Megastar Development Corp.
TSX VENTURE : MDV
FRANKFURT : M5Q

Megastar Development Corp.

July 28, 2006 14:33 ET

Megastar Development Corp.: Company Update

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - July 28, 2006) - Megastar Development Corporation (TSX VENTURE:MDV)(FWB:M5Q) wishes to announce that it held its 2006 annual general meeting on July 21, 2006. Dusan Berka, Hanif Sachedina and Richard Roy were re-elected as directors. Two new directors, Philippe Cloutier of Val d'Or, Quebec and Gary Musil of Vancouver, B.C. were also elected directors at the AGM. The Company welcomes Messrs. Cloutier and Musil to its board, where their extensive expertise in the mining industry and in the financial management of public companies will help move the Company forward. Mr. Cloutier, P. Geo. is also a principal of Grayton Mining Inc., a private mineral industry services and development company, and Vice-President, Exploration of Alexis Minerals Corporation. Mr. Musil also serves as Chief Financial Officer and managing director for several Canadian public companies. Prior to his involvement in the public company field, Mr. Musil was employed for 15 years with Dickenson Mines Ltd. - Silvana Division (formerly Kam-Kotia Mines) where he was Division Controller at their silver/lead/zinc mine in the B.C. Interior. Mr. Musil is also a director and/or officer of two public companies reporting in the United States.

Mr. Berka continues as the Company's President and Chief Executive Officer, and Mr. Musil will fill the position of Treasurer and Chief Financial Officer.

Audit Committee members for the ensuing year are Gary Musil (Chairman), Richard Roy and Philippe Cloutier, and new Compensation Committee members are Hanif Sachedina (Chairman), Richard Roy and Gary Musil.

Long-time serving Company director James Reamsbottom opted not to stand for re-election as a Company director this year. The board of directors thanks Mr. Reamsbottom for his many contributions to the Company over the years, and wishes him good health and continued success in all of his endeavours.

The Company also wishes to announce that compilation of assay and lithogeochemical results from its RALLEAU Project is still in progress, while more samples are being sent for assaying to better understand the volcanic assemblage crossed by the drill holes. In addition, compilation and 3D modeling of its SIMKAR Gold Deposit is advancing well and is expected to reveal priority drill targets to test the extensions of historic gold producing zones.

ABOUT MEGASTAR DEVELOPMENT CORP.

Megastar Development Corp. is an emerging resource company engaged in the acquisition, exploration, and development of mineral properties in Quebec and British Columbia. Megastar is listed on the TSX Venture Exchange, under the trading symbol "MDV" and on the Frankfurt Stock Exchange under the trading symbol "M5Q".

For further information, investors and shareholders are invited to visit the Company's website at www.megastardevelopment.com.

ON BEHALF OF THE BOARD OF DIRECTORS

Dusan Berka, P.Eng., President & CEO

This news release contains certain "Forward-Looking Statements" within the meaning of Section 21E of the United States Securities Exchange Act of 1934, as amended. All statements, other than statements of historical fact, included herein are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from the Company's expectations are disclosed in the Company's documents filed from time to time with the British Columbia Securities Commission and the United States Securities & Exchange Commission.


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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