Blue Star Gold Corp. exercising option for 100% of Ulu gold project in Nunavut and announcing private placement with insider participation and related transactions

29 July 2019

Blue Star Gold Corp. is pleased to report it is exercising its option to acquire a 100% undivided interest in the Ulu Gold Property. To achieve this, Blue Star has amended its previous option agreement dated the 8th of January, 2018 with Mandalay Resources Corporation and the terms of the amended agreement may be summarized as follows:

Blue Star’s consideration to acquire 100% interest in the Ulu is:

To pay $450,000 in cash to Mandalay in lieu of issuing 15 million Blue Star common shares, with such payment being made upon the closing of the transfer of the Ulu and associated permits.

Assume all environmental liabilities, past and present, of the Ulu property, including all current and future obligations to any regulatory agency.

To arrange for a third party cash payment of $200,000 for the 5 million Blue Star common shares presently held by Mandalay upon the Closing of the property transfer.

Mandalay’s consideration is:

To transfer to Blue Star a 100% interest in the Ulu and associated permits upon regulatory approval of the transfers.

Assignment of its rights to the remediation security, currently standing at approximately $1.68 million and held by the Nunavut Water Board.

To transfer all right, title and interest in all structures, property and equipment located on the property.