WESTAR RESOURCES LIMITED — Capital/Financing Update 2023

Mar 1, 2023

ASX Announcement

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Maiden Aircore Program at Gidgee North to Test Multiple Gold and Copper-Zinc Targets

HIGHLIGHTS

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• Multiple priority gold targets refined, ready for drill testing

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• Historic supergene copper-zinc targets at the Vela and Geo prospects to be tested

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• All approvals in place, contractor secured and drilling to commence in March

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• Geochemical programs progressing to refine targets over northern tenure for drill testing in H2CY23

Westar Resources Limited (ASX: WSR ) ( Westar or the Company ) is pleased to provide an update on exploration activities and the upcoming drilling program at the Gidgee North project. Westar holds approximately 430 Km[2] of tenue in the under explored north-western portion of the Gum Creek Greenstone Belt (GCGB). The GCGB is interpreted to form a large synclinal structure, with lithologies and structures hosting many of the prospects and resources on the eastern limb repeated in Westar’s tenure in the western limb. Westar’s extensive datasets have been used to generate and refine numerous gold and copper-zinc targets in the southern portion of the tenure that will be drill-tested in March with a maiden aircore program.

Westar is also progressing geochemical sampling and mapping on northern targets to progress a pipeline of targets for drill testing in conjunction with drilling at the recently acquired Fairy Well Prospect in H2CY23.

Westar Managing Director Karl Jupp commented:

“Given the historical production plus the current Mineral Resource inventory in the GCGB, this is a rare opportunity to drill test an extensive strike of prospective greenstone terrain that has never seen a drillhole. We know the lithologies are right, the structures are permissive and the targets have been systematically worked up using best-practice geoscience and an extensive knowledge of the GCGB minerals systems architecture.”

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Board Members

Registered Address

A Level 1, 19 Ord St, West Perth, WA 6005 T P PO Box 814 E West Perth, WA 6872 W

Pilbara Projects Opaline Well Murchison Projects

Yilgarn Projects

ASX Code

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EXPLORATION UPDATE

Westar has progressed target definition and ranking of priority prospects at the Gidgee North project, focusing on prospects south of the rabbit proof fence (SRPF), and is preparing to commence a circa 6,000m aircore drilling program in early to mid-March. All approvals are in place and drilling contractor secured. Drilling targets have been generated both in-house and with the assistance of specialist consultants using Westar’s extensive geochemical, geophysical, spectral and mapping datasets.

In addition to targeting and drilling activities SRPF, Westar has progressed geochemical sampling on priority targets identified north of the rabbit proof fence (NRPF). This will progress a pipeline of ranked targets to be drill tested in conjunction with planned drilling at the recently acquired Fairy Well Prospect[1] in H2CY23.

Gold Targets

The Gum Creek Greenstone Belt hosts numerous gold deposits with >1.0 Moz of historical gold production and approximately 2.3 Moz in current resources from neighbouring explorers, including Horizon Minerals (ASX: HRN )[2] and Gateway Mining (ASX: GML )[3] . The GCGB is interpreted to form a large synclinal structure, with lithologies and structures hosting many of the prospects and resources on the eastern GCGB similar to those occurring in Westar’s tenure in the western GCGB, Figure 1.

Five gold mineralisation styles are considered dominant in the Gum Creek Greenstone Belt and are expected at Gidgee North, including:

1. Ductile/Brittle Shear-Hosted

2. BIF-Hosted

3. Intrusion-Related-Gold-System (IRGS) Quartz Veins

4. Syenite Intrusion Related

5. Late-Basin Type

Westar in conjunction with Outcrop Exploration Services (OES) completed a detailed gold prospectivity and target generation analysis at Gidgee North using Westar’s extensive datasets. Multiple targets were defined and prioritised through analysis of normalised regolith surface geochemistry (Figure 2) and detailed structural analysis utilising re-processed airborne magnetic and gravity geophysical data.

Conceptual structural targets include interpreted syenite intrusions and late basins (inverted early extensional structures). In contrast, targets supported by geochemical data in proximity to a reasonable structural position are higher in confidence and exploration priority. The recently granted Romeo’s Reward (E 53/2227) and Juliet’s Bore (E 51/2090) tenements, position the Company to take advantage of those targets that border the Westar held E53/1920 and E51/2044 tenure (Figure 2).

1 See WSR ASX Announcement 17 October 2022, “Fairy Well Acquisition – Gidgee North Project”

2 See HRN ASX Announcement, 14 January 2023, “RIU Explorers Conference Investor Presentation”

3 See GMLASX Announcement, 8 February 2023, “Investor Presentation February 2023”

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Westar intends to complete reconnaissance activities at the new targets located in the NRPF area, including mapping, rock chip sampling and soil geochemistry.

SRPF (Figure 3), the aircore drilling program will test gold targets in areas that have historically received limited, shallow drilling, as previous exploration in the Gum Creek Greenstone Belt (GCGB) has been largely focused on brownfields exploration proximal to historic mining centres, including the Gidgee Gold Mine.

Base Metal Targets

In 2022, Westar completed the proof-of-concept Cu-Zn VMS drilling campaign[4] , noting the similarities of the Vela and Geo prospects with the nearby HRN “Altair” prospect, which includes 55.0m @ 3.32% Zn, 0.52% Cu, 9.4g/t Ag from 184.0m[5] .

The 2023 aircore drilling campaign will focus on defining the continuity and extent of the supergene CuZn at these prospects as originally identified by Pancontinental Mining in the early 1990’s, Figure 4. The limited drilling completed by Pancontinental resulted in a number of anomalous Cu and Zn intercepts within the oxide zone, including the extremely encouraging 8m @ 1.12% Cu from 48m to the end of hole GVER010 and 20m @ 0.17% Zn to the end of hole GVER008.

4 See WSR ASX Announcement, 25 August 2022, “Drilling highlights VMS Potential at Gidgee North”

5 See WSR ASX Announcement, 2 April 2019, “Additional Broad Zn-Cu mineralisation intercepted at Altair”

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Figure 1 – Gidgee North tenure on the western GCGB and known resources and deposits of the region.

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Figure 2 – Normalised regolith geochemistry (excluding background values) from historic surface soil samples. AMAG image base layer.

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Figure 3 – South of the Rabbit Proof Fence: Normalised regolith geochemistry (excluding background values) from historic surface soil samples. AMAG image base layer.

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Figure 4 – Historical drilling at the Vela prospect with significant Cu and Zn intersections

NEXT STEPS

• Aircore drilling in late Q1 to early Q2 of 2023.

• Analyse aircore and soil sample results and plan follow-up drilling.

• Compilation and analysis of historical exploration and mining data from the Hilda prospect at the Fairy Well tenement. Field traverses, rock chip sampling and structural mapping of workings to determine priority drilling areas for maiden RC drilling programme.

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BACKGROUND

The Gidgee North project is located approximately 640km northeast of Perth in Western Australia and comprises tenements E53/1920, E51/2044, E51/2032, E53/2227, E51/2090 and Geoff Well farm-in project E53-1832-1, covering approximately 430 km2. The project lies within the Gum Creek Greenstone Belt of the Youami Terrane, which forms a lensed, broadly sinusoidal belt measuring some 100 Km in length and 24 Km in width. The Gum Creek Greenstone Belt has historically produced over 1 Moz of gold and hosts over 2.3 Moz of gold Mineral Resource[6][7] .

Previous exploration over the Gidgee North project was largely focused on near mine environs or known shear zones and structures, with more regional exploration comprising limited, shallow rotary air blast (RAB) and soil geochemical sampling programs. Various targets have been defined within the current project tenures by former explorers, many of which are considered by Westar to remain inconclusively tested. In addition, large areas of the Project remain essentially unexplored despite covering favourable geological and structural settings.

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Figure 5 – Westar’s Gidgee North project and location in the Murchison region of Western Australia.

6 See HRN ASX Announcement, 14 January 2023, “RIU Explorers Conference Investor Presentation”

7 See GMLASX Announcement, 8 February 2023, “Investor Presentation February 2023”

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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 precious and future metal 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.

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 6556 6000 | kjupp@westar.net.au

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COMPETENT PERSON STATEMENT

The information in this announcement that relates to exploration results is based on and fairly represents information compiled by Karl Jupp, a competent person who is a member of the AusIMM. Karl Jupp is employed by Westar Resources Limited. Karl Jupp 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. Karl Jupp consents to the inclusion in this announcement of the matters based on his work in the form and context in which it appears.

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