Mr. Will Rascan of Weststar reports

COPPER MOUNTAIN SIGNS LETTER OF INTENT TO OPTION WESTSTAR'S AXE PROPERTY

Weststar Resources Corp. and Bearclaw Capital Corp. have entered into an arm's-length letter of intent dated Aug. 23, 2013, with Copper Mountain Mining Corp., whereby Copper Mountain will, subject to due diligence, enter into an exclusive option agreement to acquire up to 75-per-cent undivided interest in and to 25 mineral claims located in British Columbia, Canada, known as the Axe property. Weststar and Bearclaw currently hold the property as a joint venture, in which the parties hold 70-per-cent and 30-per-cent interests, respectively.

Under the terms of the LOI, Copper Mountain can earn a 51-per-cent interest in the Axe property by incurring $3-million of expenditures in exploration activities on the property by the end of the four-year earn-in period and paying to the company and Bearclaw (collectively, in proportion to their participating interests in the Axe JV): $5,000 immediately upon signing of LOI/60-day due diligence period; $25,000 on the commencement date; and $50,000, $100,000, $150,000 and $200,000 on the succeeding anniversaries of the commencement date.

If Copper Mountain exercises the option, a joint venture will be formed between Copper Mountain, the company and Bearclaw, with Copper Mountain holding a 51-per-cent participating interest, and the company and Bearclaw holding 34.3-per-cent and 14.7-per-cent participating interests, respectively. Upon exercise of the option, Copper Mountain will have the option to acquire an additional 24-per-cent undivided interest in the property (increasing its interest to 75 per cent, absent other adjustments) by either completing a feasibility study on the property or incurring no less than $12-million in expenditures on the property, and providing the company and Bearclaw with evidence of such expenditures. In the event Copper Mountain exercises the second option and acquires an undivided 75-per-cent interest in the property, then the company will have a 17.5-per-cent participating interest and Bearclaw a 7.5-per-cent participating interest in the property, respectively.

The property

The property is an advanced-stage project with known porphyry copper mineralization, which has been the subject of numerous drill programs since the 1960s. The property consists of 25 mineral claims (4,983 hectares) located in the Similkameen mining division, 20 kilometres north of Princeton, B.C. The property was acquired in the 1960s by Adonis Mines Ltd., which commenced exploration for porphyry copper style of mineralization. Major exploration programs were completed by Adonis, Amax Exploration Inc. and Cominco Ltd. during the 1970s and early 1980s. In total, 185 holes, comprising about 14,000 metres, were drilled during this period. Amax provided the initial historic resource estimate in 1971, followed by estimates of Adonis in 1972 and 1973. The main area of the property has been continuously held under title since 1967. A 14-hole diamond drill program was completed by Weststar in 2006 and 2007 totalling 3,401 metres. In 2012, Weststar had optioned the property to Xstrata Copper Canada. Xstrata spent over $475,000 in 2012 expenditures before terminating the agreement due to corporate restructuring. Xstrata's 2012 Axe report is available on Weststar's website.

We seek Safe Harbor.