Redstar Gold Corp.

Redstar Gold Corp.

August 04, 2011 08:00 ET

Centerra to Continue Drilling Redstar Gold's Oasis Project

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Aug. 4, 2011) - Redstar Gold Corp. (TSX VENTURE:RGC) is pleased to announce that Centerra (U.S.) Inc. (Centerra), a subsidiary of Centerra Gold Inc. (TSX:CG), is planning additional drilling at Redstar's Oasis project in Nevada. The drilling is aimed at expanding and in-filling widespread low-grade gold mineralization intersected in the 2010 drilling program. Centerra can earn a 75% interest in the project by completing $4 million in work expenditures and paying $200,000 in cash to Redstar over five years. Oasis is a porphyry gold system, with gold correlating with elevated copper and molybdenum. The gold-anomalous zone defined to date is at least 700 metres in diameter but remains open in several directions, including at depth.

Centerra plans to complete 8,000 to 10,000 feet (2,440 to 3,050 m) of drilling in 2011. Eleven holes have been laid out, of which 10 holes for 9,100 feet are considered priority. Stronger mineralization is localized along the margins of the exposed gold system, possibly due to structural control, which has been further assessed by geologic mapping in early 2011. These structures will be targeted during the 2011 program.

Scott Weekes, President of Redstar, states: "We are pleased that our partner Centerra is planning drilling to follow up on the encouraging drilling results from 2010. This drilling will help us better understand the large low-grade target at Oasis. In addition to Oasis, we are also planning extensive drilling on our new high-grade gold project in Alaska, and currently have an aggressive drill program underway on our Newman Todd project in Red Lake. This year is shaping up to be our busiest ever, with drilling planned or underway on all our key projects that have us in a good position to pass significant milestones."

Highlights from 2010 drilling

Potentially ore-grade mineralized intervals are contained within extensive sections of anomalous gold. For example, from the 2010 drilling program, drill hole 16 (T.D. 1,200 ft, 365.8 m) contains a combined 153.9m (505 feet) grading 0.181 g/t (0.1 g/t cutoff) that includes higher-grade intervals, e.g., 0.322 g/t over 15.2 metres (50 feet). Additional results included drill hole 14 (96.1 metres of 0.26 g/t including 12.2 metres of 0.40 g/t), hole 15 (7.6 metres of 0.80 g/t and 10.7 metres of 0.63 g/t) and hole 10 (13.7 metres of 0.49 g/t including 3.0 metres of 1.06 g/t).

About Redstar Gold

Redstar has recently acquired a high-grade epithermal gold district in Alaska. The Shumagin project in Alaska includes a high-grade gold deposit with a non 43-101 compliant resource, a bulk tonnage non 43-101 compliant resource, a historic high-grade gold mine, and numerous high priority exploration targets. In addition to the Alaska project Redstar currently has an aggressive drill program underway on a high-grade gold discovery in Red Lake, Ontario. Along with the high-grade gold projects in Alaska and Red Lake, the company also has a total of 14 gold-focused projects in Nevada.

Dr. Jake Margolis a qualified person as defined by National Instrument 43-101and has reviewed this news release. Dr. Margolis is the US Exploration Manager for Redstar Gold Corp.

On Behalf of the Board,

Redstar Gold Corp.

Scott Weekes, President

Forward-Looking Information This release includes certain statements that may be deemed "forward-looking statements". All statements in this release, other than statements of historical facts, that address events or developments that Redstar Gold Corporation (the "Company") expects to occur, are forward-looking statements. Forward-looking statements are statements that are not historical facts and are generally, but not always, identified by the words "expects", "plans", "anticipates", "believes", "intends", "estimates", "projects", "potential" and similar expressions, or that events or conditions "will", "would", "may", "could" or "should" occur. Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results may differ materially from those in the forward-looking statements. Factors that could cause the actual results to differ materially from those in forward-looking statements include market prices, exploitation and exploration successes, and continued availability of capital and financing, and general economic, market or business conditions. Investors are cautioned that any such statements are not guarantees of future performance and actual results or developments may differ materially from those projected in the forward-looking statements. Forward-looking statements are based on the beliefs, estimates and opinions of the Company's management on the date the statements are made. Except as required by applicable securities laws, the Company undertakes no obligation to update these forward-looking statements in the event that management's beliefs, estimates or opinions, or other factors, should change.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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