Fairstar Explorations Inc.

Fairstar Explorations Inc.

March 18, 2005 15:30 ET

Fairstar Announces Resignation of Director and Provides Corporate Update


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: FAIRSTAR EXPLORATIONS INC.

TSX SYMBOL: FFR

MARCH 18, 2005 - 15:30 ET

Fairstar Announces Resignation of Director and
Provides Corporate Update

MONTREAL, QUEBEC--(CCNMatthews - March 18, 2005) - Fairstar Explorations
Inc. ("Fairstar")(TSX:FFR) announces that Jean-Pierre Colin has resigned
as a director of the Company. The Board would like to take this
opportunity to express its appreciation for his valuable contributions
to the transaction involving the transfer of the Fenelon Property to
American Bonanza Gold Corp. ("Bonanza").

Corporate Update

The Special Meeting of Shareholders of Fairstar to approve the Plan of
Arrangement (the "Plan") which will result in the disposition of the
Company's mineral properties is scheduled for March 24, 2005. Approval
of the Plan will result in the issuance of 6.5 million shares of Bonanza
and a cash payment to Fairstar of $300,000. In addition, the
transaction will result in the settlement of the existing litigation
between Fairstar and International Taurus Resources Inc. Fairstar
intends to distribute all 6.5 million shares of American Bonanza to its
shareholders on a pro-rata basis.

Following completion of the above noted transaction, Fairstar intends to
move ahead with the previously announced planned merger with Western
Energy Corporation ("Western"), a private oil and gas company located in
Calgary, Alberta. Under the terms of the agreement, the merger will be
carried out on the basis of the respective net asset values of the two
companies, independently determined. It is anticipated that Fairstar
shareholders will own approximately 25% of the merged company. The
combination will result in Fairstar becoming an operating oil and gas
exploration company with current production of 150 barrels of oil
equivalent ("BOE") per day plus 100 BOE awaiting tie-in, well financed
and well managed, with opportunities to grow.

The transaction, is subject to the completion of due diligence,
shareholder and regulatory approval, including approval of the Toronto
Stock Exchange.

At the conclusion of the business described in the Notice of the March
24 Meeting, the Meeting shall be adjourned pending distribution of
Supplementary Meeting Materials to be forwarded to shareholders of
record on February 14, 2005, setting out all relevant details relating
to the merger of Fairstar and Western. It is expected that the Special
Meeting will be re-convened on or about April 27, 2005.

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Contact Information

  • FOR FURTHER INFORMATION PLEASE CONTACT:
    Fairstar Explorations Inc.
    Larry Nachshen
    Chairman
    (514) 695-8080
    (514) 695-8011 (FAX)
    or
    Fairstar Explorations Inc.
    George Tooley
    Vice-President Corp. Development
    (514) 695-8080
    (514) 695-8011 (FAX)
    or
    Fairstar Explorations Inc.
    Karl Glackmeyer
    President
    (514) 695-8080
    (514) 695-8011 (FAX)