Clifton Star Resources Inc.

Clifton Star Resources Inc.

October 26, 2009 08:00 ET

Clifton Star Resources and Optionors Successfully Re-Negotiate New Terms for the Beattie-Donchester-Dumico Gold Properties in Western Quebec

- Payment schedule extended until 2017

- Payments changed from front-end to back-end loaded

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Oct. 26, 2009) - Clifton Star Resources, Inc (TSX VENTURE:CFO)(FRANKFURT:C3T) is pleased to announce with the property owners (the "Optionors") the successful re-negotiation of new terms for the options governing Clifton Star's right to earn an undivided 100% interest in the Beattie-Donchester-Dumico gold properties (the "Property") in western Quebec. It is the intention of both parties to proceed immediately from the terms outlined in the letters of intent ("LOIs") to finalization of definitive agreements.

The original agreements between Clifton Star and the Optionors are dated May 6, 2008. They were later amended on July 22, 2008, and then June 29, 2009. These agreements, among other things, defined a series of property payments outlined in Table 1 (only remaining payments are shown here; see SEDAR filings dated May 6, 2008 and October 22, 2008).

Table 1. Prior Payment Schedule as of 29 June 2009

Amount (C$)

Confirmation Payment$8.5 million31 Dec 2009 
Exercise Payment$40 million1 July 2010 
Bonus Payment$12 millionFeasibility StudyPayable only if greater than 4 Moz Au
Total$60.5 million Earns 100% with no NSR

The new payment schedule, per the LOI of October 26th of this year, is highlighted in Table 2.

Table 2. LOIs Payment Schedule as of 26 October 2009

Amount (C$)

Confirmation Payment$8.5 million1 June 2010Earns 10%; 6-mo payment deferment
Exercise Payment$22 million1 Dec 201228-mo payment deferment; $18 M lower
Final Payment$30 million1 Dec 2017Earns 100%; 5-yr payment deferment
Total$58.5 million Earns 100% with no NSR

Mr. Harry Miller, President/CEO of Clifton Star, commented as follows:

"We are pleased to have re-negotiated and signed letters of intent with the Optionors regarding our flagship project. There are two key changes to the terms. Firstly, the new agreement allows for a much smaller second payment ($22 million vs. $40 million) and defers the payment date by 28 months (from July 1, 2010 to Dec 1, 2012). Secondly, the agreement defers the final payment to Dec 2017, some five years later than the prior agreements.

We believe these letters of intent developing into definitive agreements provide Clifton Star with ample time to explore and development the Beattie, Donchester, Central Duparquet, and Dumico gold deposits. Further, the new payment schedule is now back-end loaded as opposed to being front-end loaded. This relieves us of a short-term financial encumbrance, allowing Clifton to put more capital into the ground exploring and developing the projects. Currently there are two drills in operation and plans are in place to return to five drills. As well, a number of new initiatives are underway regarding Clifton
Star, and we look forward to reporting their outcomes once realized."

About Clifton Star Resources Inc.:

Clifton Star Resources Inc. (TSX VENTURE:CFO) ("Clifton Star") is a junior mining company with options to earn a 100% undivided interest in the Beattie, Donchester, Central Duparquet, Dumico and Duquesne gold properties that yielded over one million ounces of gold from the 1930's until the 1950's. Through these properties Clifton Star controls a total of 8.4 km of strike length along the prolific Porcupine/Destor deformation zone extending from Timmins, Ontario, to north of Val d'Or, Quebec. The Company also is evaluating historical tailings of recoverable gold at Beattie-Donchester as a source of near-term revenues.

On behalf of the Board,

Harry Miller, President

This news release may contain forward-looking statements which address future events and conditions and therefore involve inherent risks and uncertainties. Actual results may differ materially from these currently anticipated in such statements.

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

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