BRIGHTSTAR RESOURCES LIMITED — Capital/Financing Update 2009

Aug 30, 2009

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AUSTRALIAN STOCK
EXCHANGE CODE AAM
Current Issued Capital: 149,734,496 Ordinary Fully Paid Shares Market Cap at 15 cents $22.4 M
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31st August 2009

ASX ANNOUNCEMENT

Brightstar Gold Project Development Update

• Gold Plant Contract Completion 77% complete

• Site Construction 47% complete

• Refurbishment 97% complete

• Mining Tendering Process Underway

• On Schedule for Commissioning to commence in October

The Directors of A1 Minerals Limited are pleased to announce the progress of the Beta Gold Mine construction.

As at 27[th] August A1’s Construction and Refurbishment Contractor, CPC Engineering (CPCG) have estimated an overall contractual project completion of 77.05%, comprised of a refurbishment completion of 97.36% and a site construction completion of 47.21%. Refurbishment work on the processing plant has been completed other than mine steel works and erection of the plant on site is on schedule.

The six absorption tanks have been installed together with the smaller of the two leach tanks. Both ball mills are on site and in place. The crusher frames have been installed and both the jaw and gyratory crushers have been lifted into place. Work is currently focusing on the installation and fitting of the conveyors and transfer bins.

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Figure.1 Installing Ball Mill No.2 at Beta Plant Site

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

Site work is progressing with earthworks for the process water dam completed. Lining of the dam commenced on the 18[th] August (Fig.2). Clearing and topsoil stockpiling is continuing.

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Figure.2 Installation of Lining for Process Water Storage

Construction of the tailings storage facility is expected to start before the end of next month.

The mining tender process has commenced. Expressions of interest are currently being received. Preparations are underway for a plant commissioning ore parcel to start early November.

This work continues the scheduled development of the Beta Gold Mine and maintains A1’s aim of commencing production in the December Quarter.

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Figure.3 Plant Construction Taking Shape

As previously reported (ASX 21 April 2009) The BrightStar Project has an estimated 1.7Moz gold Resources. The Resources include an ore reserve estimate of 150,000oz gold which is currently planned to be produced over 4 years through A1’s own processing plant. Cash operating costs are estimated at AUD$600 per ounce.

The project has an early cash flow due to high grade ore from surface. (Figure 4)

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Figure.4 Beta Main Pit
Grade Control Drill Section
Gold grades (grams/tonne) over one metre intervals
460RL ´ ´ ´ ´ ´ ´ ´
´
Current Pit Floor Surface
´ ´ ´ ´ ´ ´ ´ ´ ´
450RL
440RL
0.02 0.04 1.56 0.05 0.16 1.11 0.08
0.01 0.05 0.50 0.07 0.06 1.84 1.42 0.13
0.01 0.01 0.17 0.91 0.26 1.22 0.27 0.19
0.08 0.03 0.40 0.55 0.25 1.20 0.20 2.85
0.16 0.10 47.90 0.42 STOPE 1.28 0.37 1.29
0.11 0.08 1.07 0.93 1.31 0.86 2.30 1.43
0.09 0.15 2.50 0.49 3.05 0.43 0.92 0.28
0.04 0.06 1.70 0.74 2.25 0.48 1.66 0.32
0.30 6.05 3.25 1.59 0.76 1.65 0.44 0.71
1.58 0.15 0.28 0.23 0.06 STOPE 6.50 < 0.31 7.60 12.20 0.51 31.50 4.85 1.75 0.75 0.20
0.85 6.70 0.10 0.42 0.06 0.02 0.19 3.05 0.30 5.90 0.22 1.55 3.20 6.10 1.79 1.06 1.39 0.40 8.25 0.95 STOPE 21.70 40.50 3.80 6.80 0.13 0.34 0.57 0.89 0.45 0.51 0.34 0.27 0.08 0.40
0.10 1.13 0.01 12m 4.50 12m 0.27 1.8612m 12m STOPE 12m 0.53 12m 0.48 0.23 12m
0.76 0.42 0.14 2.30 0.46 STOPE 2.65 0.09 1.61 0.16
0.20 0.31 4.50 18.20 0.22 STOPE 0.37 0.20 0.68 0.36
1.24 0.70 0.14 1.03 1.20 1.69 2.30 0.39 0.88 14m
0.82 0.07 0.07 0.72 0.09 2.20 0.11 0.09 0.19
0.13 18.40 41.60 STOPE 0.56 0.31 0.13 0.24 0.18
0.13 6.90 6.50 0.53 15.20 0.11 0.32 0.77 0.21
1.07 6.50 0.31 1.00 3.20 0.13 0.39 0.08 0.12
0.41 21.20 0.26 0.36 4.85 1.71 0.19 0.36 0.05
0.20 46.90 0.33 1.11 5.70 0.55 0.12 0.08 0.15
0.11 2.80 2.35 0.94 5.45 0.30 0.10 0.20 0.21
0.18 2.55 0.50 0.94 2.35 0.36 0.28 0.22 0.29
0.25 1.83 0.12 0.72 0.31 0.21 0.31 0.21 0.27
16m 16m 16m 16m 16m 16m 16m 16m 16m
MKAC116 MKAC115 MKAC114 MKAC113 MKAC112 MKAC111 MKAC110
MKAC375
54
MKPA046 MKPA047 MKPA048 MKPA049 MKPA050 MKPA051 MKPA052 MKPA053 MKPA0
19970mE 19980mE 19990mE 20000mE
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Yours sincerely

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John Williams Managing Director - A1 Minerals Limited

The information in the statement of Mineral Resources for the BrightStar Gold Project is based on information compiled by Mr Anthony Ryall who is an independent consulting geologist and a member of the Australasian Institute of Mining and Metallurgy and has sufficient experience relevant to the style of mineralisation and type of deposit under consideration and to the activity undertaken to qualify as a Competent Person as defined in the JORC Code (2004). Mr Anthony Ryall has provided Competent Person sign-off for the quality and representativity of the drill hole data, geological interpretations, resource estimation procedures and results.

The information in this report that relates to BrightStar Gold Project ore reserves estimates is based on information compiled by Mr John Williams who is a member of the Australasian Institute of Mining and Metallurgy and has sufficient experience relevant to the style of mineralisation and type of deposit under consideration and to the mining method undertaken to qualify as a Competent Person as defined in the JORC Code (2004). Mr John Williams is a full time employee of A1 Minerals Ltd and consents to the inclusion in the report of the matters based on this information in the form and context in which it appears.