Redstar Gold Corp.

Redstar Gold Corp.

July 19, 2011 13:40 ET

Redstar Closes Private Placement

VANCOUVER, BRITISH COLUMBIA--(Marketwire - July 19, 2011) - Redstar Gold Corp. (TSX VENTURE:RGC) is pleased to announce it has closed the previously announced non-brokered private placement. A total of 12,917,999 units were issued at a price of $0.35 per unit (the "Units") for gross proceeds of $4,521,299.60. Each Unit consists of one common share and one-half of one non-transferable share purchase warrant. Each share purchase warrant entitles the holder thereof to purchase one additional common share of the Company for a period of two years from the closing date of the Offering at an exercise price of $0.60 per common share. The Warrants have an accelerated expiry provision, providing for a shortened exercise period if after four months after the warrants are issued, for a period of ten consecutive trading days the weighted average closing price of the Company's common shares on the Exchange exceeds $0.90. In such event, the Company may give notice that said warrants will expire thirty days from the date of the notice, unless previously exercised by the purchaser.

In connection with the private placement, Redstar has paid finders' fees to certain arms length groups totaling $246,030 and 702,943 warrants. The warrants have the same terms as those associated with the Units. Proceeds from the offering will be used by Redstar for exploration on its recently acquired properties in Alaska and general ongoing corporate matters.

All securities issued pursuant to this private placement are subject to a four-month hold period that expires on November 15, 2011.

Scott Weekes, President of Redstar stated: "The closing of this financing puts Redstar in a strong financial position and will allow us to move forward with an aggressive exploration program on our recently acquired high-grade gold project in Alaska. A drill program is currently being planned, to expand under known gold zones and test other exploration targets within the district scale project. In addition to Alaska, we currently have two drills active on a new gold discovery in Red Lake, Ontario with all exploration costs being covered by Confederation Minerals (our partner on the Newman Todd project). In Nevada we currently have 13 active projects with partners committed to expenditures on four."

On Behalf of the Board,
Redstar Gold Corp.

"Scott Weekes"

Scott Weekes

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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