BRIGHTSTAR RESOURCES LIMITED — Capital/Financing Update 2004

Nov 30, 2004

Announcement to the Australian Stock Exchange

1 December 2004

For Immediate Release

A1 EXPANDS BRIGHTSTAR GROUND HOLDINGS THROUGH FARM-IN DEAL WITH CAZALY RESOURCES

HIGHLIGHTS

• A1 reaches Farm-in agreement with Cazaly Resources on tenements along strike from BrightStar deposit
• Several untested soil anomalies already identified by A1 on the Cazaly tenements
• Exploration on the new tenements expected to commence early in the New Year
• BrightStar Project Area now encompasses over 330 square kilometres
• Rotary Air Blast/Air Core drilling has commenced on the newly acquired "Placer tenements" immediately adjacent to BrightStar

A1 Farms in on Cazaly Laverton Tenements

A1 Minerals Limited (A1) is pleased to announce it has entered into an agreement to farm in to tenements controlled by Cazaly Resources Limited (CRL). The tenements are located north west and along strike from A1 Minerals' 100% owned promising BrightStar gold discovery, which is located in a corridor of major gold mines south east of Laverton in Western Australia.

The agreement between A1 (AAM:ASX) and CRL (CAZ:ASX) further increases the exploration potential of the BrightStar Project, giving A1 access to prospective exploration ground that has the potential to host significant gold mineralisation along strike from the BrightStar deposit. A1 has already identified several untested soil anomalies on the Cazaly tenements E38/1524, ELA38/1555, P38/3106, 3107 and 3108.

Details of the joint venture agreement are:

• 1. On the signing of this agreement A1 will give Cazaly a cash payment of \$10,000. A second cash payment of \$10,000 will be made subject to Cazaly removing an existing royalty on the tenements.
• 1. A1 can earn 75% interest in the tenements by completing 3,000 metres of RC/Air Core/Diamond drilling within three years of signing the formal agreement. The minimum annual expenditure will be sufficient to maintain the tenements.
• 1. Cazaly will retain a 25% free carried interest through to the completion of a Bankable Feasibility Study (BFS).
• 1. After the completion of a BFS both parties must contribute proportionally to expenditure or dilute in accordance with a standard dilution formula. If either party is reduced to less than 10% interest that party will be deemed to have withdrawn from the joint venture, retaining no interest other than the right to receive a \$1 per tonne mined and milled royalty.
• 1. A1 can withdraw from any of the tenements at any time, but if such a withdrawal were to take place before A1 has earned its 75% interest, it would retain no interest in the relevant tenements. After any such withdrawal A1 would not be liable for any further commitments on the withdrawn tenements.

A1 expects to commence exploration on the newly acquired tenements early in the New Year.

BrightStar Project Area now encompasses over 330 square kilometres

A1's ground position (in close proximity to the multi-million ounce Sunrise Dam and Granny Smith gold mining operations) in the Laverton area has grown substantially in recent months to more than 330 square kilometres of tenements covering the highly prospective greenstone belt.

Rotary Air Blast/Air Core drilling has commenced on the newly acquired "Placer" tenements" immediately adjacent to BrightStar

The Company recently concluded a key agreement with Placer (Granny Smith) Pty Ltd to acquire a 100% interest in three Placer Exploration Licences adjoining the BrightStar Project to the north. These newly acquired tenements have the potential to significantly expand the currently identified BrightStar Discovery Zone. Drilling is currently underway on these tenements and results from this program are expected shortly.

John Williams B.Sc. MAusIMM Managing Director

The geological information in this report as it relates to mineral resources and ore reserves is based on information compiled by A1 Minerals Limited Managing Director Mr John Williams, who has over 20 years experience in the mining industry and is a member of the Australasian Institute of Mining and Metallurgy.