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File: 00566 PRESS Termination of Munglinup Option - v1.doc











PINESTAR DECLINES TO PROCEED WITH OPTION TO ACQUIRE PORTFOLIO OF AUSTRALIAN GRAPHITE PROJECTS


May 11, 2012 - Pinestar Gold Inc. (PNS - TSXV) (3PI - FSE) ("Pinestar" or the "Company") announces that following a fu
--->ll legal and geological due diligence review, it has determined that it will not proceed with the exercise of its opti
--->on (the "Option") to acquire a package of Australian graphite properties.  The Option was originally announced in Pine
--->star's news release dated March 1, 2012.  Pinestar will terminate the letter agreement with Zimtu Capital Corp. and St
--->rategic Resource Management Pty Ltd., and will not enter into a definitive agreement in respect of the Option.  

For more information, please visit the corporate website at http://www.pinestargold.com or contact Jeremy Ford, Presid
--->ent and CEO at Ph: 604.647.4487 Email: pinestargold@gmail.com

On behalf of the Board of Directors,
PINESTAR GOLD INC.

"Jeremy Ford"
Jeremy Ford President, CEO and Director Ph: 604.647.4487  Email: pinestargold@gmail.com Web: http://www.pinestargold.c
--->om

NEITHER 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 OR THIS RELEASE

FORWARD LOOKING STATEMENTS
This release contains "forward-looking statements" within the meaning of applicable Canadian securities legislation, i
--->ncluding predictions, projections and forecasts.  Forward-looking statements include, but are not limited to, statemen
--->ts that address activities, events or developments that the Company expects or anticipates will or may occur in the fu
--->ture, including such things as future exploration activities, future business strategy, competitive strengths, goals, 
--->expansion, growth of the Company's businesses, operations, plans and with respect to exploration results, the timing a
--->nd success of exploration activities generally, permitting time lines, government regulation of exploration and mining
---> operations, environmental risks, title disputes or claims, limitations on insurance coverage, timing and possible out
--->come of any pending litigation and timing and results of future resource estimates or future economic studies.

Often, but not always, forward-looking statements can be identified by the use of words such as "plans", "planning", "
--->planned", "expects" or "looking forward", "does not expect", "continues", "scheduled", "estimates", "forecasts", "inte
--->nds", "potential", "anticipates", "does not anticipate", or "belief", or describes a "goal", or variation of such word
--->s and phrases or state that certain actions, events or results "may", "could", "would", "might" or "will" be taken, oc
--->cur or be achieved.  

Forward-looking statements are based on a number of material factors and assumptions, including, the result of drillin
--->g and exploration activities, that contracted parties provide goods and/or services on the agreed timeframes, that equ
--->ipment necessary for exploration is available as scheduled and does not incur unforeseen break downs, that no labour s
--->hortages or delays are incurred, that plant and equipment function as specified, that no unusual geological or technic
--->al problems occur, and that laboratory and other related services are available and perform as contracted.  Forward-lo
--->oking statements involve known and unknown risks, future events, conditions, uncertainties and other factors which may
---> cause the actual results, performance or achievements to be materially different from any future results, prediction,
---> projection, forecast, performance or achievements expressed or implied by the forward-looking statements. Such factor
--->s include, among others, the interpretation and actual results of current exploration activities; changes in project p
--->arameters as plans continue to be refined; future prices of minerals; failure of equipment or processes to operate as 
--->anticipated; the failure of contracted parties to perform; labour disputes and other risks of the mining industry; del
--->ays in obtaining governmental approvals or financing or in the completion of exploration, as well as those factors dis
--->closed in the company's publicly filed documents. Although the Company has attempted to identify important factors tha
--->t could cause actual actions, events or results to differ materially from those described in forward-looking statement
--->s, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. T
--->here can be no assurance that forward-looking statements will prove to be accurate, as actual results and future event
--->s could differ materially from those anticipated in such statements. Accordingly, readers should not place undue relia
--->nce on forward-looking statements.   The Company does not assume the obligation to revise or update these forward-look
--->ing statements after the date of this document or to revise them to reflect the occurrence of future unanticipated eve
--->nts, except as may be required under applicable securities laws.