Globestar Mining Corporation
TSX VENTURE : GMI

Globestar Mining Corporation

May 15, 2006 10:36 ET

GlobeStar Consolidates 198 km2 of Nickel Laterite Concessions in the Dominican Republic

TORONTO, ONTARIO--(CCNMatthews - May 15, 2006) -

GlobeStar controls the majority of Dominican nickel laterite belt outside of Falconbridge mining concessions

GlobeStar Mining Corporation (TSX VENTURE:GMI) announced today that it has executed agreements for up to 100% control of a series of exploration concessions covering 198 square kilometres along the Dominican Republic's (DR) Falcondo Nickel Laterite Belt, adjacent to GlobeStar's 100% owned C1 nickel laterite mining concession. The C1 concession is immediately adjacent to Falconbridge's Falcondo nickel laterite mine, and 8 km from the Falcondo smelter.

GlobeStar has agreed with Everton Resources Inc. (EVR.V) to acquire 100%-ownership of the Corozal and Cercadillo nickel laterite concessions, and has also been granted an option from Energold Drilling Corp. (EGD.V) to acquire up to 100% on another four nickel laterite concessions. . With the completion of these agreements, GlobeStar now controls virtually the entire Dominican nickel laterite belt outside of the Falconbridge mining concessions (see concession maps at http://www.globestarmining.com/content/nickel.php?page=detail).

"With 198 square kilometres of concessions containing nickel laterites adjacent to an operating smelter, 56 holes completed and further drilling in progress, GlobeStar is rapidly defining the potential of our land package," said Bill Fisher, GlobeStar's President. "We are committed to exploring and developing our nickel assets to complement our Cerro de Maimon copper/gold development, which last week completed its US$ 42.25 million debt facility."

GlobeStar has not entered into any formal negotiations with Falconbridge.

Project Setting

In the Dominican Republic, nickel-laterite deposits are developed near the crests of hills and ridges along a belt of alpine-type serpentinized peridotite that extends over a distance of 96 kilometres through the centre of the country. In this tropical climate peridotite can weather to produce an enhanced grade nickel laterite profile. A typical nickel laterite profile in the DR consists of an upper zone of high iron limonite with typical grades of 0.2-1.5% Ni, underlain by saprolite with typical grades of 1.5-2.0% Ni. The laterite profile over the peridotites in the Dominican Republic is approximately 30 m thick, with the zone of nickel enrichment ranging from 2 m to 20 m in thickness.

The neighbouring facility is owned by Falconbridge who have been mining and processing nickel laterite ore at its Falcondo facility in the Dominican Republic since 1971. In 2005, the surface mining operation produced 26,300 tonnes of nickel contained in ferronickel annually at a mining grade of 1.18% nickel. Ferronickel is a combination of iron and nickel used almost exclusively by the stainless steel industry. The processing facilities include a metallurgical treatment plant, a crude oil refinery and a 200 megawatt thermal power plant (see Falconbridge Annual Report, 2005).

GlobeStar's Nickel Laterite Concessions

GlobeStar controls almost the entire 44 km strike length of the central peridotite belt outside of Falconbridge's mining concessions (see detailed concession maps on GlobeStar's website). In addition to GlobeStar's 100%-owned C1 concession, GlobeStar's recently completed agreements will give it 100%-ownership of the Corozal and Cercadillo concessions previously held under a JV with Everton Resources (EVR.V), and an earn-in option up to 100% on four concessions held by Energold Drilling Corp. (EGD.V). In total, GlobeStar will control seven nickel laterite concessions covering an area of approximately 198 square kilometres, as summarized below:



------------------------------------------------------------------------
Concession Ownership Area Comments
------------------------------------------------------------------------
C1 (incl. 100% Globestar 22.4 km2 Abuts Falconbridge's
Cumpie Hill) concession, approximately 8 km
from the Falcondo smelter
complex
------------------------------------------------------------------------
Corozal 100% Globestar 17.9 km2 Adjacent to and along strike
from Cumpie Hill concession
------------------------------------------------------------------------
Elsa 1 Up to 100% 45.7km2 Adjacent to and along strike
earn-in with from Corozal Concession
Energold
------------------------------------------------------------------------
Loma Cambronal Up to 100% 9.7 km2 Adjacent to and along strike
earn-in with from Elsa 1 concession, and
Energold Falconbridge's Sabana
Portrero mining concession
------------------------------------------------------------------------
La Parcela Up to 100% 34.5 km2 Adjacent to Loma Cambronal
earn-in with concession and Falconbridge's
Energold Sabana Portrero mining
concession
------------------------------------------------------------------------
Loma Bambara Up to 100% 26.7 km2 Adjacent to and along strike
earn-in with from La Parcela concession,
Energold and Falconbridge's Sabana
Portrero mining concession
------------------------------------------------------------------------
Cercadillo 100% Globestar 42.0 km2 Adjacent to and along strike
from Loma Bambara Concession
------------------------------------------------------------------------


Details of the Recent Agreements

Under the arms-length agreement with Everton, GlobeStar will exchange its interest in the recently granted La Mireya concession in the eastern portion of the country (see press release of May 3, 2006) in return for Everton's 50% joint venture interest in the Corozal and Cercadillo nickel laterite concessions and title to the Cercadillo concession. GlobeStar currently holds the other 50% interest, thus this deal will give GlobeStar a 100% interest in the concessions. Everton will retain a 1% NSR on Corozal and Cercadillo while GlobeStar will retain a 2% NSR on La Mireya. GlobeStar and Everton will also have the right to purchase half of the other's NSR at any time for US$500,000. The Parties expect the transaction to close prior to June 30, 2006.

Under the arms-length binding letter of intent with Energold, GlobeStar can earn up to a 100% interest in any nickel laterite deposits within the Elsa 1, Loma Cambronal, La Parcela and Loma Bambara concessions, which total approximately 116.6 sq. km. GlobeStar is the operator and can earn an initial 75% interest by completing a US$900,000 work program and making payments of US$50,000 per year for three years, payable in cash or shares. GlobeStar has the right to scale back the work program to US$300,000 if it is discovered that there is potential for less than 5 million tonnes. GlobeStar also has the right to purchase Energold's remaining 25% interest for a payment of US$500,000 in cash or shares, converting Energold's interest to a 2% NSR. Subsequently, GlobeStar may purchase 1% of Energold's NSR at any time for $1 million in cash or shares.

About GlobeStar

GlobeStar's other assets in the DR include the fully-permitted Cerro de Maimon copper and gold development project and 85% of the surrounding massive sulphide belt. In Quebec the Company's principal focus is on its Moblan project, which hosts high-grade lithium minerals used by the glass and ceramics industries.

This news release was prepared by GlobeStar under the supervision of Tim Warman, P. Geo., Exploration Manager, Canada and Compliance Officer of GlobeStar, who serves as the company's Qualified Person (as per National Instrument 43-101). For more information visit the Company Website at www.globestarmining.com.

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