Lodestar Minerals : Positive Metallurgical Results High-Grade Ni-S at Nepean

ASX ANNOUNCEMENT

27 April 2022

POSITIVE METALLURGICAL RESULTS FOR SHALLOW

HIGH-GRADE NICKEL SULPHIDES AT NEPEAN

Lodestar Minerals Limited ("LSR" or "Lodestar" or "the Company")(ASX:LSR) is pleased to advise that joint venture partner Auroch Minerals (ASX:AOU)("Auroch") has today announced positive results from metallurgical sampling of drill core samples from shallow, high-grade nickel sulphide drill mineralisation directly south of the historic Nepean nickel mine at the Nepean Nickel Project, south of Coolgardie, Western Australia. Auroch owns an 80% interest and is the operator of the Nepean Project (see Auroch's announcement dated 27th April 2022, attached to and forming part of this announcement).

The preliminary metallurgical sampling program conducted by Auroch achieved its main objective of demonstrating production of a saleable nickel concentrate from the shallow Nepean mineralisation by conventional froth flotation processing.

This outcome is an important milestone for the Nepean Scoping Study and lays the foundation for a planned JORC 2012-compliant Mineral Resource Estimate (MRE) for the shallow, high-grade mineralisation at Nepean.

Contacts

Bill Clayton	Media enquiries
Managing [e-mail] [phone]	Michael Vaughan, Fivemark [e-mail] [phone]

About Lodestar

Lodestar Minerals is an active Western Australian gold and base metal explorer.

Lodestar's projects comprise the advanced Nepean Nickel Project JV, the Ned's Creek JV and the 100% owned Camel Hills, Earaheedy-Imbin, Jubilee Well, Bulong and Coolgardie West projects.

The Earaheedy-Imbin Project is a major strategic land holding in the emerging Earaheedy Province, site of Rumble Resource's recent and potentially world-class Zinc-Lead discoveries. The Imbin Project is located on the northern margin of the prospective basin and is the site of significant historic copper intersections in drilling and approximately 20km of strike of the target Yelma-Frere unconformity.

Lodestar discovered multiple zones of syenite intrusion-related gold mineralisation at the Ned's Creek Project on the Yilgarn craton margin, 150km west of Imbin. Vango Mining Limited is earning a 51% interest in the Ned's Creek JV by contributing $5M of expenditure over 3 years.

Bulong and Jubilee Well are recent acquisitions in highly endowed gold districts; first-pass drill programs are planned. Coolgardie West, located 12km west of Coolgardie, has potential for greenstone hosted gold, nickel and LCT pegmatite mineralisation.

Lodestar Minerals Limited	PO Box 584
1st Floor, 31 Cliff Street	Fremantle, WA 6959
Fremantle, WA 6160	ABN: 32 127 026 528

www.lodestarminerals.com.au

POSITIVE METALLURGICAL RESULTS FOR SHALLOW HIGH-

GRADE NICKEL SULPHIDES AT NEPEAN

Highlights

• • Preliminary metallurgical testwork has successfully been completed on the shallow high-grade nickel sulphide mineralisation identified directly south of the historic Nepean nickel mine

• • Testwork confirms the nickel sulphide mineralisation responds well to conventional flotation beneficiation with nickel recoveries between 85% to 97%

• • Saleable nickel concentrate grades (>13% Ni) were achieved for all three composite samples

• • The positive results from the testwork are an important milestone for the Nepean Scoping Study looking into the economic viability of a potential open-pit mining scenario of the shallow high-grade nickel sulphide mineralisation

Auroch Minerals Limited (ASX:AOU)(Auroch or the Company) is pleased to advise that preliminary metallurgical testwork has successfully been completed on the high-grade shallow nickel sulphide mineralisation directly south of the historic Nepean nickel mine at the Nepean Nickel Project (Nepean) in Western Australia (Auroch Minerals Ltd 80%; Lodestar Minerals Ltd 20%).

Head assays were initially taken for the three composite drill-core samples (Table 1) with nickel grades up to 7.18% Ni for the massive sulphide sample (Sample 3). Results from the metallurgical testwork indicated all samples responded well to conventional froth flotation, with rougher recoveries for nickel between 85% and 97%. Saleable concentrate grades in excess of 13% Ni were achieved for all three composite samples (Table 2), albeit at a lower recovery (30%) for Sample 1, which is the subject of ongoing optimisation testwork.

All samples demonstrated minor non-sulphide nickel (NSNi) present. Sulphur speciation for the samples also indicated some degree of sulphide oxidation has occurred, consistent with the petrology which identified violarite as the dominant nickel sulphide species. No talc or deleterious elements were detected during the testwork.

The results achieved during the preliminary metallurgical testwork programme are encouraging and further work would be expected to improve upon current results, especially with respect to Fe:MgO ratios of the final nickel concentrates produced.

The positive results from the testwork are an important milestone for the Nepean Scoping Study looking into the economic viability of a potential open-pit mining scenario of the known shallow high-grade nickel sulphide mineralisation, which commences within 50m from surface (Figure 2). The Company will now look to complete a JORC(2012)-compliant Mineral Resource Estimate (MRE) for the shallow high-grade nickel sulphide mineralisation at Nepean.

Auroch Managing Director Aidan Platel commented:

"We are very happy with the results from this first phase of metallurgical testwork at Nepean. We knew we have very shallow, high-grade nickel sulphide mineralisation at Nepean that may potentially be extracted in an open-pit mining scenario, but because of the oxidation of the mineralisation being so close to surface, we were unsure if we would be able to produce a saleable grade nickel sulphide concentrate.

The results are extremely encouraging and show that this shallow nickel sulphide mineralisation will indeed produce a saleable grade nickel concentrate, and furthermore that the nickel recoveries are more than acceptable.

HOLE ID	Mineralisation	Ni %	NSNi ppm	Co %	Cu %	Fe %	S %	MgO %
Sample 1	Disseminated and Matrix	1.21	1,050	0.02	0.10	9.28	1.93	34.80
Sample 2	Matrix	2.22	1,570	0.03	0.09	8.64	3.98	31.80
Sample 3	Massive	7.18	5,390	0.10	0.42	14.50	14.70	19.50

As such, the results justify continuing work on the Nepean Scoping Study, and the Company will now commence work on updating the MRE for the shallow portion of the known nickel sulphide mineralisation at Nepean so that we can then begin work on mine designs and optimisation work on potential open-pit mining scenarios."

Figure 1 - Nickel concentrate (>13% Ni) produced during testwork on the high-grade massive nickel sulphides from Sample 3 (source: internal report from Strategic Metallurgy)

Table 1 - Head assay results for the three composite drill-core samples from Nepean

Table 2 - Optimised metallurgical testwork results (best recovery to saleable concentrate grade achieved to-date) for each of the three composite samples from the Nepean Nickel Project

HOLE ID	Sample 1	Sample 2	Sample 3
Recovery %	Grade Ni%	Fe:MgO	Recovery %	Grade Ni%	Fe:MgO	Recovery %	Grade Ni%	Fe:MgO
Rougher	84.5	4.0	0.5	85.9	6.9	0.7	94.5	13.9	3.0
Cleaner*	30.0	13.3	2.8	75.6	13.0	2.1	83.4	15.5	5.1

*Further optimisation testwork ongoing for Sample 1

Figure 2 - Map showing the extent of the shallow high-grade nickel sulphide mineralisation in relation to the historic Nepean nickel mine and selected drilling results 1

This announcement has been authorised by the Board of Directors of the Company.

-END-

1 Refer to 31 March 2021 ASX Announcement -NEW HIGH-GRADE NICKEL SULPHIDE DRILL INTERCEPTS AT NEPEAN.

For further information visitwww.aurochminerals.com or contact:

Aidan Platel

Managing Director

E:[e-mail]

Competent Persons Statement

The information in this report that relates to Exploration Results is based on and fairly represents information compiled by Mr Matthew McCarthy BSc (Hons), a Competent Person, who is a Member of the Australian Institute of Geoscientists. Mr McCarthy is the Company's Senior Geological Officer and has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity being undertaken to qualify as a Competent Person as defined in the 2012 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Mr McCarthy consents to the inclusion in the announcement of the matters based on his information in the form and context in which it appears.

The information in this release that relates to Metallurgical Results and Interpretations is based on information compiled by Nick Vines, Executive Director at Strategic Metallurgy Pty Ltd. Mr Vines is a Member of the Australasian Institute of Mining and Metallurgy (AusIMM) and has sufficient experience which is relevant to the metallurgical test work on the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves'. Mr Vines consents to the inclusion in the release of the matters based on this information in the form and context in which it appears.

Forward-Looking Statements

This document may include forward-looking statements. Forward-looking statements include, but are not limited to, statements concerning Auroch Minerals Limited's planned exploration programmes and other statements that are not historical facts. When used in this document, the words such as "could," "plan," "estimate," "expect," "intend," "may", "potential", "should," and similar expressions are forward-looking statements. Although Auroch Minerals Limited believes that its expectations reflected in these forward-looking statements are reasonable, such statements involve risks and uncertainties and no assurance can be given that actual results will be consistent with these forward-looking statements.

JORC Code, 2012 Edition, Table 1 (Nepean) Section 1: Sampling Techniques and Data

Sampling techniques

EXPLANATION

• ● Nature and quality of sampling (eg cut channels, random chips, or specific specialised industry standard measurement tools appropriate to the minerals under investigation, such as down hole gamma sondes, or handheld XRF instruments, etc). These examples should not be taken as limiting the broad meaning of sampling.

• ● Include reference to measures taken to ensure sample representivity and the appropriate calibration of any measurement tools or systems used.

• ● Aspects of the determination of mineralisation that are Material to the

  Public Report. In cases where 'industry standard' work has been done this would be relatively simple (eg 'reverse circulation drilling was used to obtain 1m samples from which 3kg was pulverised to produce a 30g charge for fire assay'). In other cases more explanation may be required, such as where there is coarse gold that has inherent sampling problems. Unusual

COMMENTARY Drilling

Auroch Minerals Limited:

• ● Nickel mineralisation at Nepean has been sampled from the following drilling techniques:

• ● Diamond Core - half core samples with a maximum of 1.2m and minimum 0.2m length.

• ● RC drilling - 1m samples of pulverised chips, approximately 3kg's is collected in individual calico bags

• ● Air Core drilling creates single metre sample of drill chips; however samples are composited every 3 metres, with the end of hole sample consisting of a 1m sample.

Metallurgy Testwork

Auroch Minerals Limited:

• • Metallurgical samples were crushed to - 3.35mm and split into 1kg sub-samples for flotation testwork

• • The testwork utilised depression of magnesium silicates to selectively float nickel concentrates