Redstar Gold Corp.
TSX VENTURE : RGC

Redstar Gold Corp.

March 16, 2007 11:37 ET

Redstar Gold Options Two Nevada Projects to International Tower Hill Mines

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - March 16, 2007) - Redstar Gold Corp. (TSX VENTURE:RGC), is pleased to announce the signing of a binding Letter of Intent (LOI) with International Tower Hill Mines Ltd. (TSX VENTURE:ITH) defining the terms and joint venture interests in two of Redstar's Nevada gold projects. The two projects, North Bullfrog and Painted Hills, are located in established, producing gold areas and offer significant discovery potential with quality exploration targets.

Under the terms of the LOI, ITH will have the right to earn a 60% interest in the properties by making a series of payments and work commitments over 4 years. ITH will have the right to earn an additional 10% interest by completing a feasibility study. Redstar will act as operator for both projects in 2007.

The North Bullfrog project, a bulk tonnage gold target, is located north of the historic Bullfrog gold mine (operated by Barrick Gold Corp. with historic gold production of 2.4 million ounces (reference)). The North Bullfrog project has a number of significant gold anomalies in soil samples. The project also has an extensive but sporadic exploration history, leaving a number of highly attractive targets untested.

The Painted Hills project, a high-grade, epithermal gold-silver vein target, is located 30 miles (50 kilometers) northwest of the Sleeper deposit (historic gold production of 1.7 million ounces (reference)). The mid-Miocene aged Painted Hills project has never been drill tested despite its extensive alteration system and strong geochemical anomaly.

Scott Weekes, President of Redstar Gold Corporation, said "We are pleased to have ITH as a partner in Nevada. ITH is an extremely aggressive explorer with a very strong technical team that will complement Redstar's approach to exploration of its Nevada properties. ITH's philosophy of adding value through discovery means the North Bullfrog and Painted Hills projects will see aggressive exploration drilling programs in 2007. This is the first step toward Redstar's goal of completing major drilling programs on all of the company's projects in 2007. It is also consistent with our business model of advancing projects to the stage where a high quality joint venture partner can then take them to the next level."

"ITH management has an extensive exploration history in Nevada and is focused on a strategic entry into this highly competitive and very productive region," stated Jeff Pontius, President and CEO. "Strategically located in the world's second largest gold province, these Nevada projects will offer us year round exploration opportunities to compliment our seasonal Alaskan programs. Significantly, our team has managed a number of exploration initiatives in Nevada, most recently for AngloGold Ashanti North America Inc. ("AngloGold"), and has an intimate knowledge of the opportunities in the region".

Key terms of the agreements are listed below.

- ITH can earn a 60% interest in each project and has the option to earn an additional 10% totalling 70% by taking the project to feasibility.

- North Bullfrog: Total payments of USD 190,000 and total expenditures of USD 4,000,000 over 4 years. First year commitment is USD 20,000 signing bonus, USD 30,000 payment and expenditure of USD 500,000.

- Painted Hills: Total payments of USD 150,000 and total expenditures of USD 2,500,000 over 4 years. First year commitment is USD 20,000 signing bonus, USD 20,000 payment and expenditure of USD 250,000.

- ITH provides Redstar 5,000 shares on each anniversary that the agreement is in place.

- AngloGold maintains a one time back-in right on these two projects to earn a 60% interest which is triggered after the first USD 750,000 is spent. Should Anglo back-in on the project the ITH earn-in and payments would be adjusted to reflect its new interest in the project.

The agreements with respect to the North Bullfrog and Painted Hills projects are subject to the acceptance for filing thereof by the TSXV on behalf of ITH.

North Bullfrog Project

The North Bullfrog District covers an area of 12km2 and represents a very large, low-sulphidation, epithermal gold system hosted in volcanic and sedimentary rocks. It is located 8 kilometers north of the historical Bullfrog Mine which produced 2.4M oz of gold. At North Bullfrog historical production in the early 20th century came from high-grade vein systems that remain open along strike and down dip. More recent exploration has shown potential for large bulk tonnage systems hosted in favorable units with additional potential for higher grade structurally controlled zones similar to the deposits in the main Bullfrog District to the south. The Redstar group has completed the initial surface work required to define the primary target opportunities on the property and the project is ready to move to the discovery drill phase. ITH will focus its exploration on drilling several of the untested structural targets within the large low-grade zones which could lead to the definition of a large deposit.

To view "Gold in soil and rock chip samples from the North Bullfrog project", please click the following link: http://www.ccnmatthews.com/docs/rgc0316a.pdf

Painted Hills Project

The Painted Hills project is centered on a large epithermal vein/alteration system with abundant trace element mineralization and scattered low level gold values. The age of the system is similar to other productive gold systems in this region. The type and scale of the alteration is suggestive of high-grade vein potential deeper in the system, ITH's initial target for the project. The project also has untested shallow pediment targets to the east of the main outcropping system, analogous to the Sleeper Deposit (1.7Moz Au, 2.3Moz Ag) which was discovered beneath the pediment adjacent to a weakly mineralized range front occurrence. The Redstar group has completed key surface work to define the primary target opportunities on the property and ITH will quickly advance it to drilling following a ground geophysical survey to define specific pediment targets.

To view "Conceptual cross section of the Painted Hills target model", please click the following link: http://www.ccnmatthews.com/docs/rgc0316b.pdf

About Redstar Gold Corp.

Redstar Gold Corp. is a Vancouver-based company focused on gold exploration in Nevada and Red Lake, Ontario. Redstar has partnered with AngloGold Ashanti to explore in Nevada and with Rubicon Minerals and AngloGold Ashanti to explore in the West Red Lake area of northern Ontario.

For more detailed information on Redstar's Nevada projects, as well as its gold projects in the Red Lake area, please visit the company's web site at www.redstargold.com.

On Behalf of the Board,

Redstar Gold Corp.

Doug Fulcher, Director

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

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