Desert Star Resources Ltd : Desert Star Closes $1,051,900 Private Placement and Extends Expiry Date of Certain Warrants

Jan 28, 2014

Desert Star Closes $1,051,900 Private Placement and Extends Expiry Date of Certain Warrants

Vancouver, B.C., January 28, 2014: Desert Star Resources Ltd. (TSX-V: DSR) ("Desert Star") is pleased to announce that, further to its news release dated December 16, 2013, it has closed a non-brokered private placement of 5,843,888 Units at a per Unit price of $0.18 for gross proceeds of $1,051,900. The offering was over-subscribed by 288,332 Units (or approximately $51,900). Each Unit is comprised of one Desert Star common share and one transferable share purchase warrant, with each warrant entitling the holder to purchase one additional common share at a per share price of $0.25 until July 28, 2015.

In satisfaction of finder's fees for having introduced Desert Star to certain subscribers under the private placement offering, Desert Star has issued to an arm's length party (the "Finder"), 548,788 Units (with a deemed value of $98,781.84 and having the same underlying securities as the Units issued to subscribers under the offering) and a finder's warrant entitling the Finder to purchase 548,788 common shares at a per share price of $0.25 until July 28, 2015.

Shares acquired by the subscribers and by the Finder are, and shares which may be acquired upon the exercise of the share purchase warrants and the finder's warrant will be, subject to a hold period until May 29, 2014, in accordance with applicable securities legislation. Funds raised by this private placement will be used by Desert Star for general corporate purposes.

Desert Star also announces that it has extended the expiry date of certain previously issued share purchase warrants from March 14, 2014 to September 14, 2015, having received TSX Venture Exchange approval to proceed with the amendment. The warrants, issued on March 14, 2012 in connection with a private placement, entitle the purchase (on a post-2:1 consolidated basis) of an aggregate 2,500,000 common shares of Desert Star at a per share price of $0.42.

About Desert Star Resources

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

For further information regarding Desert Star, please email [e-mail] or visit our website at www.desertstar.ca.

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 PRESS RELEASE, REQUIRED BY APPLICABLE CANADIAN LAWS, IS NOT FOR DISTRIBUTION TO U.S. NEWS SERVICES OR FOR DISSEMINATION IN THE UNITED STATES, AND DOES NOT CONSTITUTE AN OFFER TO SELL OR A SOLICITATION OF AN OFFER TO SELL ANY OF THE SECURITIES DESCRIBED HEREIN IN THE UNITED STATES. THESE SECURITIES HAVE NOT BEEN, AND WILL NOT BE, REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED, OR ANY STATE SECURITIES LAWS, AND MAY NOT BE OFFERED OR SOLD IN THE UNITED STATES OR TO U.S. PERSONS UNLESS REGISTERED OR EXEMPT THEREFROM.

Cautionary Note Regarding Forward-Looking Statements

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 and actual results or realities may differ materially from those in forward-looking statements. Such forward-looking statements are subject to risks and uncertainties, which could cause actual results to differ materially from estimated results, including the closing of the financing and receipt of any proceeds pursuant thereto. Forward-looking statements are based on the 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.