Mr. Peter Ball reports

REDSTAR GOLD ANNOUNCES $3.0M INVESTMENT BY ERIC SPROTT

Eric Sprott has agreed to acquire 30.0 million common shares of Redstar Gold Corp. in part through a private placement of up to 41.0 million shares at 10 cents.

Redstar Gold has filed for the financing of up to 41.0 million common shares at 10 cents per share. This financing is a non-brokered equity private placement. The financing will be composed of two tranches. The first tranche of 20.4 million shares at 10 cents is expected to close this week. In the second tranche, the company will issue up to 20.6 million shares at 10 cents, or $2.06-million. The full financing is expected to close on, or before, Aug. 31, 2016. Upon final and full closing of the financing, Mr. Sprott will control approximately 30.0 million shares, or 12.1 per cent of the company. Jacques Vaillancourt, chairman of Redstar, will also invest in this private placement. No warrants will be offered in respect to the financing.

"Mr. Sprott is a highly respected and well-known leader in the resource investment community and one of the world's premier gold and silver investors. The company will begin plans to initiate its next drilling program on the high-grade Shumagin gold zone at our 100-per-cent-controlled Unga gold project in Alaska," commented Peter A. Ball, president and chief executive officer of Redstar Gold.

The proceeds from the financing will be used to commence drilling at the Shumagin gold zone, continue exploration across other known gold zones at the company's Unga gold project, complete an NI 43-101 technical report at the Unga gold project and for general working capital. The closing of the financing is expected to occur on or before Aug. 26, 2016, and is subject to the completion of formal documentation and receipt of regulatory approvals, including the approval of the Toronto Stock Exchange.

Mr. Sprott is acquiring the shares for investment purposes. Mr. Sprott has a long-term view of the investment and may acquire additional shares either on the open market or through private acquisitions or sell the shares either on the open market or through private dispositions in the future depending on market conditions, reformulation of plans and/or other relevant factors. A copy of Mr. Sprott's early warning report will appear on the company's profile on SEDAR and may also be obtained by calling 416-362-7172 (200 Bay St., Suite 2600, Royal Bank Plaza, South Tower, Toronto, Ont., M5J 2J2).

The common shares issued pursuant to the financing shall be subject to a four-month hold period from the closing date of the financing in accordance with applicable securities legislation.

Shumagin gold zone

The Shumagin prospect is characterized by multiepisodic gold-silver-bearing quartz-adularia-rhodochrosite breccia bodies that occur within structurally controlled dilation zones along the more-than-1,200-metre-long Shumagin Scarp. High-grade gold-silver mineralization is open at depth within the main breccia body at Shumagin. Multiple dilation zones and coincident gold-silver-bearing breccia bodies exist along strike of the Shumagin Scarp and remain to be fully drill tested.

About the Unga gold project

The 100-per-cent-controlled Unga gold project covers key strategic portions of adjacent Unga and Popof islands, approximately 900 kilometres southwest of Anchorage, Alaska.

Redstar controls a 240-square-kilometre land package that is host to numerous structurally controlled, volcanic-hosted intermediate-sulphidation epithermal high-grade vein, breccia, stockwork and disseminated gold-silver occurrences.

The Unga project has excellent infrastructure, including direct daily flights from Anchorage, a deep-sea port and a temperate climate.

The former Apollo-Sitka gold mine, located on the southern Apollo-Sitka trend, was Alaska's first underground gold mine and the site of historical high-grade gold production.

               SELECTED DRILL HIGHLIGHTS FROM THE SHUMAGIN GOLD ZONE     
  
Hole number     From (m)   To (m)    Length (m)    Gold grade (g/t)    Silver grade (g/t)

DDH-26            49.07    49.83          0.76                37.7                  20.6
DDH-28            44.81    46.02          1.22                16.5                  55.5
DDH-35            77.27    77.88          0.61               192.6                5403.4
DDH-42           132.59   134.11          1.52               30.96                  35.0
DDH-46           153.62   154.84          1.22              365.35                 190.6
DDH-51           156.06   156.67          0.61              182.02                  88.5
DDH-57             38.1    39.62          1.52               59.59                 50.05
BMS-01            272.8   278.28          5.49               24.02                  19.4
11SH007           223.0    224.0          1.00                43.9                  18.5
11SH009           210.1    211.0           0.9                43.1                  37.2
11SH010          259.25    259.8          0.55               738.0                 408.0
15SH011            60.1     62.0          1.90               202.0                  82.0
15SH012            64.0     66.0          2.00                35.3                 209.0
15SH012            82.0     85.0          3.00               16.95                 183.0
15SH012            89.0     89.7          0.70               133.0                 422.0
15SH013           144.0    145.0          1.00               17.45                 122.0
15SH013           146.0    147.0          1.00                20.9                 232.0
15SH014           187.0    188.0          1.00                19.9                  16.0
15SH018           196.0    197.0          1.00                41.2                 130.0

True widths of the mineralized intervals are close to 70 to 80 per cent of 
the core length.
DDH-26, -28, -35, -42, -46, -51, -57 and BMS-01 are historical in nature and 
are not reported herein as new drill results.
11SH007-010 and 15SH011-018 have been previously disclosed and may be viewed 
on Redstar's website.

Jesse C. Grady, MSc, CPG-11592, is a qualified person as defined by NI 43-101. Mr. Grady has prepared and approved the technical information contained within this release.

About Redstar Gold

In Nevada, Redstar is currently seeking suitable partners to advance its portfolio of 11 100-per-cent-owned properties located along and within many of the major gold producing trends. Redstar also owns 30 per cent of the Newman Todd gold project, in Red Lake, Ont., Canada. Newman Todd is a high-grade gold discovery along a 1.8-kilometre corridor within the Newman Todd structure (NTS).

We seek Safe Harbor.