Globestar Mining Corporation
TSX : GMI

Globestar Mining Corporation

August 17, 2007 11:10 ET

GlobeStar States Cash Position and No Exposure to Commercial Paper

TORONTO, ONTARIO--(Marketwire - Aug. 17, 2007) - GlobeStar Mining Corp. (TSX:GMI) ("GlobeStar" or "the Company") currently holds $39,211,289 in cash and short-term investments of which $33,324,324 (85%) is held in Royal Bank of Canada Guaranteed Investment Certificates (GICs) and the remainder is in cash. Of these cash and short-term investments, 21% are held is US dollars.

The Company holds no commercial paper.

About GlobeStar

The Company has taken a conservative approach to its stewardship of cash during the construction period of its flagship Cerro de Maimon open pit copper/gold project. GlobeStar announced yesterday an increase in the project's reserve tonnage of 82% and an increase in pre-tax Net Present Value (8% discount rate) to US$ 172 million with an internal rate of return of 58% (see press release of http://www.globestarmining.com/press/pdf/gmi126_2007aug16.pdf).

GlobeStar is a well-funded minerals exploration and development company, developing the fully permitted Cerro de Maimon copper/gold project in the Dominican Republic. Production from this high-grade open pit mine is currently expected in the summer of 2008. GlobeStar is aggressively exploring, principally an extensive base and precious metals exploration portfolio in the Dominican Republic with over C$4.0 million committed to exploration during 2007 and 2008. GlobeStar recently raised C$31.8 million in May 2007, C$ 30 million in August 2006 and recently closed a US$45 million project financing for development of Cerro de Maimon. The Company currently has sufficient financial and technical resources to fund mine development, 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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