Eagle Star Minerals Corp.
TSX VENTURE : EGE
PINKSHEETS : ELGSF
FRANKFURT : E6R

Eagle Star Minerals Corp.

June 26, 2012 13:41 ET

Eagle Star Minerals Acquires the Bomfim Agro-Mineral Project, at the Heart of the Brazilian Phosphate Belt, 20 kms Away From The Itafos Phosphate Mine and Announces Management Changes

VANCOUVER, BRITISH COLUMBIA--(Marketwire - June 26, 2012) - Eagle Star Minerals Corp., (TSX VENTURE:EGE)(PINK SHEETS:ELGSF)(FRANKFURT:E6R) ("Eagle Star" or "the Company") is pleased to announce the acquisition of The Bomfim Agro-mineral Project ("Bomfim"), 20km away from MbAC Fertilizers' ("MbAC") Itafos Arraias SSP Project.

LOCATION

The Bomfim Agro-mineral Project is located in the southern most part of the Tocantins state, along the same phosphate mineralized trend in which MbAC holds the Itafós mine. This region is now considered to be the new phosphate belt of Brazil where many majors (MbAC / Vale / Votorantim / Bungee) have claims and are currently developing phosphate deposits. All exploration permits (30,922 hectares across 4 claims) and licenses are already in place and an aggressive exploration program has been outlined with an objective to define a NI 43-101 measured and indicated resource as soon as possible.

The project itself shares much of the same technical characteristics and economic merits that can be found in the proven geological model of the Itafos Arraias SSP Project. Early mapping and sampling as part of Eagle Star's due diligence have presented a very strong case for the extension of the Itafos mineralization to pass directly through the Bomfim claims.

Bomfim benefits from close proximity to the agricultural centers of West Bahia and NE Goiás States as well as existing local infrastructure (roads, communication, power lines). Government tax incentives are also available in this area and reinforce the attractiveness of this opportunity from an investment standpoint.

Same as MbAC, Eagle Star will explore the possibility of moving directly into small scale production of the high grade crushed phosphorite (as a natural fertilizer) to assist with funding of initial operations.

To view the map accompanying this release please click on the following link: http://media3.marketwire.com/docs/ege0626.jpg

GEOLOGY

According to the metallogenetic model, the mineralization extends through the contact between the Arraias group/basement rocks and the basalt units of the Bambui Group, wherein both the Itafós and Bomfim projects are located. The main mineralization controls are present at the area and include the phosphorous source, paleo channels environment and outcropping phosphorite lenses, this last being the proof of mineralization and from where Eagle Star has sample results up to 28% P2O5.

EXPLORATION PROGRAM

Eagle Star's exploration program will be overseen by Dr. José Eloi Guimarães Campos who is a member of Eagle Stars board and is to become the new COO of the Company replacing Mr. Jose Carlos Polonia. Dr. Campos has direct experience with the Itafos Arraias Phosphate Project, where he acted as co-advisor to the technical study and the in depth observation of the geological model. The exploration program is planned to extend over a 16 month period with scout drilling of 2,600M commencing as early as October. The high potential areas delineated by the initial scout drilling program will be further detailed by regular spaced drilling (100x100m and 50x50m) totaling 27,000m at an avg. depth of 40m to assist geological modeling and a NI 43-101 resource calculation (measured to indicated).

Program Jul-12 Aug-12 Sep-12 Oct-12 Nov-12 Dec-12 Jan-13 Feb-13 Mar-13 Apr-13 May-13 Jun-13 Jul-13 Aug-13 Sep-13
Landowners permissions X X X X X X X
Detailed mapping X X X
Opening of pits and trenchs X X X
Opening of drill pads for scout drilling X X
Scout drilling X X X X
Technological tests X X X
Data base internal audition X X X X
Geophysics ? ?
Systemathic drilling (100x100m and 50x50m) X X X X X X X X X
Resource calculation (measured and indicated) X X X
43-101 technical report X X X X

A compact laboratory to run phosphate analysis will be implemented at site to assure the fast evaluation of the areas and improve efficiency. The field office and core shack will be set up at the Canabrava village, located 10km from the area. A team with relevant knowledge and experience specific to the area is currently being sourced by Dr. Campos, who has worked at the region for the past 15 years.

FINANCIAL TERMS

In accordance with the terms of the definitive agreement, Eagle Star will form a partnership with Quantum Mineração Ltda ("Quantum"), a private company in Brazil to which Eagle Star will own 75% equity interest. The partnership will own 100% interest of Bomfim, and Eagle Star has the option to acquire 100% interest of The Bomfim Agro-mineral Project by fulfilling the following commitments:

  1. Initial cash payment in the amount of BRL 50,000 to Quantum within (10) business days upon project approval by the TSX Venture Exchange, earns Eagle Star 75% interest in Bomfim,
  2. 2 Payments of R$200,000 in cash at the end of the 1st and 2nd phases of exploration respectively, for a total of R$400,000, assuming positive results following each phase.
  3. Upon completion of a NI 43-101 proven resource report, and assuming the resource calculation returns a minimum of 20 million tonnes at an average grade of no less than 4%P2O5, Eagle Star will purchase the remaining 25% interest for a total of 100% from Quantum by making a payment in cash or shares as follows:

    For the first 20 million tonnes - One (1) Brazilian Real per ton.

    For any additional quantity above 20 million tonnes and in between:
    20-25 million tonnes - 0.75 Brazilian Real per ton
    25-35 million tonnes - 0.50 Brazilian Real per ton
    35-50 million tonnes - 0.40 Brazilian Real per ton
    >50 million tonnes - 0.25 Brazilian Real per ton

(1 Brazilian Real = .501 Canadian Dollars as of Thursday June 25, 2012)

CONCLUSIONS

"We believe that with this acquisition we have propelled the company to the next level in terms of its development. The resemblance of this property's technical characteristics to that of MbAC's Itafos is quite remarkable and as such present an attractive investment opportunity in terms of its risk/reward profile," stated Dr. Campos, Eagle Star's expert on phosphate, newly appointed COO, and a member of the Company's board. "For any mining company, especially a junior one like ourselves, a proven geological, exploration and economic model provide a clear competitive advantage and a great starting point when it comes to developing an opportunity such as this one."

John Harrop, P.Geo, FGS, of Coast Mountain Geological Ltd., a qualified person under NI 43-101, reviewed and approved the technical disclosures of this press release 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 two 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, on the OTC Pink Sheets under the symbol ELGSF 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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