Desert Star Announces Non-Brokered Private Placement, Corporate Update and Option Agreement with Southern Silver

Desert Star Resources (TSX VENTURE:DSR) ("Desert Star" or the "Company") is
pleased to announce that it will conduct a non-brokered private placement of up
to 8,333,333 units ("Units") of the Company at a price per Unit of $0.06 for
aggregate proceeds of up to $500,000. Each Unit will consist of one common share
in the capital of the Company and one transferable share purchase warrant, each
warrant entitling the holder to purchase one additional common share at a price
of $0.15 for two years from the closing of the offering.


Finder's fees in amounts yet to be determined may be paid to persons who
introduce the Company to investors. In accordance with applicable securities
legislation, all securities issued will be subject to a hold period of four
months and a day from the date of completion of the financing. The proceeds of
the private placement will be used by the Company for general corporate purposes
and to pay outstanding indebtedness.


Corporate Update

The Company announces that it has effected its previously announced
consolidation of its common shares on the basis of 2 old shares for 1 new share
and has changed its name to Desert Star Resources Ltd.


The Company also announces that it has entered into an option agreement (the
"Option Agreement") dated January 14, 2013 with Southern Silver Exploration
Corp. ("Southern Silver") to earn up to a 70% interest in Southern Silver's
copper and gold project (the "Oro Project"), located in southwestern New Mexico,
United States.


The Oro Project is located approximately 80 km southwest of the Silver City
porphyry copper district and lies within the prolific Laramide Porphyry Copper
Belt, which hosts the world class Tyrone (Freeport-McMoRan; 1,050 Mt @ 0.49%
Copper, 0.013% Molybdenum) and Resolution (Resolution Copper Mining; 1,624 Mt @
1.47% Copper, 0.037% Molybdenum) porphyry deposits.


In addition to bulk tonnage porphyry copper-molybdenum-gold potential, the Oro
Project claims also include the high-grade sediment-hosted Stock Pond gold
target. Reconnaissance rock sampling has been completed over a strike length of
140 meters at Stock Pond, yielding values up to 4.8 g/t gold. Gold
mineralization at Stock Pond is interpreted to be related to the main porphyry
center, located 4 kilometers to the southwest.


In accordance with the terms of the Option Agreement, the Company paid to
Southern Silver $75,000 upon execution. The Option Agreement provides that the
Company can earn an initial undivided 51% interest in the Oro Project by making
an additional cash payment of $150,000 by August 1, 2013 and, over a period of
42 months after approval of the Option Agreement by the TSX Venture Exchange
(the "Exchange"), incurring exploration expenditures aggregating $3 Million and
issuing an aggregate of 1,000,000 common shares of the Company to Southern
Silver. The Company also has the option to earn an additional 19% undivided
interest in the Oro Project by incurring a further $3 Million in exploration
expenditures and completing a Preliminary Economic Assessment, on or before the
date that is 66 months after Exchange approval . If Exchange approval is not
obtained by March 15, 2013, either party may terminate the Option Agreement, in
which case Southern Silver will refund the $75,000 paid by the Company on
execution of the Option Agreement.


Portions of the properties included in the Oro Project are subject to royalties
of either one or two percent of net smelter returns. In addition, the State
Leases included in the Oro Project provide for royalties of 5% on specified
special minerals (such as uranium, thorium, precious and semi-precious stones,
rare earth minerals, or minerals determined to be essential to the production of
fissionable materials) and 2% on other minerals (including gold and silver)
mined from the property subject to such State Leases.


Qualified Person

Technical aspects of this news release have been reviewed and approved by Dr.
Alan J. Wainwright, Ph.D., P.Geo., a consultant to the Company, designated as a
qualified person under National Instrument 43-101.


About Desert Star Resources

Desert Star Resources is a Vancouver-based mineral exploration company focused
on creating shareholder value through the identification, acquisition and
development of world-class copper and gold projects in top-tier mineral belts,
with excellent infrastructure and an established mining culture, located in the
southwestern United States.


Vince Sorace, President and CEO, Desert Star Resources

Cautionary Note Regarding Forward-Looking Statements

This news release contains certain statements that may be deemed
"forward-looking statements". Forward-looking statements are statements that are
not historical facts and are generally, but not always, identified by the words
"expects", "plans", "anticipates", "believes", "intends", "estimates",
"projects", "potential" and similar expressions, or that events or conditions
"will", "would", "may", "could" or "should" occur. Although Desert Star
Resources believes the expectations expressed in such forward-looking statements
are based on reasonable assumptions, such statements are not guarantees of
future performance and actual results or realities may differ materially from
those in forward-looking statements. Forward-looking statements are based on the
beliefs, estimates and opinions of Desert Star Resources' management on the date
the statements are made. Except as required by law, Desert Star Resources
undertakes no obligation to update these forward-looking statements in the event
that management's beliefs, estimates or opinions, or other factors, should
change.


FOR FURTHER INFORMATION PLEASE CONTACT: 
Desert Star Resources Ltd.
604-639-9052
604-647-6613 (FAX)
[e-mail]
www.desertstar.ca