WESTAR RESOURCES LIMITED — Capital/Financing Update 2021

May 19, 2021

ASX Announcement

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Commencement of Gidgee South Drilling & Exploration at the Birrigrin Mining Centre

HIGHLIGHTS

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• Commencement of maiden ~5,000m RC drill program at the Gidgee South Project

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• Detailed geological review has identified priority targets are undrilled and have the potential for a maiden gold discovery

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• Multiple high-priority targets to be tested including adjacent to historic workings

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• Deep Ground Penetrating RADAR Survey to commence at Birrigrin

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• Following completion of drilling at Gidgee South, Westar will immediately commence its maiden RC drill program at the Winjangoo Gold Project

Westar Resources Limited (ASX:WSR) ( Westar, the Company ) is pleased to announce commencement of the maiden Reverse Circulation (RC) drilling program at its 100% owned Gidgee South Project.

The maiden RC drilling program consisting of approximately 5,000m has been designed to test multiple high-priority targets within a broad gold mineralisation corridor defined by coincident historical gold workings, elevated surface soil geochemistry and late-stage mineralising structures interpreted from geophysical interpretations.

Managing Director of Westar Karl Jupp commented:

”This maiden RC drilling program represents the first modern drill testing of the Gidgee South project. Following on from detailed geophysical interpretations and also the acquisitions of Carbine Bore and the Birrigrin Mining Centre, the commencement of RC drilling represents a significant commitment to Westar’s Sandstone Projects,” and furthermore “The commencement of the DPGR survey at the historic Birrigrin Mining Centre demonstrates Westar’s ability to fast-track exploration through adopting breakthrough technologies.”

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Registered Address

A P

Board Members

T +61 08 6188 7675 E admin@westar.net.au W www.westar.net.au

Gold Projects

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Drilling and Geology Overview

Westar together with specialist consultants, PGN Geoscience, completed a targeting exercise at the Gidgee South Project, including the recently acquired Birrigrin Mining Centre and Carbine Bore prospects (Figure 1). Multiple high-priority targets were identified through analysis of datasets including;

• Distribution and geological/structural associations of historic workings;

• Gold in soil geochemistry;

• Spatial associations of interpreted sericitic alteration from radiometric imagery;

• Geophysical interpretation of low magnetic signal areas interpreted as sulphide alteration replacing primary magnetite, such as in basalts and BIF host rocks; and

• Litho-structural interpretation of geophysical datasets and the interpreted spatial association of the above-mentioned attributes with late (D3) cross-cutting NE-SW transpressional faults.

The maiden RC drilling program is designed to test several of these priority drill targets within a broad mineralisation corridor, including geological units and features that are along strike and potentially down plunge of historical workings.

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Figure 1 – Detailed interpreted geology, geochemistry and priority drill targets

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The Gidgee South Project is located in the Gum Creek Greenstone Belt (GCGB), of which five main styles of gold mineralisation have been recognised (WSR Prospectus, 16 Dec, 2020):

• Shear-hosted gold within quartz-carbonate veins. Typically, the gold mineralisation is locally high-grade (>20 g/t Au), forming within complex conjugate vein arrays associated with brittle dilational openings developed along major shear zones within competent mafic host rocks.

• Quartz veins comprising sulphide-poor sheeted and anastomosing quartz veins and lenses developed in shear zones straddling granodiorite contacts within the GCGB. Grades are typically between 1 g/t Au and 5 g/t Au.

• Ductile shear-hosted gold of two principal types either (a) Arsenopyrite dominant – Fine-grained gold associated with sulphide-rich, altered narrow ductile shear zones. Gold grades are typically in the range between 5 g/t Au and 10 g/t Au, and, (b) Pyrite dominant – Fine-grained gold associated with sulphide-poor, broad ductile shear zones developed within mafic host rocks. Gold grades are typically in the range between 0.5 g/t Au and 1.5 g/t Au.

• BIF-hosted mineralisation with quartz-pyrrhotite veining and pyrrhotite replacement of magnetite mesa-bands forming narrow steep-plunging shoots of limited length and width but extending to depth. This mineralisation style occurs in fold hinges within BIF marginal to major north–south shear zones and is similar to the Hill 50 mineralisation at Mount Magnet. Grades are typically in the range between 1 g/t Au and 10 g/t Au.

• VMS/sedimentary exhalative mineralisation (SEDEX) has been identified at the Altair prospect (Horizon Gold) and comprises broad copper mineralisation associated with pyritic black shales and intermediate volcanic units, which are intensely chlorite and/or biotite altered, with lesser silica.

Birrigrin Deep Ground Penetrating RADAR (DGPR)

Historical mining at The Birrigrin Mining Centre was focused on multiple high to ultra-high-grade quartz reefs. These reefs were frequently over short strike lengths, up to several metres in width and to a maximum of 80m depth.

Westar has commissioned Ultramag Geophysics to complete a DGPR survey over the Birrigrin line of workings and surrounds (figure 2). DGPR is a ‘state-of-the-art’ technology that has been successfully used to map veins and shears, dykes, faults, alteration zones as well as high and low sulphidation ore systems. The DGPR is also expected to provide indicators of voids to map historic shafts and stopes, for which there is limited historical detail.

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Figure 2 – Birrigrin Proposed DGPR survey area

BACKGROUND

The Gidgee South Project is 100% Westar owned and located 55 km north east of Sandstone in Western Australia (Figure 3). The Project consists of exploration license 57/1055 (Gidgee South), The Birrigrin Mining Centre (M57/352) and The Carbine Bore Prospects ( P57/1368 and P57/1363), covering an area of approximately 44 km[2] in the GCGB. The GCGB has historically produced over 1M Oz of gold and hosts over 1.35 M Oz of Au Mineral Resource[1] .

1 ASX announcement Horizon Gold (ASX:HRN) 10 March 2021, “Investor Presentation”

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Figure 3 - Gidgee South Locality Map
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For the purpose of Listing Rule 15.5, this announcement has been authorised by the board of Westar Resources Ltd.

ENQUIRIES

Karl Jupp, Managing Director & CEO +61 8 6188 7675kjupp@westar.net.au

ABOUT WESTAR RESOURCES

Westar Resources (ASX:WSR) is a Perth-based mineral exploration company focused on creating value for shareholders through the development of high-quality gold assets in Western Australia. Westar’s projects are strategically located in highly prospective parts of some of WA’s most prolific goldfields including Sandstone, Mt Magnet, Southern Cross and Nullagine. The Company’s strategy is to apply a systematic approach to the assessment and prioritisation of its projects, all of which have the potential to produce material discoveries.

COMPETENT PERSON STATEMENT

The information in this announcement that relates to exploration results is based on and fairly represents information compiled by Kelvin Fox, a competent person who is a member of the AusIMM. Kelvin Fox is employed by Westar Resources Limited. Kelvin Fox has sufficient experience that is relevant to the style of mineralisation and type of deposits under consideration and to the activity being undertaken to qualify as a Competent Person as defined in the 2012 edition of the Australasian Code of Reporting of Exploration Results, Mineral Resources and Ore Reserves. Kelvin Fox consents to the inclusion in this announcement of the matters based on his work in the form and context in which it appears.