Termination of Planned Merger
Vancouver, B.C., Canada, January 12, 2010 – Gold Star Resources Corp (Gold Star), a Canadian exploration company focused on high-impact onshore opportunities in the petroleum systems of West Africa, announces the termination of its previously announced Letter of Intent with Lion Energy Corp (Lion) of Vancouver, British Columbia and Southern Star Energy Inc (Southern).
The directors of Gold Star have determined that the risk factors associated with the existing exploration commitments of Lion, , are not compatible with the strategic objectives and envisioned business model for the combined entities. Consequently, Gold Star has determined that it is in the best interests of the company’s shareholders not to extend the termination date of the Letter of Intent dated November 6, 2009 between Lion, Gold Star and Southern . The existing Letter of Intent expired by its own terms on December 31, 2009.
Gold Star will continue to explore domestic acquisition opportunities and African oil and gas concessions in keeping with its vision and plan for both North America and development in Africa.
On Behalf of the Board,
“Robert G. Dinning”
Robert Dinning, President and CEO
For further information, contact Robert Dinning, President and CEO of the Company at:
rdinning@goldstarresources.com Telephone: (604) 641-4450 Facsimile: (604) 669-9335
THE TSX VENTURE EXCHANGE HAS NOT REVIEWED AND DOES NOT ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.