Mr. Vince Sorace reports

DESERT STAR ANNOUNCES SHARE CONSOLIDATION

Desert Star Resources Ltd.'s board of directors has approved proposed changes to the company's share structure to consolidate its issued and outstanding common shares, and any securities convertible into common shares, on a one-for-two basis.

Under the proposed consolidation, two existing common shares will be consolidated into one new common share. Outstanding convertible securities will be adjusted accordingly in terms of number and exercise price. The company currently has 64,691,649 common shares issued and outstanding, which will be reduced to approximately 32,345,824 common shares. Fractional shares remaining after giving effect to the consolidation will be cancelled without compensation, such that the holdings of each shareholder will be rounded down to the nearest whole number of postconsolidation common shares.

The company's name will remain as Desert Star Resources.

The company's articles permit the board of directors to authorize a consolidation. The board of directors determined that consolidation is necessary to make Desert Star's share structure more facilitative for mineral project or acquisition transactions.

The consolidation is subject to the acceptance of the TSX Venture Exchange.

We seek Safe Harbor.