Uranium Star Corp.
OTC Bulletin Board : URST
FRANKFURT : YE5

Uranium Star Corp.

February 28, 2007 08:30 ET

Uranium Star Corp. Acquires Remaining 25% Ownership of its Sagar Uranium/Gold Property

TORONTO, ONTARIO--(CCNMatthews - Feb. 28, 2007) - Uranium Star Corp. ("Uranium Star") (OTCBB:URST)(FRANKFURT:YE5) is pleased to announce that it has solidified its interest in the Sagar Uranium/Gold property located in the Labrador Trough, Northern Quebec by acquiring the remaining 25% interest from Virginia Mines Inc.

Pursuant to an agreement dated May 2, 2006 entered into with Virginia Mines Inc. (traded on the TSX under the symbol VGQ), Uranium Star received the option to acquire an undivided 75% participating interest in 200 claims constituting the "Sagar Property", located in the Labrador Trough in Northern Quebec. Pursuant to that agreement, Virginia exercised its right to sell an additional 25% undivided interest in the Sagar Property to Uranium Star. The consideration payable by Uranium Star is comprised of 1,000,000 shares of Uranium Star's common stock, and a warrant exercisable for 1,000,000 shares of Uranium Star's common stock at a price equal to the weighted average closing price for Uranium Star's common stock for the 20 trading days preceding the date of grant. The warrant has a term of 2 years.

Uranium Star has acquired a 100% interest in the Sagar Property, subject to a 1% NSR on certain claims and a 0.5% NSR on other claims owned by Jones & Poisson. Uranium Star has the right to buy back half of the 1% NSR (0.5%) for $200,000 and half of the 0.5% NSR (0.25%) for $100,000.

Under the agreement with Virginia, Uranium Star must incur aggregate exploration expenditures of at least $2,000,000 on the Sagar Property on or before August 31, 2008.

Sagar Property

The Sagar Property is the Company's primary exploration focus as it possesses exceptional grades for both uranium and gold. The Mistamisk Boulder Field is approximately 500 X 250 meters in size and contains many radioactive boulders. In a Virginia Mines report, 70 boulders assayed an average of 64.9 g/t Au and 1.3% U (with values up to 640 g/t Au and 16.5% U). Uranium Star is the direct beneficiary of the extensive exploration efforts incurred by previous operators including Virginia. These programs have shown that the Sagar Property is characterized by an impressive amount of uranium, gold, copper and lead/zinc mineralization of different styles and potential deposit models.

ABOUT THE COMPANY

Uranium Star Corp. is a rapidly emerging uranium exploration company with assets in Northern Quebec, Arizona and Finland. Its shares are traded on the OTCBB under the symbol URST, as well as the Frankfurt Exchange under the symbol YE5. The Company continues to focus on high priority uranium property acquisition and exploration in order to participate in meeting the significant and increasing demand for uranium as an alternative energy source.

Except for historical information contained herein, the matters discussed in this press release are forward-looking statements that involve risks and uncertainties, including but not limited to economic, competitive, governmental and technological factors effecting the Company's operations, markets, products and prices and other factors discussed in the Company's various filings with the Securities and Exchange Commission.

Contact Information

  • The Buick Group
    Jon Ruby
    Toll Free: 1-877-748-0914
    Email: jruby@buickgroup.com
    or
    Uranium Star Corp.
    Kirk McKinnon
    President and CEO
    (416) 364-4986 or 1-800-818-5442
    or
    Uranium Star Corp.
    Richard Schler
    Vice President and CFO
    (416) 364-4986 or 1-800-818-5442
    Website: www.uraniumstar.com