BRIGHTSTAR RESOURCES LIMITED — Capital/Financing Update 2004

Nov 8, 2004

Announcement to the Australian Stock Exchange

9 November 2004

For Immediate Release

A1 STRIKES DEAL WITH PLACER (GRANNY SMITH)

The Directors of A1 Minerals Limited (A1) are pleased to announce the Company has struck an agreement with Placer (Granny Smith) Pty Limited (Placer) to acquire 100% interest in three Placer Exploration Licences that adjoin and extend north of A1's BrightStar Project.

A1 is currently reverse circulation (RC) drilling its 100% owned BrightStar Gold Project which has yielded strongly encouraging gold intercepts and is advancing towards a feasibility study.

The three Exploration Licences from Placer, E38/1173, 38/1174 and 38/900, covering an area of approximately 54 kms², increase significantly A1's tenement holdings in the Layerton District.

A1 believes the BrightStar Discovery Zone (BDZ) extends northwestwards into E38/1173. The extension is outlined by a 700 metres long geochemical anomaly and an adjacent sub-parallel anomaly (See Figure attached 'BrightStar Discovery Zone'). Limited RC drilling previously carried out by Placer includes intersections of 3m @ 7.7 g/t Au along strike from BrightStar and 1m @ 1.49 g/t Au from the sub-parallel anomaly.

The terms of the agreement include:

• A1 acquires 100% interest in the tenements in return for a nominal cash payment and the payment of a $1¹$ 2.5% net smelter royalty from any gold produced.
• $\overline{2}$ . Placer retains:
• A once off right to clawback a 70 % interest upon being notified of the establishment of a JORC compliant resource of 250,000 ounces of gold. In consideration Placer would pay A1 2.5X the Company's total expenditure on the resource area. The clawback relates only to the resource area;
• The right to explore, at its own expense, conceptual targets within a declared area. The right $\bullet$ does not extend to areas where A1 has defined a resource or is actively working. Any new discovery would be owned 100% by Placer which would pay A1 a 2.5% net smelter royalty;
• The right exercisable within 45 days to match any arrangement to sell or treat ore produced from $\bullet$ the tenements;
• The right exercisable within 45 days to match any arrangement to sell the tenements to a third party.

A 5000 metre rotary air blast drilling program to define RC drilling targets over the newly extended BrightStar Discovery Zone will start this month. Follow-up RC drilling is planned to continue soon after.

A1's Directors believe the agreement considerably enhances the potential for mining development at BrightStar and the increased tenement holdings furthers A1's control of the Merolia Greenstone Belt, thereby underpinning future prospective growth of the Company (See Figure attached 'Laneway Agreement Area').

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.

Suite 34: 25 Walters Drive: Osborne Park: Western Australia: 6017 Telephone (618) 9244 1400 : Facsimile (618) 9244 1600 : ASX Code AAM Email info@alminerals.com.au website www.alminerals.com.au ABN 44 100 727 491 : ASX Code AAM