Mr. Paul Durham of Redstar reports

REDSTAR COMPLETES RENEGOTIATION OF STRATEGIC ACQUISITION CONSOLIDATING THE UNGA ISLAND HIGH-GRADE GOLD PROJECT IN ALASKA

Redstar Gold Corp., together with Full Metal Minerals Ltd. and the Aleut Corp. (an Alaska native-owned regional corporation), has signed an assignment and Novation agreement in respect of the Unga-Popov property, whereby all rights and interests held previously by FMM are assigned to Redstar.

The terms of the original agreement have been amended, allowing Redstar to reduce the overall cost of the acquisition by approximately 24 per cent through the issuance of fewer shares and a larger cash component. Under the terms of the original agreement with FMM -- which has an exploration agreement with option to lease with the Aleut Corp. -- Redstar agreed to purchase FMM's interest in the Unga-Popov property in consideration for four million common shares of Redstar and $50,000 (U.S.). The terms of the original agreement have been amended to provide that Redstar is required to issue only 750,000 common shares, and pay to FMM $50,000 (U.S.) (of which $10,000 (U.S.) has been paid) and $125,000 (Canadian).

The agreement and the transaction contemplated thereunder are subject to approval by the TSX Venture Exchange.

Toby Mayo, president and chief executive officer of Redstar, commented: "The strategic transaction between FMM, the Aleut Corp. and Redstar completes the consolidation of the Shumigan and Unga-Popov properties -- together comprising the Unga project. While the cash component of the transaction has increased, the overall cost to the company is reduced significantly, providing Redstar shareholders with a less dilutive deal. The transaction, which gives Redstar undivided control of a district-scale exploration area covering approximately 250 square kilometres, will afford the company greater flexibility and control over future exploration."

The company has recently completed its summer program at the Unga project. The program consisted of detailed survey work, extensive rock and soil sampling, and geological trench mapping covering three target areas: 1) the Apollo-Sitka trend; 2) the Aquila prospect; and 3) the Shumigan prospect. Results are pending and will be released in due course.

We seek Safe Harbor.