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File: DSR News Release - Share Consolidation - July 28 16.DOCX


Desert Star Resources |717 - 1030 West Georgia Street |Vancouver, British Columbia |Canada| V6E 2Y3|Telephone:  (604) 
--->628-5623| Facsimile:  (604) 628-1249 |www.desertstar.ca
TSX-V: DSR         July 28, 2016
For Immediate Release       

Desert Star Announces Share Consolidation

Vancouver, B.C., July 28, 2016. Desert Star Resources Ltd. (TSX-V: DSR) ("Desert Star" or the "Company") is pleased to
---> announce that its Board of Directors has approved proposed changes to the Company's share structure to consolidate it
--->s issued and outstanding common shares, and any securities convertible into common shares, on a two-for-one basis. 
Under the proposed consolidation, two existing common shares will be consolidated into one new common share.  Outstand
--->ing convertible securities will be adjusted accordingly in terms of number and exercise price. The Company currently h
--->as 64,691,649 common shares issued and outstanding, which will be reduced to approximately 32,345,824 common shares. F
--->ractional shares remaining after giving effect to the consolidation will be cancelled without compensation, such that 
--->the holdings of each shareholder will be rounded down to the nearest whole number of post-consolidation common shares.
--->  
The Company's name will remain as "Desert Star Resources Ltd."
The Company's articles permit the Board of Directors to authorize a consolidation.  The Board of Directors determined 
--->that consolidation is necessary to make Desert Star's share structure more facilitative for mineral project or acquisi
--->tion transactions.  
The consolidation is subject to the acceptance of the TSX Venture Exchange.  

About Desert Star 

Desert Star is a Vancouver-based mineral exploration company focused on the identification, acquisition and developmen
--->t of copper and gold projects located in top-tier mineral belts in the southwestern United States that contain signifi
--->cant historical production, existing mining infrastructure and an established mining culture.

Vince Sorace President and CEO, Desert Star Resources Ltd.

For further information regarding Desert Star, please email info@desertstar.ca or visit our website at www.desertstar.
--->ca.


Cautionary Note Regarding Forward-Looking Statements
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the 
--->TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
This news release contains certain statements that may be deemed "forward-looking statements". Forward-looking stateme
--->nts are statements that are not historical facts and are generally, but not always, identified by the words "expects",
---> "plans", "anticipates", "believes", "intends", "estimates", "projects", "potential" and similar expressions, or that 
--->events or conditions "will", "would", "may", "could" or "should" occur. Although Desert Star believes the expectations
---> expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees 
--->of future performance, are subject to risks and uncertainties, and actual results or realities may differ materially f
--->rom those in the forward-looking statements. Such material risks and uncertainties include, but are not limited to, De
--->sert Star's ability to raise sufficient capital to fund its obligations under its property option agreements, to maint
--->ain its mineral tenures and concessions in good standing, to explore and develop its projects, to repay its debt and f
--->or general working capital purposes; changes in economic conditions or financial markets; the ability of Desert Star t
--->o obtain the necessary permits and consents required to explore, drill and develop the projects and if obtained, to ob
--->tain such permits and consents in a timely fashion relative to Desert Star's plans and business objectives for the pro
--->jects; the general ability of Desert Star to drill test its projects and find mineral resources; if any mineral resour
--->ces are discovered or acquired, the Company's ability to monetize any such mineral resources; and changes in environme
--->ntal and other laws or regulations that could have an impact on the Company's operations.  Forward-looking statements 
--->are based on the reasonable beliefs, estimates and opinions of Desert Star's management on the date the statements are
---> made. Except as required by law, Desert Star undertakes no obligation to update these forward-looking statements in t
--->he event that management's beliefs, estimates or opinions, or other factors, should change.