BRIGHTSTAR RESOURCES LIMITED — Fund Information / Factsheet 2004

Aug 16, 2004

17 August 2004,

The Manager Company Announcements Australian Stock Exchange Sydney, NSW

Dear Sir / Madam,

Shareholder Newsletter

The Directors are pleased to attach for immediate release a Shareholder Newsletter, which summarises recent announcements made by the Company, includes some recent press clippings and generally reinforces the operational and strategic direction the Company is taking.

The newsletter is being mailed to all shareholders.

Yours faithfully,

Mark Pitts Company Secretary

Shareholder's Newsletter August 2004

Dear Shareholder

Exploration continues with ongoing testing within the BrightStar Discovery Zone with RAB, RC and now deep diamond drilling to confirm a deep open pit, or concurrent open pit and underground operation.

Earlier this month, A1 announced results from the latest RC program, yielding deep drill hits at 80 metre intervals along strike intercepting 2 metres $(a)$ 34.5 g/t Au from 212 metres depth, 4 metres @ 13.0 g/t Au from 166 metres depth, 6 metres $(a)$ 6.3 g/t Au from 169 metres depth, 6 metres $(a)$ 6.1 g/t Au from 202 metres depth, 6 metres @ 3.1 g/t Au from 132 metres depth and 3 metres $\omega$ 5.8 g/t Au from 142 metres depth.

AI's geologists are working persistently to establish the extent of mineralisation at BrightStar. They are maintaining a greater than 70% strike rate in RC drilling for significant gold intercepts above 1g/t, an excellent report card on their performance.

Every good drill intercept adds substantial value to the BrightStar deposit and we certainly have not been short of these good intercepts.

A1 has also successfully reached an agreement with indigenous groups removing the uncertainty of native title, not just at BrightStar, but on a massive 10,000 square kilometres of land covering all the gold bearing terrain which in the future, might synergise with AI's BrightStar and Narnoo Projects. This is an important foundation block for A1 to be a much bigger company. We welcome the Wongatha as fellow Shareholders.

Kind regards

• TOP PERFORMER A1 CONTINUES TO DISCOVER MORE GOLD AT BRIGHTSTAR
• RESOURCE POTENTIAL AT BRIGHTSTAR INCREASES
• DRILLING HEATS UP WITH MORE HIGH GRADE HITS! RC, RAB, AIRCORE AND DIAMOND DRILL RIGS OPERATING AT BRIGHTSTAR IN OVERLAPPING PROGRAMS
• EXCELLENT GOLD GRADES FROM SURFACE MEANS EARLY CASH FLOWS FROM BRIGHTSTAR
• SOFT OXIDISED GOLD ZONES TO 100 METRE DEPTHS INDICATE EASE OF DIGGING = CHEAPER MINING, BETTER GRADE CONTROL
• GOOD GOLD GRADES TO DEPTH INDICATE CONTINUING CASH FLOWS FROM BRIGHTSTAR
• FINELY DISSEMINATED LODES = BETTER ORE ESTIMATION, BETTER GOLD RECOVERIES FROM BRIGHTSTAR
• METALLURGICAL TEST-WORK TO DATE SHOWS STRAIGHTFORWARD CONVENTIONAL PROCESSING (CIL) = CHEAPER PROCESSING
• ANCIENT BURIED RIVER AND STREAM CHANNEL PALAEODRAINAGES EXIST TO THE SOUTHEAST OF THE BRIGHTSTAR DISCOVERY ZONE! WILL THIS EXTEND THE AREA OF THE BDZ EVEN MORE? A1 IS DRILLING THERE NOW - FIRST RESULTS ANTICIPATED WITHIN A MONTH
• NATIVE TITLE CLEARANCE GIVEN ON BRIGHTSTAR, INDIGENOUS GROUPS NOW SHAREHOLDERS IN A1

A1-IN THE TOP 5 PERFORMERS IN PUBLIC FLOATS 2003-2004!

John Williams Managing Director

Suite 34 : 25 Walters Drive : Osborne Park : Western Australia : 6017 Telephone (618) 9244 1400 : Facsimile (618) 9244 1600 : ASX Code AAM Email info@alminerals.com.au website www.alminerals.com.au

Schematic Long Section of Drilling Progress

The Proof is in the Drilling - RC, RAB/Aircore Drilling Now!

Ancient Buried River and Stream Channel Palaeodrainages exist over the BrightStar Tenements.

A1 RAB/Aircore Drilling here Now for Possible Extension to BrightStar Discovery Zone!

Good gold hits keep on coming at Brightstar

THE good grading
gold hits keep on
coming for junior
explorer Al Minerals
at its Brightstar Gold Discovery, further reseurce potential which is
becoming
must-watch $\overline{\mathbf{a}}$ $0₀$ investor radars.
In what the company

claims is one of the most intensive exploration efforts being done tion strong coing could
include 1 at 34.9g
fields, 1stort 1 shits
included 2m at 34.9g
per tonne from 212m,
and fin at 5.3gp from 150.
and fin at 6.3gp from system 169m.
Still without an initial

catimate, the recently

listed junior indicated it
may consider an under-
ground mine at Bright-
scor intees our replacies

model for the deposit at
a potentially
warld-class deposit
comprising multiple itar.
"The high grades and shallow dipping lodes
similar to the nearby
Wallnby/Just-in-Case widths oncountered at targeting down-dip and
down-plunge projections of known miners and Sunrise deposits. "A new rapid air blast tions in European Indians
the practice of major
the practice of major
gold ministalised system
at Brightster," Al Min-
crais managing director and aircore dill campaigh will start on east of the known min-
etalised zone. John Williams said.

we should have
results from this area
within a month, while at "Mineralization
appears as shallow to
moderately plunging
lodes within a norththe same time deep dia-
mond drilling to test the noun drama go successions different
plunge extensions of the
plunge extensions of the
prights in unionslise-
with maximum target
depths of 400m down easterly dipping shear currently system currently
extending for a strike
length of over 1.3km. "This further roin-

hok¹

Late last month the compasy announced it
had reached agreement
with the Wongaths
Chim Group, giving it access to a large tract of Laverton, including around Brightstar.

As part of the deal,
about \$220,000 worth of shares wore handed
over to the group. All Minorals issted on the
Australian Stock
Prehange in December
niker a 33.5 million ini-
nal public effet.

its stock price has and yesterday was trading
ing around the 50c
mark.

Kalgoorlie Miner August 2004

Geochem Survey Over BrightStar Tenements

Expect Drilling Results Over Coming Weeks!

aam:asx

BrightStar - Amenability to Mining

Good gold grades from Surface promise early Cash Flows

Soft Oxidised gold zones to 100 metre depths mean ease of digging (cheaper mining, better grade control)

Finely Disseminated Lodes (better ore estimation, better gold recoveries)

Metallurgical test-work to date promises straightforward conventional processing (CIL)

A1 Projects, BrightStar and Namoo Sitting in a Corridor of Multi Million Ounce Gold Mines!

Suite 34 : 25 Walters Drive : Osborne Park : Western Australia : 6017 Telephone (618) 9244 1400 : Facsimile (618) 9244 1600 : ASX Code AAM Email info@alminerals.com.au website www.alminerals.com.au

Top 5 IPO's

186 west australean Business				Al Minerals Limited
				WA leads⁄way in
				top public floats
THE PERFORMERS Company	. Isan arice	Yestertlay's price	% dole
	90e	\$2.64	428
	20e	75e	275
	25.	75e	200	Zahas
	$20\varepsilon$	584	190
	20€	546	170
	20c	426	112.5
	Λæ	41.5e	1075
Kip McGrath Education Isnamisička Petrofeuna Medical Developmen Hilbernia Geld AI Minerals Medasa Makin Piquant Blue New Hope Corporation	40e	79e	975
Tritton Resources NRWE Platinans	40 5 50a	77e 966	937 92

Prospectus Offer 17,500,000 Shares at 20 cents raising \$3.5 million

Seed Capital 14,253,334

Vendor Share 7,500,000

Shares on Completion 39,253,334

Unlisted Options 30 cents = 9,500,000

Market Capital on Listing \$7,850,670

Shares now steady at around 50 cents

Market Capital $(0)$ 50 cents = \$19,626,667!

aam:asx

Share Price Performance