BRIGHTSTAR RESOURCES LIMITED — Interim / Quarterly Report 2004

Mar 14, 2004

A1 Minerals Limited

15^th March 2004

The Manager. Company Announcements Australian Stock Exchange Sydney, NSW

Half Year Financial Report and Appendix 4D

Listed explorer A1 Minerals Limited (ASX:AAM) is please to enclose for immediate release the Half Year Financial Report for the period ending 31 December 2003 and the previous corresponding period to 31 December 2002.

Appendix 4D disclosures:

Results for announcement to the market

		% Increase (Decrease)	Half Year to 31 Dec 2003	Comparative period 31 Dec 2002
	Revenue from ordinary operations	100	17,191
$\overline{2}$	Profit (loss) from ordinary activities after tax attributable to members	870	(83, 553)	(8,618)
3	profit (loss) the period Net for attributable to members	870	(83, 553)	(8,618)
$\overline{4}$	franked per security Dividends and unfranked Interim Final		N/A	N/A
5	Record for entitlement to dividends		N/A	N/A
6	As the entity has only recently been listed on the ASX and the business of exploration has started in earnest during the half year to 31 December 2003 the % changes are not so relevant.

Net tangible assets per security

As at 31 December 2003 the NTA's for the consolidated entity were 11 cents per issued share and for the previous corresponding period 5 cents per issued share.

A1 Minerals Limited ABN 44 100 727 491

Details of entities acquired or disposed of during the period

On 24^th October 2003 the Company acquired all of the issued capital of Desert Exploration Pty Ltd.

Dividends or distributions made

The Consolidated entity has made no payments or commitments to pay dividends to shareholders during the period or the previous corresponding period.

Dividend reinvestment plans

The Consolidated entity has no such plan.

Associates or Joint Venture entities

There are no associates or joint venture entities during the half-year or the previous corresponding period.

Foreign entity accounting standards applied

The Company and controlled entity are all incorporated and operate in Australia.

Review report

The review report from the Company's auditor is attached to the Half Year Financial Report enclosed

Yours faithfully,

Mark Pitts Company Secretary

A1 Minerals Limited ABN 44 100 727 491

A1 MINERALS LIMITED

$(A.C.N. 100 727 491)$

INTERIM FINANCIAL REPORT

FOR THE HALF YEAR TO 31ST DECEMBER 2003

TABLE OF CONTENTS

Directors' Report	2
Statement of Financial Performance	3
Statement of Financial Position	4
Statement of Cash Flows	5
Notes to the Financial Statements	6
Directors Declaration	8
Independent Review Report	G,

DIRECTORS' REPORT

The Directors present their Report together with the Consolidated Financial Statements for the half-year ended 31st December 2003.

Directors

The names of the Directors of the Company whom held office during or since the end of the half year are:

Name:	Period of Directorship:
Mr Michael Hunt Chairman	Director since 31 October 2003
Mr John Williams Managing Director	Director since 29 May 2002
Mr Roy Dudney	Director since 29 May 2002
Mr Peter Thomas	Director since 17 April 2003
Mr Mark Hronsky	Director since 29 May 2002, retired 1 October 2003.

Results of Operations

The consolidated operating loss after income tax attributable to members of the Company, for the halfyear ended 31st December 2003 was \$ 83,553 (2002 \$ 8,618).

Review of Operations

During the six months to 31^st December 2003 the Company maintained its tenements in good standing and completed a successful IPO to raise \$3.5m for the purpose of further defining its discovery at BrightStar east of Laverton and carrying out exploration on its Narnoo prospects to the south.

Directors' Resolution

This report is made in accordance with a resolution of the Directors.

JOHN WILLIAMS Director

Signed in Osborne Park, Western Australia this 15th day of March 2004.

STATEMENT OF FINANCIAL PERFORMANCE For the Half Year ended 31st December 2003

	Consolidated Entity 31 December 2003 \$	Consolidated Entity 31 December 2002 \$
Revenue from ordinary activities	17,191
Administration Business development and promotion Occupancy costs	81,465 3,120 7,143	8,618
Total operating expense	91,728	8,618
Operating profit (loss) from ordinary activities before borrowing costs, tax, depreciation and amortisation	(74, 537)	(8,618)
Depreciation and amortisation	7,040
Profit (loss) before borrowing costs and related income tax	(81, 577)	(8,618)
Borrowing costs	1,976
Operating profit (loss) from ordinary activities before related income tax expense	(83, 553)	(8,618)
Income tax relating to ordinary activities
Net profit (loss)	(83, 553)	(8,618)
Basic earnings per share	$(0.4)$ Cents	$(0.04)$ Cents

The Statement of Financial Performance should be read in conjunction with the notes to the Financial Statements.

STATEMENT OF FINANCIAL POSITION As at 31st December 2003

L,

	Note	Consolidated Entity 31 December 2003 \$	Consolidated Entity 30 June 2003 \$
Current Assets
Cash		3,244,120	313,219
Receivables			18,570
Total Current Assets		3,244,120	331,789
Non-Current Assets
Exploration & development		2,690,066	978,748
Plant & equipment		40,487	8,260
Other			1,190
Total Non-Current Assets		2,730,553	988,198
TOTAL ASSETS		5,974,673	1,319,987
Current Liabilities
Payables		54,067	20,906
Interest bearing liabilities		4,175
Total Current Liabilities		58,242	20,906
Non-Current Liabilities
Interest bearing liabilities		21,796	83,575
Total Non-Current Liabilities		21,796	83,575
TOTAL LIABILITIES		80,038	5,716,529
NET ASSETS		5,894,635	1,215,506
Shareholders' Equity
Contributed equity	4	6,022,684	1,260,002
Accumulated losses		(128,049)	(44, 496)
TOTAL SHAREHOLDERS' EQUITY		5,894,635	1,215,506

The Statement of Financial Position should be read in conjunction with the notes to the Financial Statements.

STATEMENT OF CASH FLOWS For the Half Year ended 31st December 2003

	Consolidated Entity 31 December 2003 \$	Consolidated Entity 31 December 2002 \$
Cash Flows Related to Operating Activities
Cash payments in the course of operations Expenditure on mining tenements Interest received Interest paid	(33,070) (187, 288) 17,191 (1,976)	(5, 420) (58, 841)
Net operating cash flows	(205, 143)	(64,261)
Cash Flows Related to Investing Activities
Payments for plant and equipment	(38,076)	(2,019)
Net investing cash flows	(38,076)	(2,019)
Cash Flows Related to Financing Activities
Proceeds from share issue Transaction costs from issue of shares New borrowings:	3,500,000 (268, 276)	45,000
Hire purchase Other loans Repayments on borrowings:	27,501	30,000
Other foans Hire purchase	(83, 575) (1,530)
Net financing cash flows	3,174,120	75,000
Net increase/(decrease) in cash Cash at beginning of the period	2,930,901 313,219	8,720 36,818
Cash at end of the period	3,244,120	45,538

The Statement of Cash Flows should be read in conjunction with the notes to the Financial Statements.

NOTES TO THE FINANCIAL STATEMENTS For the Half Year ended 31st December 2003

NOTE 1. SUMMARY OF ACCOUNTING POLICIES

The half-year consolidated Interim Financial Report is a general purpose financial report made out in accordance with the Corporations Act 2001, Accounting Standard AASB 1029: "Interim Financial Reporting", Urgent Issue Group Consensus Views and other authoritative pronouncements of the Australian Accounting Standards Board.

It is recommended that the Interim Financial Report be read in conjunction with the 30 June 2003 Annual Financial Statements and any public announcements made by A1 Minerals Limited during the half-year ended 31 December 2003 in accordance with the continuous disclosure obligations arising under the Corporations Act 2001.

The accounting policies have been consistently applied by the entities in the Economic Entity and are consistent with those applied in the 30 June 2003 Annual Report.

The half-year Interim Financial Report does not include full note disclosures of a type normally included in an Annual Financial Report.

NOTE 2. NON CASH FINANCING AND INVESTING ACTIVITIES

During the half year the company acquired a 100% interest in Desert Exploration Pty Ltd and as a result. subject to a royalty agreement, 100% ownership of the BrightStar Gold Project. Consideration for this acquisition was 7,500,000 ordinary shares in the Company. (See Notes 4 and 5.)

NOTE 3. SEGMENT REPORTING

During the half year to 31 December 2003, the consolidated entity operated a mineral exploration business in one geographical location.

NOTE 4. CONTRIBUTED EQUITY

Issued and paid up capital	Consolidated Entity 31 December 2003	Consolidated Entity 30 June 2003
39,253,334 (June 2003 21,050,002) ordinary fully paid shares	6,022,684	1,260,002

(a) Share and Option issues during the half year $-$

On 23 September 2003 the Company approved the conversion of the then issued capital on the basis of 2 shares for every 3 shares on issue. This reduced the number of shares on issue by 7,016,667 ordinary shares.

On 30 September 2003 the Company issued 220,000 shares at an issue price of 10c per share in lieu of payment for consulting services.

NOTES TO THE FINANCIAL STATEMENTS For the Half Year ended 31st December 2003

NOTE 4. CONTRIBUTED EQUITY (Continued)

On 31 October 2003 the Company acquired 100% of the issued capital of Desert Exploration Pty Ltd in consideration for the issue of 7,500,000 ordinary shares and 7,500,000 options.

On 31 October 2003 the Company issued a further 2,000,000 options to acquire fully paid ordinary shares. 1,000,000 options to Montague Stockbrokers (the Company's sponsoring broker) and 1,000,000 to the Chairman Mr Michael Hunt.

All options on issue have the same terms and conditions, they are exercisable at 30c on or before 30 November 2006 and they are not quoted securities.

On 2 December 2003 the Company issued 17,500,000 ordinary shares at 20c each pursuant to a prospectus dated 31 October 2003.

During the half year none of the total of 9,500,000 options to acquire ordinary shares on issue had expired or been exercised.

NOTE 5. ACQUISITION OF CONTROLLED ENTITY

The following controlled entities were acquired during the period.

Date acquired Name		Consolidated Entity's interest	Consideration	Contribution to consolidated net profit
			5	S
Desert Exploration Pty Ltd	23 Oct 2003	100%	1,500,000	-

The consolidated entity did not gain any control over entity's in the previous corresponding half year or the period to 30 June 2003.

DIRECTORS' DECLARATION

In the opinion of the Directors of the Company:

1. (a) the consolidated financial statements and accompanying notes have been prepared in accordance with Accounting Standard AASB 1029: Interim Financial Reporting and the Corporations Act 2001:

(b) the consolidated financial statements and notes thereto give a true and fair view of the financial position, performance and cash flows of the consolidated entity for the financial period ending 31 December 2003:

1. there are reasonable grounds to believe that the Company will be able to pay its debts as and when they become due and payable.

This declaration is made in accordance with a resolution of the Board of Directors and signed for and on behalf of the Directors by:

JOHN WILLIAMS Director

Dated this 15th day of March 2004. Osborne Park, Western Australia

INDEPENDENT REVIEW REPORT

TO THE MEMBERS OF A1 MINERALS LIMITED

Scope

We have reviewed the financial report of A1 Minerals Limited for the half-year ended 31 December 2003 as set out on pages 4 to 8. The financial report includes the consolidated financial statements of the consolidated entity comprising the company and the entities it controlled at the end of the half-year or from time to time during the half-year. The company's directors are responsible for the financial report. We have performed an independent review of the financial report in order to state whether, on the basis of the procedures described, anything has come to our attention that would indicate that the financial report is not presented fairly in accordance with Accounting Standard AASB 1029: "Interim Financial Reporting" and other mandatory professional reporting requirements and statutory requirements, so as to present a view which is consistent with our understanding of the company's financial position, and performance as represented by the results of its operations and its cash flows, and in order for the company to lodge the financial report with the Australian Securities and Investments Commission/Australian Stock Exchange Limited.

Our review has been conducted in accordance with Australian Auditing Standards applicable to review engagements. A review is limited primarily to inquiries of company personnel and analytical procedures applied to the financial data. These procedures do not provide all evidence that would be required in an audit, thus the level of assurance provided is less than given in an audit. We have not performed an audit and, accordingly, we do not express an audit opinion.

Statement

Based on our review, which is not an audit, we have not become aware of any matter that makes us believe that the half-year financial report of A1 Minerals Limited is not in accordance with:

• $(a)$ the Corporations Act, 2001, including:
• giving a true and fair view of the consolidated entity's financial position at 31 December. $(i)$ 2003 and of its performance for the half-year ended on that date; and
• $(ii)$ complying with Accounting Standard AASB 1029:"Interim Financial Reporting" and the Corporations Regulations: and
• other mandatory professional reporting requirements in Australia. $(b)$

Dated at West Perth this 15th day of March, 2004.

K. WESTAWAY PRINCIPAL

K. WESTAWAY & ASSOCIATES CHARTERED ACCOUNTANTS