Redstar Gold Corp.
TSX VENTURE : RGC

Redstar Gold Corp.

July 06, 2011 08:00 ET

Redstar Increases Non-Brokered Private Placement

VANCOUVER, BRITISH COLUMBIA--(Marketwire - July 6, 2011) -

NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR DISSEMINATION IN THE U.S.

Redstar Gold Corp. (TSX VENTURE:RGC) is pleased to announce that it has increased the non-brokered private placement announced June 29 to up to 12,000,000 units at a price of $0.35 per unit (the "Units") for gross proceeds of $4,200,000 (the "Offering"). Each Unit will consist of one (1) common share and one-half (½) of one (1) non-transferable share purchase warrant. Each share purchase warrant will entitle the holder thereof to purchase one (1) additional common share of the Company for a period of two (2) years from the closing date of the Offering at an exercise price of $0.60 per common share. The Warrants will 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 (10) 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 (30) days from the date of the notice, unless previously exercised by the purchaser.

In connection with the private placement, Redstar may pay finders' fees pursuant to the policies of the TSX.V. The Company anticipates that there may be insider participation in the above private placement, for which the Finders will not receive a commission. Proceeds from the offering will be used by Redstar for exploration on its recently acquired Alaskan properties and general ongoing corporate matters.

This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "US Securities Act"), or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.

The above private placement is subject to all regulatory and board approvals.

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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