Desert Star to Acquire the Kutcho High Grade Copper-Zinc-Silver-Gold Project from Capstone Mining and Announces Updated PFS Results; Post Tax C$265 Million NPV8% and 27.6% IRR

VANCOUVER, BRITISH COLUMBIA--(Marketwired - June 15, 2017) - Desert Star Resources Ltd. (TSX VENTURE:DSR) ("Desert Star" or the "Company") is pleased to announce it has signed a definitive agreement dated June 15, 2017 (the "Agreement") with Capstone Mining Corp. ("Capstone") to acquire 100% of the Kutcho high grade copper-zinc-gold-silver project ("Kutcho"). The consideration for the acquisition of Capstone's wholly-owned subsidiary Kutcho Copper Corp. (the "Acquisition"), which owns Kutcho includes C$28.8 million in cash plus such number of common shares in Desert Star, such that, subsequent to the completion of the Acquisition and any concurrent financing, Capstone will own 9.9% of the issued and outstanding shares of Desert Star.