Nevada Star Resource Corp.
OTC Bulletin Board : NVSRF
TSX VENTURE : NEV

Nevada Star Resource Corp.

December 05, 2006 09:30 ET

Nevada Star Receives Notice of Mine Construction and Production at Milford Copper Property

SEATTLE, WASHINGTON--(CCNMatthews - Dec. 5, 2006) - Nevada Star Resource Corp. (TSX VENTURE:NEV)(OTCBB:NVSRF) - Robert Angrisano, President and CEO of Nevada Star Resource Corp. ("Nevada Star") announces that it has received notice from Western Utah Copper Company ("WUCC") that production is being readied on Nevada Star's Milford Utah copper property.

WUCC has an Option to Purchase Agreement on Nevada Star's Milford Utah copper property. The option is conditional upon WUCC putting the Milford Utah copper property into production by November 23, 2006 or WUCC can received a one-year extension by notifying Nevada Star before that date that the property is being readied for production by the commencement of actual mine and/or plant development expenditures according to a schedule leading to production within twelve months.

WUCC has provided notice to Nevada Star that the property is being readied for production and has undertaken the construction of a concentrator, a working onsite analytical laboratory and office building, and ongoing ore reserve drilling on Nevada Star's property. In addition, WUCC has provided Nevada Star with a construction schedule that will lead to production within twelve months.

If WUCC fails to commence production by the end of this twelve month extension period, then Nevada Star may exercise its option to reacquire the Milford Utah copper property. "Production" shall mean the recovery and sale of copper or other minerals or metals from ore from the Milford Utah copper property such that royalties in some amount shall have been paid or will be paid to Nevada Star, in accordance with the royalty provisions in the agreement; for there to be "production" such recovery and sale of copper or other minerals or metals must be pursuant to a plan for handling and processing of ore (including dumps) from the Milford Utah copper property such that a processing rate of at least 300,000 short tons per year of ore is projected to be achieved by the second full year of operations.

"WUCC, its officers and directors remain committed to the production of copper at the Milford location and will continue to provide meaningful updates as they develop," stated Mark Dotson, President and CEO of WUCC.

Royalty Schedule

After production commences, WUCC shall pay Nevada Star monthly production royalties based on: (a) SX/EW copper production and sold; and (b) all other minerals produced and sold, including all copper produced by process other than SX/EW. For SX/EW copper production, the production royalty shall be 1% of net proceeds for the first 10 million pounds of produced copper, and thereafter 1.5% of net proceeds. For all other minerals, and non SX/EW copper, a 2% NSR shall be based on the sale of concentrate or other products. There shall be a US $10 million cap on all royalties paid to Nevada Star.

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 www.nevadastar.com.

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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