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Redstar Gold Corp. (the "Company") announces that the private placement, previously announced February 23, 2005, has closed. The Company issued 3.0 million units at a price of $0.175 per unit to raise gross proceeds of $525,000.

Each Unit consists of one common share and one share purchase warrant exercisable for a period of two years from the date of closing. Each share purchase warrant is exercisable to purchase one common share at price of $0.25 in year one and $0.30 in year two. If the closing price of the Company's shares exceeds $0.35 in year one (after the expiry of all hold periods) or $0.45 in year two for 20 consecutive trading days, the share purchase warrants must be exercised within 30 days of notice thereof from the Company, or they will expire.

Quest Securities Corp. received 260,000 agent's warrants, where each warrant is exercisable for one share at a price of 25 cents per share in the first year and at a price of 30 cents per share in the second year. (The forced exercise provision does not apply.) Haywood Securities Inc. received 40,000 agent's warrants, where each warrant is exercisable for one share at a price of 25 cents per share in the first year and at a price of 30 cents per share in the second year. (The forced exercise provision does not apply.)

The net proceeds from the private placement will be used for generating projects from the Company's Nevada geological database, exploration on the Company's Red Lake properties, and working capital purposes.

On Behalf of the Board,
REDSTAR GOLD CORP.
"Paddy Nicol"
Paddy Nicol,
Director

The TSX Venture Exchange has not reviewed and does not accept the responsibility for the adequacy or the accuracy of this news release.

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