Mosquito Consolidated Gold Mines UraStar options Blackpoint Au-Ag Property in Nevada by 24hgold

News Release - Friday, July 15, 2011
UraStar options Blackpoint Au-Ag Property in Nevada

Vancouver, Canada, July 15, 2011. - Mosquito Consolidated Gold Mines Limited (TSX.V: MSQ; US OTC: MQCMF - "Mosquito" or the "Company") and UraStar Energy Inc. ("UraStar") (TSXV: URS) wish to announce that Urastar has signed a Letter of Intent ("LOI") to purchase a 100% interest in the BlackPoint gold-silver property located in the major Battle Mountain -Eureka Gold Trend of Nevada. The property consisting of 896 acres is located 7 kilometers north of the town of Eureka, Nevada. The area is surrounding Blackpoint has numerous Gold deposits with the Active Ruby Hill Gold Mine located to the southwest, and the historic Alligator Ridge Gold Mine to the east.

Pursuant to the LOI, UraStar can earn a 100% interest in Blackpoint by making the following payments consisting of cash and shares over a 5 year period:


Time	Cash (USD) Payments	Common Shares
On Signing LOI	$25,000.00	Nil
At Closing	$225,000	250,000 shares
Year 1 from Closing	$350,000	250,000 shares
Year 2 from Closing	$ 1,000,000	250,000 shares
Year 3 from Closing	$ 1,500,000	250,000 shares
Year 4 from Closing	$ 2,500,000	250,000 shares
Year 5 from Closing	$ 4,400,000	250,000 shares

TOTALS	$10,000,000 CASH PAYMENTS	1,500,000 SHARES

The property has a long history dating back to 1864. Available records indicate production between 1933 and 1941, from the near surface zones on the property, grading 400 gms Ag/ton to 3,700 gms Ag/T (12 to 108 ounces per ton) which was sent to a mill located at McGill, Nevada. More recent work in 1971 concentrated on surface sampling and several short drill holes looking at the continuity of the higher grade silver portions of the deposits. Table 1 lists some of the historic intersections from the 1971 drill program. These intersections are historic and the qualified person has been unable to fully verify the results and thus these results should not be relied upon.

Table 1: Historic Intersections from shallow Drilling at Blackpoint.

hole	hole	hole	zone	zone	zone	Ag	zone	zone	Ag grade
name	length	length	name	top	thickness	grade	top	thickness	gms/T
	feet	meters		feet	feet	oz/t	meters	meters	gms/T
Sl-2	112	34.14	Condor	28	84	1.83	8.53	25.60	62.74
SL-3	112	34.14	Condor	32	60	2.26	9.75	18.29	77.49
SL-7	84	25.60	Condor	28	27	6.64	8.53	8.23	227.66
SL-6	200	60.96	Condor	36	24	2.06	10.97	7.32	70.63
SL-17	88	26.82	Condor	0	52	2.04	0.00	15.85	69.94
SL-18	300	91.44	Condor	52	24	2.41	15.85	7.32	82.63
SL-22	120	36.58	Condor	44	16	1.22	13.41	4.88	41.83
ER-7	136	41.45	Eagle Ridge	12	74	2.13	3.66	22.56	73.03
ER-4	200	60.96	Eagle Ridge	44	84	1.34	13.41	25.60	45.94
ER-16	108	32.92	Eagle Ridge	40	24	1.14	12.19	7.32	39.09
ER-17	180	54.86	Eagle Ridge	64	18	1.40	19.51	5.49	48.00
TRENCH	20	6.10	Eagle Ridge	0	20	21.00	0.00	6.10	720.01
ER-9	136	41.45	Dot	80	20	11.53	24.38	6.10	395.32
ER-3	160	48.77	Dot	96	32	1.46	29.26	9.75	50.06
ER-11	100	30.48	Dot	24	76	4.04	7.32	23.16	138.52
TRENCH	50	15.24	Dot	0	50	7.10	0.00	15.24	243.43

No other assays are reported, although gold, copper, lead and zinc mineralization has been described.

Examination of the surface geology shows Blackpoint hosts a silica-sericite (or "low-sulfidation") epithermal silver-gold system with extensive silica-sericite alteration, high grade silver bearing veins, stockwork and breccia and scattered gold values. This style of mineralization is typical of that found at the active and historic mines in the area. The property is divided into two distinct halves by an east west orientated structure with the Condor zone in the north and the Eagle Ridge and Dot zones in the south. All the previous work was centered around the silver mineralization with no work done in looking for the gold bearing part of the system that may be located more towards the centre or at depth of the peripheral silver zones.

Geological work completed in 2007 by Mosquito Consolidated Gold Mines Ltd. determined that the property had not been properly explored. The presence of asymmetrical alteration zones, the large east-west orientated structure offsetting the mineralized zone and the presence of fall out breccias to the southwest, all indicate an unrecognized southwest plunge to the system. Additional detailed mapping confirmed a significant increase in the intensity and thickness of the silicification toward the central area. This resulted in the previous drill programs failing to explore the main exploration targets beneath the exposed silica breccia zone.

Urastar will begin an aggressive exploration program of detailed surface mapping, sampling and drilling to define and test these highly prospective, previously unexplored exploration targets, concentrating on finding the gold bearing portion of the system at depth, while continue to develop the near surface silver mineralization.

Mr. Shaun M. Dykes, M.Sc. (Eng), P.Geo., is a designated Qualified Person pursuant to National Instrument 43-101 and prepared the technical information contained in this news release.

On Behalf of the Board
MOSQUITO CONSOLIDATED GOLD MINES LTD.

Brian McClay
President

On Behalf of the Board
URASTAR ENERGY INC.

Thomas J. Kennedy
CEO

About Mosquito Consolidated Gold Mines Ltd.

Mosquito Consolidated Gold Mines Limited is a mining exploration and development company with a diverse portfolio of high potential precious and base metals projects, located in low political risk environments in North America. The Company's primary focus is developing its Idaho-based CuMo project, one of the world's largest molybdenum deposits. For more information about the company, please visit www.mosquitogold.com and www.cumoproject.com

About UraStar Energy Inc.

UraStar Energy Inc. is a mining exploration and development company focusing on gold exploration in Mexico's Sierra Madre gold belt targeting areas containing former producing properties. The Sierra Madre Gold Belt is one of the richest gold belts in the world hosting several world class mines and many major recent discoveries.. For more information, please visit www.urastarenergy.com

THIS NEWS RELEASE WAS PREPARED BY MANAGEMENT WHO TAKES FULL RESPONSIBILITY FOR ITS CONTENTS. THE TSX-VENTURE EXCHANGE DOES NOT ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.

This news release includes certain statements that express management's expectation or estimates of future performance and may be deemed "forward-looking statements". These forward-looking statements include plans, estimates, forecasts and statements as to management's expectations regarding the CuMo Project. These forward-looking statements involve assumptions, risks and uncertainties and actual results may vary materially. For these reasons shareholders should not place undue reliance on such forward-looking information.

United States residents are cautioned that some of the information that may be published by Mosquito may not be consistent with United States Securities and Exchange Commission disclosure rules and may be materially different from what the Company is permitted to disclose in the United States and therefore United States residents should not rely on such information.

Legends
	Production
	Mine development
	Discovery
	Exploration
	Past producer
On Google Earth, click on the button, to show property information, and access to project page or company page.