SOURCE: Lone Star Gold, Inc.

January 23, 2012 08:30 ET

Lone Star Gold, Inc. Receives Positive Findings and Extends Commitment to Mexico-Based La Candelaria Gold-Silver Project to Facilitate Next Stage of Exploration

ALBUQUERQUE, NM--(Marketwire - Jan 23, 2012) - Lone Star Gold, Inc. (OTCBB: LSTG) ("Lone Star" or "the Company") has filed an amendment to its La Candelaria Definitive Agreement in order to extend the Company's work commitment to the project until March 11, 2012. With the extension in place until March 11, Lone Star will have the opportunity to drill 3-4 deep core holes to add to the Company's understanding of the Mexico-based project's mineral potential.

In December 2011, initial shallow holes were drilled on the La Candelaria property. While drilling results are still due from the ALS CHEMEX laboratories, Lone Star has received initial drilling results from a local laboratory. As was to be expected, trace amounts of silver and gold were found. The initial results from the drilling showed hydrothermal chemical alterations that have potential for a silver-gold deposit at deeper levels. Lone Star's VP of Exploration has suggested the need to drill deeper to further test the property's mineral potential, as was initially recommended in the 2009 Olvera report.

To prepare for drilling 3-4 deep core holes before the end of the March 11, 2012 extension, Lone Star has sourced a drill in the neighboring state of Durango to the immediate south. The Mexican team has negotiated for the drilling equipment rental, support trucks and labor for the additional time necessary.

The drill can be on the La Candelaria property by the first week in February and the Company plans to have related drill results back from ALS CHEMEX before the March 11 deadline in order to further assess the project's potential before making further commitments.

After the March 11th extended deadline the originally agreed payment of $125,000 USD for the full year work commitment will be due.

Lone Star's Company President, Daniel Ferris, commented: "This is a positive start to the year for our La Candelaria gold-silver project. Our initial drilling results indicate there's good reason to continue exploration on the property. We've arranged for the time, equipment and expertise to perform the necessary drilling. And by March 11th, we'll have the benefit of additional results from the December 2011 drilling as well as data from the new 3-4 deep cores holes before deciding on how best to proceed."

Cautionary Note to U.S. Investors -- The United States Securities and Exchange Commission permits U.S. mining companies, in their filings with the SEC, to disclose only those mineral deposits that a company can economically and legally extract or produce. We may use certain terms in this press release, such as "measured," "indicated," and "inferred" "resources," which the SEC guidelines strictly prohibit U.S. registered companies from including in their filings with the SEC. U.S. Investors are urged to consider closely the disclosure in our Form 10-K which may be secured from us, or from our website at http://www.sec.gov/edgar.shtml.

ADDITIONAL INFORMATION
To learn more about the La Candelaria gold-silver project, the Company, and regular news updates, visit Lone Star Gold's official website: http://www.lonestargold.com.

ABOUT LONE STAR: Lone Star Gold, Inc. is a publicly traded (OTCBB: LSTG) gold exploration and development company based in Albuquerque, New Mexico. The Company's aggressive acquisition and exploration approach is strategically focused on proven, stable precious metal regions in America and Mexico. Currently, Lone Star has a 70% Working Interest in concessions covering 800 hectares in the La Candelaria project in Chihuahua, Mexico, which the Company is evaluating to determine the potential sites that represent the best potential for silver and gold deposits. Lone Star also has an undivided 65% interest in the San Antonio del Potrero mine tailings project in the city of Hidalgo Del Parral in the state of Chihuahua, Mexico, and an option to purchase a 70% interest in the Ocampo Project, a 570-hectare gold-silver project in Chihuahua State, Mexico.

ON BEHALF OF THE BOARD OF DIRECTORS,

Lone Star Gold, Inc.
Daniel Ferris, Company President

This press release contains statements that are forward-looking and which involve a number of risks and uncertainties. Such forward-looking statements are within the meaning of that term in Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended. The forward-looking statements in question are based on Lone Star Gold, Inc.'s current expectations and projections about future events, based on information currently available. The forward-looking statements found in this press release may also include statements relating to Lone Star Gold, Inc.'s anticipated financial performance, business prospects, new developments, strategies, and similar matters. Lone Star Gold, Inc. provides no assurance regarding the actual outcome of the events contemplated by any forward-looking statements included in this release. Lone Star Gold, Inc. disclaims any obligation to update any of its forward-looking statements, except as may be required by law.

Contact Information

  • Contact:
    Lone Star Gold, Inc.
    6565 Americas Parkway NE, Ste 200
    Albuquerque, New Mexico
    87110
    USA

    INVESTOR RELATIONS
    Toll Free: 1-800-986-9358
    E-mail: ir@lonestargold.com
    Web: www.lonestargold.com

    OTCBB: LSTG.OB