WESTAR RESOURCES LIMITED — Interim / Quarterly Report 2021

Oct 20, 2021

ASX Announcement

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Quarterly Activities Report For the Period Ending 30 September 2021

HIGHLIGHTS

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• Maiden RC drilling programs completed at the Company’s 100% owned Sandstone Gidgee South and Mt Magnet Winjangoo gold projects

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• Farm-In partner Ramelius Resources (ASX:RMS) continued preparations for its maiden drill program at Mt Finnerty, Southern Cross, which commenced subsequent to reporting period

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• Opaline Well reconnaissance complete, with rock chip assays including 508ppm Cu, 1,080ppm Zn and 343ppm Pb (OWR019)

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• Multiple VMS-style conductors identified at Gidgee North from SkyTEM survey

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• Airborne EM programs in preparation for Opaline Well and Gidgee North

Westar Resources Limited (ASX:WSR) ( Westar , the Company ) is pleased to provide an update on exploration activities during the September 2021 Quarter, following the company’s admission to the official list of the Australian Stock Exchange (ASX) on 17 December 2020.

Westar Managing Director Karl Jupp commented:

“Exploration activities during Q3 CY2021 have flowed straight from the previous quarter with activities across our projects at Sandstone, Mt Magnet and Opaline Well. Whilst still early days, we’re highly encouraged with what we’ve seen to date, especially at the historical Birrigrin Mining Centre at Gidgee South. The identification of several conductors at Gidgee North and early field investigations are also extremely encouraging and likely to become an integral part of our future exploration focus. At the Mt Finnerty Project our earn-in partner, Ramelius Resources has made excellent progress having commenced drilling subsequent to the end of the quarter.”

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Registered Address

A P

Board Members

T E W

Projects

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Westar’s Project Portfolio

Westar holds 100% ownership over seven projects in Western Australia. The Sandstone Projects, Gidgee South and Gidgee North, the Mt Magnet Projects, Winjangoo and Coolaloo and the Pilbara Project, Opaline Well. The Southern Cross Projects, Mt Finnerty and Parker Dome, are and held by Westar under a farm-in/JV agreement with Ramelius Resources Ltd having the right to earn a 75% interest.

Westar’s three-pronged exploration rationale is summarised as;

• 1) Maximise discovery potential of key assets through diligent application of capital and resources, utilising best practice systematic exploration and technology;

• 2) Diversify risk on appropriate assets through partnering with fast-moving companies with reputations for building mines; and

• 3) Continuously evaluate a pipeline of prospective opportunities under the mantra ‘succeed swift or fail fast’.

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Figure 1 – Location map of Westar Projects in Western Australia

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Sandstone Projects – Gidgee North & Gidgee South

The Company’s Sandstone Projects are comprised of two separate projects - Gidgee South (E57/1055, M57/352, P57/1363 and P57/1368) and Gidgee North (E53/1920 and E51/2044- under application ), covering circa 315 km[2] and located approximately 640 km northeast of Perth and 700 km northnorthwest of Kalgoorlie (Figure 3). The Projects lie within the Gum Creek Greenstone Belt of the Youanmi Terrane, which forms a lensed, broadly sinusoidal belt measuring some 100km in length and 24km in width.

Historical workings at Gidgee South extend south from the Birrigrin Mining Centre (BMC), through a previously identified geochemical anomaly, towards an area of more recent dry blowing (prospecting) activity at Carbine Bore.

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

Activities during the quarter at Gidgee South:

• Westar announced completion of the Gidgee South maiden RC drilling campaign - 5[th] July 2021, “Completes Drilling at Gidgee Sth and commences at Winjangoo”, comprising 56 RC drill holes for 4,258 metres of drill advance .

• Results for the drilling campaign were announced subsequent to the end of quarter – 7[th] October 2021, “Maiden drilling at Gidgee South confirms gold mineralisation” , which also included results of the Deep Ground Penetrating RADAR (DGPR) program completed earlier in the year.

• Westar contractors completed geological and prospectivity mapping over the Birrigrin Mining Centre area to aid in increasing the geological knowledge of the litho-structural controls on mineralisation in the area for future drill planning.

Activities during the quarter at Gidgee North:

• Numerous conductors were identified and announced (Figure 2) – 15[th] July, 2021 “Conductors Prospective for Base Metals – Gidgee North” with highlights including:

• Six conductors identified from open-file SkyTEM data

• Modelled depth to conductors are relatively shallow at 35-100m

• Analogies to the nearby “Altair” Cu-Zn prospect

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• Westar completed field reconnaissance including mapping, rock chip sampling and soil sampling that was reported subsequent to end of quarter – 4[th] October, 2021, “Conductors prospective ”

• for Base Metals – Gidgee North .

• Application for an additional 20 blocks of tenure adjoining North of Gidgee North (E51/2044) remains pending approval at the end of Q3, CY2021.

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Figure 2 – SkyTEM (high moment Ch35) shown with tenement boundary and anomalies identified.

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Figure 3 – Location map of Westar’s Sandstone Projects, Gidgee North and Gidgee South

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Mt Magnet Projects – Winjangoo & Coolaloo

The Mount Magnet Projects are comprised of several granted exploration licences; the Winjangoo Project (E58/536) and the Coolaloo Project (E59/2329 & E59/2509), Figure 4, situated in the Murchison Mineral Field and proximal to the historical mining centre of Mount Magnet which has historically produced over six million ounces of gold since the initial discovery in 1891. The Mount Magnet Projects cover approximately 302 km[2] .

Activities in the quarter at Winjangoo:

• Westar commenced the maiden RC drilling program at Winjangoo - 5[th] July 2021, “Completes Drilling at Gidgee Sth and commences at Winjangoo” and announced completion of the 38-hole, 2,980m program – 23[rd] August, “ Maiden RC Drilling Program Completed at Winjangoo ”.

• Assays for the program are expected to be reported in Q4 CY2021.

Activities during the quarter at Coolaloo:

• No activities were completed at the Coolaloo Project during the reporting period.

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Figure 4 – Location map of Westar’s Mt Magnet Projects, Winjangoo and Coolaloo

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Pilbara Project – Opaline Well

Westar’s Opaline Well project (E45/4997) is located in the Pilbara, approximately 190km southeast of Port Hedland and 35km west of Nullagine, Figure 5.

Historical exploration over this portion of the Coongan greenstone belt includes geochemical exploration, with rock chip samples up to 200 g/t Au around the historical Triberton Creek workings and rock chips assays ranging from 0.25–1.15% Cu, 0.14–1.85% Zn, 79–155 g/t Ag and 0.19–0.41 g/t Au around the historic Opaline Well workings.

Activities during the quarter at Opaline Well:

• Westar completed and reported on a litho-structural interpretation, field reconnaissance and rock-chip sampling program - 20[th] Sept 2021, “ Opaline Well – Exploration Update ”. The announcement included rock chip sampling results over two priority target areas including:

• Area 1 (Triberton Creek) – rock-chip samples OWR025 to OW031 confirm the presence of gold mineralisation (maximum of 1.3g/t Au in OWR025). A separate prospect for follow up investigation, approximately 4.3km SSE of the Triberton Creek shafts, shows Ag, Ba, Cu and Zn anomalism from samples OWR061-063, including 0.3 g/t Ag from OWR062 and 218ppm Cu from OWR063; and

• Area 2 (Opaline Well) - Where historical workings are located proximal to rock chips collected by Great Southern Mines in 1995 that returned assays of 0.35 ppm Au, 155ppm Ag, 1.15% Cu and 1.85% Zn. Anomalous rock chips such as OWR019 (which assayed at 343ppm Pb, 1,080ppm Zn and 508 ppm Cu) highlights the potential for VMS base-metal mineralisation.

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Figure 5 – Reginal Location map of Westars’ Pilbara Project, Opaline Well

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Southern Cross Projects (Ramelius Resources (ASX:RMS) Farm-in/JV)

The Mt Finnerty Project, which forms part of the Southern Cross Assets (E16/505) is located approximately 430km east-northeast of Perth and 100km northeast of Southern Cross. Located in the Archean Mara-Diemals greenstone belt, previous exploration activity has been extensive, with historical intersections across the project including:

• MF023 – 9m averaging 98.2 g/t Au from 62 - 71m downhole (including 4m averaging 215.8 g/t Au from 62 - 66m downhole);

• MFRC 029 – 1m at 236.3 g/t Au from 126-127m downhole;

• MF034 – 3m averaging 6.4 g/t Au from 54 – 57m downhole;

• MF038 – 24m averaging 3.68 g/t Au from 45 – 68m downhole (including 4m averaging 12.6 g/t Au from 46 – 50m downhole);

• MF8880/1376 – 9m averaging 9.95 g/t Au from 51 – 60m downhole; and

• MF8580/1414 – 6m averaging 14 g/t Au from 39 – 45m downhole.

See WSR ASX Announcement, 6 December 2020, “Prospectus” for additional details.

The Parker Dome Project (E77/2424) is located approximately 400km east of Perth and 60km southsoutheast of Southern Cross. Situated on the western margin of the north-westerly elongated Parker Dome granitoid, the project hosts several broad previously identified gold-in soil anomalies from historic auger drilling with results up to 192ppb Au. Historical RAB drilling has reported results up to 0.52 g/tAu in transported overburden and 0.38 g/t Au in ultramafics.

The Mt Finnerty and Parker Dome Projects are subject to the Flinders and Parker Dome Farm-in and Joint Venture Agreement between Ramelius Resources Ltd and Rouge Resources (a 100% owned subsidiary of Westar Resources Ltd) dated 30 August 2019. Under the terms of the agreement Ramelius may earn up to a 75% interest by spending $2,000,000 over a three-year period. A full summary of the agreement is set out in section 10.1(a) of the company’s IPO Prospectus.

RMS Activities during the quarter at Mt Finnerty & Parker Dome:

• Ramelius Resources progressed preparations at the Mt Finnerty project ahead of drilling that commenced and was announced post the end of quarter (see ASX announcement, 12[th] October 2021, “ Ramelius Commences Drilling at Mt Finnerty ”).

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Figure 6 – location map of Westars’ Southern Cross Projects, Mt Finnerty and Parker Dome, which are under farm-in/JV agreement with Ramelius Resources

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Forward Work Plans

Westar is committed to systematic evaluation and progression of exploration projects through diligent application of capital and resources. Westar intends to progress exploration across its project portfolio in line with the exploration rationale.

Sandstone Projects

• At Gidgee South, Westar geologists are proceeding to compile and collate RC drilling campaign, DGPR program results and litho-structural mapping and field mapping for planning follow up exploration programs.

• At Gidgee North, several areas of infill and extensional soil sampling over priority targets have been planned for field activities early Q4 CY2021.

• Westar commenced preparations to fly additional AEM geophysics over areas of the Gidgee North project in Q4 CY2021 to refine the architecture of conductors and enable detailed plate modelling and drill targeting.

Mt Magnet Projects

• At Winjangoo assays from the maiden RC drilling program are expected to be received and reported with further activities results dependent.

• Independent technical review at the Coolaloo Project is planned and this scope will include the adjoining Murrawalla Hill tenure.

Pilbara Projects

• Westar commenced preparations to fly additional AEM geophysics over the Opaline Well Project in Q4 CY2021 to fast-track targeting of VMS style mineralisation.

Southern Cross Projects (Ramelius Resources (ASX:RMS) Farm-in/JV)

• At the Mt Finnerty project, commencement of drilling by RMS was announced subsequent to the end of quarter – 12[th] October 2021, “WSR: Ramelius Commences Drilling at Mt Finnerty Project”

• At the Parker Dome project, planned works include a regolith review, relogging of historical drill spoil and assessing site access for proposed drilling and site heritage clearance prior to aircore drilling, possibly late in Q4 CY2021.

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Market Sensitive Announcements During the Quarter

• 7[th] July 2021, “Completed drilling at Gidgee Sth and commences at Winjangoo”

• 15[th] July 2021, “Conductors Prospective for Base Metals – Gidgee North”

• 23[rd] August 2021, “Maiden RC Drilling Program Completed at Winjangoo”

• 20[th] September, 2021, “Opaline Well Exploration Update”

Corporate

During the quarter the Company moved to a new address at Level 1, 19 Ord Street, West Perth WA 6005.

A total of 1,469,945 Shares were released from escrow.

Current cash at September 30 was $1.98 million and the Company remains funded for its CY2021 exploration activities.

Financial

STATEMENT PURSUANT TO LISTING RULE 5.3.4

Westar Resources Limited provides the following additional information in accordance with Listing Rule 5.3.4.

Table 1 sets out a comparison of the use of funds to date compared to the Use of Funds Statement included in the Prospectus dated 23 October 2020. The Company was admitted to the Official List of ASX on 16 December 2020.

Table 1 – Use of Funds.

	Per Prospectus	Expenditure to date to 30
Use of Funds	Dated 23 October 2020	September 2021
	$	$
Exploration Activities	$2,400,000	$1,671,447
Salaries & Wages	$700,800	$630,411*
Administration expenses and		$459,877
	$2,324,240
working capital

• includes fees paid to external contractors in addition to employee wages and salaries.

Westar considers that there are no material variances with the use of funds table in the Prospectus and the expenditure of funds to date. The majority of funds continue to be spent on exploration.

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For the purpose of Section 6 of the Appendix 5B, all payments made to related parties have been paid in relation to director fees.

Tenement Schedule

Table 2 – Tenement Schedule.

Project
				Term	Area	Area
	Tenement	Status	Grant Date				Interest
				(Yrs)	(Blocks)	**(Km2) **
Gidgee South
	E57/1055	Granted	13/06/2018	5	15	42	100%
	M57/352
		Granted	09/07/2007	21	-	113.6 ha	100%
	(Birrigrin)
	P57/1363
		Granted	08/09/2019	4	-	9 ha	100%
	(Carbine Bore)
	P57/1368
		Granted	13/10/2019	5	-	9 ha	100%
	(Carbine Bore)
Gidgee North
	E53/1920	Granted	31/10/2017	5	70	214	100%
	E51/2044
				Pending Grant
	(SE Bore)
Winjangoo
	E58/536	Granted	11/9/2018	5	29	88	100%
Coolaloo
	E59/2329	Granted	11/9/2018	5	45	136	100%
	E59/2509
		Granted	22/02/2021	5	26	78	100%
	(Murrawalla Hill)
Opaline Well
	E45/4997	Granted	16/11/2018	5	21	67	100%
Mt Finnerty							100% with
	E16/505	Granted	15/03/2019	5	10	30
							RMS farm-in/JV
Parker Dome							100% with
	E77/2424	Granted	14/09/2017	5	12	33
							RMS farm-in/JV

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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 7675 kjupp@westar.net.au

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.

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 and base 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.

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