Mr. Gary Arca reports

STARCORE REPORTS YEAR-END FINANCIAL RESULTS

Starcore International Mines Ltd. has filed the results for the year ended July 31, 2011, for the company and its mining operations from the San Martin mine. Over the year ended July 31, 2011, the company reports revenues of $39.5-million, earnings from mining operations of $13.8-million and a net loss of $4.0-million, which includes a net $6.6-million non-cash unrealized loss on forward sales contracts and a $234,000 non-cash stock-based compensation charge on option awards vested in the year. The basic and diluted loss per share for the year ended July 31, 2011, was five cents.

The attached table is a summary of mine production statistics for the San Martin mine for the six months ended July 31, 2011, and the cumulative amounts for the year ended Jan. 31, 2011.

                                             Actual results for  Actual results for
                                              six  months ended     12 months ended
                           Unit of measure        July 31, 2011       Jan. 31, 2011

Mine production of
gold in dore               thousand ounces                  7.8                15.6
Mine production of
silver in dore             thousand ounces                134.9               170.0
Mine equivalent
ounces of gold             thousand ounces                 11.1                18.5
Purchased concentrate
equivalent ounces          thousand ounces                  5.2                 2.5
Total mine
production --
equivalent ounces          thousand ounces                 16.3                21.0
Mine gold grade                grams/tonne                  2.0                2.05
Mine silver grade              grams/tonne                   40                  31
Milled                 thousands of tonnes                  146                 274
Mine operating cost
per tonne milled        U.S. dollars/tonne                   50                  39
Mine operating cost
per equivalent
ounce                   U.S. dollars/ounce                  699                 577
                                                                           
(i) Assuming a 41:1 silver-to-gold-equivalency ratio for six months ended July 31, 
2011, and 60:1 for the year ended Jan. 31, 2011.                  

Overall equivalent gold production from mine operations, excluding purchased concentrate, was 11,100 ounces over the six months ended July 31, 2011, compared with an average of 4,625 per quarter for the previous 12-month period. The higher production was due mainly to consistently higher ore grades for silver, higher silver recoveries and the fact that the mine also increased tonnage through the mill to 146,000 tonnes for the six-month period compared with 68,500 tonnes per quarter average for the 12 months.

Currently, the company is continuing underground exploration in order to identify higher-grade ore zones and has allocated a higher budget to support exploration, exceeding 11,000 metres of exploration drilling for the 2011 calendar year (see recent news releases of Sept. 28, Sept. 22, Aug. 29 and July 18, 2011).

The attached table contains selected highlights from the company's consolidated statement of operations and consolidated balance sheet for the years ending July 31, 2011, and 2010.

                               HIGHLIGHTS
                        (in thousands of dollars)

                                               July 31, 2011   July 31, 2010
Revenues
Mined ore                                     $       29,413  $       22,046
Purchased concentrate                                 10,052           1,155
                                              $       39,465  $       23,201
Cost of sales
Mined ore                                             13,415          10,728
Purchased concentrate                                  9,752           1,054
Amortization, depletion and reclamation                2,497           1,983
                                              $      (25,664) $      (13,765)
Earnings from mining operations                       13,801           9,436
Net (loss)
Net (loss) for the year                       $       (4,023) $       (3,728)
Income (loss) per share -- basic              $        (0.05) $        (0.05)
Income (loss) per share -- diluted            $        (0.05) $        (0.05)
Total assets                                  $       46,637  $       45,170
Total long-term liabilities                   $       13,803  $       17,242

Revenues for the year ended July 31, 2011, were higher at $39,465 than 2010 revenues of $23,201 due mainly to the sale of metal from purchased concentrate, but also due to higher metal prices in 2011 and higher metal production from mine operations. For the year ended July 31, 2011, metal sales of 20,002 ounces of gold and 425,414 ounces of silver sold at average prices of $1,308 (U.S.) per ounce and $32 (U.S.) per ounce, respectively, compared with the year ended July 31, 2010, which approximated 17,343 ounces of gold and 181,876 ounces of silver sold at average prices of $1,105 (U.S.) and $17 (U.S.) per ounce, respectively. Loss for the year ended July 31, 2011, increased to a loss of $4,023 due mainly to the fluctuation in realized and unrealized forward sales contracts losses. Net realized and unrealized loss on forward contracts for the year ended July 31, 2011, was $12,541 compared with $9,873 for 2010 due to the increase in gold price from $1,180 (U.S.) at July 31, 2010, to $1,621 (U.S.), at July 31, 2011, on the remaining 21,343 ounces which are to be sold at an average of 1,185 ounces per month until Jan. 31, 2013.

The company also had positive cash flow from operations of $2,125 for the year ended July 31, 2011, compared with $3,540 for the same period in 2010.

Full financial statements are available on SEDAR and on Starcore's website.