BRIGHTSTAR RESOURCES LIMITED — Capital/Financing Update 2005

Jun 6, 2005

ANNOUNCEMENT TO THE AUSTRALIAN STOCK EXCHANGE TUESDAY 7 JUNE 2005

AUSTRALIAN STOCK EXCHANGE CODE

AAM

'HIGHLY MINERALISED CROSS STRUCTURES INDICATED FROM LATEST DRILLING AT BRIGHTSTAR'

REVERSE CIRCULATION RESOURCE DRILLING PROGRAMS CONTINUE

A1 Minerals announces completion of 4,000 metres of successful reverse circulation (RC and Aircore) drilling to establish resources and resolve structural controls, at its two (2) kilometre long BrightStar Discovery Zone (BDZ) during May 2005.

The best downhole intercept from the new northern extension was:

7 metres @ 16.95 g/t Au from 45 metres (including 5 metres $@$ 23.53g/t Au) in BSA267

Drilling at the southern end of the BDZ also achieved the longest downhole intercept to date and surprisingly introduced the prospect of highly mineralised cross structures not previously identified. Best results were:

19 metres @ 3.3 g/t Au from 46 metres; plus

5 metres @ 9.4 g/t Au from 36 metres (including 2 metres $@$ 22.25g/t Au) in BSA295; and

11 metres @ 2.93 g/t Au from 20 metres in BSA 303.

RC drill programs are planned to follow up on these exciting results (Table 1) pursuant to our goal of establishing resources at the BrightStar Gold Project.

HIGHLY MINERALISED CROSS STRUCTURES INDICATED FROM LATEST DRILLING AT BRIGHTSTAR continued

MGA94
Hole			Dip	From	Τo	Width	Gold
	East	North	(degrees)	(metres)	(metres)	(metres)	(grams/tonne)
BSA 267	472412	6822796	90	45	52		16.95
					including	1	112.00
or including						5	23.53
BSA 295	472731	6822672	90	46	65	19	3.30
				36	41	5	9.40
including						$\overline{2}$	22.25
BSA 303	472230	6822417	60*	20	31	11	2.93
BSA 296	472736	6822678	90	41	49	8	2.35
MMC167	472217	6823056	60*	47	52	5	2.86
MMC169	472171	6823055	90	40	48	8	1.66
MMC168	472185	6823054	90	50	58	8	1.61
MMC170	472176	6823065	90	59	63	4	2.33
BSA 284	472606	6822759	90	33	37	4	1.85
BSA 301	473151	6822484	60*	58	63	5	1.46
BSA 300	473134	6822501	60*	54	59	5	1.32

TABLE 1: BEST REVERSE CIRCULATION (RC) DRILL INTERCEPTS - MAY 2005

Note: All drill holes RC

*Angled holes azimuth grid west (210 degrees)

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 Managing Director Mr John Williams, who is a member of the Australasian Institute of Mining and Metallurgy, with over 20 years experience in the mining industry.

Suite 34 : 25 Walters Drive : Osborne Park : Western Australia : 6017 Telephone (618) 9244 1400 : Facsimile (618) 9244 1600 : ASX Code AAM Email info@a1minerals.com.au website www.a1minerals.com.au ABN 44 100 727 491 : ASX Code AAM : Member of AMEC

A1 MINERALS LIMITED COMPANY OVERVIEW

The BrightStar Gold Project is a new gold discovery by A1 Minerals and is located on the eastern margin of the immensely prospective Laverton Tectonic Zone, a zone that has produced nearly 10 million ounces of gold from a resource base of nearly 25 million ounces.

• $\checkmark$ Generate First resources statement with a view to mine 2006
• $\checkmark$ Prudently explore Narnoo (large 1000 square kilometre exploration project on the same greenstone belt as BrightStar. The project hosts 6 gold prospects with many kilometres of gold mineralisation)

A1 CONTINUES TO MAINTAIN A TIGHT CAPITAL STRUCTURE TO PROVIDE SHAREHOLDERS WITH LEVERAGE ON EXPLORATION SUCCESS:

$\checkmark$ 45.8 million ordinary fully paid shares (31.2 million tradable and 14.6 million escrowed to December 2005)