GWR GROUP LIMITED — M&A Activity 2008

Jan 13, 2008

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ASX/Media Release 14 January 2008

FAIRSTAR INCREASES ITS HOLDING IN GOLDEN WEST RESOURCES AND EXTENDS OFFER PERIOD

Key points

• Fairstar extends its takeover bid until 13 February 2008

• New acceptances received for Fairstar’s Offer

• Fairstar is now the beneficial owner of 34.5 million GWR shares, representing approximately 33% of GWR’s share capital

• Fairstar continues to attract new acceptances for its Offer

To give shareholders of Golden West Resources Ltd (GWR) more opportunity to consider its takeover offer for GWR, Fairstar Resources Limited announced on Friday that it had extended its offer for a further month to 13 February 2008.

Fairstar also announced on Friday that it has received further acceptances for its takeover offer for Golden West Resources Limited (ASX: GWR) (Golden West).

As a result Fairstar is now the beneficial owner of approximately 33% of GWR’s share capital.

Fairstar is buoyed by the latest increase in its holding in GWR and the continued support its Offer for GWR has received in the market.

Fairstar has outlined its plans to accelerate the development of GWR’s Wiluna West iron ore project.

These plans include;

• The ramping of drilling at Wiluna West

• The involvement of parties to facilitate the infrastructure requirements needed to advance the project through its development, and

• The negotiation of off-take agreements in respect of Wiluna West

Fairstar managing director Kevin Robertson said that in accepting Fairstar’s takeover offer shareholders will retain exposure to the Wiluna West project, gain access to Fairstar’s gold, uranium and oil and gas exploration projects, and benefit from Fairstar’s experienced management team.

We continue to attract new acceptances for our Offer, which is a positive indication of shareholder and market support for our accelerated development plans for the assets of both companies,” Mr Robertson said.

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“There are some world-class assets involved and our desire is to see them developed in the quickest timeframe possible to realise maximum value for all shareholders.”

Fairstar’s Offer for GWR is seven Fairstar shares for every one GWR Share, and the Offer has also been declared unconditional.

GWR shareholders are urged to accept Fairstar’s increased Offer.

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

Kevin J Robertson Managing Director Fairstar Resources Limited

website: www.fairstarresources.com

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