Fairstar ends bid for Golden West

Osborne Park-based Fairstar Resources Ltd has ended its lengthy takeover bid for Golden West Resources Ltd but its final stake in the takeover target has yet to be determined.

Fairstar, which launched its takeover offer in September last year, decided not to extend its takeover deadline which expired last night.

Fairstar was offering seven of its shares for one Golden West share.

At the height of its bid, Fairstar had held a 33 per cent stake in Golden West but lost around a third of that when ANZ sold off 10 million shares in the Opes Prime saga.

Fairstar said it had used the 10 million shares as collateral to secure a $3.3 million loan from Opes.

The company said it expects to hold 24.6 per cent of Golden West once shares pledged to a financier are returned.

A copy of the Fairstar announcement is below

TAKEOVER BID FOR GOLDEN WEST RESOURCES LTD
The Directors of Fairstar Resources ("Fairstar" or "the Company") wish to announce that the offmarket takeover bid for Golden West Resources Ltd (GWR), which expired at 7pm on Wednesday 11 June 2008, has not been extended.

Although Fairstar had been successful in acquiring a 33% holding in GWR, it acknowledges a number of significant developments and outcomes as a result of the bid.

- Prior to the unauthorised disposal by ANZ in April 2008 of a 9% parcel held by Fairstar in GWR, the Company held a 33% stake in GWR.

- At 11th June 2008 the Company has a relevant interest in approximately 22.9% of the capital of GWR. This represents a reduction from the last substantial shareholder notice dated 24 April 2008 as shares pledged to a financier have yet to be returned. An estimated 1.7% is anticipated to be restored back to Fairstar in the next 30 days as a result of this matter, taking Fairstar's interest to 24.62%

- Based on the 30 day VWAP GWR share price at close of trade on the 10 June 2008, the 22.9% stake in GWR is valued at approximately $44.7 Million.

- Fairstar currently has 356,422,865 shares on issue and 50,949,493 options with an exercise price of $0.25 each and an expiry date of 30 August 2009.

- Based on the 30 day VWAP FAS share price at close of trade on the 10 June 2008, the current market capitalisation of FAS is $53.4 Million

- Fairstar continues to collate information in regards to ANZ Bank and Opes Prime in relation to the unauthorised disposal of a parcel of 10.0 million shares in GWR. The unexpected and unfortunate demise of Opes Prime and the disposal of this 10.0 million parcel held by Fairstar in GWR significantly stymied the takeover process.

- Fairstar remains the single largest shareholder in GWR. Fairstar has remained focused on its own exploration programs and will give an up to date report in the very near future. Exploration activities include:

- Further drilling at Kurnalpi - Randalls Gold Project. Positive drilling results in these areas were announced in April 2008.

- Fairstar's oil and gas Joint Venture with Knight Industries Pty Ltd, located in Victoria. The first drill hole will be spudded this month.

In the meantime, Fairstar will consolidate its holding in GWR and look to work with the Board of GWR to maximise the value of GWR's Wiluna West Iron Ore Project. Fairstar considers the Wiluna West Project to have substantial potential.

Fairstar thanks all GWR shareholders who accepted the takeover offer and is confident that
shareholders will continue to benefit from Fairstar's interest in Wiluna West and from the diversity
offered by Fairstar's own exploration projects.