AUSTRALIAN STOCK EXCHANGE CODE AAM Announcement to the ASX Tuesday 01 August 2006 FEASIBILITY STUDY PROGRESS REPORT A1 MINERALS LIMITED ASX:AAM COMPLETION EXPECTED CURRENT QUARTER Current Issued Capital: 59,862,649 Ordinary Fully Paid Shares EXPERIENCED PROJECT TEAM APPOINTED Market Cap at 22 cents $13.1M A1 has considerably improved its global resource by combining successful Cash at Bank: $1.3M exploration with judicious purchasing of gold assets in the gold rich Laverton District of Western Australia. Since completing the BrightStar Gold Project’s Pre Feasibility Study, the Company’s emphasis has moved to an expanded BRIGHTSTAR GOLD PROJECT Feasibility Study designed to facilitate by the end of this year, a decision to Near Granny Smith and Sunrise Dam mine. 500sqkms tenements and applications Resource 600,000 ounces and growing The Pre Feasibility Study completed in March 2006, demonstrates strong High grade gold mineralisation positive cash flows from production at the BrightStar’s Alpha and Beta Native Title Agreement deposits, utilising existing toll milling facilities or a low Capex stand alone Mining Lease Granted treatment plant. NOI in place PFS indicates low cost, strong profits Subsequent to this study, A1 acquired additional gold assets and conducted Toll treating option successful exploration, significantly enhancing the Company’s gold Production decision expected 2006 resources. The Company has appointed an experienced team of employees and contractors to complete the feasibility study and usher the BrightStar Gold Project into production. Bearing this in mind, when it recently finalised NARNOO EXPLORATION PROJECT the purchase of the gold assets of West Australian Metals Ltd (WME), A1 Near Mulga Rocks Uranium deposit began to evaluate the merits of stand alone fixed and mobile treatment 2,000sqkm tenements and applications plants. Prospects for gold and uranium 100% owned by A1 The new gold assets currently include Indicated and Inferred Resources Native Title Agreement totalling 3 million tonnes @ 2.1 g/t for 200,000ozs of gold in four deposits Current ground breaking exploration located to the North of Laverton. The Alpha and Beta deposits current programs combined JORC compliant resource is 2.88 million tonnes @ 4.32g/t for 400,290 ounces of contained gold (using a 1g/t lower cut-off) (Table 1). All resources have access to existing infrastructure at Laverton. Ravensgate Resource Consultants have been engaged to review and upgrade resource models for several of the resources purchased from WME and incorporate results of recent drilling and sampling by A1. This includes an assessment of pit economics on these deposits. In addition, exploration at Beta has produced a high grade intercept over a wide interval (22m @ 28g/t) which will be incorporated into the block model to improve mineable resources. Mining at BrightStar will be open pit, similar Mr David Hamlyn was appointed General Manager – Operations on 1 July to this photo 2006. David will review treatment options, produce the final Feasibility Study and manage A1’s transition from exploration to production. David is a Contact Details: successful mine manager and has been involved in the development of Suite 34, 25 Walters Drive several gold deposits in Western Australia. He was the Resident Manager of Osborne Park WA 6017 Centaur Mining and Exploration Limited’s gold operations in the Kalgoorlie Telephone (618) 9244 1400 region from 1992 to 1999, and General Manager of New Hampton Goldfields Facsimile (618) 9244 1600 Email email@example.com Limited’s Jubilee Gold Operations to 2001. He was also Executive Director of Website www.a1minerals.com.au West Australian Metals Ltd(WME) from February 2002 to May 2006, and has ABN 44 100 727 491 an intimate knowledge of the recently acquired WME resources, situated north of Laverton. ANNOUNCEMENT TO THE AUSTRALIAN STOCK EXCHANGE TUESDAY 01 AUGUST 2006 FEASIBILITY STUDY PROGRESS REPORT continued Metallurgical Project Consultants Pty Ltd (MPC) has been engaged to conduct final metallurgical testwork, define flow sheet options and quantify capital and operating costs for the optimum treatment scenario. A1 has also enlisted the services of Mr Colin Morrow of Claymore Mines Pty Ltd, an experienced plant design specialist, to assist with the review of the processing options and to advise on plant design and construction. Under review is a modular gold treatment plant that could be easily mobilised to treat the Company’s ore at the various BrightStar deposits. The Company is proceeding with geotechnical investigations aimed at improving pit design parameters and has received confirmation from the Department of Industry and Resources to resume mining in the open pits at Beta, under the terms and conditions of the Notice of Intent approved in early 2004, for the previous operators. A1 looks forward to the future with confidence, moving from exploration and development, to become a long term gold producer in the Laverton Region. The Company’s Directors are very pleased with the progress of development of the BrightStar Gold Project and look forward to the subsequent completion of the Feasibility Study, expected in the current quarter. In addition, A1 is planning continued exploration programs on its extensive tenement holdings to sustain a long term mining operation. Table 1: BrightStar Gold Project – Resources PROJECT MEASURED INDICATED INFERRED TOTAL Tonnes Grade Ounces Tonnes Grade Ounces Tonnes Grade Ounces Tonnes Grade Ounces (g/t) (g/t) (g/t) (g/t) Alpha 178,900 3.81 21,910 311,900 2.68 26,840 631,400 4.20 85,280 1,122,200 3.72 134,030 Beta 68,900 4.00 8,860 628,900 3.85 77,830 1,064,900 5.24 179,570 1,762,700 4.52 266,260 Delta 243,000 2.2 16,800 243,000 2.2 16,800 Epsilon 1,219,000 1.8 71,100 1,508,000 2.1 103,200 2,727,000 2.0 174,300 Zeta 79,600 4.2 10,700 79,600 4.2 10,700 Total 247,800 3.86 30,770 2,239,400 2.59 186,470 3,447,300 3.47 384,850 5,934,500 3.16 602,090 John Williams B.Sc, MAusIMM Managing Director Drilling BrightStar Beta’s Expansive Pit Floor Ready for Commencement of Mining The information in this report that relates to mineral resource is based on information compiled by Mr Tony Ryall, who is a member of the Australasian Institute of Mining and Metallurgy. Mr Ryall is self employed and an Independent Geological Consultant and has sufficient experience relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person (JORC Code). Mr Ryall consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.