September 2024 Quarterly Activity Report

Key activities for Brightstar Resources Limited (Brightstar or the Company) (ASX: BTR) during the September Quarter are outlined below.

HIGHLIGHTS

Corporate Development

• Consolidation of the Sandstone District, with a proposed merger with Alto Metals Ltd and contemporaneous acquisition of the gold rights at Gateway Mining’s Montague East Project
• The Sandstone transactions position Brightstar into a multi-asset gold developer with +3Moz in Mineral Resources on granted Mining Leases in the Eastern Goldfields
• Completion of Linden Gold Acquisition occurred following compulsory acquisition.

Exploration & Feasibility Study Activities

• Drilling continued across the portfolio, as part of DFS work streams and the previously announced 30,000m reverse circulation (RC) and diamond drilling (DD). Multiple high grade drilling results returned across Brightstar’s assets, including:
  • Jasper Hills Gold Project: Lord Byron
    • LBRC24049: 26m @ 2.69g/t Au from 120m
    • LBRC24017: 28m @ 2.77g/t Au from 153m
    • LBRC24012: 29m @ 2.62g/t Au from 160m
    • LBRC24013: 30m @ 1.97g/t Au from 143m
  • Jasper Hills Gold Project: Fish
    • FHRCD2403: 7.0m @ 9.50 g/t Au from 176m
    • FHRCD2420: 8.0m @ 8.01 g/t Au from 180m
  • Menzies Gold Project: Lady Shenton
    • LSRC24049: 5m @ 15.62 g/t Au from 104m, including 1m @ 45.76g/t Au from 104m and 2m @ 10.96 g/t Au from 115m
  • Menzies Gold Project: Link Zone
    • LZMET24001: 12.0m @ 11.90 g/t Au from 51.0m, including 1.0m @ 55.8 g/t Au from 54.0m
  • Laverton Gold Project: Cork Tree Well
    • CTWGT004: 1.0m @ 40.15g/t Au from 78.0m; 0.59m @ 37.4g/t Au from 81.0m and 0.41m @ 11.62g/t Au from 81.59m
• Pre-Feasibility Study upgraded into a Definitive Feasibility Study, targeting delivery in 1H CY25

Operations

• Brightstar’s excellent operating safety record continues with no LTI’s or MTI’s throughout the quarter at Second Fortune
• Significant capital development at the Second Fortune underground mine with 712.4 metres of development completed in the month
  • A total of 111.1m of decline development was completed during the quarter;
  • A total of 219.2m of capital development and 382.1m of operating (ore drives) development was also completed.
• Throughout the quarter, Second Fortune prioritised capital development, including vent rising, to fully establish two levels ahead of the production front. This has set the mine up in an excellent position to meet increased production targets into CY25
• During the quarter, resource definition and expansion drilling was undertaken from a combination of both surface RC, diamond and underground diamond drilling. Drilling was completed to enable an upgrade to the Mineral Resource Model (due Q4 2024) targeting declaration of Ore Reserves and mine life guidance
  • A total of 1,399.2m of underground diamond drilling was completed across 13 holes.
  • A total of 4,055m of surface diamond drilling was completed across 10 holes, consisting of RC collars and diamond tails (completed during the Sept Quarter but reported after quarter end).
• A total of 7,107t @ 3.40g/t Au for 777oz of development ore (from ore drives) was mined during the quarter.
• Closing ore stockpiles of 11,452t @ 3.73g/t Au for 1,373oz at the Second Fortune ROM pad and 190kt @ 0.9g/t Au for 5,498oz at the Lord Byron ROM pad available for processing
• Fish Mine (Jasper Hills): On-going permitting and engineering works in line with fast-tracked assessment of early production opportunities

Finance

• A $24M placement to professional and sophisticated investors during the quarter in conjunction with the Sandstone acquisitions
• Topdrill ‘drill-for-equity’ agreement executed and extended for a total of $5M
• Brightstar executive management team strengthened with experienced CFO appointment
• Cash on hand of A$14.7 million as at 30th September, with an elevated $16 million spent on exploration, mining and development activities during the quarter in line with DFS exploration and development work schedules
• No bank debt or gold hedging in place

Sandstone Gold Project Acquisitions

During the Quarter, Brightstar and Alto Metals Limited (ASX: AME) (Alto) announced that they have entered into a binding Scheme Implementation Deed under which Alto agrees to propose a scheme of arrangement between Alto and its shareholders under Part 5.1 of the Corporations Act 2001 (Cth) (Scheme). Under the terms of the Scheme, Brightstar will acquire 100% of the shares in Alto and each Alto shareholder will receive 4 new Brightstar shares for each Alto share held on the record date for the Scheme.

In addition to the Scheme, Brightstar, via a newly incorporated wholly owned SPV ‘Montague Gold Project Pty Ltd’ (MGP), has entered into a Tenement Sale Agreement with Gateway Mining Limited (ASX:GML) (Gateway), and its wholly owned subsidiary Gateway Projects Pty Ltd (GPWA), under which MGP proposes to acquire Gateway and GPWA’s interests held in certain mining tenure in respect of Gateway’s Montague

East Gold Project, with MGP obtaining 100% of the gold mineral rights and Gateway retaining all other mineral rights (Montague Acquisition)(Figure 1).

The Montague Acquisition was not conditional on the Scheme completing and successfully completed post quarter end on 2 October 2024.

The Scheme and Montague Acquisition will consolidate highly prospective exploration ground in the Sandstone region which will complement Brightstar’s existing production, development and exploration asset portfolio, for the benefit of both Brightstar, Alto and Gateway shareholders.

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