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Megastar Development Furthers Work on Its Epithermal Au-Ag Projects in Oaxaca, Mexico

Corporate Updates

MEGASTAR DEVELOPMENT CORP.

#1450 - 789 W. Pender Street, Vancouver, BC, Canada V6C 1H2

Tel.: (604) 681-1568, Fax: (604) 681-8240

Toll Free: 1-877-377-6222

www.megastardevelopment.com

TSX-V: MDV Frankfurt: M5QN OTC: MSTXF

Megastar Development Furthers Work on Its Epithermal Au-Ag Projects in

Oaxaca, Mexico

Vancouver, BC, Canada, September 30, 2020 – Megastar Development Corp. (“Megastar”, or

the “Company”) (TSX-V: MDV; Frankfurt: M5QN; OTC: MSTXF) is pleased to report that

after limited access to its properties as a result of the Covid-19 pandemic, its geologic team is back

on the ground in Oaxaca following up on its encouraging initial exploration work since the

reopening of the region. As well, the team is exploring additional prospective areas in the

proximity on trend with the Company’s existing projects in the Oaxaca epithermal Au-Ag belt.

Preliminary work has revealed new areas of interest with favorable geologic features similar to

those seen at its principal projects and at producing mines along the trend. Geochemical samples

from these new areas have been collected and sent off for analysis.

“Our expansion into new areas has yielded several highly prospective geologic finds consistent

with those seen in producing mine regions elsewhere along the emerging Au-Ag mineral belt,”

said David Jones, Exploration Manager and Director of Megastar. “The systematic application of

our exploration model continues to expand target areas within our existing projects and has guided

us to previously unrecognized mineral districts with additional exploration potential.”

In tandem with community re-engagement at the Yautepec and Magdalena projects, Megastar has

taken the opportunity to expand ongoing exploration work to the southern portion of its Yautepec

project. Based on the Company’s caldera structural model, and supported by previously announced

results, Megastar had speculated on a potential southern extension to the known epithermal

system. Recent start-up field work has proven this concept correct with the discovery of highly

prospective ferruginous (iron-rich) carbonate sinters and fault-controlled quartz veining and

breccias in discontinuous erosional windows under post-mineral volcanic rocks over areas of

several hundreds of meters. Similar to the principal Yautepec sinter-vein complex (see prior NR's

dated July 16, 2019 and August 22, 2019), these new areas represent the uppermost levels of a

strong epithermal system with the potential for bonanza Au-Ag polymetallic grades fully preserved

at depth. These finds add to the already considerable targe t list for exploration drilling that

Megastar has assembled to date.

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ABOUT MEGASTAR DEVELOPMENT CORP.

Megastar Development Corp. is engaged in the evaluation, acquisition and exploration of mineral

properties in Mexico and Canada. Megastar has an option t o acquire 100% interest in three

epithermal Au-Ag mineral properties in Oaxaca, Mexico. Megastar also owns 100% interest in the

Ralleau, VMS/lode gold mineral property in Urban Barry District, Lebel-sur-Quévillon area of

Quebec, currently under 50% option to DeepRock Minerals Inc. (CSE: DEEP). For further

information, investors and shareholders are invited to visit the Company’s website at

www.megastardevelopment.com or call the office at 604-681-1568 or toll free at 1-877-377-6222.

ON BEHALF OF THE BOARD OF DIRECTORS,

” DUSAN BERKA”

Dusan Berka, P. Eng.

President & CEO

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 news

release.

Forward Looking Statements:

Statements included in this announcement, including statements concerning our plans, intentions and expectations,

which are not historical in nature are intended to be, and are hereby identified as, “forward-looking statements”.

Forward-looking statements may be identified by words including “anticipates”, “believes”, “intends”, “estimates”,

“expects” and similar expressions. The Company cautions readers that forward-looking statements, including without

limitation those relating to the Company’s future operations and business prospects, are subject to certain risks and

uncertainties that could cause actual results to differ materially from those i ndicated in the forward-looking

statements.