Southern Star Resources Inc.
TSX VENTURE : SSR

Southern Star Resources Inc.

March 30, 2006 14:22 ET

Southern Star Announces Closing of $17,500,000 Flow-Through and Unit Financing

TORONTO, ONTARIO--(CCNMatthews - March 30, 2006) -

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Southern Star Resources Inc. ("Southern Star") (TSX VENTURE:SSR) is pleased to announce that it has raised $17,593,500 pursuant to its brokered financing originally announced on March 15, 2006. In connection with the financing, Southern Star issued 1,320,000 flow-through common shares (the "Flow-Through Shares") at a price $3.80 per Flow-Through Share and 3,870,000 units (the "Units") at a price of $3.25 per Unit. Each Unit consists of one common share of Southern Star and one-half of one share purchase warrant. Each whole share purchase warrant may be exercised to acquire one common share of Southern Star at a price of $4.00 for a period of 12 months, provided that if after four months and one day following the closing of the private placement, the closing price of the common shares of Southern Star on the principal market in Canada on which such shares trade is equal to or exceeds $5.00 for 20 consecutive trading days, then Southern Star may accelerate the expiry date of the share purchase warrants by giving notice to the holders thereof and in such case the share purchase warrants will expire on the 30th day after the date on which such notice is given by Southern Star. Southern Star now has 41,352,241 common shares issued.

In connection with the financing, Southern Star paid fees totaling 6% of the gross proceeds raised from the private placement to Dundee Securities Corporation, Westwind Partners Inc. and Jones Gable & Company Limited.

Southern Star intends to use the gross proceeds from the sale of the Flow-Through Shares for the exploration program of Southern Star's Gold Eagle Project and the proceeds from the sale of the Units for working capital and general corporate purposes.

Securities issued pursuant to the financing have a 4 month hold period which expires on July 31, 2006. Completion of the financing remains subject to the final approval of the TSX Venture Exchange.

The statements made in this news release may contain forward-looking statements that may involve a number of risks and uncertainties. Actual events or results could differ materially from the Southern Star's expectations and projections.

Please visit our website: www.southernstarresources.com

Shares Issued: 41,352,241.

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

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