Polar Star Mining Corporation

Polar Star Mining Corporation

August 12, 2008 09:15 ET

Polar Star Acquires Additional 5% Equity Interest in Chepica Mine

TORONTO, ONTARIO--(Marketwire - Aug. 11, 2008) - Polar Star Mining Corporation (TSX VENTURE:POS)(PINK SHEETS:POSRF) ("Polar Star" or the "Company") announces that it has acquired an additional 5% equity interest in the Chepica Mine by paying 150 million Chilean Pesos (approximately US$293,000). In addition, Polar Star has amended the Chepica Acquisition Agreement to enable the acquisition of the remaining 15% equity interest for 600 million Chilean Pesos (approximately US$1.2 million) on or before June 20, 2009. Pending successful completion of its final due diligence review, Polar's acquisition cost for the remaining 90% equity interest is 2.85 billion Chilean Pesos (approximately US$5.6 million), due on or before June 20, 2009. The acquisition of 100 per cent of the mine will therefore total 3.15 billion Chilean Pesos (approximately US$6.2 million). A feasibility study has not been completed and there is no certainty the proposed operations will be economically viable.

The Chepica Mine

This Chepica Mine acquisition adjoins Polar Star's wholly owned Corinto and Batuco claims. These claims plus the Chepica Mine property total 16,640 hectares in the Pencahue District, Region VII, Chile on which prior exploration by other companies has defined 15 high grade gold and copper-gold zones. The Chepica Mine is scheduled to go into production during the third quarter of this year at a planned initial production of 200 tonnes per day increasing to over 500 tonnes per day by mid 2009. The Mine will produce a copper-gold concentrate.

The Chepica Mine property, located 225 kilometers south of Santiago, near the city of Talca, covers the Cerro Chepica high grade copper-gold mining district. It is readily accessible by paved and good gravel road from the city of Talca 20 kilometers to the east. See Polar Star's news release of April 24, 2008 for additional information.

Qualified Person

Mr. Terence Walker, M.Sc., P.Geo., is the qualified person within the meaning of National Instrument 43-101. Mr. Walker has reviewed the contents of this news release.

About Polar Star

Polar Star was created to acquire advanced stage exploration properties focusing on gold, copper gold, and uranium. The Corporation's material assets include 20 projects in Chile, which are 100% owned and cover approximately 141,000 hectares. Polar Star announced the closing of a $5 million private placement on July 8, 2008 during which HudBay Minerals Inc. acquired 3,860,605 Units (approximately 9.9% of the outstanding shares of the Company, as at July 8, 2008).

Forward-Looking Statements

The statements made in this news release may contain forward-looking statements that may involve a number of risks and uncertainties. Actual events or results could differ materially from the Company's expectations and projections. Accordingly, readers should not place undue reliance on forward-looking statements. For a more detailed discussion of such risks and other factors, refer to Polar Star Mining Corporation's filings with Canadian securities regulators available on www.sedar.com or the Company's website at www.polarstarmining.com.

Share Capitalization:

Shares Outstanding: 39,164,098 as at August 11, 2008.

Business Television Feature:

Polar Star was selected and featured on Business Television in early March 2008. If you missed the show, please click on the link below to watch the full-feature

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release and the information contained herein.

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