BRIGHTSTAR RESOURCES LIMITED — Capital/Financing Update 2016

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**STONE

RESOURCES AUSTRALIA LIMITED**

14 SEPTEMBER 2016

NON-BINDING HEADS OF AGREEMENT SIGNED ON BRIGHTSTAR NORTH TENEMENTS

• SRAL is to provide the tenements

• The tenements initially include Brightstar North Project tenements, located north of Laverton in Western Australia

• SRAL to provide the Gold Plant

• VCS will provide the expertise and mining

• VCS will provide the working capital

Stone Resources Australia Limited (ASX: SHK) (“SRAL” or the “Company”) is pleased to announce that it has signed a Non-Binding Heads of Agreement (“NBHOA”) with VCS Civil and Mining Pty Ltd (“VCS”) outlining the in principal formation of a partnership to expedite the development of gold deposits in the Laverton area of Western Australia.

The NBHOA is for the development of tenements held by SRAL, with finalisation of terms to be agreed in a more in-depth agreement within 8 weeks. The NBHOA allows VCS to commence its drilling and related due diligence activities immediately, but does not mandate that VCS proceed to a binding joint venture if it is not satisfied by the results of those enquiries.

Under the proposed arrangement:

• SRAL is to provide the tenements for development that are located to the north of Laverton, namely the Brightstar North Project tenements. SRAL will provide access to facilities that can grind and process the ore at SRAL Bright Star gold plant located 40km south east of Laverton, WA, as well as any other infrastructure they currently hold that could be of use to partnership.

• VCS will provide the expertise in gaining the required approvals, develop the mine plan, Engineering, Geological support, Pit design and manage road haulage. Once completed, VCS will provide manning and mobile plant for the mining and haulage services to deliver the ore to the processing facility.

• VCS will provide the working capital until positive cash flow is generated as well as the mining fleet and fixed plant upgrade.

  • First Floor 1/250 Fulham Street, Cloverdale W A 6105

  • Telephone (618) 9277 6008: Facsimile (618) 9277 6002: ASX Code SHK Email [email protected] website: www. stoneral.com.au

ABN 44 100 727 491: ASX Code SHK : Member of AMEC

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**STONE

RESOURCES AUSTRALIA LIMITED**

• The parties will further evaluate the viability for development of other tenements held by SRAL

VCS Civil and Mining provide a complete suite of Mining and Civil services offering a seamless, fully integrated and low risk solution for projects whilst prioritising safety and quality. www.vcsgroup.com.au

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William Hobba

Non-Executive Director

Stone Resources Australia Limited

First Floor 1/250 Fulham Street, Cloverdale W A 6105 Telephone (618) 9277 6008: Facsimile (618) 9277 6002: ASX Code SHK Email [email protected] website: www. stoneral.com.au ABN 44 100 727 491: ASX Code SHK : Member of AMEC