Redstar Gold Corp. (the "Company") and AngloGold Ashanti North America Inc. ("AngloGold Ashanti") have agreed to amend their exploration partnership in Nevada announced January 13, 2005. The partnership will now include all of the Great Basin, including parts of California, Idaho, Utah, Wyoming and Arizona. The terms are subject to the completion of a formal agreement.
Under the initial agreement the Company has acquired exclusive rights to AngloGold Ashanti's entire Nevada database. This has now been amended to include all data within the Great Basin. This is a significant and logical expansion to the original agreement as the prospectivity of Nevada geology does not stop at the state boundaries but continues into the neighbouring states.
Under the terms of the amended agreement the Company will have exclusive rights to the entire AngloGold Ashanti Great Basin database for a period of 18 months in exchange for 175,000 shares of Redstar Gold Corp. AngloGold Ashanti will retain a back-in right on any property interest Redstar acquires in Nevada. Once Redstar has spent a total of $750,000 on any particular project AngloGold Ashanti will have the one time right to back into the project for a 60% interest by spending $1,500,000 within three years. The agreement is renewable on both parties consent for additional one-year terms. Once Redstar has spent $3,000,000 on exploration within the Great Basin they will acquire a full copy of the database and the agreement will be terminated.
Scott Weekes, president of Redstar states: "This amendment to our original partnership with AngloGold Ashanti will significantly help Redstar develop projects within the Great Basin. We believe the high quality of the database and the significant support from AngloGold Ashanti will enable the company to develop high quality projects within the Great Basin. "
The foregoing is subject to regulatory acceptance.
On Behalf of the Board,
REDSTAR GOLD CORP.
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