Urastar Energy Inc.
TSX VENTURE : URS

Urastar Energy Inc.

November 22, 2010 09:29 ET

Urastar Acquires Former Producing Gold Mine in Sonora Mexico Near Mulatos Mine

VANCOUVER, CANADA--(Marketwire - Nov. 22, 2010) - Urastar Energy Inc. ("Urastar") (TSX VENTURE:URS) announces the option to acquire the Jabali Gold Mine Project in Mexico. Jabali is a major gold exploration property, consisting of 70 hectares located in east Sonora in the Sierra Madre Gold Belt.

The property is located only 6 km from the Mulatos Gold and Silver producing heap leach mines (see location map at www.Urastarenergy.com) currently owned and operated by Alamos Gold (TSX:AGI). Jabali has produced gold from small scale operation since first being discovered by Jesuit priests in 1635. Recent surface chip sampling in the area of the old workings by geologist Dr Matt Ball are currently being analyzed. An exploratory work program is currently being prepared.

In a signed Letter of Intent, Urastar can earn a 100% interest in the Jabali Gold Project by making the following option payments over a 5 year period:

TIME CASH PAYMENT
On signing
On approval of TSX-Venture Exchange
US$10,000.00
US$40,000.00
Twelve month anniversary US$75,000.00
Twenty-four month anniversary US$75,000.00
Thirty-Six month anniversary US$150,000.00
Forty-Eight month anniversary US$200,000.00
Sixty month anniversary US$1,450,000.00
TOTAL US$2,000,000.00

In addition, underlying owners will retain a 3% NSR royalty on the Property subject to the right of Urastar to purchase each 1% of the NSR (namely a 1% NSR) for $1,000,000.00 for five (5) years after signing. The Letter of Intent is subject to TSX Venture Exchange approval.

Mr. Shaun M. Dykes, M.Sc. (Eng), P.Geo., is a designated Qualified Person pursuant to National Instrument 43-101 and prepared the technical information contained in this news release. 

About Urastar Energy Inc.

Urastar Energy Inc. is a mining exploration and development company focusing on gold exploration in Mexico's Sierra Madre gold belt targeting areas containing former producing properties. The Sierra Madre Gold Belt is one of the richest gold belts in the world hosting several world class mines and many major recent discoveries. For more information, please visit www.Urastarenergy.com

THIS NEWS RELEASE WAS PREPARED BY MANAGEMENT WHO TAKES FULL RESPONSIBILITY FOR ITS CONTENTS. THE TSX-VENTURE EXCHANGE DOES NOT ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.

This news release includes certain statements that express management's expectation or estimates of future performance and may be deemed "forward-looking statements". These forward-looking statements include plans, estimates, forecasts and statements as to management's expectations regarding exploration. These forward-looking statements involve assumptions, risks and uncertainties and actual results may vary materially. For these reasons shareholders should not place undue reliance on such forward-looking information.

United States residents are cautioned that some of the information that may be published by Urastar may not be consistent with United States Securities and Exchange Commission disclosure rules and may be materially different from what the Company is permitted to disclose in the United States and therefore United States residents should not rely on such information.

Contact Information

  • Urastar Energy Inc.
    Elston Johnston, President
    604-682-2928
    or
    Urastar Energy Inc.
    Matt Harrington, Investor Relations
    613-882-7467
    ir@urastarenergy.com