Sandstone Rd, only 40km from town

Star of the East

Tumblegum South

Figure 4 - Star of the East and Tumblegum South and regional area

As outlined by Star Minerals during its IPO stage and subsequent activities, the Company intends to explore and develop Tumblegum South Gold Project, explore its West Bryah tenements and additionally examine potential acquisitions that show opportunities for a good return for investors.

The location of Star of the East is easily supported using the infrastructure and relationships the Company has put in place to work on Tumblegum South.

The first phase of planned drilling totals 700m although as with the previous drilling in the wider area, holes may be extended if they remain in mineralisation. It is envisaged the program will be completed in 5 days.

Tumblegum South is located approximately 40km south of the town of Meekatharra in Western Australia (see Figure 4). The existing mining lease ML51/888 is directly along strike from the Tumblegum Pit which was mined by Dominion during the 1987-1992 Gabanintha Gold Mine Joint Venture. The Company's current focus is on gold, but there is also significant copper potential on the lease.

There are no resource values available for Star of the East, as all previous work is outside the requirements of JORC.

Reporting Confirmation

The information in this report that relates to current resource estimates is extracted from the Company's

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following ASX announcements:
•	1 November 2021	Tumblegum South Gold Project Drilling Underway
•	25 January 2022	Gold assay results from Tumblegum South Project Phase 1 drilling

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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 and, that all material assumptions and technical parameters underpinning the estimates in the relevant market announcement continue to apply and have not materially changed. 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.

For further information, please contact:

Greg Almond, CEO [phone]

This announcement has been produced in accordance with the Company's published continuous disclosure policy and has been approved by the Board

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