Telstar Resources Ltd.
TSX VENTURE : TST

April 11, 2006 14:09 ET

Telstar Completes Share Capital Reorganization

CALGARY, ALBERTA--(CCNMatthews - April 11, 2006) - Telstar Resources Ltd. (TSX VENTURE:TST) (the "Corporation") is pleased to announce that the reorganization of share capital (the "Reorganization") previously announced was completed today with the filing of articles of amendment and the receipt of a certificate of amendment and registration of restated articles.

Under the Reorganization, each common share, other than those held directly or indirectly by Kary Holdings Ltd., Kenneth M. Kary, K. Greg Kary, Ardis Kary and Gail Lagasse (collectively, the "Majority Shareholder") was converted into one (1) Series I Preferred Share of the Corporation ("Series I Preferred Share"). Pursuant to their terms, the Series I Preferred Shares have been immediately redeemed after issuance for $0.11 cash per share.

Shareholders are entitled to receive redemption funds provided that they have deposited letters of transmittal with the Corporation's depositary, Olympia Trust Company, together with the certificates representing the common shares of the Corporation that have been converted into Series I Preferred Shares and any other documents required by the letter of transmittal. Letters of transmittal, and instructions on delivery, were delivered to shareholders with the information circular dated February 16, 2006 which was mailed to shareholders in connection with the Reorganization. Additionally, letters of transmittal can be found on SEDAR at www.sedar.com.

The TSX Venture Exchange Inc. has neither approved or disapproved the contents of this news release.

Contact Information

  • Telstar Resources Ltd.
    Greg Kary
    Vice-President
    (403) 261-4020