Weststar Resources Corp.
TSX VENTURE : WER

Weststar Resources Corp.

August 17, 2011 16:34 ET

Weststar Closes Acquisition of La Paloma Property and Assignment of Option Agreement

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Aug. 17, 2011) - Weststar Resources Corp. (TSX VENTURE:WER) (the "Company") is pleased to report that it has completed the assignment of all of Lekona Minerals Incorporated's ("Lekona") right, title and interest in and to the La Paloma concessions (the "Acquisition"), including the 20% undivided interest held by Lekona therein and Lekona's rights under the underlying option agreement between Lekona and Minera Sierra de Oro S.A. de C.V. ("Minera").

On closing, Weststar was assigned an option to acquire an 80% interest in the La Paloma concessions from Minera under an option agreement dated September 15, 2010 as amended by agreement dated April 30, 2011 (together the "Option Agreement") between Lekona and Minera. Lekona had previously exercised a portion of the option granted under the Option Agreement and accordingly Weststar now owns a 20% undivided interest in the La Paloma concessions.

La Paloma Property – Acquisition of Lekona's Interest

Pursuant to an amendment agreement (the "Amendment Agreement") with Lekona dated June 30, 2011, amending the terms of the letter of intent with Lekona dated March 17, 2011, the Company completed the Acquisition on August 9, 2011 (the "Closing Date")by:

(a) paying Lekona, the sum of $700,000;

(b) issuing 4,000,000 common shares in the capital stock of the Company to Lekona's shareholders and 1,650,000 common shares in the capital stock of the Company to Minera;

(c) issuing 1,500,000 share purchase warrants (the "Warrants") to Lekona, each such Warrant being exercisable into one common share of the Company at a price of $1.50 per common share for a period expiring August 9, 2012. The Warrants are only be exercisable in the event:

(i) the Company completes Phase I of the work program contained in the NI 43-101 report dated June 26, 2011 on the Project prepared by Snowden Mining Industry Consultants and delivers a new NI 43-101 compliant report describing the results of the Phase I work, which new report recommends proceeding with Phase 2 (the "Completion Date"); and

(ii) the Company completes a follow on financing of not less than $1,000,000 to fund the Phase 2 program;

As a result of the above share issuances, WestStar currently has 21,110,130 shares issued and outstanding. All securities described above are subject to a resale restriction expiring December 10, 2011.

The Company's obligations under the Option Agreement and Amendment Agreement are set out in the Company's news release of July 5, 2011.

La Paloma Property – Exploration Update

The Company has been planning its exploration programs for the Property with the assistance of Snowden. Snowden is a world leader in providing consulting services to the mining industry. The first phase of work will include geological mapping, sampling, survey monument establishment, geophysical surveys and finally diamond drilling.

On Behalf of the Board

Mitchell Adam, President, Weststar Resources Corp.

"Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release."

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