SOURCE: Lone Star Gold, Inc.

February 28, 2012 08:30 ET

Lone Star Gold, Inc. Sends First Shipment to Processing Plant From 1.2 Million Ton Tailings Project

ALBUQUERQUE, NM--(Marketwire - Feb 28, 2012) - Lone Star Gold, Inc. (OTCBB: LSTG) ("Lone Star" or "the Company") is pleased to announce that on February 28th, 2012, the Company is sending its first shipments from 1.2 million tons of mine tailings from the San Antonio del Potrero mine tailings project ("Tailings Project") to a processing plant less than 15 minutes' drive away in the city of Parral, in the state of Chihuahua, Mexico.

The Company plans to make initial shipments of approximately 100 tons per day (tpd) from the Tailings Project. Once a sufficiently large pile of tailings from the project has been accumulated, the plant will then commence a processing run. After the plant sells the resulting concentrate, Lone Star will receive 65% of the total revenue. Daily shipments are projected to increase to 200-250 tpd within the first 3 months. The goal is to be processing between 600-800 tons within the first 18 months. At the rate of 800 tpd, the 1.2 million tons of tailings would be processed in a total of circa 6 years. Lone Star acquired an undivided 65% interest in the Tailings Project on January 26, 2012.

Lone Star Gold's President, Daniel Ferris, commented: "This is a milestone for Lone Star Gold. Now that we're sending our first shipments of tailings for processing, we've effectively begun the process of establishing consistent Company revenues. And with other plants in the region expressing interest in processing our tailings, the potential exists for us to double or possibly triple the total production we planned for in our first year."

More information about the Tailings Project is available at the Lone Star website, including planning details related to mine development and construction of a future onsite processing plant: http://www.lonestargold.com

Photos of the Tailings Project are available here: http://www.lonestargold.com/gallery/tailings

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 Tailings 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 near the city of Hidalgo Del Parral in the state of Chihuahua, Mexico.

ON BEHALF OF THE BOARD OF DIRECTORS,

Lone Star Gold, Inc.
Daniel Ferris, Company President

OTCBB: LSTG.OB

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