Redstar Gold Corp.
TSX VENTURE : RGC

Redstar Gold Corp.

May 24, 2011 08:02 ET

Redstar Acquires High Grade Gold Project; Historic Drilling Returns Values Up to 33 g/t Over 3.4 Metres

VANCOUVER, BRITISH COLUMBIA--(Marketwire - May 24, 2011) - Redstar Gold Corp. (TSX VENTURE:RGC) is pleased to announce the acquisition of a high grade gold project in Alaska. The Shumagin project includes a past producer and an advanced exploration target that has seen only very limited exploration since the 1980's. The project has been held by NGAS Production Co. (a Kentucky based gas production company) and its predecessors since the mid 1980's.

The Shumagin property hosts two parallel epithermal vein systems (the Shumagin and Apollo trends) and has not been explored since the late 1980's. Previous drilling within the Shumagin trend outlined a high grade zone of gold mineralization. A total of 39 diamond drill holes tested the zone from surface to a maximum depth of 230 metres. A historic, non 43-101 compliant resource of 225,000 ounces of gold at a grade of 0.80 oz/t (27.4 g/t) gold 3.7 oz/t (127 g/t) silver has been calculated for this zone. The exploration potential of the zone is highlighted by a hole drilled approximately 125 meters beneath this zone that intersected 17 ft averaging 0.47 oz/t gold (5.6 metres of 16 g/t gold). Limited drilling along strike intersected values up to 11.5 g/t gold over 1.3 metres and indicate the potential for additional ore shoots along the Shumagin vein system.

Note that a qualified person has not done sufficient work to classify the historical estimate as current mineral resources or mineral reserves that is compliant with NI 43-101. The Company is not treating the historical estimate as current mineral resources or mineral reserves and the historical estimate should not be relied upon or understood to indicate the existence of reserves or resources.

Highlights From Historic Drilling on the Shumagin Trend
HoleCore
Length*
(ft)
Gold
(oz/t)
Silver
(oz/t)
Core
Length*
(m)
Gold
(g/t)
Silver
(g/t)
177**21.50.5772.137.0519.7973.04
5710.50.970.943.4433.2632.23
3525.618157.60.66192.645404.10
23120.7972.533.9427.3386.75
42270.4610.558.8615.8118.86
46410.655.561.31365.19190.65
*Core length does not represent true thickness. Further work is needed to determine the relationship between core length and true thickness.
** percussion drill hole

The Apollo vein system is approximately 3 kilometres south of the Shumagin trend and hosts the past producing Apollo and Sitka mines. The mines were active between 1894 and 1906 and reportedly produced approximately 150,000 ounces of gold from 500,000 tons (average grade 10.3 g/t). Production stopped when the gold and silver ore transitioned into base metals with lower grade gold. Very little modern exploration has been completed beneath the old workings or along its strike extension.

Scott Weekes, President of Redstar Gold, comments: "This high grade gold system is a major acquisition for Redstar Gold Corp. There are not many properties with historic high grade gold resources that have not been explored for over 20 years. The Shumagin property not only hosts a historic high grade gold resource but also proven exploration potential with a number of gold intercepts with no drilling beneath them. Redstar's initial exploration plans will focus on confirming and expanding the historic resources. Drilling will also test along strike from known gold zones as well as below the past producing Apollo trend. High grade gold systems are extremely attractive targets because they tend to have very low operating costs per ounce and have a much smaller environmental footprint than bulk tonnage operations. The Shumagin property represents one of these targets."

Redstar is currently compiling all available historic data. Maps and sections will be available on the Company's web site as soon as possible.

Under terms of the agreement Redstar can earn a 100% interest in the Shumagin property by making cash payments of $2.35 million (NGAS has the option of receiving the final $1.5 million in cash or stock) and issuing $500,000 in Redstar stock over 2 years. The agreement is subject to certain closing conditions including exchange approval.

Bob Singh P.geo is the qualified person as defined by National Instrument 43-101and has reviewed and approved the technical disclosure made in this news release based on information provided by the vendor. Mr. Singh is the Canadian Exploration Manager for Redstar Gold Corp.

On Behalf of the Board,

Redstar Gold Corp.

Scott Weekes, President

Forward-Looking Information This release includes certain statements that may be deemed "forward-looking statements". All statements in this release, other than statements of historical facts, that address events or developments that Redstar Gold Corporation (the "Company") expects to occur, are forward-looking statements. Forward-looking statements are statements that are not historical facts and are generally, but not always, identified by the words "expects", "plans", "anticipates", "believes", "intends", "estimates", "projects", "potential" and similar expressions, or that events or conditions "will", "would", "may", "could" or "should" occur. Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results may differ materially from those in the forward-looking statements. Factors that could cause the actual results to differ materially from those in forward-looking statements include market prices, exploitation and exploration successes, and continued availability of capital and financing, and general economic, market or business conditions. Investors are cautioned that any such statements are not guarantees of future performance and actual results or developments may differ materially from those projected in the forward-looking statements. Forward-looking statements are based on the beliefs, estimates and opinions of the Company's management on the date the statements are made. Except as required by applicable securities laws, the Company undertakes no obligation to update these forward-looking statements in the event that management's beliefs, estimates or opinions, or other factors, should change.

Neither 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 release.

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