Mr. Klaus Schmid reports

KLAUS GEORGE SCHMID ANNOUNCES A DECREASE IN HIS OWNERSHIP OF THE COMMON SHARES OF BLUE STAR GOLD CORP.

On May 2, 2023, Klaus Georg Schmid, a director of the Blue Star Gold Corp., disposed of 8,983,000 shares of the company at an average price of 37.3 cents per common share for a total purchase price of $3,350,659 pursuant to a share transfer through private agreement, resulting in the acquiror decreasing his securityholdings by 14.00 per cent of the issued and outstanding shares of the company.

Prior to the acquisition of Shares, the Acquiror held 9,183,000 Shares, 160,000 incentive stock options (the "Options") and the Acquiror's non-diluted shareholdings represented approximately 14.31% of the Company's issued and outstanding Shares.

As a result of the disposition of Shares pursuant to the Share Transfer, the Acquiror now holds 200,000 Shares, 160,000 Options and the Acquiror's non-diluted shareholdings now represent approximately 0.31% of the Company's issued and outstanding Shares.

Thus, on a partially diluted basis (i.e., assuming full exercise of all Options and no other issuances of Shares by the Company), the Acquiror would hold a total of 360,000 Shares, representing approximately 0.56% of the Company's issued and outstanding Shares.

The Shares were disposed of for investment planning purposes. The Acquiror may, depending on market and other conditions, increase or decrease his beneficial ownership of or control or direction over the Company's securities, whether in the open market, by privately negotiated agreements or otherwise, subject to a number of factors, including general market conditions and other available investment and business opportunities.

The Acquiror is relying on the private agreement exemption from the formal take-over bid requirements, as set out in section 4.2 of National Instrument 62-104 Take-Over Bids and Issuer Bids ("NI 62-104"). The purchase was made to a single person, there was no bid made generally to holders of Shares, there is a published market for the Shares, and the value of the consideration received for the Shares is not greater than 115% of the market price at the date of acquisition (as determined in accordance with the provisions of NI 62-104).

To obtain a copy of the early warning report filed by the Acquiror, please contact the Acquiror at 001.49.7832.977.933 or refer to the Company's SEDAR profile at www.sedar.com.