WESTAR RESOURCES LIMITED — Capital/Financing Update 2023

Apr 16, 2023

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ASX Announcement
17 April 2023
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Westar Executes Option Agreement at Olga Rocks Lithium-Gold Project & Prepares for Maiden RC drilling Campaign

Highlights

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• Westar completes due diligence at the Olga Rocks Lithium-Gold Project and enters the 12-month Option Agreement

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• Historical drilling and due diligence fieldwork identified thick Albite-rich pegmatites with potential up to 3km strike extent, untested for Lithium and rare metal mineralisation

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All permitting and approvals in place to commence ‘Proof of Concept’ Reverse Circulation (RC) drilling campaign in the coming weeks

Westar Resources Limited (ASX: WSR ) ( Westar or the Company ) is pleased to announce the completion of the due diligence (DD) period at the Olga Rocks Lithium-Gold Project ( Olga Rocks Project or the Project ), approximately 60km south-east of Southern Cross, Western Australia and that the Company has subsequently entered the 12-month option period.

The DD period included extensive data complication, reconnaissance field programs, rock chip sampling and orientation soil sampling that Westar believes has confirmed the presence of a fractionated pegmatite.

Westar Executive Director Lindsay Franker commented:

“Westar has used the DD period at the Olga Rocks Project to comprehensively evaluate this exceptional opportunity for LCT (Lithium Caesium Tantalum)-style pegmatite mineralisation in the emerging Forrestania lithium district. Our field work has confirmed the presence of highly fractionated pegmatites and Westar geologists have leveraged the location of pegmatites observed in historical gold drilling to design a ‘Proof of Concept’ maiden RC drilling campaign, with all permitting and approvals in place.”

Westar Resources Limited | ACN 635 895 082 | ABN 66 635 895 082 Level 1, 19 Ord St, West Perth, WA 6005 | PO Box 814 West Perth, WA 6872 +61 08 6556 6000 | admin@westar.net.au | www.westar.net.au

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Olga Rocks Overview

Westar acquired the Olga Rocks Project in mid-January, 2023[1] , and has used the DD period to complete extensive data compilation (from relevant publicly available WAMEX reports), reconnaissance mapping and sampling and orientation soil sampling[2,3] . Previous explorers at the Olga Rocks Project completed several phases of early exploration, including geochemical sampling, RAB, Reverse Circulation (RC) and a single diamond drill hole, all focused on gold exploration. Multiple pegmatite/felsic intersections were previously logged and have been observed in drill spoil during Westar’s reconnaissance, however, no historical intersections of pegmatite have been assayed for lithium mineralisation (LCT-style pegmatites).

The Olga Rocks Project comprises four granted mining leases, one prospecting licence pending mining lease conversion, two prospecting licences pending application and one exploration licence (formerly Parker Dome), for approximately 35km[2 ] of tenure. The tenure is contiguous.

LCT Mineralisation Potential

Westar field and technical studies have identified three zones of LCT-prospective pegmatite at the Olga Rocks Project, being the Western, Central and Eastern Zones (Figures 1 & 2), with the inclusion of the recently acquired recently acquired tenure (P77/4638)[4] indicating the possibility of strike extension of the Central pegmatites of up to 3km.

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Figure 1 – Outcrop exposure of the Eastern Pegmatite

1 See WSR ASX Announcement, 16 January, 2023, “Olga Rocks Lithium-Gold Acquisition”

2 See WSR ASX Announcement, 27 February, 2023, “LCT Pegmatite Mineralisation Confirmed at Olga Rocks”

3 See WSR ASX Announcement, 28 February, 2023, “Olga Rocks Pegmatite Interpretation” 4 See WSR ASX Announcement, 1 March, 2023, “Expansion of Olga Rocks Lithium-Gold Project”

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Figure 2 – Olga Rocks Project location map and recent drill results from ASX:ZNC and ASX:XTC

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Gold Potential

Extensive historical workings and gold intercepts by previous owners[5] (Figure 3), including 8m @ 4.54 g/t Au (OLC003 ), 8m @ 4.69 g/t Au (OLC011) and 3m @ 10.6g/t Au (OLA043) require follow-up drilling to determine gold potential along strike and down-dip.

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Figure 3 - Cross section of historic RC/Diamond drilling showing pegmatite intervals and Au intercepts.

Forward Work Plans

Westar has obtained all necessary permitting and approvals to commence a maiden “Proof of Concept”, RC drilling campaign, which will prioritise drilling at known pegmatite locations, below the depth of weathering and lithium depletion. Drilling is expected to commence early mid Q2 CY23, weather permitting. The campaign is designed as proof of concept to confirm potential for lithium bearing LCT-style pegmatite mineralisation as well as confirming previously reporting gold mineralisation potential. Westar also will evaluate re-processed high-resolution geophysics and accompanying litho-structural interpretation for gold targets, in conjunction with additional mapping, rock-chip sampling and soil sampling over the greater tenure area.

5 See WSR ASX Announcement, 16 January 2023, “Olga Rocks Lithium-Gold Acquisition”

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Olga Rocks Background

The Olga Rocks Project is located within the emerging Forrestania lithium district (Figure 4), which hosts the developing Covalent Lithium “Mt Holland Project” (189Mt @ 1.50% Li20[6] ), along with Zenith Minerals recent lithium-pegmatite discovery at the “Split Rocks Project”[7] less than 1.5km from Olga Rocks. Westar considers the Project has the potential to further enhance the Tier 1 lithium potential of the district, with further exploration success.

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Figure 4 – Location map of Westar’s lithium-gold projects, Olga Rocks and Mindoolah, with other WA lithium resource projects

6 See KDR ASX Announcement, 26 April 2018 “Quarterly Activities Report” 7 See ZNC ASX Announcement, 16 November 2022, “Zenith Drilling Returns Significant Lithium”

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About Westar Resources

Westar Resources is a Perth-based mineral exploration company focused on creating value for shareholders through the discovery and development of high-quality precious and future metal assets in Western Australia. Westar’s projects are strategically located in the highly prospective Pilbara, Murchison and Yilgarn regions of WA, with projects near Nullagine, Mt Magnet, Cue, Southern Cross and Sandstone. Our exploration strategy is to explore projects aggressively and intelligently using innovation, technology, and bestpractice with a clear focus on optimising opportunities for success and generating material discoveries.

For the purpose of Listing Rule 15.5, this announcement has been authorised by the board of Westar Resources Ltd.

ENQUIRIES

Lindsay Franker , Executive Director | lindsay@westar.net.au | Ph: 08 6556 6000

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Reporting of Results: Westar confirms this announcement does not contain new results. Any historical or Westar obtained results, including laboratory assays, have been fully disclosed in previous ASX announcements, including appropriate JORC reporting requirements and competent person statement.

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