Polar Star Mining Corporation

Polar Star Mining Corporation

November 19, 2008 15:10 ET

Chepica Project Update

TORONTO, ONTARIO--(Marketwire - Nov. 19, 2008) - Polar Star Mining Corporation ("Polar Star") (TSX VENTURE:POS) has re-negotiated its option to purchase agreement on the Chepica mining property and mill (the "Chepica Project") whereby Polar Star can now take operational control of the project and has three years to the pay the balance of the purchase price. Polar Star expects to complete documentation and closing of this restructured deal during December 2008. The modified agreement terms are: 1) Polar Star will purchase an additional 5% equity of the Chepica Project for CP$150 million (approximately US$236,000 under today's current exchange rates); 2) the remaining balance of the previously agreed purchase price will be increased by 20% at closing; and, 3) Polar Star has the option to pay this balance in part or in full at any time from the profits of any mining and milling operations which may occur over the next three years. There are no minimum cash amounts that are required to be paid during the three year period and Polar Star will be the sole operator. Closing will be subject to receipt of the usual regulatory approvals.

On November 14, 2008, as part of their on-going sampling and testing of operations on the Chepica No2 Vein, the current owner/operators of the Chepica Project shipped 22 tonnes of test material from their onsite flotation mill to the Empresa Nacional de Mineria, Chile ("ENAMI") smelter at Valpariso. Their planned production rate of 200 tonnes per day is expected to be reached by the second quarter of 2009.

Polar Star's initial 5,000 metre drill program at the Chepica Project is scheduled to be completed on or about November 30, 2008.

There is no current NI 43-101 compliant resource report on the Chepica Project however SRK International will be incorporating these results in a National Instrument 43-101 compliant report which is expected to be delivered in the first quarter of 2009.

Qualified Person

Mr. Terence Walker, M.Sc., P.Geo., is the qualified person within the meaning of National Instrument 43-101. Mr. Walker has reviewed the contents of this news release.

About Polar Star

Polar Star was created to acquire advanced stage exploration properties focusing on gold, copper-gold, and uranium. The Corporation's material assets include 20 projects in Chile, which are 100% owned and cover approximately 146,112 hectares. Polar Star announced the closing of a $5 million private placement on July 8, 2008 during which HudBay Minerals Inc. acquired 3,860,605 Units (approximately 9.8% of the now outstanding shares of the Company).

Forward-Looking Statements

The statements made in this news release may contain forward-looking statements that may involve a number of risks and uncertainties. Actual events or results could differ materially from the Company's expectations and projections. Accordingly, readers should not place undue reliance on forward-looking statements. For a more detailed discussion of such risks and other factors, refer to Polar Star Mining Corporation's filings with Canadian securities regulators available on www.sedar.com or the Company's website at www.polarstarmining.com.

Share Capitalization:

Shares Outstanding: 39,241,098 as at November 18, 2008.

Business Television Feature:

Polar Star was selected and featured on Business Television in early March 2008. If you missed the show, please click on the link below to watch the full-feature.


The Toronto Stock Exchange Venture has not reviewed and does not accept responsibility for the adequacy or accuracy of this release and the information contained herein.

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