Southern Star Resources Inc.
TSX VENTURE : SSR

Southern Star Resources Inc.

August 30, 2005 08:30 ET

28.47 g/t Over 11.70 m-0.83 ozs/t Over 38.39 feet-Cut By DDH BC10-1 New High Grade Gold Structure Discovered at Gold Eagle Mine Property, Red Lake, ON

TORONTO, ONTARIO--(CCNMatthews - Aug. 30, 2005) - Southern Star Resources Inc. (TSX VENTURE:SSR) and Exall Resources Limited (TSX:EXL) announced today the intersection of a significant mineralized gold structure discovered during the current Bruce Channel drill program at the Gold Eagle Mine Property in Red Lake, Ontario. Drill hole BC10-1 and BC10-2, were designed to test the vertical continuity and extent of the gold mineralization encountered in BC4. From May 27 to August 13, 2005 approximately 2,700 metres of drilling was completed. Structural continuity can be seen over a current vertical distance of 350 metres from BC4 through BC10-1 and BC10-2. Drill hole BC10-3 is now being drilled between BC10-1 and BC10-2. Subsequent drilling is expected to be targeted below drill hole BC10-1 which has intersected the highest grades and thickest widths found on the Gold Eagle Mine Property to date. The structure remains open at depth and along strike.

The highlights of the drill program include:



DDH BC10-1:

- Between 1,080 metres and 1,596 metres (hole stopped in
mineralization) drilling encountered a 516 meter intersection
with multiple high grade gold zones and contiguous anomalous gold
throughout;
- The Balmer Assemblage, host to Goldcorp's Red Lake Mine, was
intersected starting at a down hole depth of 518 metres;
- From 1,234.03 - 1,245.73 m this hole graded 28.47 grams/tonne over
11.70 metres (0.83 ounces/ton over 38.39 feet) including a section
of 3.77m @ 10.67 g/t (12.37 ft @ 0.31 oz/t) and another section of
2.99m @ 98.86 g/t (9.81 ft @ 2.83 oz/t). The section in between
these two carried gold values of 4.94m @ 0.67 g/t (16.21 ft
@ 0.02 oz/t) in the same rock unit as the two higher grade sections
referred to above.

DDH BC10-2:

- From 1,250.42 to 1,260.66 intersected 10.24 metres grading 6.57 g/t
(0.19 oz/t over 33.6ft);
- From 1,456.98 to 1,459.55 intersected 2.57 metres grading 42.37 g/t
(1.24 oz/t over 8.43 ft);
- This hole intersected the target area at an elevation 150 metres
above BC10-1 and encountered the same mineralized zones showing
structural continuity through to the initial intersection
encountered in BC4, 200 metres above BC10-2.

The significant results are as follows:

BC10-1 (Dip - 74 Degrees, Azimuth 347 to 010 Degrees)

-------------------------------------------------------------
Intersection
(in Metres) Length Gold
-------------------------------------------------------------
Grams Ounces
per per
From To Metres Feet tonne ton
-------------------------------------------------------------
-------------------------------------------------------------
933.00 933.63 0.63 2.07 3.41 0.10
-------------------------------------------------------------
1080.92 1083.70 2.78 9.12 3.12 0.09
-------------------------------------------------------------
1087.74 1093.80 6.06 19.88 4.44 0.13
-------------------------------------------------------------
1095.00 1096.20 1.20 3.94 5.15 0.15
-------------------------------------------------------------
1098.95 1101.00 2.05 6.73 2.29 0.07
-------------------------------------------------------------
1121.20 1122.41 1.21 3.97 2.58 0.08
-------------------------------------------------------------
1125.75 1131.40 5.65 18.54 3.20 0.09
-------------------------------------------------------------
1137.00 1138.27 1.27 4.17 112.13 3.27 VG
-------------------------------------------------------------
Including 0.35 1.15 373.51 10.89
-------------------------------------------------------------
1141.10 1143.95 2.85 9.35 2.23 0.07 VG
-------------------------------------------------------------
1172.37 1173.62 1.25 4.10 32.98 0.96 VG
-------------------------------------------------------------
Including 0.63 2.07 62.05 1.81
-------------------------------------------------------------
1196.50 1198.52 2.02 6.63 6.70 0.20 VG
-------------------------------------------------------------
1234.03 1237.80 3.77 12.37 10.67 0.31
-------------------------------------------------------------
Including 0.65 2.14 34.18 0.98
-------------------------------------------------------------
1242.74 1245.73 2.99 9.81 96.86 2.83 VG
-------------------------------------------------------------
Including 0.24 0.79 973.90 28.41
-------------------------------------------------------------
1346.10 1346.40 0.30 0.98 394.05 11.51 VG
-------------------------------------------------------------
1368.58 1371.46 2.88 9.45 37.40 1.09 VG
-------------------------------------------------------------
Including 0.39 1.28 109.04 3.18
-------------------------------------------------------------
Including 0.28 0.92 176.16 5.14
-------------------------------------------------------------
1409.10 1409.80 0.70 2.30 22.01 0.64
-------------------------------------------------------------
1411.13 1411.95 0.82 2.69 15.13 0.44 VG
-------------------------------------------------------------
1438.85 1439.21 0.36 1.18 14.23 0.42 VG
-------------------------------------------------------------
1503.85 1504.50 0.65 2.13 4.32 0.13
-------------------------------------------------------------
1519.60 1520.40 0.80 2.62 6.11 0.18
-------------------------------------------------------------
1526.25 1527.24 0.99 3.25 9.08 0.27 VG
-------------------------------------------------------------

BC10-2 (Dip - 64 Degrees, Azimuth 333 to 353 Degrees)

Intersection
(in Metres) Length Gold
-------------------------------------------------------------
Grams Ounces
per per
From To Metres Feet tonne ton
-------------------------------------------------------------
-------------------------------------------------------------
1240.00 1242.00 2.00 6.56 5.17 0.15 VG
-------------------------------------------------------------
1250.42 1260.66 10.24 33.60 6.57 0.19 VG
-------------------------------------------------------------
Including 0.46 1.51 47.10 1.37
-------------------------------------------------------------
Including 0.31 1.02 20.64 0.60
-------------------------------------------------------------
Including 0.72 2.36 31.81 0.93
-------------------------------------------------------------
1262.88 1264.35 1.47 4.82 21.59 0.63 VG
-------------------------------------------------------------
1277.38 1282.16 4.78 15.68 1.58 0.05 VG
-------------------------------------------------------------
1290.60 1291.80 1.20 3.94 2.85 0.08
-------------------------------------------------------------
1381.60 1384.55 2.95 9.68 2.00 0.06
-------------------------------------------------------------
1439.48 1444.81 5.33 17.49 3.72 0.11 VG
-------------------------------------------------------------
1456.98 1459.55 2.57 8.43 42.37 1.24 VG
-------------------------------------------------------------
Including 0.42 1.38 246.85 7.20
-------------------------------------------------------------
1462.88 1463.38 0.50 1.64 16.39 0.48
-------------------------------------------------------------
1464.67 1465.00 0.33 1.08 11.07 0.32 VG
-------------------------------------------------------------
1468.85 1470.34 1.49 4.89 2.65 0.08 VG
-------------------------------------------------------------
Notes:
VG - Visible gold
Lengths reported are core intersection lengths and do not represent
true widths. It is anticipated that true width estimates will be
possible after additional drilling.
Conversion: g/tonne x 0.0292 = Troy ozs. / short ton. Trace
mineralization noted includes Po, Py, Cpy, AsPy and coarse
visible Gold.


The Bruce Channel target area of the Gold Eagle Mine Property lies at the meeting point of two of the major gold bearing trends present in the Red Lake mining camp. From the east runs a major trend hosting Goldcorp's Red Lake, Placer Dome's Campbell and the Cochenour-Willans mines. From the north east runs the East Bay trend which hosts several currently active large scale exploration projects (Wolfden/Placer Dome, Rubicon Minerals, etc.) and past producers (Marboy, Abino etc.).

Qualified Person

The Gold Eagle Mine Property drill program is being carried out under the direction of Mr. John F. Whitton, P.Geo, the qualified person within the meaning of National Instrument 43-101. Mr. Whitton has reviewed the contents of this news release.

Sample preparation and assay procedures are carried out by SGS Laboratories in Red Lake using standard fire assay method with AA finish and metallics.

Independent View

Mr. Chester Kuryliw, P.Geo., a consulting geologist to the Gold Eagle Mine Property Joint Venture, noted "the deep drill results indicate a broad trend of fracturing that is flooded with gold, of much significance is that the gold flooding is continuous over the tested area. It is also significant and encouraging that the habit of the richest gold intersections occurs together with a light bluish vitreous quartz. The richest gold ores mined at Goldcorp's Red Lake and Cochenour mines and Placer Dome's Campbell mine contained such bluish quartz. The structural control of the richest gold shoots within the broad, continuous trend is yet uncertain, but, rich drill intersections have been intersected, which augers well for the occurrence of rich gold structures." Mr. Kuryliw was the Chief Mine Geologist and Mine Superintendent at the Cochenour-Willans gold mine and did underground mapping and consulting at the McKenzie Red Lake Mine in Red Lake, Ontario during the 1950's and early 1960's. These two mines form the eastern and northern boundaries, respectively of the Gold Eagle Mine Property and are now controlled by Goldcorp Inc.

The statements made in this News Release may contain forward-looking statements that may involve a number of risks and uncertainties. Actual events or results could differ materially from the Company's expectations and projections.

TSX Venture Exchange has not reviewed this news release and does not accept responsibility for the adequacy or accuracy of this release.

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