BRIGHTSTAR RESOURCES LIMITED — Capital/Financing Update 2006

Jul 31, 2006

Announcement to the ASX Tuesday 01 August 2006

A1 has considerably improved its global resource by combining successful exploration with judicious purchasing of gold assets in the gold rich Laverton District of Western Australia. Since completing the BrightStar Gold Project's Pre Feasibility Study, the Company's emphasis has moved to an expanded Feasibility Study designed to facilitate by the end of this year, a decision to mine.

The Pre Feasibility Study completed in March 2006, demonstrates strong positive cash flows from production at the BrightStar's Alpha and Beta deposits, utilising existing toll milling facilities or a low Capex stand alone treatment plant.

Subsequent to this study, A1 acquired additional gold assets and conducted successful exploration, significantly enhancing the Company's gold resources. The Company has appointed an experienced team of employees and contractors to complete the feasibility study and usher the BrightStar Gold Project into production. Bearing this in mind, when it recently finalised the purchase of the gold assets of West Australian Metals Ltd (WME). A1 began to evaluate the merits of stand alone fixed and mobile treatment plants.

The new gold assets currently include Indicated and Inferred Resources totalling 3 million tonnes @ 2.1 g/t for 200,000ozs of gold in four deposits located to the North of Laverton. The Alpha and Beta deposits current combined JORC compliant resource is 2.88 million tonnes @ 4.32g/t for 400.290 ounces of contained gold (using a 1g/t lower cut-off) (Table 1). All resources have access to existing infrastructure at Laverton.

Ravensgate Resource Consultants have been engaged to review and upgrade resource models for several of the resources purchased from WME and incorporate results of recent drilling and sampling by A1. This includes an assessment of pit economics on these deposits. In addition, exploration at Beta has produced a high grade intercept over a wide interval (22m @ 28g/t) which will be incorporated into the block model to improve mineable resources.

Mr David Hamlyn was appointed General Manager - Operations on 1 July 2006. David will review treatment options, produce the final Feasibility Study and manage A1's transition from exploration to production. David is a successful mine manager and has been involved in the development of several gold deposits in Western Australia. He was the Resident Manager of Centaur Mining and Exploration Limited's gold operations in the Kalgoorlie region from 1992 to 1999, and General Manager of New Hampton Goldfields Limited's Jubilee Gold Operations to 2001. He was also Executive Director of West Australian Metals Ltd/WME) from February 2002 to May 2006, and has an intimate knowledge of the recently acquired WME resources, situated north of Laverton.

A1 MINERALS LIMITED

ASX:AAM

Current Issued Capital: 59.862.649 Ordinary Fully Paid Shares

Market Cap at 22 cents \$13.1M

Cash at Bank: \$1.3M

BRIGHTSTAR GOLD PROJECT

Near Granny Smith and Sunrise Dam 500sgkms tenements and applications Resource 600,000 ounces and growing High grade gold mineralisation Native Title Agreement Mining Lease Granted NOI in place PFS indicates low cost, strong profits Toll treating option Production decision expected 2006

NARNOO EXPLORATION PROJECT

Near Mulga Rocks Uranium deposit 2,000sqkm tenements and applications Prospects for gold and uranium 100% owned by A1 Native Title Agreement Current ground breaking exploration programs

Mining at BrightStar will be open pit, similar to this photo

Contact Details: 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

ANNOUNCEMENT TO THE AUSTRALIAN STOCK EXCHANGE TUESDAY 01 AUGUST 2006

FEASIBILITY STUDY PROGRESS REPORT continued

Metallurgical Project Consultants Pty Ltd (MPC) has been engaged to conduct final metallurgical testwork, define flow sheet options and quantify capital and operating costs for the optimum treatment scenario.

A1 has also enlisted the services of Mr Colin Morrow of Claymore Mines Pty Ltd, an experienced plant design specialist, to assist with the review of the processing options and to advise on plant design and construction. Under review is a modular oold treatment plant that could be easily mobilised to treat the Company's ore at the various BrightStar deposits.

The Company is proceeding with geotechnical investigations aimed at improving pit design parameters and has received confirmation from the Department of Industry and Resources to resume mining in the open pits at Beta, under the terms and conditions of the Notice of Intent approved in early 2004, for the previous operators.

A1 looks forward to the future with confidence, moving from exploration and development, to become a long term gold producer in the Laverton Region. The Company's Directors are very pleased with the progress of development of the BrightStar Gold Project and look forward to the subsequent completion of the Feasibility Study, expected in the current quarter. In addition, A1 is planning continued exploration programs on its extensive tenement holdings to sustain a long term mining operation.

PROJECT	MEASURED			INDICATED			INFERRED			TOTAL
	Tonnes	Grade	Ounces	Tonnes	Grade	Ounces	Tonnes	Grade	Ounces	Tonnes	Grade	Ounces
		(g/t)			(96)			(CIA)			(g/t)
Alpha	178,900	3.81	21,910	311,900	2.68	26,840	631,400	4 26	35,280	,122,200	3.72	134,030
Beta	68,900	4.00	8,860	628,900	385	77.830	4.064,900	624	179,570	,762,700	4.52	266,260
Delta							243 000	22	16,800	243,000	2.2	16,800
Epsilon				1,219,000	18	71,100	1,508,000	24	103,200	2,727,000	2.0	174,300
Zeta				79.600	42	10,700				79,600	4.2	10,700
Total	247,800	3.86	30,770	2,239,400	2.59.	186.470	3447300	$-3.47$	384.850	5,934,500	3.16	602,090

Table 1: BrightStar Gold Project - Resources

John Williams B.Sc, MAusIMM Managing Director

Drilling BrightStar Beta's Expansive Pit Floor Ready for Commencement of Mining

The information in this report that relates to mineral resource is based on information compiled by Mr Tony Ryall, who is a member of the Australasian Institute of Mining and Metallurgy. Mr Ryall is self employed and an Independent Geological Consultant 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 Ryall consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.