MDV Megastar Development Corp

MEGASTAR DEVELOPMENT CORP. (TSX VENTURE:MDV)(FRANKFURT:M5Q) ("Megastar") and
ELORO RESOURCES LTD. (TSX VENTURE:ELO)(FRANKFURT:P2Q) ("Eloro") announce today
that Megastar has scheduled an Annual and Special Meeting (the "Meeting") of its
shareholders to be held on December 7th, 2010, to consider for approval, among
customary and general matters, a special resolution adopting an arrangement (the
"Arrangement") related to the previously announced business combination with
Eloro Resources Ltd. ("Eloro"). 


Eloro and Megastar propose to complete a business combination where shareholders
of Megastar will receive seventy million (70,000,000) common shares of Eloro
(the "Eloro Shares") on a pro-rata basis. The Eloro Shares will be issued to
Megastar, either before in trust, or in conjunction with the Arrangement, in
exchange for all of Megastar's right, title and interest in and to the Simkar
Property, in either case for distribution to Megastar shareholders of record as
of a date to be set by the Board of Directors of Megastar (the "Distribution
Record Date"). The number of Eloro Shares to be distributed to Megastar
shareholders will be based on the number of outstanding shares of Megastar on
the Distribution Record Date. The details of the Arrangement, including the
Distribution Record Date, will be announced in a separate news release once a
plan of arrangement is approved by the directors of Megastar and an arrangement
agreement is executed.


Megastar has set October 8, 2010 as the Record Date (the "Record Date") for the
Meeting. All Megastar Shareholders of record will be entitled to consider and
vote at the Meeting on a special resolution to adopt the proposed Arrangement
described above. An information circular containing the details of the
Arrangement will be distributed in connection with the Meeting once an
arrangement agreement and plan of arrangement are finalized and approved.


Completion of the proposed reorganization is subject to receipt of all required
consents and approvals, including without limitation, court approval,
shareholder approval and TSX Venture Exchange approval. 


About Megastar 

Megastar is an emerging resource company engaged in the acquisition, exploration
and development of mineral properties in Canada. Megastar owns gold and base
metal properties in Quebec and British Columbia, including the Simkar Gold
Project in Val d'Or, Quebec. 


About Eloro 

Eloro is a junior exploration company focused on discovering and developing
precious metals in the Val-d'Or mining camp, as well as quality precious and
base metal resources in the James Bay region of northern Quebec. In the James
Bay region, Eloro has 11 gold-copper-silver properties (1,062 claims) covering
548 km2 in the La Grande and Eastmain Greenstone Belts, proximal to Goldcorp's
Eleonore Gold Project. Eloro is currently working toward acquiring an undivided
50% interest in the Simkar property from Megastar pursuant to an option and
joint venture agreement entered into between the two companies in 2009.


On Behalf of the Board of MEGASTAR DEVELOPMENT CORP. 

Dusan Berka, President and CEO 

On behalf of the Board of ELORO RESOURCES INC.

Thomas G. Larsen, President and CEO

Information in this news release respecting the transaction between Megastar and
Eloro and the Arrangement constitutes forward-looking information. Statements
containing forward-looking information express, as at the date of this news
release, the companies' plans, estimates, forecasts, projections, expectations,
or beliefs as to future events or results and are believed to be reasonable
based on information currently available to the companies. Forward-looking
statements and information are based on assumptions that financing and personnel
will be available when required and on reasonable terms, and all necessary
regulatory approvals and shareholder approval will be obtained, none of which
are assured and each of which is subject to a number of other risks and
uncertainties. There can be no assurance that forward-looking statements will
prove to be accurate. Actual results and future events could differ materially
from those anticipated in such statements. Readers should not place undue
reliance on forward-looking information.

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