Redstar Gold Corp.

Redstar Gold Corp.

May 02, 2007 11:48 ET

$2.5 Million Private Placement for Redstar

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - May 2, 2007) -


Redstar Gold Corp. (the "Company") (TSX VENTURE:RGC) is pleased to report that it has entered into an agreement with PowerOne Capital Markets Limited and Pacific International Securities Inc. to raise up to $2,500,000 in gross proceeds by way of a commercially reasonable efforts private placement (the "Offering"). The Offering will consist of the issuance of up to 12,500,000 units (the "Units").

Each Unit is offered at a price of $0.20 and will consist of one common share and one-half of one transferable share purchase warrant. Each whole warrant will entitle the holder to purchase one additional common share for a period of two years from the Closing Date at a price of $0.30.

The Agents will receive a commission equal to 7.0% of the gross proceeds from the sale of the Offering, payable in cash or Units of the Offering, at the election of the Agents. The Agents will also be granted Broker Units (the "Broker Units") equal in number to 10% of the number of Units sold under the Offering at $0.20 per Broker Unit. Each Broker Unit will consist of one Common Share and one-half share purchase warrant (each whole share purchase warrant, a "Broker Unit Warrant"). Each Broker Unit Warrant will entitle the Agents to purchase one common share for a period of two years from the Closing Date at an exercise price of $0.30.

Proceeds from the offering will be used to finance further exploration on the Company's Red Lake and Nevada properties, to generate new Nevada projects and for general working capital.

The offering is subject to receipt of all necessary approvals, including the approval of the TSX Venture Exchange.

On Behalf of the Board,

Redstar Gold Corp.

Doug Fulcher, Director

This news release, required by applicable Canadian laws, is not for distribution to U.S. news wire services or for dissemination in the United States, and does not constitute an offer to sell or a solicitation of an offer to sell any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available. The foregoing arrangements are subject to regulatory acceptance.

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