WESTAR RESOURCES LIMITED — Interim / Quarterly Report 2021

Apr 26, 2021

ASX Announcement

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Quarterly Activities Report for the Period Ending 31 March 2021

HIGHLIGHTS

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Maiden drill program at Coolaloo completed, results expected over coming weeks

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• PGN Geoscience litho-structural interpretations completed at Gidgee South & Gidgee North to define potential mineralisation controls and refine high-priority drill targets

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• Maiden drill RC drill program to commence in mid Q2 CY2021 at Gidgee South and Winjangoo

• RC drill program to consist of ~5,000m at Gidgee South and ~5,000m at Winjangoo

• High-priority targets at both Gidgee South and Winjangoo have never been drill tested

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• Ramelius continuing farm-in activities at Mt Finnerty and Parker Dome ahead of drilling, anticipated to commence in Q2 CY2021

Westar Resources Limited (ASX:WSR) ( Westar , the Company ) is pleased to provide an update on exploration activities during the March 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 “A busy and productive first quarter has seen Westar rapidly progress exploration across the portfolio with commencement of our maiden drilling campaign at Coolaloo and advanced preparations for RC drilling at high-priority targets at Gidgee South and Winjangoo. We’re well on track to complete over 25,000m of drilling on Westar projects in the first 6 months of listing”.

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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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Westar’s Project Portfolio

Westar holds 100% ownership over seven 7 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 gold projects in Western Australia

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Sandstone Projects – Gidgee North & Gidgee South

The Company’s Sandstone Projects are comprised of two granted exploration licences - Gidgee South (E57/1055) and Gidgee North (E53/1920), covering 255 km[2] and located approximately 640 km northeast of Perth and 700 km north-northwest of Kalgoorlie.

Historical exploration over the projects includes surface geochemistry, limited, shallow rotary air blast (RAB) drilling and a SkyTEM survey over parts of Gidgee North. Historical workings at Gidgee South extend south from the excised historic Birrigrin Mining Centre, through a previously identified geochemical anomaly, towards an area of more recent dry blowing (prospecting) activity.

Activities during the quarter at Gidgee South:

• PGN Geoscience completed a litho-structural interpretation of the Gidgee South Project region that has highlighted and extended upon the knowledge base for mineralisation controls on known workings. Results of the study are being integrated into Westar datasets and used to assist in target definition and ranking.

• POW submittals and approvals, heritage surveys, clearing and other preparations for an RC drilling program, expected to commence mid Q2, CY2021.

• Westar commenced an internal review and data compilation of the adjoining tenure at the historic Birrigrin Mining Centre to aid in understanding litho-structural controls on mineralisation in Westar’s adjoining Gidgee South Project.

Activities during the quarter at Gidgee North:

• External consultants, PGN Geoscience, completed a detailed litho-structural interpretation of the Northern Gum-Creek Greenstone belt, focusing on the Gidgee North Project area. The study used both publicly available data (Open file and DMIRS datasets) as well as Westar flown geophysical data. Results are being integrated into Westar datasets and will be used to assist in target definition and ranking prior to field reconnaissance and anticipated drilling later in CY2021.

• Westar commenced a review of the open file Panoramic 2015 SkyTEM data (airborne EM) and historical geochemical datasets to assess the region for base-metals (Cu-Zn) propsectivity, which will be reported in due course.

• Application for an additional 20 blocks of tenure adjoining North of Gidgee North ( E51/2044) has been submitted to DMIRS with approval pending at the end of Q1, CY2021.

• Application for an additional 2 block of tenure (E51/2029) over the historical “Fairy Well” workings has been submitted and will be balloted in due course.

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Figure 2 – 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), 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] .

At Winjangoo historical exploration is limited to geochemical programs, desktop studies, regional geophysical programs and geological mapping over portions of the project area. The historical exploration activities at Coolaloo, whilst somewhat more extensive than Winjangoo, are considered by Westar to be largely ineffective due to inadequate data sets used to develop targeting criteria and the generally shallow depths achieved over several small drilling campaigns.

Activities in the quarter at Winjangoo:

• POW submittals and approvals, heritage surveys, clearing and other preparations for an RC drilling program, expected to commence mid Q2, CY2021.

Activities during the quarter at Coolaloo:

• POW submittals and approvals, heritage surveys, clearing and other preparations for aircore drilling based on targets identified and announced previously to the market.

• Aircore drilling commenced during March, with completion of the program announced subsequent to the quarter end ( 8[th] April 2021, “Maiden Drill Program Completed at Coolaloo”) .

• Westar Resources consolidated its landholding in the highly prospective Mt Magnet district to over 300km[2] through the granting of tenement E59/2509 (Murrawalla Hill), immediately to the south of the Coolaloo Project (E59/2329) and will begin to develop exploration plans utilizing the exiting knowledge from the adjacent Coolaloo Project

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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 (E 45/4997) is located in the Pilbara, approximately 190km southeast of Port Hedland and 35km west of Nullagine.

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. Other historical activities include regional stream sediment sampling that defined a regional cobalt anomaly extending into the Opaline Well Project area with a peak value of 68ppm against a background of less than 5 ppm cobalt.

Activities during the quarter at Opaline Well:

• Activities in the quarter included commencing litho-structural interpretation ahead of planning for mapping, field reconnaissance and geochemical sampling, planned later in CY2021.

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Figure 4– 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 (E 16/505) 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 (E 77/2424) 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.

Ramelius conducted fauna survey in February 2021 ahead of drilling planned for Q2 CY2021.

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Figure 5 – 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 and Gidgee North, data and studies returned from geophysical surveys, consultant reviews and drilling will continue to be incorporated into Westar datasets, along with detailed structural analysis, and used to define, rank, and prioritize exploration targets.

At Gidgee North a field mapping & rock-chip program is planned to commence mid Q2 CY2021 and will focus on preliminary gold and copper-zinc target areas identified from historical exploration programs and datasets. The mapping and rock-chip data, PGN litho-structural interpretation and review of the SkyTEM data will be used to define and rank drilling targets for H2 CY2021.

An RC drilling program at Gidgee South of approximately 5,000m is planned to commence Q2 CY2021, with a drilling contractor engaged and all necessary approvals and preparations in place.

Mt Magnet Projects

At Coolaloo, an 11,000m aircore drilling program commenced during the quarter (and was completed subsequent to the quarter end). Samples have been submitted to a commercial laboratory in Perth, with turnaround times expected to be several weeks.

At Winjangoo, an RC drilling program of approximately 5,000m is planned to commence Q2 CY2021, with a drilling contractor engaged and all necessary approvals and preparations in place.

Winjangoo will also be assessed for the potential application of either Mobile Metal Ion MMI and/or ultra-fines soil geochemical sampling over the southern part of the lease, where an interpreted greenstone and structural corridor lie under more extensive alluvial cover.

Pilbara Projects

Westar consultants will complete a detailed litho-structural interpretation of the recently flown geophysical survey along with planning exploration activities to commence in H2 CY2021.

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

Preparations are continuing ahead of a drilling program at Mt Finnerty initially and, subject to drill rig availability, then Parker Dome.

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Announcements during the quarter

• 12[th] January 2021, “High Priority Geophyscial Targets Identified at Coolaloo”

• 19 January 2021, “High Priority Geochemical Targets Identified at Winjangoo”

• 21[st] January 2021, “Geochemical Results Confirm Priority Targets at Coolaloo”

• 27 January 2021, “Geophysical Survey Identifies Significant Magnetic Trends at Gidgee South Project”

• 2[nd] March 2021, “Maiden Drill Program Underway at the Coolaloo Gold Project”

Corporate

During the quarter Brent Van Staden resigned as the company secretary, and Ben Donovan was appointed.

Current cash at March 31 was $4.1m and the company remains well funded for its 2021 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.

Use of Funds	Per Prospectus	Expenditure to date to 31
	Dated 23 October 2020	March 2021
	**$m **	**$m **
Exploration Activities	$2,400,000	$290,830
Salaries & Wages	$700,800	$211,171
Administration expenses and working capital	$2,324,240	$209,916

Table 1 – Use of Funds.

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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.

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

ASX Announcement

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Tenement Schedule

Project	Tenement	Status	Grant Date	Term	Area	Area	Interest
				(Yrs)	(Blocks)	**(Km2) **
Gidgee South
	E 57/1055	Granted	13/06/2018	5	15	42	100%
Gidgee North	E 53/1920	Granted	31/10/2017	5	70	214	100%
	E51/2044			Pending Grant
				Pending Grant
	E51/2029
Winjangoo	E 58/536	Granted	11/9/2018	5	29	88	100%
Coolaloo	E 59/2329	Granted	11/9/2018	5	45	136	100%
				5	26	78
	E59/2509	Granted	22/02/2021				100%
Opaline Well	E 45/4997	Granted	16/11/2018	5	21	67	100%
Mt Finnerty		Granted		5	10	30	100% with
	E 16/505		15/03/2019
							RMS farm-in/JV
Parker Dome		Granted		5	12	33	100% with
	E 77/2424		14/09/2017
							RMS farm-in/JV

Table 2 – Tenement Schedule.

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Registered Address

A Level 13, 37 St Georges Tce, Perth, WA 6000 P PO Box 443

Board Members

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

Gold Projects

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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

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.