Desert Star Announces US$65 Million Precious Metals Purchase Agreement with Wheaton Precious Metals; Extends Agreement with Capstone

VANCOUVER, BRITISH COLUMBIA--(Marketwired - Aug. 10, 2017) - Desert Star Resources Ltd. (TSX VENTURE:DSR) ("Desert Star" or the "Company") is pleased to announce it has agreed to terms on a non-binding Early Deposit Precious Metals Purchase Agreement ("PMPA") with Wheaton Precious Metals Corp. (TSX:WPM) (NYSE:WPM) ("Wheaton") under which Wheaton will pay Desert Star cash consideration totaling US$65 million for up to 100% of the payable silver production and up to 100% of the payable gold production from the Company's Kutcho Cu-Zn-Ag-Au Project in northwest British Columbia. In addition, Wheaton will make ongoing production payments to Desert Star equal to 20% of the applicable spot prices of silver and gold delivered. An additional payment of up to US$20 million will be payable to Desert Star should the processing capacity increase to 4,500 tonnes per day ("tpd") or more within five years of attaining commercial production, compared with the 2,500 tpd operation contemplated in the 2017 Prefeasibility Study ("2017 PFS").