Alberta Star Development Corp.
OTC Bulletin Board : ASXSF

Alberta Star Development Corp.

September 21, 2005 10:36 ET

Alberta Star Completes $10.5 Million Brokered Private Placement

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Sept. 21, 2005) - Tim Coupland, President and CEO of Alberta Star Development Corp. (TSX VENTURE:ASX)(OTCBB:ASXSF) (the "Company"), is pleased to announce that the Company has completed its brokered private placement for gross proceeds of CDN $10.5 million. The Company issued 10 million flow-through units (the "FT Units") at $0.45 per FT Unit, and 15 million non flow-through units (the "Common Share Units") at $0.40 per Common Share Unit. In consideration for acting as agent, the Company has paid Pacific International Securities Inc. (the "Agent") $312,570.40 and issued 1,313,574 Units on the same terms as the Common Share Units of the Offering. The Company has also issued 1,995,000 compensation options to the Agent and members of its selling group whereby the holder may purchase up to 1,995,000 units of the Company at $0.45 per unit for a period of 2 years. Each unit is comprised of one common share and one half of one common share purchase warrant, with each whole warrant is exercisable into one common share of the Company at $0.75 for a period of 2 years. The securities issued pursuant to the private placement are subject to a hold period expiring on January 21, 2006.

The proceeds from the offering will be used to finance ongoing exploration of the Company's properties, including exploration of the Company's Contact Lake IOCG property, to finance ongoing regional land acquisitions, and for general working capital. The funds raised will be used for exploration expenditures in Canada that qualify as Canadian exploration expenses as defined in the Income Tax Act and will be renounced for the 2005 taxation year.

Alberta Star has recently completed and filed a comprehensive NI 43-101 report on the Contact Lake property with copper, gold, cobalt, silver and uranium mineralization identified in an iron oxide, copper, gold, setting. The report can be viewed at The report was prepared in accordance with the guidelines of National Instrument 43-101 "Standards of Disclosure for Mineral Projects" and is based on data and geological information gathered from public sources, assessment files, historical information, Federal government maps, reports and assessment files. The source information of data presented in this technical report is believed to be reliable and accurate. Alberta Star is fully permitted for drilling.

The private placement is subject to TSX Venture Exchange final acceptance.

On behalf of the Board of Directors of ALBERTA STAR DEVELOPMENT CORP.

Tim Coupland, President & CEO

This News Release includes certain "forward looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995. Without limitation, statements regarding potential mineralization and resources, exploration results, and future plans and objectives of the Company are forward looking statements that involve that involve various degrees of risk. The following are important factors that could cause Alberta Star's actual results to differ materially from those expressed or implied by such forward looking statements: changes in the world wide price of mineral commodities, general market conditions, risks inherent in mineral exploration, risks associated with development, construction and mining operations, the uncertainty of future profitability and the uncertainty of access to additional capital.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this News Release.

Contact Information

  • Alberta Star Development Corp.
    Tim Coupland
    President and CEO
    (604) 681-3131
    (604) 801-5499 (FAX)