Megastar Development Corp.
TSX VENTURE : MDV

Megastar Development Corp.

June 01, 2005 12:37 ET

Megastar Acquires 100% Interest in Another VMS Target

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - June 1, 2005) - Megastar Development Corporation (TSX VENTURE:MDV) is pleased to announce that it has entered into an agreement for the acquisition of the Ralleau Project located in Ralleau Township, approximately 40km east of Quevillon, Quebec and about 20km southeast of Breakwater's (TSX:BWR) Zn-Cu-Ag Langlois Mine.

Government mapping and sampling (RG2002-12) has identified anomalous Cu-Zn Volcanogenic Massive Sulphide (VMS) mineralization within the host Urban Formation that is crossed and flanked by granodiorite to tonalite intrusives and gabbro dykes. A recent government publication suggests similarities with fertile volcanic rocks of the Kamiskotia, Noranda, and Misema types and the report states that the probability of discovering a VMS deposit within the lavas and tuffs is high. In addition, untested input anomalies occur within the favourable felsic volcanic rocks and coincident with anomalous base metal values on surface. The economic potential of the property is enhanced by historic results elsewhere, in the region, which returned values of up to 1.56% Cu, 17.2 g/t Ag over 14 meters from surface chip samples.

Megastar will acquire a 100% undivided interest in and to the Ralleau Property, free and clear of all claims, taxes, liens or encumbrances. The project area consists of 12 designated cells covering an area of 675.93 Hectares accessible via a series of forestry roads emanating from the Val d'Or-Chibougamau provincial road.

Pursuant to the agreement the company will pay $1,000 and issue 250,000 shares in the capital of Megastar Development Corporation. The Vendors retain a 2% Net Smelter Royalty of which 1% can be purchased by the company at any time for $1,000,000.

The Ralleau acquisition is subject to regulatory approval and represents a non-arms length agreement with Richard Roy P. Geo, a director of Megastar Development Corporation. Mr. Roy is a Qualified Person as defined by NI 43-101. He has extensive experience in exploration of gold, silver, and copper and has supervised and coordinated exploration programs on various properties located throughout Quebec, Ontario, and Nunavut.

Over the last 15 years Mr. Roy has consulted on and supervised a number of Val d'Or projects for companies such as, Placer Dome Inc., Aur Resources Inc. and other mining companies actively exploring in the Val d'Or Camp. In 1996, Mr. Roy was the Val d'Or Project Geologist for an aggressive exploration program on Aur Resources' Aurbel property, which led to the discovery of the Lac Herbin deposit (1,072,681 tons of 7.26 g/t Au).

ON BEHALF OF THE BOARD OF DIRECTORS

Dusan Berka, P. Eng., President & CEO

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this news release.

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