March Quarter Activity Report

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

Highlights:

• Brightstar makes recommended takeover offer for Linden Gold Alliance Limited
• Successful completion of A$12 million share placement
• A highly positive Scoping Study was released for the Jasper Hills Gold Project (owned by Linden Gold) with compelling operational and financial outputs1,4:
  • An initial mine production target of 142koz @ 1.84g/t Au over a four-year life of mine
  • Pre-Tax NPV8 of approximately A$99 million and IRR of 736% (@ A$3,000/oz gold price)
  • Payback of 9 months on all pre-production capital costs of $12 million
• Selkirk mining joint venture and gold pours successfully completed, with finalised net cashflow generated to Brightstar of $6,500,000 to be received this quarter
• Cork Tree Well diamond drilling results returns spectacular intercepts including:
  • 27.6m @ 17.8 g/t Au (CTWMET003)
  • 34.4m @ 7.94g/t Au (CTWMET004)
• High grade RC drilling intercepts were received from Menzies Gold Project at the Aspacia & Link Zone deposits

• Brightstar Resources Limited to acquire Linden Gold Alliance Limited (Linden) via unanimously recommended off-market scrip takeover offer (Offer)
• Linden is a gold producer, developer and explorer with existing mineral resources of 350koz @ 2.1g/t Au near Brightstar’s existing processing infrastructure (on care & maintenance) in the Laverton district (Figure 1)
• Under the Offer, Linden securityholders are to receive 6.9 Brightstar shares for every 1 Linden share held and 6.9 Brightstar options for every 1 Linden option held, equating to an implied Offer price of 11.04 cents per share
• The Offer implies an undiluted equity value for Linden of approximately $23.7 million
• Linden’s Directors unanimously recommend Linden shareholders accept the Offer, in the absence of a superior proposal
• Linden Directors representing 13.2% and Linden’s major shareholders, including St Barbara Limited (St Barbara), representing approximately 67.3% of shareholders, have signed pre-bid agreements with Brightstar or have signed intention statements to accept the Offer in respect of all current Linden shares and Linden options they own and control, in each case in the absence of a superior proposal
  
• The Offer is subject to conditions including a minimum 90% acceptance condition by the Linden shareholders and Linden optionholders
• As part of the Offer, Brightstar announced the successful receipt of firm commitments for a capital raising of A$12.0 million at A$0.014 per share via a two-tranche placement (Placement)
• The Placement received strong cornerstone support from Brightstar and Linden’s major shareholders Collins Street Asset Management and St Barbara for a total $4.3 million
• Mining investment house Lion Selection Group (ASX:LSX) committed to $2 million in the Placement to become a Brightstar shareholder
• Linden Directors Andrew Rich and Ashley Fraser to be appointed as Executive Director and Non- Executive Director respectively of Brightstar at successful completion of the Offer
• Highly regarded natural resources industry professional Richard Crookes will join the Board of Directors as Independent Non-Executive Chairman subject to the successful completion of the Offer.
• The combination of Linden and Brightstar will create a gold producer and developer with a material resource base that supports the Company’s strategy of becoming a mid-tier gold producer

Figure 1: Linden Gold’s Second Fortune & Jasper Hill Gold Projects relative to Brightstar assets

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