Mr. Dusan Berka reports

MEGASTAR DEVELOPMENT CLOSES $672,600 FINANCING

Megastar Development Corp. has closed on a financing in the amount of $672,600 by way of non-brokered private placement. Under the terms of the placement, Megastar has issued 11.21 million units at a price of six cents per unit. Each unit comprises one common share of the company and one non-transferable share purchase warrant. Each warrant will allow the holder the ability to purchase an additional common share of the company at a price of 10 cents. The warrants are good for a period of 24 months, however, should the common shares close at or above 20 cents for a period of 10 consecutive days, the company may accelerate the expiry date of the warrants to 30 days from such notice.

The proceeds of the financing will be used to advance exploration on multiple properties within the Oaxaca, Mexico, Au-Ag belt as optioned from Minera Zalamera SA de CV in an agreement reached in August of 2018 (see press release dated Aug. 9, 2018). David M. Jones, president of Minera Zalamera and member of the board of directors of Megastar, has 40 years experience in mineral exploration and a very successful record in Mexico, which includes the discovery of the Los Filos deposit (Leah Gold) and, most recently, the targeting that directly led to the discovery of Gold Resource Corp.'s Switchback mine. Exploration is focused on high-grade Au-Ag deposits similar to those of Fortuna Silver's San Jose mine, and Gold Resource's Arist-Switchback and Alta Gracia mines.

"With working capital now in place, we are very excited about the prospects of advancing preliminary work done on these properties," said Dusan Berka, Megastar's chief executive officer. "David recently returned from Mexico where he deployed a team of Oaxaca-savvy geologists with the goal of efficiently generating exploration targets for drill testing. Oaxaca has shown itself to be an area of interest and producing mines such as Fortuna Silver's San Jose mine and Gold Resources' Switchback mine are examples of the potential in the region." Mr. Berka concludes, "On behalf of the board of directors and the management, I'd like to express our sincere thanks to all our loyal shareholders and investors for their patience and continued support."

As part of the financing, insiders participated for $66,000 and included all members of the board. In connection with the closing, Megastar paid finders' fees of $33,600 and issued 560,000 non-transferable broker warrants. Each broker warrant entitles the holder to acquire one common share of Megastar at an exercise price of six cents for a period of 24 months from closing. The securities issued under the offering will be subject to a four-month-and-one-day hold period, expiring on Sept. 8, 2019. The offering remains subject to the final approval of the TSX Venture Exchange.

About Megastar Development Corp.

Megastar is an emerging resource company engaged in the evaluation, acquisition and exploration of mineral properties in Canada and Mexico. Megastar has an option to acquire 100-per-cent interest in three epithermal Au-Ag mineral properties in Oaxaca, Mexico.

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