URS Urastar Gold Corp

UraStar Energy Inc. ("UraStar" or "the Company") (TSX VENTURE: URS)(OTCQX: OTCM)(FRANKFURT: 3U3) announces that it has signed a Letter of Intent ("LOI") to purchase a 100% interest in the BlackPoint Gold-Silver Project located in the Battle Mountain-Eureka Gold Trend of Nevada from Mosquito Consolidated Gold Mines Limited (TSX VENTURE: MSQ)(OTC: MQCMF) ("Mosquito"). The Project consists of 896 acres and is located 7 kilometers north of the town of Eureka, Nevada as set out on a location map which can be found at www.urastarenergy.com

The area surrounding Blackpoint has numerous prolific Gold deposits with the Ruby Hill Gold Mine located to the southwest, and the historic Alligator Ridge Gold Mine to the east.

Pursuant to the LOI, UraStar can earn a 100% interest in Blackpoint by making the following payments consisting of cash and shares over a 5 year period (subject to TSXV approval):

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Time                           Cash (USD) Payments            Common Shares
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On Signing LOI                          $25,000.00                      Nil
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At Closing                                $225,000           250,000 shares
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Year 1 from Closing                       $350,000           250,000 shares
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Year 2 from Closing                    $ 1,000,000           250,000 shares
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Year 3 from Closing                    $ 1,500,000           250,000 shares
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Year 4 from Closing                    $ 2,500,000           250,000 shares
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Year 5 from Closing                    $ 4,400,000           250,000 shares
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TOTALS                   $10,000,000 CASH PAYMENTS         1,500,000 SHARES
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The property has a long history dating back to 1864. Available records indicate production between 1933 and 1941, from the near surface zones on the property, grading 400 gms Ag/ton to 3,700 gms Ag/T (12 to 108 ounces per ton) which was sent to a mill located at McGill, Nevada. More recent work in 1971 concentrated on surface sampling and several short drill holes looking at the continuity of the higher-grade silver portions of the deposits. Table 1 lists some of the historic intersections from the 1971 drill program. These intersections are historic and the Qualified Person has been unable to fully verify the results and thus these results should not be relied upon.

Table 1: Historic Intersections from shallow drilling at Blackpoint.

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hole    hole   hole     zone zone      zone     Ag   zone      zone Ag grade
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name  length length     name  top thickness  grade    top thickness    gms/T
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        feet meters          feet      feet   oz/t meters    meters    gms/T
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Sl-2     112  34.14   Condor   28        84   1.83   8.53     25.60    62.74
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SL-3     112  34.14   Condor   32        60   2.26   9.75     18.29    77.49
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SL-7      84  25.60   Condor   28        27   6.64   8.53      8.23   227.66
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SL-6     200  60.96   Condor   36        24   2.06  10.97      7.32    70.63
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SL-17     88  26.82   Condor    0        52   2.04   0.00     15.85    69.94
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SL-18    300  91.44   Condor   52        24   2.41  15.85      7.32    82.63
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SL-22    120  36.58   Condor   44        16   1.22  13.41      4.88    41.83
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                       Eagle
ER-7     136  41.45    Ridge   12        74   2.13   3.66     22.56    73.03
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                       Eagle
ER-4     200  60.96    Ridge   44        84   1.34  13.41     25.60    45.94
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                       Eagle
ER-16    108  32.92    Ridge   40        24   1.14  12.19      7.32    39.09
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                       Eagle
ER-17    180  54.86    Ridge   64        18   1.40  19.51      5.49    48.00
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                       Eagle
TRENCH    20   6.10    Ridge    0        20  21.00   0.00      6.10   720.01
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ER-9     136  41.45      Dot   80        20  11.53  24.38      6.10   395.32
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ER-3     160  48.77      Dot   96        32   1.46  29.26      9.75    50.06
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ER-11    100  30.48      Dot   24        76   4.04   7.32     23.16   138.52
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TRENCH    50  15.24      Dot    0        50   7.10   0.00     15.24   243.43
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No other assays are reported, although gold, copper, lead and zinc mineralization has been described.

Charles (Bill) Reed, a director of Urastar and co-founder of Paramount Gold and Silver Corp (NYSE: PXG) stated "Urastar is very pleased to have aquired the Blackpoint Project in the most profilic Gold-Silver district in the world. An aggressive drill program will be commenced shortly to test targets and build a compliant resource."

Examination of the surface geology shows Blackpoint hosts a silica-sericite (or "low-sulfidation") epithermal silver-gold system with extensive silica-sericite alteration, high-grade silver bearing veins, stockwork and breccia and scattered gold values. This style of mineralization is typical of that found at the active and historic mines in the area. The property is divided into two distinct halves by an east west orientated structure with the Condor zone in the north and the Eagle Ridge and Dot zones in the south. All the previous work was centered around the silver mineralization with no work done in looking for the gold bearing part of the system that may be located more towards the centre or at depth of the peripheral silver zones.

Geological work completed in 2007 by Mosquito determined that the property had not been properly explored. The presence of asymmetrical alteration zones, the large east-west orientated structure offsetting the mineralized zone and the presence of fall out breccias to the southwest, all indicate an unrecognized southwest plunge to the system. Additional detailed mapping confirmed a significant increase in the intensity and thickness of the silicification toward the central area. This resulted in the previous drill programs failing to explore the main exploration targets beneath the exposed silica breccia zone.

Urastar will begin an aggressive exploration program of detailed surface mapping, sampling and drilling to define and test these highly prospective, previously unexplored exploration targets, concentrating on finding the gold bearing portion of the system at depth, while continue to develop the near surface silver mineralization.

Mr. Shaun M. Dykes, M.Sc. (Eng), P.Geo., a Qualified Person pursuant to National Instrument 43-101, has prepared the technical information contained in this news release.

About UraStar Energy Inc.

UraStar Energy Inc. is a mining exploration and development company focusing on gold and silver exploration in Nevada, USA and in Mexico's Sierra Madre gold belt targeting areas containing former producing properties. The Sierra Madre Gold Belt is one of the richest gold belts in the world hosting several world class mines and many major recent discoveries.. For more information, please visit www.urastarenergy.com

The TSX Venture Exchange and its regulation service provider has not reviewed or approved the contents of this release.

Contacts: UraStar Energy Inc. Thomas J. Kennedy, CEO 604-682-2928 604-685-6905 (FAX) www.urastarenergy.com Launch IR Matthew Harrington 613-882-7467