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Desert STAR Resources Ltd. Announces Share Consolidation

Corporate Actions

40169|3217003_1|LSCHOOLEY

27/04/2017

DESERT STAR RESOURCES LTD.

717, 1030 West Georgia Street

Vancouver, British Columbia V6E 2Y3

Telephone: 604 639-9052

Fax: 604 628-1249

NEWS RELEASE

DESERT STAR RESOURCES LTD. ANNOUNCES SHARE CONSOLIDATION

Vancouver, BC, Canada – April 28, 2017 – Desert Sta r Resources Ltd. (TSXV: DSR) (the

"Company") announces that the TSX Venture Exchange has (the “Exchange”) approved a share

consolidation of the outstanding share capital of the Company (the "Consolidation") of the Company’s

common shares on the basis of two (2) pre-Consolidation common shares for one (1) post-Consolidation

common share.

The Consolidation will be effective at the open of the market on Monday, May 1, 2017 (the "Effective

Date"). The Company will not change its name as part of the Consolida tion, but will issue new share

certificates under a new CUSIP number, which is 25044W302. The Company's common shares will

continue to trade on the Exchange under its current symbol "DSR".

In connection with the Consolidation, the common shares issuable upon exercise of the Company’s share

purchase warrants exercisable at $0.50 per common share until July 5, 2017 (the “Warrants”), which are

listed for trading on the Exchange under the symbol DSR.WT, will be adjusted to provide that every two

Warrants will be exercisable to purchase one post -Consolidation common share at an aggregate exercise

price of $1.00. No fractional shares will be issued upon exercise of the Warrants.

The Company currently has 32,895,802 common shares and 11,374,952 Warrants issued and outstanding.

As at the Effective Date the Company will have approximately 16,447,901 post-Consolidated common

shares and 11,374,952 Warrants to purchase 5,687,476 post Consolidated common shares issued and

outstanding. No action is required to be t aken by security holders with respect to the Consolidation and

outstanding certificates representing the Company common shares and th e Warrants will not need to be

exchanged.

ON BEHALF OF THE BOARD OF DIRECTORS

OF DESERT STAR RESOURCES LTD.

"Vince Sorace"

President & CEO, Desert Star Resources Ltd.

NEITHER 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 NEW RELEASE MAY CONT AIN FORWARD -LOOKING STATEMENTS . THESE STATEMENTS ARE BASED ON CURRENT

EXPECTATIONS AND ASS UMPTIONS THAT ARE SU BJECT TO RISKS AND U NCERTAINTIES. ACTUAL RESULTS COULD DIFFER

MATERIALLY BECAUSE OF FACTORS DISCUSSED IN THE MANAGEMENT DI SCUSSION AND ANALYSIS S ECTION OF OUR INTERI M

AND MOST RECENT ANNU AL FINANCIAL STATEMENT OR OTHER REPORTS AND FILINGS WITH THE TSX VENTURE EXCHANGE

AND APPLICABLE CANADIAN SECURITIES REGULATIONS. WE DO NOT ASSUME ANY OBLIGATION TO UPDATE ANY FORWARD-

LOOKING STATEMENTS.