Mr. Grant Ewing reports

BLUE STAR ANNOUNCES CLOSING OF FIRST TRANCHE OF NON-BROKERED PRIVATE PLACEMENT

Further to the news release of July 11, 2025, and subject to the approval of the TSX Venture Exchange, Blue Star Gold Corp. has raised aggregate gross proceeds of $1,739,999.90 through the issuance of 1.6 million flow-through units at 15 cents per FT unit and 10,714,285 units at a price of 14 cents per unit.

Each FT unit is composed of one common share of the company, each of which qualifies as a flow-through share (within the meaning of Subsection 66(15) of the Income Tax Act (Canada), and one-half of one common share purchase warrant of the company.

Each unit consists of one share and one-half of one common share purchase warrant of the company, previously defined as a warrant. Each warrant forming part of the FT units and the units entitles the holder thereof to acquire one additional share in the capital of the company at a price of 20 cents per warrant share until Aug. 12, 2026.

The proceeds from the issue and sale of the units are for general working capital. The proceeds from the issue and sale of the FT units will be used by the company to incur eligible Canadian exploration expenses that qualify as flow-through mining expenditures (as both terms are defined in the Income Tax Act (Canada)) related to the company's projects in Nunavut.

The company will renounce qualifying expenditures with an effective date of no later than Dec. 31, 2025, in an amount of not less than the total amount of the gross proceeds raised from the issuance of the FT units, and incur such expenses by Dec. 31, 2025.

The company paid finders' fees in the amount of $14,400 in cash and 96,000 finder's warrants to an arm's-length qualified party in accordance with exchange policies. The finder's warrants are non-transferable and exercisable at 15 cents per share until Aug. 12, 2027. All securities issued are subject to a four-month hold period pursuant to securities laws in Canada and, where applicable, the exchange hold period, expiring on Dec. 13, 2025.

Dr. Georg Pollert, a director and controlling shareholder of the company, purchased an aggregate of 10,714,285 units pursuant to the private placement. As a result, the issuance of these shares pursuant to the private placement is considered a related-party transaction (as defined under Multilateral Instrument 61-101 (Protection of Minority Security Holders in Special Transactions)). The company relied upon the exemptions from the formal valuation and minority shareholder approval requirements set out in sections 5.5(a) and 5.7(a) of MI 61-101, respectively.

About Blue Star Gold Corp.

Blue Star is a mineral exploration and development company focused on Nunavut, Canada. Blue Star's landholdings total 300 square kilometres of highly prospective and underexplored mineral properties in the High Lake greenstone belt. The company owns the Ulu gold project, composed of the Ulu mining lease and the Hood River property, and the Roma project. A significant high-grade gold resource exists at the Flood Zone deposit (Ulu mining lease), and numerous high-potential exploration targets (gold and critical minerals) occur throughout the company's extensive landholdings, providing Blue Star with excellent resource growth potential. The site of the future deepwater port at Grays Bay is 40 to 100 kilometres to the north of the properties, and the proposed route corridor for the all-weather Grays Bay Road passes close by the Roma and Ulu gold projects.

Blue Star is listed on the TSX Venture Exchange under the symbol BAU, the U.S. OTCQB Venture Market under the symbol BAUFF and the Frankfurt Exchange under the symbol 5WP0.