KC.V · 2017-03-01 12:00:00

Desert Star Announces Closing of Private Placement of Units

Financings

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

TSX-V: DSR March 1, 2017

For Immediate Release

VANCOUVER, B.C. – March 1, 2017 – Desert Star Resources Ltd. (“ Desert Star” or the “Company”)

is pleased to announce that it has closed its non-brokered private placement of un its of the Company (the

“Private Placement”) for gross proceeds of $55,000 by the sale of 550,000 Units (each a “Unit”) at $0.10

per Unit. Each Unit consists of one common share of the Company and one transferable common share

purchase warrant (“Warrants”). Each Warrant is exercisable into one common share in the capital of the

Company (“Warrant Share”) for a period of 18 months from the date of issuance , at an exercise price of

$0.20 per Warrant Share.

An insider of the Company participated in the Priva te Placement and subscribed for 100,000 Units .

Participation of an insider of the Company in the Private Placement constitutes a “related party

transaction” as defined under Multilateral Instrument 61 -101 - Protection of Minority Security Holders in

Special Transactions (“MI 61-101”). The Company did not file a material change report 21 days prior to

the closing of the Private Placement as the details of the participation of insiders of the Co mpany had not

been confirmed at that time.

The proceeds of the Private Placement will be used for general working capital purposes. The Units and

underlying securities are subject to a four month hold period.

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.