Lodestar Minerals : March 2022 quarterly activities and cash flow report

ASX ANNOUNCEMENT

29 April 2022

March 2022 Quarterly Activities Report

HIGHLIGHTS

COOLGARDIE WEST (LSR‐100%)

Soil geochemistry defines priority, large scale walk‐up lithium and gold drill targets

•  2km long Li‐Cs‐Sn anomaly over pegmatite (to max 194ppm Li)

•  Two large, contiguous gold anomalies, 1,2km and 2km extent, (max 37.5ppb Au)

Drilling planned on completion of heritage access agreements and subject to statutory approvals.

EARAHEEDY‐Imbin (LSR‐100%)

•  New tenement application (E69/4030) over large Zn‐Pb and Cu anomalies adjacent to regional Scorpion Fault

•  Regional soil geochemistry program over 30 late time electromagnetic (EM) anomalies in the 20km long Imbin corridor is scheduled to commence in May

NEPEAN (LSR‐20%)

•  Induced polarisation (IP) survey completed. Five new regional drill targets identified (POW submitted)

•  Post reporting period: Successful metallurgical test work supports completion of JORC‐2012 compliant resource estimate (MRE) for shallow Nepean nickel mineralisation

NEDS CREEK JV (Vango Mining earning 51%)

Drill results - significant drill intersections reported from granite contact zone

•  20m at 0.69g/t Au from 120m in LNRC097, including 8m at 1g/t Au from 132m (Contessa south)

•  24m at 0.5g/t Au from 116m in LNRC099 (Central Park)

•  1200m granite contact between Contessa and Central Park prospects is untested and represents a major drill target

•  Assays pending for follow up sampling and 1m split samples from the Contessa drilling program

PILBARA TENEMENT, PATERSON OROGEN (LSR‐100%)

Acquisition of E45/5735, 8 km north of the giant Telfer gold mine.

CORPORATE

The Company raised $2.78M before costs by issuing 347.5M fully paid ordinary shares at 0.8 cents per share in an oversubscribed placement, primarily to sophisticated investor clients of Canaccord Genuity and Euroz Hartley. The placement will fund upcoming exploration programs at Earaheedy, Coolgardie West, Jubilee Well, Bulong and Nepean.

Lodestar Minerals Limited	PO Box 584
1st Floor, 31 Cliff Street	Fremantle, WA 6959
Fremantle, WA 6160	ABN: 32 127 026 528

www.lodestarminerals.com.au

COMPANY PROJECTS

Figure 1 Lodestar project location plan.

COOLGARDIE WEST (LSR 100%, Li, Au, Ni)

Two programs of soil geochemistry have been completed over the Coolgardie West tenement (E15/1813), located 10km west of Coolgardie (see Figure 2).

The initial program of 937 samples highlighted a 2.5km long coincident Li‐Cs‐Sn‐W (LCT) trend (maximum 194ppm Li) associated with the northeast trending Coolgardie greenstone belt1 (see Figure 3). Field reconnaissance located scattered, historic shallow excavations in pegmatite along the length of the anomaly.

Although poorly exposed, the pegmatite appears to intrude along a shear zone that follows the western margin of the greenstone belt and the linear shape of the anomaly is consistent with a steeply or moderately dipping intrusion. The composition and detailed mineralogy of the pegmatite is currently unknown. Assay results are pending for rock chip samples collected from the pegmatite.

Sampling across the margins and strike extension of the greenstone belt identified two extensive gold anomalies in areas of soil cover with no previous drilling. These anomalies were refined by a second phase of sampling, comprising 377 samples, completed in March. The second phase sampling also extended sampling to the tenement boundary.

Results for the in‐fill sampling were received subsequent to the end of the quarter and have confirmed two priority gold targets2 (see Figure 4).

•  The northern target is located 1.5km along strike from the greenstone pinch‐out, adjacent to a prominent northeast trending shear zone that defines the western contact of the Calooli Granite. The 20ppb Au contour extends for 1200m, with a maximum 37.5 ppb Au.

•  The western target is located 2.4km northwest of and parallel to the greenstone. The 15ppb Au contour extends for 2,000m in a north easterly direction, with a maximum 30.9ppb Au.

The soil geochemistry has defined priority walk‐up drill targets for lithium and gold of significant scale and Lodestar is working to obtain a heritage access agreement over the Coolgardie West tenement in preparation for a planned drilling program.

• 1 See Lodestar's ASX announcement dated 11th February 2022.

• 2 See Lodestar's ASX announcement dated 27th April 2022.

Figure 2 Location plan and interpreted geology, Coolgardie West E15/1813.

Figure 3 Lithium in soil anomaly, Coolgardie West (MGA94 zone 51).

Figure 4 Gold in soil anomalies, Coolgardie West on aeromagnetic image E15/1813 (MGA94 zone 51)

EARAHEEDY - Imbin (LSR 100%, Cu‐Zn‐Pb)

Lodestar applied for E69/4030 on the northern margin of the Earaheedy Basin, extending the project area under granted tenure or application to 965sq. km (see Figure 5)3. Exploration success by Rumble Resources Limited, resulting in the discovery of extensive Zn-Pb-Ag mineralisation indicates the Earaheedy Basin has potential to become a major base metal metallogenic province.

E69/4030 is located adjacent to the Salvation Fault, the boundary fault between the Earaheedy Basin and the later Bangemall Basin to the north. The Salvation Fault is a major structure and was targeted as a potential growth fault and feeder for sediment-hosted base metal mineralisation.

Seven wide spaced, historic RC drill holes tested soil and RAB geochemical anomalies to a depth of 200m. Extensive low-level Zn-Pb anomalies were reported from the weathered zone in support of the geochemical targeting. Deeper intersections also appear to support the potential of the sequence to host base metal mineralisation e.g.

•  NRC03 - 32m at 0.12% Zn and 0.02% Pb

•  NRC04 - 40m at 0.09% Zn, 0.08% Pb, 1.2g/t Ag, including 4m at 0.21% Zn, 0.06% Pb, 2.3g/t Ag

•  NRC05 - 26m at 0.06% Zn, 0.12% Pb, 1.1g/t Ag from 172m (see Figure 2).

RC drilling intersected chlorite phyllite with minor quartz veining containing pyrite-sphalerite/galena (Zn/Pb) in holes NRC-01 and NRC-02, pyritic shale and carbonaceous shale. The geology appears very similar to the Yelma Formation elsewhere on the northern margin of the basin.

In addition to the well-defined surface zinc anomalies south of the Salvation Fault, rock chip sampling has outlined an extensive 5km by 1.5km Cu-Pb-Zn anomaly south of and parallel to the Salvation Fault that has not been targeted by drilling. On grant of the tenement Lodestar will complete first-pass multi-element geochemical sampling, including the extensive areas under shallow sand cover, to provide an initial framework for exploration targeting.

3 See Lodestar's ASX announcement dated 8th March 2022.