SOURCE: American Stellar Energy Inc.

January 30, 2006 09:21 ET

American Stellar Energy Discovers a New High-Grade Gold and Silver Zone Across 16 Meters at Their San Miguel Project in Mexico

CHICAGO, IL -- (MARKET WIRE) -- January 30, 2006 -- American Stellar Energy, Inc. (OTC: AMRS) is pleased to announce further assay results from an ongoing sampling program being completed at American Stellar Energy's San Miguel project located near Temoris, Chihuahua Mexico. In August, 2005, American Stellar Energy, Inc. signed an agreement with Paramount Gold Mining Corp. giving Paramount the right to earn up to a 70% interest in the project by spending US$2.5 million, delivering 700,000 shares, and making various payments.

The highlight of these latest assays results is the discovery of a new gold and silver zone in the La Union area that is reporting even higher gold grades than the previous sampling reported on December 8th 2005.

Commenting on the results, Bill Reed, Paramount's Manager of Exploration, Mexico stated, "Both the La Union and San Jose zones at San Miguel are showing very high grades of silver at substantial widths, and we are now finding very attractive gold grades at La Union making this a significant discovery. There is also ample evidence in the way of numerous old mines, workings and prospects between La Union and San Jose to suggest that these two zones may connect together which would amount to approximately 2000 meters strike."

The gold and silver assays are from rock chip samples collected during December 2005 and clearly identify a NNE bearing silver-gold zone in the La Union area. This new zone, near the old La Union Mine, is located approximately 900 meters to the SSE of the San Jose silver anomaly (100 meters by 250 meters, averaging 225 g/t Ag) that Paramount reported in a December 8th 2005 news release, and is along the same belt of quartz and stockwork quartz veins and veinlets. Numerous old mines and prospects between the two mineralized areas at San Jose and La Union follow this trend and are currently being sampled and mapped. Thin soil cover sometimes requires shallow pits or trenches to expose bedrock.

Two detailed sample lines with samples collected every meter were cut across this zone, and 16 one meter long rock chip samples from the west line ran between 0.05 and 3.87 g/tonne gold and 5 to 700 g/tonne silver over a zone greater than 16 meters wide, and a strike length yet to be determined, pending further assay results. The average of the samples reported are 1.24 g/tonne (0.04 ounce/ton) gold and 203 g/tonne (6.53 ounce/ton) silver. This new zone is open to the west and detailed sampling is currently underway to extend this sample line to the west and cut more lines to the north and south along the strike of the vein system.

Detailed geologic mapping and sampling are continuing between La Union and San Jose and are also underway north of the San Jose silver anomaly on the Carmen concession where the Carmen and other old mines and prospects are located.

The assaying of samples was conducted by ALS Chemex labs in Vancouver. The qualified person in charge of the San Miguel project and the person who prepared the technical data in this release is Charles W. Reed, BSc, Mineralogy (Utah).

About American Stellar Energy, Inc.

American Stellar Energy, Inc. is a precious metals exploration and development company with existing production. It is management's objective to become a significant gold and precious metals producer by increasing our current production at La Currita and developing the San Miguel and La Millionaria projects in Mexico, and by acquiring other advanced-stage projects and/or producing mines in one of the most prolific precious metal districts in the world. For more information, please visit the Company's web site at: www.americanstellarenergy.com

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: The statements contained herein which are not historical are forward-looking statements that are subject to risks and uncertainties that could cause actual results to differ materially from those expressed in the forward-looking statements, including, but not limited to, certain delays beyond the company's control with respect to market acceptance of new technologies or products, delays in testing and evaluation of products, and other risks detailed from time to time in the Company's filings with the Securities and Exchange Commission.

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