Remstar Resources Ltd.
TSX VENTURE : REM
FRANKFURT : W2U

Remstar Resources Ltd.

June 26, 2008 09:29 ET

Remstar Acquires Additional Coal Projects

VANCOUVER, BRITISH COLUMBIA--(Marketwire - June 26, 2008) - Remstar Resources Ltd. (TSX VENTURE:REM)(FRANKFURT:W2U)(WKN:A0HM01) ("Remstar" or "the Company") has, subject to regulatory approval, entered into a letter of intent with an arm's-length vendor, pursuant to which the Company has acquired 24 coal permit applications located in east-central, Saskatchewan. The coal lease applications encompass approximately 46,080 acres, and are located approximately 30 km west of the historic 18 metre coal occurrence of Weststar Resources Ltd. (June 23, 2008), and about 140 km northwest of the coal discovery of Goldsource Mines Inc. (April 28, 2008).

The coal lease applications are underlain by sandstones and shales of the Cretaceous-aged Mannville group. Given that the Mannville group is host to the Goldsource discovery, the Company believes that the area provides a very favorable environment for additional coal occurrences of a similar magnitude to those recently announced.

Coal fields within the Western Canadian sedimentary basin can extend for hundreds of kilometres and encompass several thousand square kilometers or more. Approximately 30 km to the east of the property, an approximate 18.84-metre-thick coal interval between 47.70 metres and 66.54 metres depth was reported in a drill hole from a 1994 program by Consolidated Pine Channel Gold Corp. Although the coal was not analyzed at the time, the magnitude of coal reported within the aforementioned interval is similar to the Goldsource discovery and confirms the regional potential for significant thicknesses of coal within Mannville-aged rocks of east-central Saskatchewan.

"Significant coal discoveries including the identification of several historic coal seams in the area, attest to the region's vast potential as the start to a coal mining district" said Marc Levy, chief executive officer, Remstar.

With this acquisition and the acquisition announced on June 10, 2008, Remstar now has coal applications encompassing over 91,000 acres in Saskatchewan, while continuing to look for additional acquisitions.

Dahrouge Geological Consulting Ltd. of Edmonton, Alberta has been retained for a period of 24 months to be used for all exploration and geological services. Dahrouge Geological and its predecessor company have worked extensively in the coal industry, performing exploration for several major coal companies.

As consideration for the acquisition, upon signing of a formal agreement, the Company shall pay $37,500 to the Vendor and issue 250,000 common shares, of which 125,000 shares shall be issued within 10 business days of TSX Venture Exchange acceptance of the transaction and 125,000 shares to be issued within 10 business days of receipt of the formal coal permits covering the aforementioned lands. The Vendor will retain a $2-per-ton royalty on all coal mineral production from the permits, of which 50 per cent of the royalty may be acquired by Remstar for $1-million. In addition, if exploration of the lands leads to the acquisition of other mineral rights, the Vendor will retain a 2-per-cent net smelter return on those mineral rights, of which 50 per cent of the NSR may be acquired by Remstar for $1-million.

Remstar is continuously active in reviewing quality assets in the energy sector, including coal and oil and gas. The technical information in this news release has been prepared in accordance with the Canadian regulatory requirements set out in National Instrument 43-101 and reviewed on behalf of the company by Ross McElroy, PGeol, a qualified person.

About Remstar Resources Ltd.:

Remstar Resources is an exciting, rapidly-growing organization dedicated to acquiring and developing significant opportunities in the energy and resources sectors. Remstar Resources is committed to the aggressive pursuit of properties with high return-on-investment and maximizing the value of assets through disciplined process of assessment, responsible acquisitions, and intentions of taking acquired properties from exploration into production.

ON BEHALF OF THE BOARD OF DIRECTORS,

REMSTAR RESOURCES LTD.

Marc E. Levy, President & CEO

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

Contact Information