BRIGHTSTAR RESOURCES LIMITED — Capital/Financing Update 2016

Dec 19, 2016

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!STONE!RESOURCES!AUSTRALIA!LIMITED

20 December 2016

PRIVATE PLACEMENT TO SOPHISTICATED INVESTOR AND ISSUE OF SHARES TO EXECUTIVES

Placement

Stone Resources Australia Limited (ASX:SHK) (the Company ) is pleased to announce that it has raised $1,000,000 via a private placement of 30,303,030 new fully paid ordinary shares in the capital of the Company ( Shares ) at an issue price of $0.033 per Share ( Placement ). The Placement was made to a sophisticated investor known to the Company.

The issue of the Shares under the Placement will occur without shareholder approval and will come within the Company’s 15% placement capacity in accordance with ASX Listing Rule 7.1.

The Company intends to use the funds raised under the Placement for general working capital purposes.

Issue of Shares to Executives

The Company also announces that it plans to issue 12,894,030 Shares to three executives of the Company on 20 December 2016. The Shares will be issued to each of Messrs Guofu Zu, Tony Lau and Sheng Hui Lu ( Executives ) in the following amounts:

(a) 5,280,115 Shares to Mr Guofu Zu;

(b) 5,280,115 Shares to Mr Tony Lau; and

(c) 2,333,800 Shares to Mr Sheng Hui Lu.

The Shares will be issued for nil consideration as they are to be issued as part of the Executives’ remuneration arrangements with the Company.

The issue of the Shares to the Executives will occur without shareholder approval and will come within the Company’s 15% placement capacity in accordance with ASX Listing Rule 7.1.

Yours sincerely

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Tony Lau Joint Company Secretary

First Floor 250 Fulham Street, Cloverdale WA 6105 Telephone: (618) 9277 6008 Facsimile: (618) 9277 6002 Email: info@stoneral.com.au Website: www. stoneral.com.au ABN 44 100 727 491 : ASX Code SHK : Member of AMEC