INDY India Star

RNS Number:6691O
India Star Energy plc
11 July 2005

India Star Energy plc (AIM: INDY)


Move Into Uranium Exploration And Development



India Star Energy ("India Star") announces a move into uranium exploration and
development.



India Star announces that it has acquired a 50 per cent. interest in a joint
venture with East West Resource Corporation ("East West") to develop uranium
properties. East West is a Canadian publicly listed mining exploration company
with a market capitalisation of C$11.7m. India Star has paid a cash
consideration of C$0.3 million to acquire a 50 per cent. interest in the joint
venture and as part of the transaction has been issued with 2,500,000 shares
(2.8 per cent. of the equity) in East West with an option to invest up to C$4
million further in the joint venture over the next five years.



The joint venture has acquired its first uranium property in North Western
Ontario called Maggotte. Preliminary exploration work is underway with the aim
of undertaking surface geophysical studies in August.  The Maggotte property has
been staked to cover an airborne gamma ray Uranium-Thorium-Potassium anomaly as
well as lake sediment anomalous values that suggest a radioactive source is
present in the immediate area. Other properties are under review.



Separately, India Star continues to look for attractive investments in the oil
and gas sector.



Paul Mc Groary, Chief Executive of India Star, commented, "We are delighted to
enter this joint venture. The uranium market remains buoyant and is driven by a
growing recognition that nuclear energy offers a cleaner and more energy
efficient fuel source. Wholesale uranium prices have more than doubled to $29 a
pound, from $14 in January 2004, on expectations that nuclear power reactors
being built in China, India and Russia will drain inventories. As a result, we
believe the price of uranium is likely to continue its upward trend."



Enquiries, please contact:




India Star Energy
Paul Mc Groary              07930 568 160
Smit Berry                  020 8656 4648


Gresham PR
Neil Boom                   020 7404 9000


W.H. Ireland
Tim Cofman                  0121 616 2101










                      This information is provided by RNS
            The company news service from the London Stock Exchange
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