Alberta Star Development Corp.
TSX VENTURE : ASX
OTC Bulletin Board : ASXSF

Alberta Star Development Corp.

January 27, 2006 09:30 ET

Alberta Star Signs a Historic '5 Year Cooperation and Benefits Agreement' with the Sahtu Dene & Metis

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Jan. 27, 2006) -

Deline District, NWT Within the Contact Lake Iron Oxide Copper, Gold, Silver, and Uranium District in the Northwest Territories

Tim Coupland, President and CEO of Alberta Star Development Corp. (TSX VENTURE:ASX)(OTCBB:ASXSF), listed on the TSX Venture Exchange (ASX) and on the OTCBB (ASXSF), is pleased to announce that Alberta Star has formally signed a five year Co-operation and Benefits Agreement with the Deline Land Corporation representing the Sahtu & Metis people of Deline, Deline District, Great Bear Lake, NWT.

Alberta Star's President and CEO, Tim Coupland, who signed this historic agreement with Leroy Andre, President of the Deline Land Corporation, commented: "This is a historic day for Alberta Star, the Sahtu Dene & Metis and for the development of mineral exploration in the Great Bear Lake region of the Northwest Territories. We are honoured to be the very first Canadian Mineral exploration company to negotiate, complete and sign a Cooperation and Benefits Agreement with the Sahtu Dene & Metis in this region. Alberta Star was prepared to play a leadership role within the industry by being the first mineral exploration company to be a signatory to this groundbreaking agreement which was signed in the spirit of fairness and mutual respect.

We have worked extremely hard together during the negotiation and consultation process in order to complete and ratify this agreement which was considered fair and balanced to all of the parties involved.

Alberta Star and its Board of Directors would like to thank Leroy Andre, President of the Deline Land Corporation, the Sahtu Dene & Metis and the Community of Deline, Northwest Territories for their hard work, community input, and hospitality and for their vote of support for the Contact Lake iron oxide copper, gold, silver and uranium project."

CONTACT LAKE "IRON OXIDE COPPER/GOLD/SILVER URANIUM PROJECT"

The Contact Lake claim block consists of 20,517.24 hectares (51,473.96 acres) located 7 kilometers southeast of Port Radium on the east side of Great Bear Lake Northwest Territories and 423 kilometers north of the city of Yellowknife. The Contact Lake project is located 5 kilometers from two past producing copper-silver-uranium-cobalt-nickel mines; the Echo Bay Mine produced 23,779,178 ounces of silver and the Eldorado Uranium Mine produced 15 million pounds of uranium and 8 million ounces of silver. The Contact Lake Mine situated on the Company's property is a former past producer of high-grade silver and uranium. The Contact Lake claim block and surrounding area exhibit extensive IOCG style hydrothermal alteration, including large mineralized gossans that exceed one kilometer in lateral extent. This area has not been properly explored using advanced 21st century geophysical exploration techniques and incorporating the newly developed IOCG-epithermal deposit model.

Alberta Star has now confirmed the presence of high grade copper, gold, silver, cobalt, nickel, bismuth mineralization including uranium that are coincident with large airborne geophysical anomalies that have never been properly sampled and systematically drill tested. Alberta Star is also very excited about the widespread presence of gold within the sampled areas at Contact Lake.

Alberta Star remains the only mineral exploration company that has successfully completed the rigorous permitting process for diamond drilling and exploration in this Sahtu Dene Land settlement area. Alberta Star completed its drill permitting while simultaneously acquiring a large strategic land package of advanced stage poly-metallic projects in one of Canada's historically important iron oxide, copper, gold, silver cobalt and uranium mineral districts prior to the rapid rise of base and precious metals prices including gold and more specifically uranium metal prices.

CONTACT LAKE FIVE YEAR CLASS "A" DRILLING PERMIT ISSUED-FULLY PERMITTED

Alberta Star has been granted a Sahtu Land & Water Board Class "A" Land Use Permit for diamond drilling at Contact Lake. The diamond drilling permit is valid until August 24, 2010. Alberta Star is the very first mineral exploration company in over eight years to receive a Class "A"-Five Year drill permit in the Great Bear Lake Sahtu Dene Land settlement area for mineral exploration and drilling, and is now fully permitted for diamond drilling in the Sahtu Dene land settlement area. Alberta Star is the very first Canadian mineral exploration company in over 75 years to successfully control an entirely contiguous land package from the northwestern extension of Eldorado Uranium Mine to the southeastern extension of Contact Lake Belt.

STOCK OPTIONS

Alberta Star further announces that it has granted incentive stock options to its directors, officers, consultants and employees to acquire up to 3,250,000 common shares in its capital stock, exercisable for up to three years at a price of $0.60 per share. These stock options replace those previously granted as disclosed in the Company's news release dated Oct. 3, 2005.

ALBERTA STAR DEVELOPMENT CORPORATION

Alberta Star is a Canadian mineral exploration company that identifies, acquires, finances advanced stage exploration projects in Canada. Alberta Star is focused in the discovery of base and precious metals and uranium.

ALLAN FELDMAN-INVESTOR RELATIONS

Investors are welcomed to contact Mr. Allan Feldman, Alberta Star's in-house Investor Relations and Corporate Communications Specialist, for all corporate updates at (604) 948-9663.

ALBERTA STAR DEVELOPMENT CORP.

Tim Coupland, President & CEO

Dr. Hamid Mumim Ph.D., P.Eng. is the qualified person for the Contact Lake project.

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)
    or
    Alberta Star Development Corp.
    Mr. Allan Feldman
    Investor Relations and Corporate Communications Specialist
    (604) 948-9663
    www.alberta-star.com