BRIGHTSTAR RESOURCES LIMITED — Capital/Financing Update 2006

Nov 29, 2006

ANNOUNCEMENT TO THE AUSTRALIAN STOCK EXCHANGE 30 OCTOBER 2006

BRIGHTSTAR GOLD PROJECT

FEASIBILITY STUDY UPDATE

A1 IS PLEASED TO ANNOUNCE POSITIVE RESULTS FROM ITS FEASIBILTY STUDY TO DATE

FEASIBILTY STUDY

A1 Minerals' Pre Development Study for the BrightStar Gold Project completed in late March 2006 indicated cash flow of \$13.7M from mining and treatment of approximately 488,000 tonnes of ore from the Alpha and Beta deposits to produce 74,000ozs of gold at a A\$750/oz gold price. Toll treatment was considered as the most likely treatment option at that time.

The acquisition in June 2006 of gold properties which host indicated and inferred resources containing 200,000ozs of oold in four deposit areas located to the north of Laverton altered the focus of A1's subsequent feasibility studies to evaluate the economics of establishing a mobile treatment facility.

The current Feasibility Study has concentrated on design and costing of a transportable 200,000 tonne per annum gravity/CIL treatment facility to be owned and operated by A1 Minerals. The Company is keen to pursue construction of its own mobile treatment plant which will offer long term benefits through improved development potential for the Company's gold resources located within its extensive tenement holding north and south of Laverton.

The treatment plant has been designed to process ore initially from the Alpha and Beta deposits to the south of Laverton with the flexibility to relocate the plant to the north of Laverton to process existing known deposits and potential new resources delineated through exploration or by acquisition.

Metallurgical testwork has been completed and plant design and costing finalised. Claymore Mines estimate plant capital costs are \$5.39M including a two stage crusher, all plant equipment and fabrication, transport, project management and a 10% contingency. The estimate does not include site laboratory equipment which will add a further \$110,000 for the purchase and installation of an assay system. Total capital cost of the plant is \$5.5M. A1 has secured a ball mill suitable for the plant. Design drafting and layout for formal engineering construction costing is near completion.

The plant has been designed to minimize labour demands and will require a workforce of 16 personnel emploved on two weeks on / one off roster to operate the facility which will initially be located at the Beta site. Processing cost estimates based on metallurgical testwork carried out on available Beta oxide and transitional ore types have been estimated to an accuracy of ±15% at \$28.75/t by Metallurgical Project Consultants. The estimate, based on the current equipment list and flow sheet, includes provision for all reagents, consumables, power and labour costs.

The latest mining and processing studies based on a gold price of A\$800/oz, demonstrate that the Stage 1 development of the deposits to the south of Laverton has the potential to generate \$13.9M in pre-capex and pre-tax revenue in the initial 16 months of the project. Gold production of 38,200 ounces at cash operating costs of \$440/oz could be achieved by processing 226,000 tonnes of ore grading 5.0g/t through the gravity/CIL plant and additional heap leach treatment of 130,000 tonnes of 1.3g/t Beta low grade material.

AUSTRALIAN STOCK EXCHANGE CODE AAM

Suite 34, 25 Walters Drive, Osborne Park WA 6017 Telephone (618) 9244 1400 Facsimile (618) 9244 1600 Email info@a1minerals.com.au Website www.a1minerals.com.au ABN 44 100 727 491

Final pit design and mine scheduling on the Alpha and Beta pits has vet to be completed and additional drilling is proposed to extend the reserves at Beta and other properties south of Laverton to further extend the project life in this area before relocating the plant to develop the North Laverton deposits.

Resources to the north of Laverton which will be the subject of further drilling and mining studies, hold potential to contribute further positive cash flow following relocation of the transportable plant to this region. Proposed drilling and resource modelling on the northern resources will be focused on delineation of the high grade structures within the existing mineralized zones and newly acquired properties.

John Williams B.Sc, MAusIMM Managing Director

The Geological information in this report as it relates to ore reserves is based on information compiled by A1 Minerals General Manager - Operation Mr David Hamlyn,, who is a member of the Australasian Institute of Mining and Metallurgy, with over 20 years experience in the mining industry. Mr Hamlyn is a full time employee of A1 Minerals and has sufficient experience relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person (JORC Code). Mr Hamlyn consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

AUSTRALIAN STOCK EXCHANGE CODE AAM

Suite 34, 25 Walters Drive, Osborne Park WA 6017 Telephone (618) 9244 1400 Facsimile (618) 9244 1600 Email info@a1minerals.com.au Website www.a1minerals.com.au ABN 44 100 727 491