GLOBESTAR STATES CASH POSITION AND NO EXPOSURE TO
COMMERCIAL PAPER
Toronto, Ontario - August
17th, 2007. GlobeStar Mining Corp. (TSX-GMI) ("GlobeStar" or "the
Company") currently holds $39,211,289 in
cash and short-term investments of which
$33,324,324 (85%) is held in Royal Bank of Canada Guaranteed Investment
Certificates (GICs) and the remainder is in cash. Of these cash and short-term
investments, 21% are held is US dollars.
The Company holds no commercial
paper.
About
GlobeStar
The Company has taken a
conservative approach to its stewardship of cash during the construction period
of its flagship Cerro de Maim?n open pit copper/gold project. GlobeStar
announced yesterday an increase in the project's reserve tonnage of 82% and an
increase in pre-tax Net Present Value (8% discount rate) to US$ 172 million with
an internal rate of return of 58% (see press release of http://www.globestarmining.com/press/pdf/gmi126_2007aug16.pdf).
GlobeStar is a well-funded
minerals exploration and development company, developing the fully permitted
Cerro de Maim?n copper/gold project in the Dominican Republic. Production from this high-grade open pit
mine is currently expected in the summer of 2008. GlobeStar is aggressively exploring,
principally an extensive base and precious metals exploration portfolio in the
Dominican Republic with over C$4.0 million committed to exploration during 2007
and 2008. GlobeStar recently raised C$31.8 million in May 2007, C$ 30 million in
August 2006 and recently closed a US$45 million project financing for
development of Cerro de Maim?n. The Company currently has sufficient financial
and technical resources to fund mine development, exploration and acquisition
programs.
Contact:
GlobeStar Mining Corporation
William Fisher
or JP
Chauvin
CEO
President and COO
Email : wfisher@globestarmining.com
Email : jp.chauvin@globestarmining.com
Tel. : (416) 868-6678
Tel. : (416)
868-66
Bay
Street Connect
Coal Harbor Communications
Gus Garisto
Dale Paruk
Email: gus@baystreetconnect.com
Email: dale@coal-harbor.com
Tel. :
(416) 607 6023
Tel. : (604)
662-4505
Reader Advisory
The information in this news release may include certain
information and statements about management's view of future events,
expectations, plans and prospects that constitute forward-looking statements.
Assumptions that are subject to significant risks and uncertainties are the
basis for these statements. Because of these risks and uncertainties and, as a
result of a variety of factors, the actual results, expectations, achievements
or performance may differ materially from those anticipated and indicated by
these forward looking statements. Although GlobeStar believes that the
expectations reflected in forward looking statements are reasonable, we can give
no assurances that the expectations of any forward-looking statements will prove
to be correct. GlobeStar disclaims any intention, and assumes no obligation, to
update or revise any forward-looking statements to reflect actual results,
whether as a result of new information, future events, changes in assumptions,
changes in factors affecting such forward-looking statements or otherwise,
except as required pursuant to applicable securities
laws.