MEGASTAR IDENTIFIES MULTIPLE HIGH POTENTIAL EPITHERMAL TARGETS AT MAGDALENA PROJECT, MEXICO Property lies within the known Oaxaca Au-Ag epithermal trend

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

MEGASTAR IDENTIFIES MULTIPLE HIGH POTENTIAL EPITHERMAL TARGETS AT

MAGDALENA PROJECT, MEXICO

Property lies within the known Oaxaca Au-Ag epithermal trend

Vancouver, BC, Canada, December 5, 2019 – Megastar Development Corp. (“Megastar”,

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

exploration results from preliminary work at its Magdalena Project (the “Project”) have identified

characteristics of a significant epithermal system including gold mineralization locally exceeding

3.00 grams per tonne (g/t). The Project lies in the central portion of the Oaxaca Au -Ag

polymetallic epithermal belt in the Sierra Madre del Sur, Mexico, 20 kilometers east-northeast of

Gold Resource Corporation’s Arista-Switchback Mine, and 22 k ilometers south of the

Company’s Yautepec project (see news releases dated July 16, 2019 and August 22, 2019).

Exploration manager and Director David Jones states: “Our experienced and highly motivated

team has generated multiple high-potential epithermal targets in only two short months. We

have mapped a principal 300 by 285 meter area of surface gold mineralization defined by 58

samples above 0.20 g/t, which include two samples above 3.00 g/t gold, and 12 samples

above 1.00 g/t gold. This main zone, along with other prominent outliers, constitute easy-to-

access and drill-ready targets. We look forward to rapidly advancing and expanding the

potential of the Magdalena project.”

Over a period of two months’ field mapping and sampling, 277 rock chip samples were taken in

areas of extensive epithermal alteration along the eastern structural margin of a recently

identified Tertiary caldera. Epithermal alteration mineral s include clays, quartz

veining/silicification, oxidized sulfides, barite, and gypsum. Significant results are shown in the

following table:

Magdalena Project: Significant sample results (ALS Labs) from first two work periods (n=277)

Element Maximum

value(s)

Lithology of highest value Samples with

Significant values

Precious

metals

Au 3.16 and

3.12 g/t

Quartz veins 12 > 1.00 g/t

24 > 0.50 g/t

59 > 0.20 g/t

Ag 64.30 g/t Quartz vein 12 > 10.00 g/t

2

Base

metals

Cu 312 ppm

Rhyolite dome 11 > 50 ppm

Pb 1.27%

Quartz vein 13 > 1000 ppm

22 > 500 ppm

Zn 4520 ppm

Quartz veined rhyolite 3 > 1000 ppm

14 > 200 ppm

Mo 85.7 ppm

Veined rhyolite 18 > 20 ppm

Pathfinder

elements

As 5140 ppm

Quartz vein 14 > 1000 ppm

41 > 500 ppm

Ba 2850 ppm

Silicified vein breccia 6 > 2000 ppm

29 > 1000 ppm

Hg 12.0 ppm

Clay altered tuff 29 > 1.0 ppm

Sb 1135 ppm

Quartz veined tuff 7 > 100 ppm

15 > 50 ppm

Se 770 ppm

Brecciated quartz vein 26 > 50 ppm

Te 31.0 ppm

Silicified volcanic 38 > 1.0 ppm

Tl 3.38 ppm

Silicified rhyolite 34 > 1.0 ppm

Strong epithermal alteration is found along a minimum 1.7 km long E-W structural trend that

shows sheeted quartz vein sets and silicification in conjugate NNW to NNE-NE structural sets.

The setting is the eastern structural margin of a caldera where it intersects a prominent regional

E-W structural trend. Approximately 4,100 square meters of silicified bladed calcite textures

have been mapped within a larger area of strong and sheeted quartz veining. Both samples

above 3.00 g/t gold, all 12 samples above 1.00 g/t gold, and 54 of 59 samples above 0.20 g/t

gold lie within the larger quartz veined area of approximately 375 meters E-W by 190 meters N-

S. Mound-like silica forms within 250 meters of this area are interpreted as silicified hot spring

stromatolites (i.e. a paleosurface), suggesting that the entire vertical extent of the potential

bonanza grade mineralized system, if present, may be conserved at depth. The tabulated

results (above) indicate the system is strongly anomalous in precious metals, base metals, and

epithermal pathfinder elements. The lithologic, alteration, and geochemical character of the

system is similar to that of the nearby producing Arista -Switchback mines of Gold Resource

Corporation. The Magdalena Project presence has seen no significant historic exploration or

drilling.

Company President & CEO, Dušan Berka commented: “I am very pleased with the early

success of our continuing exploration efforts in Oaxaca. With excellent early exploration results

reported from our Yautepec Project in July and August 2019, the subsequent acquisition of the

Cerro Minas Property, and now excellent results from the Magdalena Project, all of which are

strategically located on the trend between two producing mines, we are continuing on our path

towards establishing a strong presence in this prolific region.”

The technical content of this news release has been reviewed and approved by Robert

Johansing, M.Sc., Economic Geologist, and a Qualified Person pursuant to National Instrument

43-101.

3

ABOUT MEGASTAR DEVELOPMENT CORP.

Megastar Development Corp. is an emerging resource company engaged in the evaluation,

acquisition and exploration of mineral properties in Mexico and Canada. Megastar has an option

to 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 di ffer materially from those indicated in the forward -looking

statements.