Megastar Development Corp.
TSX VENTURE : MDV
FRANKFURT : M5Q

Megastar Development Corp.

December 23, 2010 08:00 ET

Megastar Provides Clarification Regarding New Distribution Record Date

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Dec. 23, 2010) - Megastar Development Corporation ("Megastar", the "Company" or "MDV") (TSX VENTURE:MDV)(FRANKFURT:M5Q) today provided clarification regarding its recent announcement of a new record date for the distribution (the "Distribution Record Date") of the common shares of Eloro Resources Ltd. (the "Eloro Shares") under the terms of the Company's shareholder approved arrangement (the "Arrangement").

The Distribution Record Date was previously set for December 21, 2010 and, in consultation with the TSX Venture Exchange (the "Exchange"), was required to be reset to January 7, 2011 in order to comply with Exchange policies applicable to distributions characterized as dividends. Additionally, the Ex-dividend date, the date as of which a purchaser of Megastar shares will not be entitled to receive any Eloro Shares pursuant to the Arrangement, has been set for January 4, 2011. As a consequence, the last date that shareholders of Megastar will be entitled to any distribution of Eloro shares will be for acquisitions made on the trading day prior to the Ex-dividend date.

This news release should be read together with the more detailed information contained in the management information circular of the Company dated November 25, 2010, available on SEDAR at www.sedar.com.

ABOUT MEGASTAR DEVELOPMENT CORP.

Megastar Development Corp. is an emerging resource company engaged in the acquisition, exploration and development of mineral properties in Canada. Megastar owns gold and base metal properties in Quebec and British Columbia. For further information, investors and shareholders are invited to visit the Company's website at www.megastardevelopment.com or call the office at 604-683-6648.

ON BEHALF OF THE BOARD OF DIRECTORS

Dušan Berka, P. Eng., President & CEO

Statements made in this news release that are not historical facts are "forward-looking statements", and readers are cautioned that any such statements are not guarantees of future performance, and that actual developments or results, may vary materially from those in these "forward-looking" statements.

Neither the TSX Venture Exchange nor its regulation services provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.

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