Nevada Star Resource Corp.
OTC Bulletin Board : NVSRF

Nevada Star Resource Corp.

March 08, 2007 14:58 ET

Nevada Star Increases Brokered Private Placement to CDN $9 Million and Confirms Special Meeting Date

SEATTLE, WASHINGTON--(CCNMatthews - March 8, 2007) - Nevada Star Resource Corp. (TSX VENTURE:NEV)(OTCBB:NVSRF) - Nevada Star Resource Corp. ("Nevada Star" or the "Company") announces that further to its news release of December 29, 2006, the brokered private placement (the "Offering") with Patica Securities Limited or a syndicate led by Patica Securities Limited has been increased to up to 10,000,000 subscription receipts (the "Subscription Receipts") at a price of CDN $0.90 per Subscription Receipt for gross proceeds of up to CDN $9 million, on a best efforts basis. This financing has been increased owing to strong institutional interest. All other details of the Offering remain the same. Closing of the Offering, which is currently scheduled for March 15, 2007, is subject to board and regulatory approval.

Nevada Star also reports that its Special Meeting of shareholders will be held at the Sheraton Bellevue Seattle East Hotel, 100 112th Avenue NE, Bellevue, Washington on March 27, 2007 at 10:00 a.m. (Seattle time) instead of 1:00 p.m. as previously reported.

At this meeting, the shareholders will be asked to vote on: (i) an ordinary resolution approving the issuance of common shares of Nevada Star to the shareholders of Pure Nickel Inc. ("Pure Nickel") pursuant to the amalgamation (the "Amalgamation") of Nevada Star and Pure Nickel; (ii) a special resolution approving a name change of the Company from "Nevada Star Resource Corp." to "Pure Nickel Inc."; and (iii) a special resolution approving the post-Amalgamation consolidation of the Company's common shares on the basis of one (1) new common share for every existing five (5) common shares of the Company. Shareholders of record as of the close of business on February 23, 2007 are entitled to vote at the Special Meeting.

The directors and management of Nevada Star believe that the Amalgamation is in the best interests of Nevada Star and the shareholders and that the Amalgamation provides a number of benefits, including the opportunity to participate in a combined company which:

- will have three high quality nickel exploration properties and experienced management with proven financing skills;

- will provide an opportunity for shareholders to participate in a company under the leadership of a proven management team, and a board of directors comprised of an experienced team of industry professionals;

- will have greater human resources, enabling it to more effectively undertake the development, exploration and production of precious and base metals;

- will eliminate certain redundant general and administrative costs between Nevada Star and Pure Nickel; and

- will have increased market capitalization that is anticipated to receive greater market attention, resulting in improved liquidity for shareholders and an increased ability to secure financing.

Upon completion of the Amalgamation, the combined company will launch an CDN $8 million exploration program which will be partially funded by the net proceeds from the Offering.

Nevada Star Resource Corp. is a mineral exploration company that uses advanced technology to search for metals that are in high demand world-wide. For more information, including maps, photos and project descriptions, visit

Completion of the Proposed Transaction is subject to a number of conditions, including TSX Venture Exchange acceptance and disinterested shareholder approval. The transaction cannot close until the required shareholder approval is obtained. There can be no assurance that the transaction will be completed as proposed or at all. Investors are cautioned that, except as disclosed in the Management Information Circular to be prepared in connection with the Proposed Transaction, any information released or received with respect to the RTO may not be accurate or complete and should not be relied upon. Trading in the security of Nevada Star should be considered highly speculative. The TSX Venture Exchange has in no way passed upon the merits of the proposed transaction and has neither approved nor disapproved the contents of this press release.

This release was prepared by management of Nevada Star Resource Corp. who take full responsibility for its contents.

Neither the TSX Venture Exchange nor the NASD OTC Bulletin Board have reviewed or accept responsibility for the adequacy of this news release.

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