SOURCE: Gold Star Resources Corp.

March 25, 2008 12:31 ET

Gold Star Closes Private Placement

VANCOUVER, BC--(Marketwire - March 25, 2008) - Further to its news release of February 5, 2008, Gold Star Resources Corp. (the "Company") (TSX: GXX.H) announces that it has closed its private placement of 2,436,332 non flow-through units at $0.15 per unit for total gross proceeds of $365,500.

Each non flow-through unit consists of one common share and one non-transferable share purchase warrant entitling the holder thereof to purchase one additional common share at a price of $0.20 on or before March 21, 2009.

The Company paid a cash finder's fee of $2,025 to one finder. The Company also paid Canaccord Capital Corporation finders' fees totalling $19,508 in cash and 99,900 share purchase warrants, each warrant exercisable into one common share at a price of $0.20 per share on or before March 20, 2009.

All securities issued under the placement are subject to hold periods expiring on July 21, 2008. Proceeds from this portion of the placement will be used for general working capital to ensure the Company qualifies for a Tier 2 standing on the Exchange.

The Company also announces that it has granted, subject to regulatory approval, stock options to its directors, officers, and consultants, authorizing the purchase of up to 300,000 common shares at a price of $0.15 per share for a five-year term.

ON BEHALF OF THE BOARD OF DIRECTORS
GOLD STAR RESOURCES CORP.

"Patrick Morris"
Patrick Morris, President

THE TSX VENTURE EXCHANGE HAS NOT YET REVIEWED AND DOES NOT TAKE RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THE CONTENT OF THIS NEWS RELEASE.

Contact Information

  • Contact:

    Patrick Morris
    President and Chief Executive Officer of the Company
    Telephone: (604) 669-9330
    Facsimile: (604) 669-9335