Mr. Brent Johnson reports

LOPEHANDIA WINS JUDICIAL ORDER

Mountainstar Gold Inc. has provided an update to its shareholders regarding the continuing legal action between Jorge R. Lopehandia and Minera Nevada SpA in Chile.

The Chilean Court has provided the request from Mr. Lopehandia to have Minera Nevada, Hector Mardoqueo Unda Llanos and Gonzalo Nieto Valdez face tribunals regarding their illegal stance of having two conflicting affidavits over being, and not being, employee and employer with Minera Nevada (Barrick in Chile).

The judge then issued a judgment on April 11, 2016, accepting the plaintiff's presentation dated Feb. 11, 2016, at page 25 of the trial books:

• "To the principal (subject of the action): acknowledged hereby as accepted the demand for nullity (10,000-peso contract) in a trial for major damages;
• "To the first point of law: attain to what this court has resolved;
• "To the second point of law: acknowledge this decision and with a copy, proceed to serve the parties;
• "To the third point of law: take into account the sponsorship and legal power, the power of attorney granted to Juan Guillermo Torres Fuentealba, lawyer for Jorge Lopehandia, for all legal effects."

This judgment was signed, sealed and provided by Lidia Hevia Larenas, replacement judge, authorized by Maria Hurtado Vasquez, acting secretary of the court.

In Santiago, on April 11, 2016, the plaintiff and defendants were notified by daily court records of the above-stated resolution, signed off by the judge and court secretary with electronic court seal.

By April 18, 2016, the third serving of Minera Nevada by the process server will take place, after two previous service attempts to the offices of Minera Nevada. Minera Nevada has confirmed that Mr. Unda has his domicile at its corporate office.

This confession helps Mountainstar Gold to demonstrate to the Toronto Stock Exchange and the British Columbia Securities Commission that Barrick deceived them and the Chilean Courts in case C1912-2001. Barrick has been denying, since 2001, any employment relationship with Mr. Unda.

Mountainstar is now clear to pursue libel and perjury actions against Barrick over its libellous press release of Dec. 21, 2011. It stated that neither Mr. Lopehandia nor Mountainstar had anything to do with the Tesoros concessions, implying that Barrick did.