Mr. Bruce Scafe reports

PETROSTAR ANNOUNCES PRIVATE PLACEMENT

Petrostar Petroleum Corp. has arranged a non-brokered private placement of up to 2.5 million units at five cents per unit for gross proceeds of $125,000.

Subject to regulatory approval, each unit shall consist of one common share of the company and one common share purchase warrant. Each warrant shall be exercisable at 10 cents per share for a period of two years after closing. The funds raised will be used exclusively for the 2011 annual financial audit, the annual general meeting, and all expenses associated with corporate compliance such as sustaining fees and filing fees. A finder's fee of 7 per cent will be payable.

As a follow-up to the company's news release of Feb. 28, 2012, the company has ceased all negotiations with the private company and will not be moving forward with that particular deal.

Petrostar has submitted an application to the British Columbia Securities Commission for a management cease trade order. This application, if approved, would give the company extra time to complete its audit and file its annual financials without falling under a full cease trade order.

The Lashburn heavy oil and gas property is being actively marketed by the company in an effort to find a purchaser and subsequently settle some creditor debt currently held by the company.

Petrostar has complied with NI 51-101, and filed its oil and gas reserves reports, which can be found on SEDAR.