Globestar Mining Corporation
TSX VENTURE : GMI

Globestar Mining Corporation

August 03, 2006 09:09 ET

GlobeStar's Dominican Nickel Project

Confirmation of High Grade Nickel Laterite at Cumpie Hill including 25.9m Grading 1.6% Nickel

TORONTO, ONTARIO--(CCNMatthews - Aug. 3, 2006) - GlobeStar Mining Corporation (TSX VENTURE:GMI) today reported the results of 25 diamond drill holes at its 100% owned Cumpie Hill nickel laterite concession. GlobeStar holds 50 kilometres of strike length of the Dominican Republic's Peridotite belt, considered prospective for nickel, adjacent to Falconbridge's Falcondo nickel laterite mine/smelter complex.

Twenty five new NTW diamond drill holes (436m) were completed and 13 returned intercepts of nickel bearing laterite with a minimum width of 1.5m exceeding a 1.00% nickel cut-off (Table 1). Highlights from the core Cumpie area include:

- 25.9m at 1.6% nickel in hole CM-LATD-47

- 13.2m at 1.4% nickel in hole CM-LATD-43

- 9.7m at 1.5% nickel in hole CM-LATD-50

- 7.6m at 1.6% nickel in hole CM-LATD-48

"The high grade infill drilling results confirm the prospectivity of our nickel land position," said Bill Fisher, GlobeStar's CEO. "Future drilling will continue to test the core discovery area, in tandem with aggressive scout drilling, seeking other high grade nickel occurrences."

Maps of the collar locations and the concession areas are available on GlobeStar's website (http://www.globestarmining.com/). The best results were found on topographically flatter areas, typical of nickel laterite concentrations, and the 2006 drill programs will continue to pursue this mineralization model.

Eight of these holes (43 - 50inc) represent infill drilling of the nickel laterite mineralization at Cumpie Hill recently discovered in the phase I drilling program, where intersections of up to 16.8m grading 2.0% nickel were encountered (see release of May 15 2006). The new results confirm this significant zone of mineralization, and include the thickest intersection to date in CM-47: 25.9 metres.

Two reconnaissance holes (34 and 35) tested the area of the ridge crest approximately 600m south of the main Cumpie Hill mineralized zone. Hole CM-LATD-34 intersected 4.2m at 1.28% nickel indicating that the mineralized laterite extends over this area and requires further evaluation.

Fifteen holes (26 - 33inc and 36 - 42inc) in broad spaced fences of reconnaissance holes were designed to test the mineralization over the moderate slope and valley located on the eastern side of the Cumpie Hill ridge. Intercepts of nickel bearing laterite with a minimum width of 1.5m exceeding a 1.00% nickel cut-off were intersected in five holes (26, 29, 30, 38, and 42) within this large area (2000m x 600m).

Modifications in the drilling technique by the contractor, Kluane Drilling, resulted in a major improvement in the core recovery. The average recovery for the 25 phase II holes was 91% compared to 70% in the phase I drilling. The recoveries for the mineralized intercepts are indicated on Table 1.

The compositing of the nickel grades in the individual holes was done using a nickel cut-off of 1%, a minimum intercept length of 1.5 meters and a maximum length of internal waste of 2 meters. The compositing was done across geological boundaries. It has not yet been determined what cut-off grade should be used in an economic model. Because nickel laterite deposits are essentially flat-lying, all widths given are true widths.

The core samples were transported to a secure storage facility at GlobeStar's field office in Maimon, approximately 3 km from the drill site. Diamond drill cores were split, logged and photographed in Maimon, after which samples were collected approximately every 1.5 m. One half of the core was sampled, while the remaining half was returned to storage for verification and reference purposes.

Samples were transported to Falconbridge's Falcondo laboratory for sample preparation and analysis using the XRF method on pressed pellets.

A random selection of samples representing 10% of the total samples is being collected and will be submitted to SGS Lakefield for check analysis by Tetraborate fusion XRF.

Full QA/QC procedures have been finalized for the project including the systematic use of standards, duplicates and blanks, in addition to check assays, and will be incorporated in all future sampling programs.

This news release was prepared by GlobeStar under the supervision of F. Roger
Billington, P. Geo., Senior Nickel Laterite Consultant and Qualified Person as per National Instrument 43-101 for GlobeStar's nickel laterite exploration programs.

In addition, Globestar announces today that it has issued an additional 800,000 options to certain directors, officers and employees of the company. Each option entitles the holder to acquire one common share of the company for $1.07 for a period of 5 years from the date of issuance, such grant being subject to board of directors approval and approval of the TSX Venture Exchange.

About GlobeStar

GlobeStar Mining Corporation is a well funded mine development and exploration company, with $30 million in cash and total cash and debt facilities of over $75 million. The company is developing the permitted Cerro de Maimon copper/gold project. Also in the Dominican Republic, the company is exploring the surrounding Maimon Formation for copper and gold, where the company controls concessions covering around 85% of the Formation, and the southern part of the nickel bearing Falcondo peridotite belt.



Globe Star Mining Corporation
Nickel Laterite Exploration
Phase II Drilling Program
Table 1: Intercepts greater than or equal to 1% Ni cut-off
------------------------------------------------------------------------
From To Length Ni grade
Hole Number (m) (m) (m) (%)
------------------------------------------------------------------------

Infill drilling program (Cumpie Hill)

------------------------------------------------------------------------
CM-LATD-43 0.5 13.7 13.2 1.39
------------------------------------------------------------------------
CM-LATD-44 NSI(a)
------------------------------------------------------------------------
CM-LATD-45 0.0 1.9 1.9 1.38
------------------------------------------------------------------------
CM-LATD-46 1.8 9.1 7.3 1.22
------------------------------------------------------------------------
CM-LATD-47 1.5 27.4 25.9 1.59
------------------------------------------------------------------------
CM-LATD-48 0.0 7.6 7.6 1.63
---------------------------------------
and 16.8 18.3 1.5 1.14
------------------------------------------------------------------------
CM-LATD-49 7.6 13.7 6.1 1.35
------------------------------------------------------------------------
CM-LATD-50 1.0 10.7 9.7 1.46
------------------------------------------------------------------------

Reconnaissance program (east and south of Cumpie Hill)

------------------------------------------------------------------------
CM-LATD-26 3.1 4.6 1.5 1.19
------------------------------------------------------------------------
CM-LATD-27 NSI
------------------------------------------------------------------------
CM-LATD-28 NSI
------------------------------------------------------------------------
CM-LATD-29 1.5 3.1 1.5 1.02
------------------------------------------------------------------------
CM-LATD-30 9.5 11.1 1.6 1.20
------------------------------------------------------------------------
CM-LATD-31 NSI
------------------------------------------------------------------------
CM-LATD-32 NSI
------------------------------------------------------------------------
CM-LATD-33 NSI
------------------------------------------------------------------------
CM-LATD-34 0.0 4.2 4.2 1.28
------------------------------------------------------------------------
CM-LATD-35 NSI
------------------------------------------------------------------------
CM-LATD-36 NSI
------------------------------------------------------------------------
CM-LATD-37 NSI
------------------------------------------------------------------------
CM-LATD-38 1.5 3.1 1.5 1.73
---------------------------------------
and 6.1 10.7 4.6 1.33
------------------------------------------------------------------------
CM-LATD-39 NSI
------------------------------------------------------------------------
CM-LATD-40 NSI
------------------------------------------------------------------------
CM-LATD-41 NSI
------------------------------------------------------------------------
CM-LATD-42 1.3 4.6 3.3 1.62
------------------------------------------------------------------------

(a) NSI: No Significant Intersection


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