Mr. Brent Johnson reports

LEGAL REPORT FROM JORGE LOPEHANDIA'S CHILEAN ATTORNEY

Mountainstar Gold Inc. has provided an update from Jorge Lopehandia's Chilean lawyer. Please note that Spanish/English does not always translate perfectly.

QUOTE

Together with my greetings I am coming to authorize you to translate into legal English the present document, authorizing as well its publication by any means you deem convenient, what includes the following tenor:

Before the Second Civil Court of Vallenar in files over extinct prescription in mining matters, Role C-719-2011 (named Lopehandia Cortes with Minera Nevada SpA), it was presented, without any legal fundamentals, an incidence of us abandoning the proceedings, and thanks to a ironclad legal defence effected by the writer, as lawyer, the tribunal rejected it with express and exemplary condemnation in costs -- said costs pertain to process costs of the trial and personal expenses effected exclusively by Jorge Rodrigo Lopehandia Cortes.

We are waiting for the illustrious Court of Appeals of Copiapo to confirm such resolution in accordance to law. No legal recourse is subject against it. The decision will be issued no further than the end of January, 2015.

An iron-tight defence was made at the recurso of casacion (appeal) we presented before the Excelentisima Corte Suprema de Chile, whereas we seek as first objective to extinguish the mining properties named Amarillos 1 al 3000 and to declare null the 10,000-peso contract over the 1996 concessions, the property of Mr. Lopehandia.

Hector Mardoqueo Unda Llanos's position

Hector Mardoqueo Unda Llanos, by means of his lawyer, Francisco Rene Valle Pensa, in the files Role C-1912-2001 of the 14th Civil Court of Santiago, expressly indicated that he never acted as agent or representative or as mandated by Minera Nevada SA when he filed his concessions that originated the exploitation concessions Tesoros One 1 to 30 through to Tesoros Twelve 1 to 5.

Later, before the Second Civil Court of Vallenar, by a notarized sworn affidavit, he admitted that all of his acts related to his intervention at project Pascua Lama Chile were due to a contractual link that he had with Minera Nevada SpA. This is a contradiction, a mockery, to the Superior Justice Tribunals.

Positions Nietos

Initially, it was indicated that the concessions Tesoros One 1 to 30 to Tesoros Twelve 1 to 5 were located over and above the areas of the mining concessions named Amarillos Sur 1996, the area of greatest geological interest of the Pascua Lama project, only to fall in contradiction later.

In the year 2010, without any legal rights, the decision from the Excelentsima Supreme Court of Chile was reopened with false testimony that they do not know Mr. Unda Llanos.

They confessed to not have mining titles in case Role C-719-2011 from the Second Civil Court of Vallenar, nor constitutive mining property judgment to their name, certificate of domain, or even a contract or legal mandate from Mr. Unda Llanos.

The areas covered by Mr. Lopehandias's mining concessions are the ones of greatest geological importance to the project, so much so that such is recognized expressly by Minera Nevada SpA at files C-1912-2001 before the 14th Civil Court in Santiago.

The only litigant before Minera Nevada SpA and Barrick Gold Corp. with legal rights over the areas of Mina Pascua Chile is Mr. Lopehandia at this date, Dec. 18th, 2014. Villar no longer enjoys rights, less Ojanco Group or Cristobal Lopehandia Cortes.

Barrick enjoys only salts and nitrates concessions 1978-2014 from Lac Minerals, not legally covering gold production at areas called Amarillos 1 to 3000 at Pascua Lama.

Protocol

The Tesoros concessions continue to be in the legal name of "Jorge Rodrigo Lopehandia Cortes" at the margin of the titles.

The titles of Amarillos Sur 3400 hectares and Amarillos Norte 5200 hectares continue in the legal hands of "Jorge Rodrigo Lopehandia" without marginal annotations from third parties at titles.

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