Eagle Star Minerals Corp.

Eagle Star Minerals Corp.

May 29, 2012 09:00 ET

Eagle Star Minerals Claims New Concession Block With Excellent Phosphate Results and Provides Trench Sampling Update on Ruth, Piaui, Brazil

VANCOUVER, BRITISH COLUMBIA--(Marketwire - May 29, 2012) - Eagle Star Minerals Corp., (TSX VENTURE:EGE)(PINKSHEETS:ELGSF)(FRANKFURT:E6R) ("Eagle Star" or "the Company") is pleased to announce its application for acquisition of the São Francisco Block, a new concession area within the Ruth Project.

The area was identified through a regional recognition program that was initiated based on the interpretation of results from trenching and systematic channel sampling at the Paes Landin block as seen below.

The area is located less than 50km to the northwest of the Paes Landin block and shares the same infrastructure of the other concession blocks, including close proximity to large agricultural centers and railroads.

Once the application is approved, the São Francisco concession block will be 100% wholly owned and cover 25,749 hectares across 13 claims. The Ruth Project will constitute 65 tenements over 115,712 hectares (or 6 concession blocks).

PAES LANDIN BLOCK (Salvador Target follow up)

At the Paes Landin (Salvador Target) trenching and sampling was carried out over different topographic levels. 214 samples in 12 trenches (238 linear meters) were opened with an excavator to create cuts up to two-meters depth. The sampling was done on a meter scale basis at intervals of one to four meters.

The results suggest the presence of multiple mineralized packages based on a collection of positive channel sample results at different topographic levels. Moreover, there are three main gaps within the potential packages that were not covered by trenching and systematic sampling (meter basis). Based on field evidence, it appears that the known mineralized packages may be linked and extend laterally.

To view the Salvador Target channel sample map, click on the following link: http://media3.marketwire.com/docs/e528g.pdf

Assay results greater than 2.5% P2O5 cut off grade are shown below.

Paes Landin Salvador 50313 TR01 Nodule* * 22.03
Paes Landin Salvador 50318 TR01 Purple siltstone 1.00 4.10
Paes Landin Salvador 50408 TR2D Purple siltstone 0.80 3.22
Paes Landin Salvador 50410 TR2D Purple siltstone 0.80 2.45
Paes Landin Salvador 50411 TR2D Purple siltstone 0.70 3.82
Paes Landin Salvador 50413 TR2D Nodule* * 20.50
Paes Landin Salvador 50463 TR01 Purple siltstone 0.70 7.96
Paes Landin Salvador 50479 TR02B Purple siltstone 1.00 2.48
Paes Landin Salvador 50482 TR02B Nodule* * 19.74
Paes Landin Salvador 50499 TR03 Nodule* * 19.33
Paes Landin Salvador 50503 TR04 Nodule* * 19.92
Paes Landin Salvador 50653 TR05 Purple siltstone 1.00 3.60
Paes Landin Salvador 50658 TR05 Purple siltstone 1.00 6.89
Paes Landin Salvador 50660 TR05 Purple siltstone 1.00 3.78
Paes Landin Salvador 50663 TR05 Nodule* * 19.65
Paes Landin Salvador 50667 TR10 Purple siltstone 0.70 4.99
Paes Landin Salvador 50669 TR10 Purple siltstone 1.00 12.21
Paes Landin Salvador 50670 TR10 Purple siltstone 1.00 9.58
Paes Landin Salvador 50672 TR10 Purple siltstone 0.80 6.61
Paes Landin Salvador 50679 TR10 Purple siltstone 0.60 9.35
Paes Landin Salvador 50710 TR09A Purple siltstone * 5.81
Paes Landin Salvador 50716 TR09B Purple siltstone 1.00 5.18
Paes Landin Salvador 50727 TR11B Purple siltstone 1.00 9.81
Paes Landin Salvador 50730 TR11B Nodule* * 20.56
* Due to the characteristics of sampling nodules these samples are considered grab samples. Grab samples are by nature selective and may not be representative of mineralized units.


The work performed at the trenches also helped to identify the mineralized rock types (purple and grey siltstone) and suggested that by targeting other areas, with different deposition conditions Eagle Star could discover additional geological units with significant packages of mineralized material. This realization led Eagle Star to perform a new regional exploration program focusing this time on different geological formations, where the mineralized rock types outcrop extensively and are visible as a result of road cuts.

The regional sampling program returned excellent results on different topographic levels and provided a strong technical case for claiming the São Francisco Block. Samples were chipped across road cuts and other outcrops as representative aggregates of specific units. Follow up exploration is planned for the São Francisco Block (channel sampling, further mapping and geophysical studies) as soon as official exploration permits are released by DNPM (Governmental Mining Agency of Brazil).

SSD06 181 50217 FOS 6.15 8.71 0.84
SSD06 182 *50219 FOS - 5.43 7.90 2.00
SSD06 180 *50220 FOS - 5.39 7.57 1.55
SSD06 176 *50222 FOS - 4.91 6.99 1.70
SSD06 180 *50224 FOS - 6.32 8.98 1.79
SSD06 180 *50229 FOS - 4.36 6.22 2.83
SSD07 163 *50232 FOS - 5.03 7.22 1.98
SSD08 175 *50236 FOS - 7.66 16.60 2.15
SSD08 175 50238 SLT_C 0.50 4.49 6.10 0.28
SSD06 265 *50935 FOS - 6.47 9.90 3.28
SSD06 179 *50945 FOS - 5.54 9.58 1.34
SS01-C 220 *50952 SLT_R - 10.61 14.70 0.87
SS01-D 221 *50953 SLT_R - 4.35 5.94 0.91
SSF-04 229 50126 SLT_R 1.00 3.71 5.22 0.73
SSF-10 235 50132 SLT_C_R 0.60 5.01 6.34 1.18
* Although collected to be representative of the sampled unit, due to the nature of regional rock sampling they do not form specific widths and should be considered grab samples. Consequently, they may be to some degree selective and may not be representative of mineralized units.

Analytical work was conducted by in their Vespasiano facility in Brazil. SGS Geosol is an ISO certified laboratory and as part of the SGS group of laboratories is widely recognized as an expert in geochemical analysis and assaying.

To view the São Fransisco map associated with this press release, click on the following link: http://media3.marketwire.com/docs/e528m.pdf

In light of these developments and based on these results, Eagle Star Minerals has decided to proceed with the next stage of exploration on the Ruth Project and is planning to carry out a more intensive systematic channel sampling program to assist diamond drill targeting.

During the next stage of exploration in Ruth, Eagle Star is planning to dig manual pits in the Paes Landin block to cover the gaps between the mineralized layers discovered in various trenches. This will give the company a better idea as to how thick these layers are, while selecting appropriate drill targets within the block. In addition, the company is planning to perform extensive channel sampling on road cuts and outcrops in the São Francisco block to get more information on the minimum thickness of the visibly mineralized phosphate layers on that block.

"Our team is very pleased with the trenching results that have come back from our Paes Landin block to date. They demonstrate that we are indeed on track to identifying a phosphate deposit within the largest agrarian country in the world," stated Eran Friendlander President and CEO. "We are equally excited with the new addition of the Sao Francisco block. Our regional sampling results clearly demonstrate the logic behind the claiming of this new area. We now look forward to investigate in more detail the extensive outcrops we have identified on that block as part of our effort to select the best potential targets for a drilling campaign in Ruth."

As a result of its decision to proceed with next stage of exploration on Ruth and based on the terms of the finder's fee agreement published in the Company's news release dated June 16th 2011, Eagle Star will issue 700,000 of the Company´s common shares to the generators of this opportunity. All shares will be subject to a 3 month hold after which, 25% of the total amount will become free trading followed by additional increments of 25% becoming free trading within 12, 18 and 24 months respectively. All shares issued as part of this finders fee payment will be subject to TSX Venture approval.

In addition, Eagle Star Minerals wishes to announce that, in accordance with the policies of the TSX Venture Exchange, the board of directors has approved a grant of incentive stock options to twelve f h C mp ny' c, ff c, v sors, and employees to purchase an aggregate of 2,030,000 common shares pursuant to its 2011 stock option plan.

All options granted as per this press release will have an exercise price of $0.22 per common share and expire on May 27, 2017.

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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