Goldstar Resources NL (ASX: GDR)

GOLDSTAR ACHIEVES SIGNIFICANT MILESTONE

WITH GRANT OF KEY MINING LICENCE AREA

STAGE 1 LICENCE AREA GRANTED COVERING PROPOSED SOUTHERN CROWN GOLD PROJECT

Emerging gold company, Goldstar Resources NL (ASX: GDR), has taken a major step forward in the development plans for its 100%-owned Walhalla Gold Field in Victoria with the granting of Mining Licence 5487. The Mining Licence, which has been granted by the Victorian Minister for Primary Industries, the Hon Peter Batchelor, covers the key deposits and infrastructure for the proposed Southern Crown Gold Project.

The grant of the initial Mining Licence will allow Goldstar to commence construction and development of the project, comprising both the Tubal Cain and Eureka Projects, once the current expanded Feasibility Study is completed.

Mining Licence 5487 encompasses both key dyke bulge gold deposits (Eureka and Tubal Cain) the proposed Southern Crown processing facility and one of the adit location options to access the Tubal Cain deposit.

Under the staged approval process agreed with DPI, Goldstar has also lodged two further Licence applications for areas surrounding the recently granted Mining Licence. These applications, once approved, will allow for the construction of a dry tailings storage facility, other mine infrastructure, an optional second portal at Tubal Cain, and potential resources external to that already identified at Tubal Cain and Eureka. The first of these two applications is expected to take up to 4-5 months to process.

Expanded Gold Strategy Gathers Momentum

The grant of Mining Licence 5487 represents a key step forward for the expanded gold development strategy paving the way for the Company to become a successful mid-tier gold producer in the medium term.

The Company further cemented this strategic approach with the announcement in May 2008 of a maiden JORC resource for Tubal Cain, comprising a total Indicated and Inferred Resource of 857,000 tonnes at 9.9g/t Au for 274,000 ounces. An initial Indicated and Inferred Resource has been estimated for the Eureka Deposit of 153,000 tonnes at 10.0g/t Au for 48,000 ounces.

Commenting on the announcement, Goldstar?s Chairman, Mr Gordon Hill, said: ?The grant of the Mining Licence represents another important step forward for the Company in its pathway to development of the Walhalla Gold Field.

?Our permitting and feasibility team has done an excellent job in securing the grant of the Mining Licence within such a short period of time,? Mr Hill said. ?I would also like to thank the Department of Primary Industries and the regulatory authorities in Victoria, who have been very supportive and proactive in working with us to advance the project towards production.?

- ENDS -

Released by:                                                                        For further information:

Nicholas Read                                                                     Mr Gordon Hill

Read Corporate                                                                   Chairman

Telephone: (+61-8) 9388 1474                                        Goldstar Resources NL

www.readcorporate.com.au                                              Telephone: (+61-8) 9321 1577

www.goldstarnl.com.au

Competent Person?s Statement

Technical information in this report is compiled by a Competent Person as defined in the Code being Mr Peter Ball (B.Sc MAusIMM) of Datageo Geological Consultant who holds the position of Technical Manager of the Goldstar Group. Mr Ball has sufficient experience in mineral resource estimation relevant to the style of mineralisation and type of deposit under consideration, and consents to the inclusion in the public release of the matters based on their information in the form and context in which it appears.

Forward-Looking Statements

This release may include forward-looking statements. These forward-looking statements are based on management?s expectations and beliefs concerning future events. Forward-looking statements are necessarily subject to risks, uncertainties and other factors, many of which are outside the control of Goldstar Resources NL that could cause actual results to differ materially from such statements. Goldstar makes no undertaking to subsequently update or revise the forward-looking statements made in this release to reflect events or circumstances after the date of this release.

READ CORPORATE
Public Relations Corporate Communications
T: (+61-8) 9388-1474 | F: (+61-8) 9388-1472 | E: info@readcorporate.com.au | Web: www.readcorporate.com.au 

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