Redstar Gold Corp. (TSX-V:RGC) (Redstar) and AngloGold Ashanti North America Inc. (AngloGold Ashanti) have signed a letter extending an agreement first announced January 13th, 2005 and then amended on June 23rd, 2005. The agreement has been extended to July, 2007. This agreement gives Redstar exclusive rights to AngloGold Ashanti's extensive Great Basin geological database. The database includes regional geological, geochemical and geophysical data as well as over 1200 prospect files covering Nevada and the adjoining states. In addition to the data AngloGold has provided technical assistance, particularly in geophysical interpretation and modeling.
Under the terms of this agreement, once Redstar has spent a total of $750,000 on any particular project, AngloGold Ashanti will have a one time right to back into the project for a 60% interest by spending $1,500,000 within three years. If AngloGold Ashanti elects to back in, Redstar is carried to a production decision. Once Redstar has spent a total of $3,000,000 on exploration within the Great Basin they will acquire a full copy of the database and the agreement will be terminated.
To date Redstar has acquired three projects in Nevada based on data within the AngloGold Ashanti database. All three projects have been optioned to Strategic Merchant Bancorp (SMB) with Redstar to act as operator. Aggressive exploration programs, including drilling, are planned for all three projects in 2006.
Redstar is continuing its search to acquire additional high quality projects in Nevada with a goal of adding several new projects in 2006.
Scott Weekes, President of Redstar states: "Redstar is extremely pleased with the progress we have made in Nevada. We are now able to demonstrate the potential within AngloGold Ashanti's Nevada database. In less than one year Redstar has been able to acquire three high quality gold projects in Nevada and we expect to continue to develop new projects at this pace. All of our Nevada projects will be drilled during the summer of 2006 making Redstar a significant player in Nevada exploration. With the work in Nevada and the planned drill program on our Red Lake project, 2006 will be the busiest exploration year ever for Redstar Gold Corp."
Redstar Gold Corp., based in Vancouver, British Columbia, is a gold exploration company with projects in Canada and Nevada. Further details of the Company can be found at www.redstargold.com.
On Behalf of the Board,
Redstar Gold Corp
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