Proven and Probable Reserves Tonnage Increase by 82%, 36% Increase in Cu Production, 14% Decrease in Operating Costs to US$0.42/lb Cu
   

TORONTO, Ontario - August 16^th, 2007 -- GlobeStar Mining Corporation ("GlobeStar" or the "Company") (TSX: GMI) announced today that it has received and will file shortly an independent National Instrument 43-101 compliant technical report ("Technical Report") updating the mineral resource and reserve estimates for its wholly owned Cerro de Maim?n Project currently under construction. The Project, which is slated to commence operation in the summer of 2008, will initially produce copper concentrates from the sulphide flotation circuit and gold and silver as dor? from the oxide cyanidation circuit.  The Technical Report also details the Project's updated capital and operating cost estimates, as well as incorporating scope changes from the last Technical Report filed by the Company on September 19^th, 2006.

 "Recent drilling results, plus exceptional work by GlobeStar's development team and their consultants, has resulted in an increase in size, profitability and longevity of the Company's flagship project," commented Bill Fisher, GlobeStar's CEO, "The Company's value is underpinned by Cerro de Maim?n's independently prepared Technical Report, coupled with considerable upside potential from its aggressive nickel and copper/gold exploration programs."

The Technical Report was prepared for the Company by Micon International Limited ("Micon") in Toronto.  All currency amounts are in US dollars ("$") unless otherwise stated.

Highlights of the Technical Report

Highlights of this Technical Report are set out below. Data from the Project's earlier Technical Report dated September 19^th, 2006 are in brackets for comparison:

?         Proven and probable reserves have increased by 82% to 6 million tonnes (3.3 million)

?         Mine life increased by 34% to 9 years, spanning 10 calendar years at a higher annual throughput (6.7 years);

?         Pre-tax net present value at an 8% discount rate is projected at $172 million ($36 million) and after-tax net present value at the same discount rate is projected at $131 million ($23 million);

?         Internal rate of return (IRR), after-tax, is estimated at 58% (26%);

?         15 month capital pay-back (29 months);

?         Life-of-mine production is anticipated to total 229 million pounds of copper (169 million pounds) a 36% increase, 130,000 ounces of gold (83,000 ounces) a 57% increase and 4.1 million ounces of silver  (2.8 million ounces), a 46% increase;

?         Operating costs, including site costs, freight, and maintenance are expected to increase to an average of approximately $15 million per year ($11 million) due to higher production levels.  The total life-of-mine average cost of production for copper from the sulphide plant is expected to decrease by 14% to $0.42 per lb ($0.48 per pound), net of  by-product credits;

?         Total project capital expenditure over the life-of-mine is estimated to be $68.6 million ($47 million);and

?         Metal price assumptions used in the Technical Report were $2.45 per pound of copper ($1.15), $543 per ounce of gold ($392), and $10.00 per ounce of silver ($5.98).  On August 9, 2007, the Company announced that as part of its mandatory hedging program, it hedged 57,900 ounces of gold at $650 per ounce, and 1,440,000 ounces of silver at $11.50 per ounce. The gold price achieved is $107 per ounce higher and the silver price is $1.50 per ounce higher than the assumptions in the Technical Report's reserve and revenue calculations, a positive difference of US$ 8.36 million.

Project Summary

GlobeStar is currently developing its 100% owned Cerro de Maim?n project through its wholly-owned subsidiary, Corporaci?n Minera Dominicana ("CMD"). The project falls entirely within the Maim?n Mining Block ("Mining Block C1"), which was part of the Quisqueya No. 1 exploitation concession originally held by Falconbridge Dominicana C. por A. GlobeStar has acquired, through CMD, exclusive rights to explore and develop Mining Block C1 from Falconbridge Dominicana on March 1, 2002.  The project is located in the Dominican Republic approximately 75 kilometers northwest of the capital city of Santo Domingo. It is near the town of Maim?n in Monse?or Nouel Province.

All of the permits for construction and operation of the mine are in place, and the Company is fully financed through construction, having raised C$61.8 million equity and debt of US$45 million over the last 12 months (see recent release of August 9, 2007). Construction of the processing plants began in April 2007.  GlobeStar's current construction schedule received from the Company's engineers Met-Chem Canada Inc. ("MetChem") and construction manager, RSW International, Inc., (both companies located in Montreal) targets commissioning and start-up of the Project in the summer of 2008. 

Technical Report

Micon was retained to review, audit and take responsibility for an "in-house" mineral resource and updated mineral reserve estimate prepared for the Cerro de Maim?n Project.  Messrs. Paul Roos, PGeo., Harry Burgess, PEng., and Ian Ward, PEng. of Micon are the "Qualified Persons" responsible for the Technical Report prepared in accordance with National Instrument 43-101.  Mr. Roos was responsible for the resource estimation. Mr. Ward for the metallurgy, mill operating costs and capital costs sections, and Mr. Burgess was responsible for the mineral reserve estimates, mine operating costs, project capital costs, and financial sections of the Technical Report.

Production Plan

The sulphide mineral reserves have been increased to 4.8 million tonnes (previously 2.8 million tonnes), an increase of 71%. In addition, the oxide reserve has been increased to approximately 1.2 million tonnes (previously 0.6 million tonnes), an increase of 100%.  These changes result in an increase in mine life to 9 years, with the plant expansions detailed below. The annual throughput of the oxide circuit has been increased by 200 tonnes per day to 700 tonnes per day or 252,000 tonnes per year, a result of the oxide reserve increase. The oxide circuit is to be converted around year five to a second sulphide circuit once the oxide reserve is completely processed, increasing the annual sulphide milling rate by 44% from 1,300 tonnes per day or 468,000 tonnes per year to 1,875 tonnes per day or 675,000 tonnes per year.  

Estimated Mineral Reserves and Resources

The estimated mineral reserves and resources have been prepared in accordance with National Instrument 43-101 Standards and CIM definitions.

The mineral resource estimate was prepared using an electronic block model and MineSight? software.  The deposit consists of two parts, a Cu-Zn-Au-Ag bearing massive sulphide and an overlying Au-Ag bearing oxide deposit that formed by weathering of the massive sulphide. Data in sufficient quantities to model variograms were found in both domains; hence grade interpolation was performed by ordinary kriging as well as inverse distance weighting methods.  A summary of the mineral resource prepared by GlobeStar, and verified by Micon, is set out in Table 1 below. The estimate is as of June 30^th, 2007:

Table 1
Cerro de Maim?n Deposit Mineral Resource

Estimated mineral resources that are not mineral reserves do not have demonstrated economic viability.

Pit shells have been determined using the Lerchs-Grossmann algorithm, based on mining blocks, which include all mining and haulage costs for waste and all mining, processing, transport, off-site treatment and administration costs for ore. Typical pit rim costing is applied to determine the ore/waste split. Allowance for mining recovery and waste dilution is included in the resource estimation procedure. The combined oxide and sulphide mineral reserve tonnage, determined by the current mining planning, is 6 million tonnes, at a grade of 2.08% Cu, 34.56 g/t Ag and 1.13 g/t Au. The total waste to be removed is estimated at 46 million tonnes, rendering a strip ratio of approximately 7.7:1. The individual oxide and sulphide mineral reserves estimates are presented below in Table 2. The estimate is current as of June 30^th, 2007.

Table 2
Cerro de Maim?n Deposit Estimated Mineral Reserves

The mineral reserve estimates presented in Table 2 are included in the mineral resource estimates described above and presented in Table 1.

Metallurgical Recoveries

There have been no changes to the metallurgical recoveries previously determined for the Project.  Recoveries used in the Technical Report are summarized in the table below:

Table 3

Cerro de Maim?n Recoveries

The Project currently has no credit for zinc, which is treated as a penalty in the copper concentrates.  The Company is currently conducting a metallurgical test program at SGS Lakefield under the supervision of Micon to optimize revenues. The Proven and Probable reserves contain 160 million pounds of zinc in the sulphide portion.

Capital Costs Estimate

As part of the detailed engineering, the capital costs have been estimated by GlobeStar and Met-Chem, the Company's engineers, and were verified by Micon.  The capital costs are considered to be within an accuracy range of +/- 10%. To date, all of the major equipment has been ordered and the delivery incorporated into the Project schedule.  The estimated capital costs are summarized in Table 4 below.

The current capital costs estimate are higher than the September 19^th, 2006 Technical Report, but represent several significant scope changes as well as increased prices due to general cost escalation since the previous Technical Report. Significant scope changes include:

?         Installation of a 6.8 MW generating plant onsite to ensure a stable source of electricity from which to run the processing plants and related infrastructure;

?         A conventional and fixed crushing system as opposed to the previously scoped portable crushing system.  The conventional crushing system is intended to ensure increased operating time and lower overall operating costs due to lower maintenance costs;

?         Increase of oxide circuit throughput from 500 tonnes per day to 700 tonnes per day and subsequent conversion of the oxide circuit for sulphide processing, resulting in an increase of sulphide ore  throughput from 1,300 tonnes per day to 1,875 tonnes per day;

?         An increase in pre-production stripping of waste and overburden reflecting an increase in estimated mineral reserves;

?         Additional land purchases to accommodate a larger footprint of the operations;

?         Surface water collection pond sufficient to handle a 24 hour, 25 year storm event; and

?         Additional geotechnical and environmental studies to ensure an environmentally and technically sound project.

The following table summarizes the pre-production capital costs estimate.  Costs include direct and in-direct costs, owner's costs, as well as capitalized pre-stripping mining costs, taxes and duties, and a 10% contingency.

Table 4
CMD Capital Expenditures

($000s, Q1 2007 Value)

The sustaining estimated capital requirements, as estimated by GlobeStar are summarized in Table 5 below.

Table 5

Project Life-of-Mine Estimated Sustaining Capital Costs

(in $000s, Q1 2007 Value)

Operating Cost Estimates

Life-of-mine estimated operating costs were developed by GlobeStar, and verified by Micon, based on previously defined reagent consumptions modified to reflect current unit costs, onsite power generation costs, fuel costs, labor and burden costs, and contractor mining costs. GlobeStar received firm bids on all major costs and incorporated these figures in the engineering estimates.

The life-of-mine estimated operating costs are summarized in Table 6 below:

Table 6

Summary of Life-Of-Mine Estimated Unit Operating Costs

Notes:

*"Pre Exp" is when both the oxide and sulphide plants are operating at their designed tonnages.

**"Post Exp" is when the oxide plant is shut down and the sulphide plant is increased to 1,875 tonnes/day.

***Based on a stripping ratio of 7.7 to 1.0.

****F,S & R means Freight, Smelting & Refining costs.

Financial Analysis

The overall economic potential of the Project has been evaluated using conventional discounted cash flow techniques on a 100% equity basis. This procedure has been used for the purpose of estimating the financial returns expected to accrue to CMD as the owner of 100% of the mining, processing and concentrate transportation operations. Metal price assumptions used in the Technical Report were $2.45 per pound of copper, $543 per ounce of gold, and $10.00 per ounce of silver. 

The life-of-mine Project financial metrics based on the metal prices used in calculating the estimated mineral reserves are summarized in Table 7:

Table 7

Project Estimated Financial Metrics

Sensitivity Analysis

A sensitivity analysis was completed on key variables, including copper price, revenue, capital cost, and operating costs.  The results of this analysis are summarized in Table 8 and Figure 1 below:

Table 8
Before-Tax Sensitivity Analysis

Figure 1
Before-Tax Sensitivity Analysis

The Project's before-tax NPVs for various copper prices are summarized in Figure 2 below:

Figure 2
Before-Tax NPVs at Various Copper Prices

Project Risks

The Cerro de Maim?n Project has been drilled to such an extent that Micon considers the risk associated with any resource estimates to be low to moderately-low. Many programs to update and revise grade and tonnage estimates have been performed on the Project. 

The development of the Cerro de Maim?n Project is subject to a number of risks that could affect the successful completion and/or the financial performance relative to the results set out in the Technical Report and summarized in this release.  Some of these risks are common to all mining projects, including: changes in commodity prices, adverse changes in exchange rates and concentrate treatment costs, shortages of critical supplies, equipment, and qualified professionals, delays in construction due to weather or equipment deliveries and unforeseen mining or metallurgical difficulties.  With respect to the Project's development, GlobeStar has attempted to mitigate these risks to the extent possible by purchasing long lead-time equipment and second hand crushers and ball mills in advance, and having the project reviewed by outside engineers and consultants.

Technical Report

As required by National Instrument 43-101, GlobeStar will file the Technical Report on SEDAR shortly and it will be available at www.sedar.com and the Company's website at www.globestarmining.com .

Ian Ward, PEng., a Qualified Person as defined by NI 43-101, supervised the preparation and verified the technical information contained in this release.  This news release was prepared by GlobeStar under the supervision of Bill Fisher, PGeo. and A Eric Olson, MAusIMM, both Qualified Persons as defined by NI 43-101.

About GlobeStar

GlobeStar Mining Corp. is a well funded mine development company, developing the permitted Cerro de Maim?n copper/gold project, with commissioning and start-up currently expected in the summer of 2008. The Company is also aggressively exploring an extensive base and precious metals exploration portfolio in the Dominican Republic with a $4 million exploration budget for nickel and copper/gold exploration, including a 207-hole nickel drilling program.

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) 868-6678

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

Fax:  (604) 662-4547

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.