Megastar Development Corp.
TSX VENTURE : MDV

Megastar Development Corp.

July 25, 2005 10:00 ET

Megastar Grabs the VMS Target at Ralleau

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - July 25, 2005) - Megastar Development Corp. (TSX VENTURE:MDV) is pleased to report that it has received regulatory approval for the acquisition of a 100% interest in the Ralleau property located approximately 40km east of Quevillon, in mining friendly Quebec, as first reported in the News Release dated June 1, 2005.

Recent mapping and sampling has identified anomalous Cu-Zn Volcanogenic Massive Sulphide (VMS) mineralization on the property. Several untested input anomalies occur within the favourable felsic volcanic rocks which are coincident with anomalous base metal values on surface. Chip sample results elsewhere in the region returned values up to 1.56% Cu, 17.2 g/t Ag over 14 meters. As well, a recent government publication states that the probability of discovering a VMS deposit within the lavas and tuffs at Ralleau is high. The property is located a short distance from Breakwater's (TSX:BWR) Langlois mine hosting reserves and resources of 8.3 MT of 11%Zn, 0.8%Cu and 53 g/t Ag (Breakwater 2004 annual report).

Company president Dusan Berka commented that "the successful acquisition of the Ralleau property significantly enhances our project portfolio in the prolific Abitibi Greenstone Belt where $135 billion in metals have been produced to date. We are excited about further exploring the mineral potential at Ralleau and recently constructed forestry roads now provide direct access and reduced costs for Megastar".

The Acquisition Agreement was amended such that the sole vendor of the property is Nievex Geoconsultant Inc., an arm's length party. Pursuant to the agreement the company will pay $1,000 and issue 250,000 shares in the capital of Megastar Development Corporation. The Vendor will retain a 2% Net Smelter Royalty of which 1% can be purchased by the company at any time for $1,000,000.

ON BEHALF OF THE BOARD OF DIRECTORS

"DUSAN BERKA"

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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