Desert Star Resources : Announces Drill Mobilization and Loan for Reclamation Bond

January 25, 2016

Desert Star Announces Drill Mobilization and Loan for Reclamation Bond

Vancouver, B.C., January 25, 2016.Desert Star Resources Ltd. (TSX-V: DSR) ('Desert Star' or the 'Company') announces that Desert Star and Major Drilling plan to mobilize a drill rig to the Copper King project on Wednesday, January 27th, with drilling to commence shortly thereafter.

In addition, Desert Star has arranged a loan of USD$200,000 from an arms' length party. The proceeds of the loan will be used to fund the reclamation bond required for drilling at its Copper King project. The loan bears interest at the rate of 10% per annum and has a maturity date of one year from the date of advance. The loan may be repaid earlier at the Company's discretion.

Subject to TSX Venture Exchange approval, the Company will issue 250,000 bonus shares to the lender at a deemed price of $0.15 per share in consideration for providing the loan. The bonus shares will be issued in accordance with the policies of the Exchange and will be subject to a hold period of four months and a day from issuance.

About Desert Star

Desert Star is a Vancouver-based mineral exploration company focused on the identification, acquisition and development of copper and gold projects located in top-tier mineral belts in the southwestern United States that contain significant historical production, existing mining infrastructure and an established mining culture.

Vince Sorace
President and CEO, Desert Star Resources Ltd.

For further information regarding Desert Star, please email [e-mail] 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 believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance, are subject to risks and uncertainties, and actual results or realities may differ materially from those in the forward-looking statements. Such material risks and uncertainties include, but are not limited to, Desert Star's ability to raise sufficient capital to fund its obligations under its property option agreements, to maintain its mineral tenures and concessions in good standing, to explore and develop its projects, to repay its debt and for general working capital purposes; changes in economic conditions or financial markets; the ability of Desert Star to obtain the necessary permits and consents required to explore, drill and develop the projects and if obtained, to obtain such permits and consents in a timely fashion relative to Desert Star's plans and business objectives for the projects; the general ability of Desert Star to drill test its projects and find mineral resources; if any mineral resources are discovered or acquired, the Company's ability to monetize any such mineral resources; and changes in environmental and other laws or regulations that could have an impact on the Company's operations. Forward-looking statements are based on the reasonable beliefs, estimates and opinions of Desert Star's management on the date the statements are made. Except as required by law, Desert Star undertakes no obligation to update these forward-looking statements in the event that management's beliefs, estimates or opinions, or other factors, should change.

You can view the Previous News item:December 29th, 2015, Desert Star Receives Approval to Drill Copper King Project in Arizona

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