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All Star Minerals Plc (ASMO)

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Tuesday 25 April, 2017

All Star Minerals Plc

Quarterly Update


("All Star" or "the Company")

Quarterly Update

The board of All Star provides its quarterly update.

Investment Opportunities

Since the last quarterly update on 13 January 2017, the board has continued to review a number of potential opportunities for the Company.

Whilst at this time there can be no guarantee as to the outcome of these opportunities, the board is focused on securing a suitable transaction that would allow All Star to move in a new direction.

Holding in NQ Minerals Plc

The board notes the further progress of NQ Minerals plc (“NQ”) in the first quarter of 2017, which has been positive. NQ has raised £767,750 through the issue of new ordinary shares and secured a short term loan for AU$4m from a New Zealand based Family Trust. In addition, there has been a new senior appointment to the board.

Greg Lane is a mining engineer with over thirty years of experience and is currently Chief Technical Officer of Ausenco, which is a large scale EPC and operations provider based in Brisbane. This appointment strengthens the board and shows that the Company is focused on achieving the objective of new mining operations and near term production.

Post Period

On 20 April 2017, NQ announced that it has entered into an agreement to acquire Keen Pacific Limited and its subsidiaries, Ivy Resources Pty Ltd and Hellyer Gold Mines Pty Ltd for AU$20m and a 29.9% shareholding in NQ. One of the deal highlights is NQ would own the permitted Hellyer Gold Mine in Tasmania.

NQ has announced that it anticipates that the Hellyer Gold Mine has the potential to commence production within 12 months with projected mine revenues of just over US$1bn over a ten year mine life and a NPV of US$210m. This together with gross margins of 56%,post tax IRR of 130% and a very low capex requirement of AU$20m, represents a substantial transformation for NQ. The board of All Star will continue to review its options given the nature of this announcement.

This announcement is a significant milestone for All Star having held the 5,519,545 shares for a number of years, which represents 3.29% ownership of NQ Minerals Plc. The acquisition and financing by NQ Minerals is subject to a Shareholder Meeting held in May.

Tomas Nugent, All Star Minerals Executive Chairman commented “The announcement by NQ is tremendous news for All Star as a loyal and patient shareholder. It now sees the transformation of NQ Minerals into a decent sized near term producer. Details of the deal look attractive especially the project economics and resource of Hellyer Gold Mine. The timing of the announcement and market move of NQ could present All Star with the potential to dispose of the shares held. A disposal of some or all of the shares held could enhance our ability to execute a transaction potentially quickly and complete our transformation since my appointment in 2013.’’

The Directors of All Star are responsible for the contents of this announcement.

This announcement contains inside information for the purposes of Article 7 of EU Regulation 596/2014.


All Star Minerals Plc
Tomas Nugent, Chairman

NEX Corporate Adviser
Cairn Financial Advisers LLP
Liam Murray
020 7213 0880

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