Clifton Star Resources Inc.

Clifton Star Resources Inc.

August 20, 2012 08:44 ET

Clifton Star Announces Start of the Duparquet Gold Project PEA and Appoints Dr. David Dreisinger as Vice President Metallurgy

QUEBEC CITY, QUEBEC--(Marketwire - Aug. 20, 2012) - Clifton Star Resources Inc. ("Clifton Star" or "The Corporation") (TSX VENTURE:CFO)(FRANKFURT:C3T) is pleased to report that it has started the preparation of a Preliminary Economic Assessment report ("PEA") on the Duparquet Project.

Three engineering firms will be involved in completing the PEA.

InnovExplo, a Mining Consulting Firm from Val-d'Or, ("InnovExplo") will update the resource estimation, incorporating the latest 2012 drill and surface sampling results, and will design the mining sequence for the open pit operations. InnovExplo will also be responsible for the integration of all other aspects of the report as the lead author.

Bateman Australia Pty Ltd ("Bateman") will design the metallurgical treatment circuit and mill, including the pressure oxidation circuit, based on the metallurgical tests carried out by SGS-Lakefield over the past months that resulted in an average of 93% gold recovery. Bateman will also provide a comparative study on the capex/opex of the alternative BIOX™ and Albion processes, which have delivered similar gold recoveries in recent tests.

Stavibel Engineering Services, ("Stavibel"), a subsidiary of SNC-Lavalin, will study all the environmental and social aspects of the project. Since gold mining and ore processing were carried in the past on the project, Stavibel will initially characterize the site. Stavibel will also evaluate and design waste rock and tailings storage facilities, water control and balance for the open pit mining and milling scenarios as designed by InnovExplo and Bateman.

Clifton Star expects to have the PEA report completed at the end of 2012 and to publish the conclusions in January of 2013.

Nomination of Dr. David Dreisinger:

Clifton Star is pleased to announce that Dr. David Dreisinger, P.Eng., F.C.I.M., F.C.A.E., will join the Corporation as Vice President Metallurgy on a part time consulting basis, starting September 1st 2012. Dr. Dreisinger is the Qualified Person (NI 43-101) who supervised, for Clifton Star, the metallurgical tests carried at SGS Lakefield, with Goldfields for the BIOX process and with Xstrata for the Albion process over the last year.

Dr. Dreisinger is a Professor and Chairholder, Industrial Research Chair in Hydrometallurgy at the University of British Columbia (Vancouver, Canada) and consults to the metallurgical industry worldwide through Dreisinger Consulting Inc.

Cautionary Statement on Forward Looking Information

Certain information included in this press release, including any information as to our future exploration, financial or operating performance and other statements that express management's expectations or estimates of future performance, constitute 'forward-looking statements' within the meaning of the 'safe harbor' provisions of the United States Private Securities Litigation Reform Act of 1995 and Canadian securities laws. The words 'expect', 'believe', 'will', 'intend', 'estimate' and similar expressions identify forward-looking statements. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable by management, are inherently subject to significant business, economic and competitive uncertainties, risks and contingencies, including the possibility that drill programs will not yield the expected results. The Company cautions the reader that such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual financial results, performance or achievements of Clifton Star Resources to be materially different from the Company's estimated future results, performance or achievements expressed or implied by those forward-looking statements and that the forward-looking statements are not guarantees of future performance. These statements are also based on certain factors and assumptions. For more details on these estimates, risks, assumptions and factors, see the Company's most recent Form 20-F/Annual Information Form on file with the U.S. Securities and Exchange Commission and Canadian provincial securities regulatory authorities. The Company disclaims any obligation to update or revise any forward-looking statements, whether as a result of new information, events or otherwise, except as expressly required by law. Readers are cautioned not to put undue reliance on these forward-looking statements.

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

Contact Information