Redstar Gold Corp.'s (TSX.V:RGC) ("Redstar") president Scott Weekes is pleased to report that Redstar has signed a Letter of Intent Agreement with Biron Bay Resources Limited ("Biron Bay") to acquire a 100% interest in 32 patented mineral claims comprising 748 hectares in Ball and Todd Townships in the west Red Lake area of Ontario. The property claims, collectively known as the Biron Bay properties (the "Properties"), are located between Redstar's Pipestone South and Pipestone North properties. As the properties are within the area of influence of the Rubicon - Redstar west Red Lake agreement, Rubicon Minerals Corp. may elect to include them within that agreement.
"We are extremely pleased with the acquisition", says Mr. Weekes. "Some of the mineral claims on the Biron Bay properties were staked as early as 1934. Previous work on the property during the 1950's identified several mineralized quartz veins along an 1,800 foot structure. This structure has a similar orientation to known mineralization to Redstar's 991 Showing on the Pipestone North claims and the historical Cole gold mine, located approximately 1.5 km to the east. We are excited to have the opportunity to apply modern day exploration techniques to this relatively under-explored property."
The Biron Bay property acquisition is a significant advancement in Redstar's land holdings in the west Red Lake area. The Biron Bay properties, along with Redstar's Wolf Bay and Pipestone East properties, will provide the focus for exploration crews during the 2003 field season.
To earn a 100% interest in the Biron Bay properties, Redstar must make total cash payments of $50,000 and share issuances of 100,000 common shares of Redstar to Biron Bay over a period of two years. Of this amount, $15,000 and 50,000 shares are due upon approval by the TSX Venture Exchange. Upon vesting, Redstar will grant a 1% Net Smelter Royalty ("NSR") to Biron Bay. Redstar may purchase back the 1% NSR at any time for $1,000,000.
The foregoing is subject to regulatory acceptance.
On behalf of the Board,
REDSTAR GOLD CORP.
The TSX Venture Exchange has not reviewed and does not accept the responsibility for the adequacy or the accuracy of this news release.