Vancouver, B.C., February 22, 2013: Desert Star Resources (TSX-V: DSR) (“Desert Star” or the “Company”) is pleased to announce that it has entered into an option agreement (the “Option Agreement”), dated December 21, 2012, with an arms’ length party (the “Optionor”) to earn a 100% interest in the Callaghan gold project (the “Callaghan Project”), located north of Austin, Nevada, United States. The Company has expanded the Callaghan Project through additional staking, which was completed on February 21, 2013.

The Callaghan Project consists of 99 federal lode mining claims, and is situated on the eastern flank of the northern Toiyabe Range, Lander County, Nevada (Fig.1). It is located along a 100 kilometer trend of gold occurrences, deposits and mines that includes Round Mountain (14 Moz Au), and Northumberland (3 Moz Au), and is considered prospective for Carlin-type gold mineralization.

The Callaghan Project is located within an erosional window (“Callaghan Window”) that exposes highly prospective Lower Plate Paleozoic sedimentary rocks which have been strongly altered by gold, arsenic, antimony and mercury-bearing hydrothermal fluids. The Callaghan Project contains the Cottonwood Canyon gold zone where historic drilling suggests a mineral body consisting of several tens of thousands of ounces of gold @ 0.5 g/t Au, hosted in Upper Plate rocks. The Company is not treating the historical estimate as current mineral resources or mineral reserves as defined in sections 1.2 and 1.3 of NI43-101 and the historical estimate should not be relied upon.

Cottonwood Target Area

The Cottonwood Canyon area is the highest priority exploration target on the project and historic drilling has focused on gold mineralization hosted in Upper Plate rocks. The Desert Star Resources technical team believes that the Cottonwood gold mineralization may represent a leakage anomaly above a more significant target area located in favourable Lower Plate rocks at depth.

Rast Target

Although the Rast Target has been the focus of some historic drilling, the potential of this area remains largely untested. Drilling in the Rast area has demonstrated the presence of anomalous gold in addition to decalcification of carbonate host rocks. A 300 meter long, open-ended southeast-trending gold-arsenic-antimony soil anomaly is present to the east of the historic Rast mercury mine. In addition, Lower Plate rocks with intense alteration consistent with Carlin-type gold systems are present at surface approximately 800 meters to the northwest of the historic mine.

Exploration History

Since the mid-1970s, several exploration companies have drilled over 80 holes in the Rast-Cottonwood area. Kerr McGee drilled 37 holes in the Cottonwood area in the early 1980s and defined a significant gold zone. More recently (2010-2011), Miranda Gold and Kinross have conducted limited drill programs in the Cottonwood target area. The Rast target area includes a historic mercury mine, and approximately 35 holes have been drilled in this area since the 1980s. Various exploration campaigns have yielded surface mapping, rock sampling, airborne magnetics, gravity, and soil sampling datasets.

“The geology, geochemistry and alteration on the Callaghan Project are consistent with Carlin-type gold systems,” stated Desert Star President and CEO Vince Sorace. “We are looking forward to advancing the project to the drilling stage.”

Expected 2013 Exploration Program

Desert Star Resources intends to conduct a systematic exploration program on the Callaghan Project in 2013. The exploration program will include compilation of historic data, rock and soil sampling as well as field mapping in order to bring this project to the drill testing stage.

Terms of the Option Agreement

In accordance with the terms of the Option Agreement, the Company paid the Optionor $25,000 upon execution. In order to maintain the option, the Company will be required to pay an additional $450,000 to the Optionor, over a nine-year period. Once the Company exercises its option and acquires 100% of the property, the Optionor will receive a royalty of one percent of net smelter returns.

The Company can also exercise the option at any time during the option period and prior to commercial production by paying to the Optionor an amount equal to the greater of the price of 1,200 troy ounces of gold at the average price fixed by The London Gold Market Fixing Ltd. in US dollars during the period of 30 consecutive days ending on the day before the day on which the Company makes the payment to the Optionor or US$1,500,000, whichever is greater.

Qualified Person

Technical aspects of this news release have been reviewed and approved by Dr. Alan J. Wainwright, Ph.D., P.Geo., a consultant to Desert Star designated as a qualified person under National Instrument 43-101.


Figure 1. Location of the Callaghan Project, Central Nevada, United States.


About Desert Star Resources

Desert Star Resources is a Vancouver-based mineral exploration company focused on creating shareholder value through the identification, acquisition and development of world-class copper and gold projects in top-tier mineral belts, with excellent infrastructure and an established mining culture, located in the southwestern United States.

Vince Sorace
President and CEO, Desert Star ResourcesFor further information regarding Desert Star Resources, please email info@desertstar.ca or visit our website at www.desertstar.ca

Cautionary Note Regarding Forward-Looking Statements

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.


This news release contains certain statements that may be deemed “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 Desert Star Resources 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 or realities may differ materially from those in forward looking statements. Forward looking statements are based on the beliefs, estimates and opinions of Desert Star Resources’ management on the date the statements are made. Except as required by law, Desert Star Resources undertakes no obligation to update these forward-looking statements in the event that management’s beliefs, estimates or opinions, or other factors, should change.