Mr. Peter Kuhn reports

BLUE STAR GOLD ANNOUNCES CLOSING OF NON-BROKERED PRIVATE PLACEMENT OF CONVERTIBLE DEBENTURES

Blue Star Gold Corp. has closed its non-brokered private placement issuing a total of 4,100 units of the company at a price of $1,000 per unit raising total gross proceeds of $4.1-million. Each unit comprises 20,000 unsecured convertible debentures and 20,000 non-transferable common share purchase warrants of the company.

Each debenture has a maximum term of three years and will bear an annual simple interest rate of 7.5 per cent. During the first year of the term, the principal amount of each debenture may be converted by the holder, for no additional consideration, into common shares of the company at a conversion price of five cents per share and 10 cents per share during the second and third years of the term.

Each warrant entitles the holder to purchase one additional share at an exercise price of 7.5 cents per share until the expiry date of the term.

The company paid finder's fees of $32,500 and 650,000 shares at a deemed price of five cents per share to Teresa Schmid.

The company intends to use the proceeds from the private placement for the exploration and development of the company's mineral projects and for general working capital.

All securities issued are subject to a four-month hold period pursuant to securities laws in Canada. The private placement remains subject to the final approval of the TSX Venture Exchange.

Dr. Georg Pollert, a director of the company, subscribed for 3,175 units in the private placement. As a result, the private placement is a related party transaction (as defined under Multilateral Instrument 61-101 Protection of Minority Security Holders in Special Transactions). Such participation is exempt from the formal valuation and minority shareholder approval requirements of MI 61-101 as neither the fair market value of the units acquired by Dr. Pollert, nor the consideration for the units paid by Dr. Pollert, exceeds 25 per cent of the company's market capitalization.

About Blue Star Gold Corp.

Blue Star is a Vancouver-based gold and silver company focused on exploration and development within Nunavut, Canada. The company, through its subsidiary, Inukshuk Exploration Inc., owns the highly prospective 8,015 hectares Hood River gold concessions located contiguous with the Ulu mining lease.

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