GWR GROUP LIMITED — M&A Activity 2007

Sep 6, 2007

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7 September 2007

The Manager ASX Limited Companies Announcements Platform

ABN 38 115 157 689 Unit 3, 136 Main Street, Osborne Park WA 6017 PO Box 1520 Osborne Park WA 6916 Ph: 08 9242 5111 Fax: 08 9242 5677 Email: admin@fairstarresources.com Web: www.fairstarresources.com

Dear Sir

Re GOLDEN WEST RESOURCES LIMITED

On 4 September 2007 Fairstar Resources Limited ("Fairstar") announced its intention to make an off-market bid for Golden West Resources Limited. Fairstar's bid will be subject to a number of conditions, as set out in Annexure A to that announcement, including a condition that no action is taken by a Public Authority that might adversely affect the bid.

Following an approach from ASIC, Fairstar wishes to clarify that a "Public Authority" for this purpose will specifically exclude ASIC itself, the Takeovers Panel, and the other persons referred to in section 659B(1) of the Corporations Act 2001.

Yours faithfully

KEVIN J. ROBERTSON Managing Director Fairstar Resources Limited