BRIGHTSTAR RESOURCES LIMITED — Capital/Financing Update 2006

Jul 5, 2006

Announcement to the ASX Thursday 6 July 2006

POTENTIAL RESOURCE INCREASE FROM CURRENT EXPLORATION

BRIGHTSTAR ZETA 60 METRES @ 16 G/T GOLD BRIGHTSTAR DELTA 15 METRES @ 4.4 G/T GOLD

A1 Minerals Limited has commenced its first sampling and drilling campaign on the newly extended BrightStar Gold Project, with results confirming upside to the current BrightStar JORC resource of 600,000 ounces gold (Table 1).

BrightStar Delta, drilled to test underground potential on Section 12600N, returned 15 metres @ 4.4g/t gold from 120 metres depth in quartz dolerite. The result confirms the extension of high grade gold mineralisation at depth and an increase in thickness and tenor in mineralisation of the fresh doleritic host rock (Figure 1).

At BrightStar Zeta, channel sampling was carried out in the walls of a recent pit where 29,000t @ 26q/t gold was mined by prospectors. Twelve adjacent 5 metre composite samples along the footwall face returned an outstanding 60 metres @ 16g/t gold. The result was from a bench only 12 metres below surface and confirms the potential for an early cash flow from a cutback. This result is encouraging because it indicates high grades and a significant strike length of at least 60 metres (Figure 2).

Other significant results were achieved from BrightStar Epsilon, as tabled below.

Table 1: Best RC Drill Intercepts from Current Drill Program

Drillhole	Depth (from)	Depth (to)	Grade (g/t Auì	Width (m)	Local (mN)	Local (mE)	Dio (degrees)	Azimuth (degrees)
BrightStar Delta
CTC001	120	135	4.40	15	12600	5410	-60	270
BrightStar Epsilon
BHC002	127	136	1.96	9	3650	10110	-60	270
BHC004	50	61	2.76	11	3875	9963	-60	092

Exploration programs to upgrade and expand the BrightStar resources continue.

A1 MINERALS LIMITED

ASX:AAM Current Issued Capital: 59,862,649 Ordinary Fully Paid Shares

Market Cap at 24 cents \$14.3M

Cash at Bank: \$1.7M

BRIGHTSTAR GOLD PROJECT

Near Granny Smith and Sunrise Dam 500sakms Resource 600,000 ounces and growing High grade gold mineralisation Native Title Agreement Mining Lease Granted Mining Approval Granted 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

Drilling BrightStar Beta's Expansive Pit Floor Ready for Mining

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

John Williams B.Sc, MAusIMM Managing Director

ुष्ट ő Ĉ Surfac Hill Hallmann ann an 19 2m @ 22.3g/t 7m @ 66.2g/t
incl 1m @ 375g/t $2m \otimes 5.6g/t$ $2m \otimes 8.0g/t$ 6m @ 5.3g/t
incl 1m @ 15.3g/t 4m @ 3.8g/t 3m @ 5.5g/t 15m @ 4.4g/t
| incl 1m @ 28.6g/t
| incl 1m @ 9.2g/t
| incl 1m @ 10.5g/t LEGEND HIM 3.0g/LAu $\Box$ 0.5 - 3.000 Au $\Box$ 0.25 - 0.50 gt Au (mineralised halo) 4m @ 15.0gl Intersection Inickness, grade Drilli ole $3m$ @ 1.1g/t BRIGHTSTAR DELTA SECTION 12600N

Figure 1: BrightStar Delta Section Showing A1 Drillhole CTC1

Figure 2: Zeta Pit Looking South

The information in this report that relates to exploration results is based on information compiled by Mr Tony Ryall, who is a member of the Australasian Institute of Mining and Metallurgy. Mr Ryall is a consultant to A1 M Limited 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 as defined in the 2004 Edit "Australian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves". Mr Ryall consents to the inclusion in the report of the matters based on his information in the form of context in which it appear