GWR GROUP LIMITED — M&A Activity 2007

Dec 10, 2007

11 December 2007

Unit 3, 136 Main Street, Osborne Park WA 6917 PO Box 1520, Osborne Park WA 6916 Phone: 08 9242 5111 Fax: 08 9242 5677 Email: admin@fairstarresources.com Web: www.fairstarresources.com

A.B.N. 38 115 157 689

Dear GWR Shareholder or Optionholder

Fairstar is pleased to announce that it has revised its offer for Golden West Resources Limited ( GWR ) shares to seven Fairstar Shares for every one GWR Share.

Based on the closing price of Fairstar Shares on the ASX on 7 December 2007 of $0.41, Fairstar’s offer of seven Fairstar Shares for each GWR Share represents a premium of approximately 40% over both the closing price of GWR Shares on 3 September 2007 (being the day prior to the announcement of the Offer) of $2.05, and the closing price of GWR Shares on 7 December 2007 of $2.03.

It also compares favourably with GWR directors' recent decision to issue 19.7% of the company's share capital at a price of $1.85 per share.

In accordance with the Corporations Act, all GWR shareholders who have already accepted Fairstar's offer will automatically receive the increased consideration.

Fairstar is also pleased to announce that it has today declared its offer free from all conditions, with a result that GWR shareholders who accept the offer will receive their Fairstar Shares within 30 days of their acceptances being processed. Those who have already accepted will receive their Fairstar Shares within the next 30 days.

A supplementary bidder's statement explaining these changes is enclosed. I urge you to read this document carefully.

Fairstar's offer is due to close on 13 January 2008.

If you have any questions on how to accept Fairstar's offer, please contact the Fairstar Shareholder Information Line on 1800 895 933 (within Australia) or +61 2 8256 3373 (outside Australia), or contact your stockbroker or financial adviser.

Yours faithfully

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Kevin J Robertson Managing Director