Globestar Mining Corporation

Globestar Mining Corporation

December 19, 2007 13:58 ET

GlobeStar Mining Corporation Provides Update on Cerro de Maimon Construction and Development

TORONTO, ONTARIO--(Marketwire - Dec. 19, 2007) - GlobeStar Mining Corp. (TSX:GMI) ("GlobeStar" or the "Company") is pleased to announce that most of the major processing equipment has arrived onsite and that construction and development of its wholly owned Cerro de Maimon project located in the Dominican Republic is progressing well.

To date, project costs incurred by the Company have been USD 20.7 million for construction and procurement of equipment. The Company believes the overall construction costs are on target. Recent rains and supply/contractor issues have caused delays, however the Company believes the construction team and contractors will deliver the project as currently scheduled in the summer of 2008 and substantially on budget.

Major Mechanical Equipment Arrival Onsite

In late November, the Company's full charter ship sailed from the Port of Sorel-Tracy Quebec to the Port of Haina in the Dominican Republic. Approximately 9,500,000 lbs of cargo was shipped. The shipment was delivered onsite in excellent condition in less than one week after arrival of the ship in the Port of Haina. Highlights of the shipment included:

- Arrival of the three (3) ball mills onsite along with the jaw crusher. The cone crusher was previously delivered. With the delivery of the mills, the crushing and grinding mechanical equipment is substantially onsite;

- A majority of the electrical, mechanical, heavy lift and mobile equipment was delivered to site;

- Economies of scales by shipping in bulk from Sorel Tracy resulted in transportation savings in excess of USD $450,000; and

- All of the cargo arrived onsite three weeks early with no visible damage to crates or product.


During the month of November the project reached a milestone of 250,000 hours without a lost time injury and in early December the project reached another milestone of 365 days without a lost time injury. The Company is proud of its safety record and the efforts made by its employees and contractors to work safely in the adverse conditions normally encountered in heavy construction in foreign countries.

Construction Progress

Construction progress at the site is ramping up and continues at a brisk pace. The structural concrete contractor is currently working in the crusher area, the sulfide mill, and the oxide mill area. All of the rebar required for completion of the concrete work is onsite and the 25 cubic metre per hour batch plant operated by Cemex is fully operational.

During the last week of November, the project's largest pour (360 cubic meters) for the sulfide ball mill foundations was completed in nine hours. Despite weather and material delays, the structural concrete is expected to be completed in late January.

The Company has selected H&L Engineering out of Bogota, Columbia as the primary contractor for the Phase I mechanical, piping, electrical, and instrumentation contractor. H&L Engineering mobilized the first week of December and currently has a team of six engineers onsite to assist with the detailed planning and take-offs required to execute the mechanical, piping, and electrical installations. Installation of the overhead crane in the sulphide area has commenced and will be finished by the end of the year. This will be followed by commencement of work on installation of the first ball mill during the second week of January.

The ancillary facilities, including a twelve man camp, have been completed. This construction activity was undertaken directly by the Company.

Mining & Pond Construction

Work on pre-stripping in the open pit and road construction by Sococo de Costa Rica-Dominican S.A., ("Sococo") the mining contractor, has proceeded according to plan despite delays from Tropical Storm Noel and other weather related delays. Through November, the mining contractor has moved a total of approximately 220,000 cubic meters of material from the open pit and water collection pond. This figure is essentially on budget.

Recently, Sococo has commenced work on the water collection pond with a second twelve hour shift. The project had record daily production of 10,360 cubic meters on December 7th. This record represents a 72% increase over the current daily budget.

Sococo currently has the following heavy mining equipment onsite and operational on a daily basis: (a) Three 25 ton Caterpillar 725 articulated trucks; (b) Two 30 ton Caterpillar 730 articulated trucks; (c) Six 40 ton Caterpillar 769D mining trucks; (d) Three Caterpillar ME excavators; (e) Three Caterpillar dozers; and (f) One Ingersoll Rand ECM 490 drill.

About GlobeStar

GlobeStar Mining Corp. is a well-funded minerals exploration company, developing the permitted Cerro de Maimon copper/gold project in the Dominican Republic. Production from the 6 million tonne, high-grade open pit mine is currently expected to start in the summer of 2008. The project has a Net Present Value (8% discount) of US$176 million and an Internal Rate of Return of 56%, from gross revenues of US$624 million. The US$68.6 million capital payback is 15 months using US$2.45/lb copper, US$543/oz gold and US$10/oz silver, and cash costs; net of by-products is US$0.42/lb of copper.

GlobeStar is exploring an extensive base and precious metals exploration portfolio in the Dominican Republic with over C$4.0 million committed to exploration during 2007 and early 2008. GlobeStar recently raised C$31.8 million in May 2007 and closed a C$45 million project financing for development of Cerro de Maimon. The Company currently has no commercial paper investments, sufficient resources to fund mine development and aggressive exploration and acquisition programs.

Reader Advisory

The information in this news release may include certain information and statements about management's view of future events, expectations, plans and prospects that constitute forward-looking statements. Assumptions that are subject to significant risks and uncertainties are the basis for these statements. Because of these risks and uncertainties and, as a result of a variety of factors, the actual results, expectations, achievements or performance may differ materially from those anticipated and indicated by these forward looking statements. Although GlobeStar believes that the expectations reflected in forward looking statements are reasonable, we can give no assurances that the expectations of any forward-looking statements will prove to be correct. GlobeStar disclaims any intention, and assumes no obligation, to update or revise any forward-looking statements to reflect actual results, whether as a result of new information, future events, changes in assumptions, changes in factors affecting such forward-looking statements or otherwise, except as required pursuant to applicable securities laws.

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