Globestar Mining Corporation
TSX VENTURE : GMI

Globestar Mining Corporation

August 01, 2006 09:31 ET

GlobeStar Mining Corporation Announces Completion of Secondary Offering

TORONTO, ONTARIO--(CCNMatthews - Aug. 1, 2006) -

Not for distribution to United States newswire services or for dissemination in the United States

GlobeStar Mining Corporation ("GlobeStar" or the "Company") (TSX VENTURE:GMI) announced today that Karr Securities Inc. ("Karr"), a major holder of common shares of the Company, has completed the sale of 8,695,650 special warrants of Karr ("Special Warrants") through Jennings Capital Inc. and Canaccord Capital Corporation (collectively, the "Agents") for gross proceeds to Karr of approximately C$10.0 million (the "Offering").

Each Special Warrant entitles the holder thereof to receive, at any time and without payment of any additional consideration, one previously issued common share of GlobeStar currently held by Karr (the "Special Warrant Shares"). Each Special Warrant shall be automatically exercised at 5:00 p.m. on the earlier of: (i) the third business day after a receipt is issued by the principal securities regulator, on behalf of the security regulatory authorities in each of the jurisdictions in Canada in which purchasers of the Special Warrants are resident, for a (final) prospectus of the Company qualifying the distribution of the Special Warrant Shares to be issued upon the exercise of the Special Warrants (the "Prospectus"); and (ii) the date which is four months and one day after the date of the closing of the Offering.

GlobeStar did not receive any proceeds from the sale of the Special Warrants by Karr.

The Special Warrants are subject to an unlimited hold period in Canada. If not qualified earlier under the Prospectus, the Special Warrant Shares will be subject to a four-month hold period in Canada. Globestar has committed to clear a short form prospectus within 60 days of the closing.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any state in which such offer, solicitation or sale would be unlawful. The securities have not been registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements.

This press release includes certain "Forward-Looking Statements" within the meaning of section 21E of the United States Securities Exchange Act of 1934, as amended. All statements, other than statements of historical fact, included herein, including without limitation, statements regarding potential mineralization and reserves, exploration results and future plans and objectives of GlobeStar Mining Corporation are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements.

About GlobeStar

GlobeStar's Dominican Republic assets include the fully permitted Cerro de Maimon copper and gold development project, 85% of the surrounding massive sulphide belt and nickel laterite exploration concessions. In Quebec the Company's principal focus is on its Moblan project, which hosts high-grade lithium minerals used by the glass and ceramics industries. For more information visit the Company Website at www.globestarmining.com.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

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