Redstar Gold Corp. (TSX.V:RGC) is pleased to announce that drilling at its Oasis project in Nevada has yielded extensive low-grade gold mineralization containing potential ore grades in widely spaced drill holes. Centerra (U.S.) Inc. (Centerra), a subsidiary of Centerra Gold Inc. (TSX: CG), has provided Redstar with a report summarizing the results of a 16-hole (4,843 metres) phase 1 drill program, completed in late 2010. The report indicates that eleven of the sixteen holes yielded intersections of gold mineralization. Highlights include hole 14 (96.1 metres of 0.26 g/t including 12.2 metres of 0.40 g/t), hole 15 (7.6 metres of 0.80 g/t and 10.7 metres of 0.63 g/t) and hole 10 (13.7 metres of 0.49 g/t including 3.0 metres of 1.06 g/t). The drilling program was conducted by Centerra, who can earn a 75% interest in the project by completing $4 million in work expenditures and paying $200,000 in cash to Redstar over five years.

Scott Weekes, President of Redstar stated: "We are encouraged by the results from this phase 1 drill program, as Redstar believes there is an extensive gold mineralized system at Oasis based on the program of widely spaced holes. The drilling covered a broad area of approximately 1 km in diameter with holes spaced about 275m apart on average and indicates the gold system extends beyond the area in several directions. Stronger mineralization is localized along the margins of the exposed gold system, possibly due to an unrecognized structural control. We look forward to exploration plans for Oasis from Centerra. We are also looking forward to drill results from current drilling on our Newman Todd gold project in Red Lake, Ontario."

The area of gold mineralization at Oasis is at least 700 metres in diameter and remains open in several directions, including at depth. Potentially ore-grade mineralized intervals are contained within extensive sections of anomalous gold. For example, hole 16 (T.D. 1,200 ft, 365.8 m) contains a combined 153.9m (505 feet) grading 0.181 g/t (0.1 g/t cutoff) that includes higher-grade intervals, e.g., 0.322 g/t over 15.2 metres (50 feet) (see table of results on the Company's web site www.redstargold.com). Fourteen of the 16 holes were collared within or adjacent to the known gold anomaly as defined by surface sampling and limited previous drilling. Gold correlates most strongly with Cu, Mo, Sn, and K, not with the typical "epithermal" element suite of As, Hg and Sb, and this supports the porphyry gold model for the mineralization as described in previous news releases. Preliminary analysis also indicates that copper increases with depth on the south side of the area tested in the drilling program, and this may be an important guide to the core of the porphyry gold system and additional gold mineralization.

Significant assay results from the drilling program as calculated by Redstar at cutoff grades ranging from 0.1 to 0.3 g/t gold are summarized below in Table 1; a complete assay composite table is available at http://www.redstargold.com/s/OasisProject.asp.

Centerra completed a preliminary test of amenability to cyanidation by submitting 102 samples for cyanide shake assays. Samples included both oxide and sulphide material and results indicate the material is potentially amenable to cyanidation with cyanide assays, when averaged by drill hole, between 53% and 94% of the corresponding fire assay values.

A detailed report from Centerra on all work completed on the project is expected before the end of Q1, 2011. This report will include detailed drill logs, geophysical results, surface geochemical results, geological mapping and alteration mineralogy studies. A more detailed discussion of these datasets will be released once Redstar has reviewed them.

Table 1. Drillhole Assay Summary

Dr. Jake Margolis, a qualified person as defined by National Instrument 43-101, has reviewed this news release. Dr. Margolis is the US Exploration Manager for Redstar Gold Corp.

On Behalf of the Board,
Redstar Gold Corp

"Scott Weekes"

Scott Weekes
President

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CORPORATE INQUIRIES
Redstar Gold Corp.
Tim Mikula, Investor Relations
Tel: 604.488.0051
tmikula@redstargold.com
www.redstargold.com

Forward-Looking Information This release includes certain statements that may be deemed "forward-looking statements". All statements in this release, other than statements of historical facts, that address events or developments that Redstar Gold Corporation (the "Company") expects to occur, are forward-looking statements. Forward-looking statements are statements that are not historical facts and are generally, but not always, identified by the words "expects", "plans", "anticipates", "believes", "intends", "estimates", "projects", "potential" and similar expressions, or that events or conditions "will", "would", "may", "could" or "should" occur. Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results may differ materially from those in the forward-looking statements. Factors that could cause the actual results to differ materially from those in forward-looking statements include market prices, exploitation and exploration successes, and continued availability of capital and financing, and general economic, market or business conditions. Investors are cautioned that any such statements are not guarantees of future performance and actual results or developments may differ materially from those projected in the forward-looking statements. Forward-looking statements are based on the beliefs, estimates and opinions of the Company's management on the date the statements are made. Except as required by applicable securities laws, the Company undertakes no obligation to update these forward-looking statements in the event that management's beliefs, estimates or opinions, or other factors, should change.