Globestar Mining Corporation

Globestar Mining Corporation

November 01, 2005 14:33 ET

Virginia Gold Acquires GlobeStar's Interest in Poste Lemoyne

TORONTO, ONTARIO--(CCNMatthews - Nov. 1, 2005) - GlobeStar Mining Corporation (TSX VENTURE:GMI) announces the signing of an agreement with Virginia Gold Mines Inc. (TSX:VIA) (who is at arms-length with Globestar) pursuant to which Virginia acquires Globestar's 50% interest in the Poste Lemoyne property against the issuance of 160,000 shares of Virginia to GlobeStar. GlobeStar retains a 1% Net Smelter Returns (N.S.R.). Virginia has been granted a buyback right to purchase half (0.5%) N.S.R. for a total payment of CA$500,000. At close of business on Friday 28th October, Virginia's share price was $6.40.

Prior to this agreement, GlobeStar and Virginia have been jointly exploring the Poste Lemoyne project, with each party owning 50%, and with Virginia as operator. The Poste Lemoyne property consists of 112 claims located in the James Bay region of Quebec.

Completion of the agreement is subject to approval of the TSX venture exchange.

GlobeStar Mining is focused on mine development and mineral exploration in the Dominican Republic. The company is currently developing the fully permitted Cerro de Maimon copper-gold project, and is actively exploring its extensive land position for copper, gold and nickel.

This press release has been reviewed by Tim Warman, P.Geo., GlobeStar's Qualified Person under National Instrument 43-101.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any State in which such offer, solicitation or sale would be unlawful. The securities have not been registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements.

This press release includes certain "Forward-Looking Statements" within the meaning of section 21E of the United States Securities Exchange Act of 1934, as amended. All statements, other than statements of historical fact, included herein, including without limitation, statements regarding potential mineralization and reserves, exploration results and future plans and objectives of GlobeStar Mining Corporation are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements.

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

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