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Desert Star Announces $150,000 Loan

Financings Debt & Credit Facilities

Desert Star Resources |717– 1030 West Georgia Street |Vancouver, British Columbia |Canada| V6E 2Y3|Telephone: (604) 628-5623| Facsimile:

(604) 647-6613 |www.desertstar.ca

TSX-V: DSR January 26, 2017

For Immediate Release

Desert Star Announces $150,000 Loan

Vancouver, B.C., January 26, 2017 . Desert Star Resources Ltd. (TSX -V: DSR) (“Desert Star” or the

“Company”) announces that it has arranged a loan of $150,000 from an arm’s length party. The proceeds

of the loan will be used for general working capital. The loan bears interest at the rate of 10% per annum

and has a maturity date of 18 months from the date of advance.

Subject to TSX Venture Exchange (“TSXV”) approval, the Company will issue 225,000 bonus shares to

the lender at a deemed price of $0.105 per share, and 300,000 share purchase warrants exercisable for one

year at an exercise price of $0.20 per common share in consideration for providing the loan. The warrants

will be non-transferable. The bonus shares will be issued in accordance with the policies of the TSXV and

will be subject to a hold period of four months and a day from issuance.

On behalf of the Board of

DESERT STAR RESOURCES LTD.

“Vince Sorace”

Vince Sorace

President and CEO, Desert Star Resources Ltd.

For further information regarding Desert Star, please email [email protected] 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.