Alberta Star Purchases the North Contact Lake Iron Oxide, Copper, Gold, Silver and Uranium Claims in the Port Radium Uranium Belt.

VANCOUVER, British Columbia -- Tim Coupland, President and CEO of Alberta Star Development Corp. (TSX VENTURE:ASX)(OTCBB:ASXSF), listed on the TSX Venture Exchange (ASX) and on the OTCBB (ASXSF), is pleased to announce that the company has agreed to purchase a 100% interest in eleven mineral claims comprised of 6200.74 hectares (15,322.96 acres) called the North Contact Lake mineral properties located in the Northwest Territories, from three individuals.

PURCHASE AGREEMENT-NORTH CONTACT LAKE MINERAL CLAIMS

Alberta Star has agreed to purchase a 100% interest in eleven mineral claims, subject to a 2% net smelter returns royalty ("NSR"), by paying $75,000 and issuing 250,000 shares, conditional on TSX Venture Exchange acceptance for filing. Alberta Star may purchase one-half of the NSR for a one time payment of 1 million dollars.

THE NORTH CONTACT LAKE "IRON OXIDE COPPER/GOLD/SILVER AND URANIUM CLAIMS"

The North Contact Lake claim block consists of eleven contiguous claims located at Contact Lake on the east side of Great Bear Lake Northwest Territories and 423 miles north of the city of Yellowknife, and consists of 6200.74 hectares (15,322.26 acres). This acquisition increases the size of the Contact Lake project to 41,519.98 acres. This newest property acquisition is the northeastern extension of the Contact lake project and includes the Contact Lake-Echo Bay Stato-volcanic complex that has hundreds of known or recorded, copper, gold, silver, nickel cobalt, REE, and high grade uranium occurrences identified in Proterozoic rocks. The North Contact Lake claim- block and surrounding area covers extensive alteration zones including large intensely altered gossans that can be traced for over 1 kilometer in length and over 200 meters in width.

Alberta Star's President and CEO, Tim Coupland commented that, "Alberta Star is continuing to systematically increase its land ownership in this mineral rich region. Our geological team of experts has worked exhaustively identifying, reviewing and acquiring all properties with historical datasets and mine production records that are available for area. Alberta Star still remains the only mineral exploration company that has completed the rigorous permitting process that includes new strictly enforced environmental safety standards for diamond drilling in the Sahtu Land settlement region. Alberta Star completed and received its drill permitting approvals while simultaneously acquiring a large strategic land package of advanced stage poly-metallic uranium projects in one of Canada's historically important iron oxide, copper, gold, silver cobalt and uranium mineral districts prior to the rapid rise of base and precious metals and more specifically uranium metal prices. The current spot price for uranium is now $33.95 US.

This timing proved to be critical in providing Alberta Star with the competitive edge in acquiring its contiguous land package in this mineral rich region. Alberta Star is now, the first Canadian mineral exploration company in 75 years to successfully stake and control one entirely contiguous land package in this region for mineral exploration. Alberta Star's current property ownership now extends from north of Port Radium to the southern extension of Contact Lake. Alberta Star continues to aggressively identify and amass a significant inventory of large contiguous advanced stage previously explored and former past producing poly-metallic uranium properties with historical resources and uranium drill data and complete advanced stage datasets in Canada's Northwest Territories."

ALBERTA STAR DEVELOPMENT CORPORATION

Alberta Star is a Canadian mineral exploration company that identifies, acquires, finances advanced stage exploration projects in Canada. Alberta Star is focused in the discovery of base and precious metals and uranium.

ALLAN FELDMAN-INVESTOR RELATIONS

Investors are welcomed to contact Mr. Allan Feldman, Alberta Star's In-house Investor Relations and Corporate Communications Specialist, for all corporate updates at [phone].

ALBERTA STAR DEVELOPMENT CORP.

Tim Coupland, President & CEO

Dr. Hamid Mumim Ph.D., P.Eng. is the qualified person for the Contact Lake project.

This News Release includes certain "forward looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995. Without limitation, statements regarding potential mineralization and resources, exploration results, and future plans and objectives of the Company are forward looking statements that involve that involve various degrees of risk. The following are important factors that could cause Alberta Star's actual results to differ materially from those expressed or implied by such forward looking statements: changes in the world wide price of mineral commodities, general market conditions, risks inherent in mineral exploration, risks associated with development, construction and mining operations, the uncertainty of future profitability and the uncertainty of access to additional capital.

The TSX Venture Exchange does not accept responsibility for the ad equacy or accuracy of this News Release.

Alberta Star Development Corp. (TSX VENTURE:ASX) (OTC Bulletin Board:ASXSF)