Raystar Capital Ltd.: News Release

Raystar Capital Ltd. ("Company") (TSX VENTURE:RYA.H) is pleased to announce a
non-brokered private placement ("Private Placement") of 7,000,000 million units
("Units") at a price of $0.07 per Unit for gross proceeds of $490,000. Each Unit
will consist of one common share ("Share") and one common share purchase
warrant, each warrant entitling the holder to purchase a further Share at a
price of $0.15 per Share for a period of two years from closing of the Private
Placement. Following the Private Placement, the Company will have approximately
19,857,040 Shares issued and outstanding. Proceeds from the Private Placement
will be used for general working capital. There is no finder's fee associated
with the financing. The private placement is subject to acceptance for filing by
the TSX Venture Exchange. 


The Company's has granted 400,000 stock options to directors of the Company. The
stock options are for a period of five years and are exercisable at $0.10 per
Share.


RAYSTAR CAPITAL LTD.

Edward Farrauto, Chief Executive Officer