Eagle Star Minerals Corp.

TSX VENTURE : EGE
PINKSHEETS : ELGSF
FRANKFURT : E6R


Eagle Star Minerals Corp.

January 22, 2014 11:50 ET

Eagle Star Announces An Initial Resource Estimate at the Bomfim Project-A New Phosphate Discovery Adjacent to MbAC's Itafos Mine

VANCOUVER, BRITISH COLUMBIA--(Marketwired - Jan. 22, 2014) - Eagle Star Minerals Corp., (TSX VENTURE:EGE)(PINKSHEETS:ELGSF)(FRANKFURT:E6R) ("Eagle Star" or "the Company") is very pleased to announce strong results from an Initial Mineral Resource Estimate ("the Initial Resource Estimate") for its Bomfim Project ("the Property" or "Bomfim"). This Initial Resource Estimate is based on data collected from systematic drilling of three (3) out of nine (9) targets identified so far at Bomfim. Bomfim is adjacent to MbAC Fertilizers' ("MbAC") Itafos Arraias SSP phosphate mine ("Itafos") where resources from multiple phosphate deposits combine to an overall resource.

This Initial Resource Estimate with the effective date of December 21st, 2013 has been prepared by Coffey Consultoria e Serviços Ltda. (Coffey Mining Limited). This Initial Resource Estimate combines resources from three different block models specifically prepared for each of the targets drilled - Amaury, Bomfim Hill-PZE and Santiago.

Using a 3% P2O5 cut off grade ("COG"), the initial inferred resource for the three (3) targets is estimated at 18.2 million tonnes @ 6.45% P2O5 in addition to 462.6K tonnes @ 11.88% P2O5 of measured and indicated resources at the Bomfim Hill-PZE target. The inferred resource consists of 419.5K tonnes @ 10.82% P2O5 at Bomfim Hill-PZE, 8.0 million tonnes @ 4.59% P2O5 at Amaury and additional 9.8 million tonnes @ 7.53% P2O5 at Santiago.

The Initial Resource Estimate based on a 3.0% P2O5 COG is shown in the table below:

Global Initial Resource Estimate - Eagle Star - Bomfim Project
TARGET A "AMAURY": cut-off grade = 3% P2O5
Block model: Y=20m, X=10m, Z=1m (Y=5m, X=5m, Z=0.5m)
Resources Tonnage (Kt) Average grade P2O5(%)
Inferred 8,025.6 4.59
TARGET D "BOMFIM HILL-PZE": cut-off grade = 3% P2O5
Block model: Y=20m, X=10m, Z=1m (Y=5m, X=5m, Z=0.5m)
Resources Tonnage (Kt) Average grade P2O5(%)
Measured 196.7 14.54
Indicated 265.9 9.91
Measured and Indicated 462.6 11.88
Inferred 419.5 10.82
TARGET H "SANTIAGO": cut-off grade = 3% P2O5
Block model: Y=50m, X=50m, Z=1m (Y=25m, X=25m, Z=0.5m)
Resources Tonnage (Kt) Average grade P2O5(%)
Inferred 9,825.2 7.53
TOTAL RESOURCES 3% P2O5COG (AMAURY + BOMFIM HILL-PZE + SANTIAGO)
Resources Tonnage (Kt) Average grade P2O5(%)
Measured and Indicated 462.6 11.88
Inferred 18,270.3 6.32

Using an 8% P2O5 COG, the initial inferred resource for the three (3) targets drilled is estimated at 4.1 million tonnes @ 14.47% P2O5 in addition to 316.5K tonnes @ 15% P2O5 of measured and indicated resources at the Bomfim Hill-PZE target. The inferred resource consists of 273.4K tonnes @ 14% P2O5 at Bomfim Hill-PZE, 390.3K tonnes @ 14.2% P2O5 at Amaury, and 3.4 million tonnes @ 14.5% P2O5 at Santiago.

The Initial Resource Estimate based on a 8.0% P2O5 COG is shown in the table below:

Initial Resource Estimate - Eagle Star Minerals - Bomfim Project
TARGET A "AMAURY": cut-off grade = 8% P2O5
Block model: Y=20m, X=10m, Z=1m (Y=5m, X=5m, Z=0.5m)
Resources Tonnage (Kt) Average grade P2O5(%)
Inferred 390.3 14.09
TARGET D "BOMFIM HILL-PZE": cut-off grade = 8% P2O5
Block model: Y=20m, X=10m, Z=1m (Y=5m, X=5m, Z=0.5m)
Resources Tonnage (Kt) Average grade P2O5(%)
Measured 169.9 16.10
Indicated 146.6 13.92
Measured and Indicated 316.5 15.09
Inferred 273.4 13.95
TARGET H "SANTIAGO": cut-off grade = 8% P2O5
Block model: Y=50m, X=50m, Z=1m (Y=25m, X=25m, Z=0.5m)
Resources Tonnage (Kt) Average grade P2O5(%)
Inferred 3,438.2 14.50
TOTAL RESOURCES 8% P2O5COG (AMAURY + BOMFIM HILL-PZE + SANTIAGO)
Resources Tonnage (kt) Average grade P2O5(%)
Measured and Indicated 316.5 15.09
Inferred 4,101.9 14.42

The results of the Initial Resource Estimate confirm the validity of the exploration model developed by Eagle Star's technical team, which will continue to be used to uncover the substantial potential remaining in these three (3) targets and in additional six (6) targets identified so far at Bomfim. The resource estimate also lends strong support to the Company's short and long term strategies going forward:

SHORT TERM STRATEGY

- Production of Direct Application Natural Fertilizer ("DANF") from the Higher-Grade Resources

DANF has been produced and sold to local farmers at the neighboring Itafos mine for the past 5 years. As of 2014, following the completion of a new Single Super Phosphate ("SSP") facility at Itafos, production of DANF has been suspended creating a void in the marketplace which Eagle Star intends to fill.

DANF production within the "Cerrado" region of Brazil is a simple and straight forward operation that requires the mining of at surface, high-grade phosphate mineralization, crushing and milling in preparation for selling to the farms within close proximity to the mine.

"This Initial Resource Estimate of 4.1 million tonnes @ 14.47% P2O5 of inferred resources in addition to 316.5K tonnes @ 15% P2O5 of measured and indicated resources has confirmed a larger high-grade resource than we had expected a few months ago." Noted Mr. Eran Friedlander, President & CEO of Eagle Star. "The results represent a critical step towards achieving Eagle Star´s goal of becoming a DANF producer in the short term while we continue to investigate, plan and fully execute our long term production strategy at Bomfim. DANF production also provides us with the mean to deliver on our commitment to reduce shareholders' dilution while we continue to unlock potential by way of exploration throughout Bomfim."

Eagle Star has an internal scoping study underway to establish the economics of DANF production and to investigate the addition of screening to the MbAC DANF process which will allow the Company to develop three basic products:

1) DANF-F10 (Direct Application Natural Fertilizer with 10% P2O5 content)
2) DANF-F15 (Direct Application Natural Fertilizer with 15% P2O5 content)
3) DANF-F20 (Direct Application Natural Fertilizer with 20% P2O5 content)

The average selling price for these three DANF products (10%, 15% and 20% P2O5) is approximately $100 USD per tonne.

A feasibility study has not yet been completed and there is no certainty the proposed operations will be economically viable.

LONG TERM STRATEGY

- Production of Beneficiated Products from the Lower-Grade/High-Tonnage Resources

Eagle Star has already initiated an internal scoping study to better understand the economics behind each and every fertilizer product currently distributed in large tonnage to farms and agricultural centers within the "Cerrado" region. The intent of this market research is to help determine what fertilizer products could be produced by utilizing all phosphate grade ranges while maintaining operational margins and extending Bomfim's mine life for as long as possible. Amongst products currently under investigation are Triple Super Phosphate (TSP), Single Super Phosphate (SSP), Monoammonium Phosphate (MAP), DiCalcium (Animal Feed) and various Micronutrient based fertilizer blends that are conducive to large crops and soil conditions within the region.

Eagle Star has also commenced a series of metallurgical tests at METAGO (a private Brazilian company specializing in this type of mineralogical testing) for the purpose of establishing the optimal flotation process to concentrate the lower grade, higher tonnage material at Bomfim. The Company's intent is to develop a similar process to the one used by MbAC that will allow for the upgrade of its lower grade ore to 28% P2O5. Since rock types at Bomfim resemble that of the neighboring MbAC Itafós deposit, Eagle Star's technical team is optimistic that its flotation objective can be achieved.

Finally, the Company is carrying out Thermal Phosphate testing on high-grade ore commonly found throughout Bomfim. The Thermal Phosphate's agronomic efficiency exceeds that of all other fertilizer products sold within Brazil including SSP, because of its very low solubility in water (making it more resistant to heavy rainfall) and high solubility in citric acid (which is an indication of plants' nutrient absorption). These superior qualities also explain why Thermal Phosphate sells at a much higher premium to other phosphate based fertilizers within Brazil. The tests are being conducted at IPT (Technological Research Institute, in São Paulo University) where the work is on-going.

Eagle Star expects to initiate technical investigation on the remaining fertilizer products (mentioned above) shortly.

CONCLUSIONS

"The numbers reported in this initial report are very encouraging. They suggest the viability of pursuing the DANF production route in the short to mid term while also demonstrating the sizeable potential of this project as exploration progresses further in these three (3) initial targets as well as in the remaining six (6) targets." Commented Prof. Amorim, VP of Exploration.

DISCLOSURES

The estimates were conducted using ordinary kriging interpolation after data validation, statistical analysis and a variography study. One metre composite samples were used in conjunction with the resource estimation. An average specific gravity (SG) of 1.79 was used for the resource estimate. The average SG value is based on limited SG testing (13 samples) of representative ore types collected insitu. The water displacement method (Archimedes Principle) was used to perform the density measurements. The diamond and reverse circulation drilling procedures are to high quality with > 85% recovery. A total of 143 standard samples (duplicates, high and low-grade standards) were inserted in the sample sequences of the reverse circulation drill holes.

The resource estimate is signed off by Mr. Porfirio Cabaleiro Rodriguez an Associate Consultant of Coffey Consultoria e Serviços Ltda., and was prepared in compliance with the standards of disclosure as set out in NI43-101. Mr. Rodriguez is an "independent qualified person" for the purposes of NI43‐101 Standards of Disclosure for Mineral Projects of the Canadian Securities Administrators and has verified the data disclosed in this release. He is an experienced mining engineer with more than 30 years in the business ranging from resources and reserves estimation to mine planning, mine design and economic evaluation of mining projects. The resource estimate is being incorporated into an updated Form 43-101F1 Technical Report, scheduled for filing on SEDAR within 45 days of this release.

John Harrop PGeo, FGS, of Coast Mountain Geological Ltd, a qualified person and independent of the Company under NI 43-101, reviewed and approved the technical disclosures of this press release other than the initial resource estimate on behalf of the Company.

ABOUT THE COMPANY

Eagle Star Minerals Corp is a publicly listed company focused on the acquisition, exploration and development of agro-mineral properties in Brazil. Over the past three years, Eagle Star Minerals has strategically grown its' presence in Brazil and continues to focus on maximizing shareholder value by acquiring assets located in geological areas known for proven phosphate mineralization, coupled with good logistics in close proximity to agriculture.

The Company's shares are publicly traded on the TSX Venture Exchange under the symbol EGE and on Frankfurt Stock Exchange under the symbol E6R.

On behalf of the Board of Directors

EAGLE STAR MINERALS CORP.

Eran Friedlander, President

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

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