Alberta Star to Raise Up to $9.25 Million in Brokered Private Placement.

VANCOUVER, British Columbia -- Alberta Star Development Corp. (the "Company") (TSX VENTURE:ASX)(OTCBB:ASXSF) is pleased to announce that it proposes to complete a brokered private placement of up to 5,000,000 units ("Units") of the Company at a subscription price of $1.85 per Unit, for gross proceeds of up to $9,250,000 (the "Offering"). Each Unit consists of one (1) common share ("Common Share") to be issued on a "flow through share" basis, in the share capital of the Company and one-half of one (1/2) common share purchase warrant ("Warrant"). Every whole (1) Warrant is exercisable into one (1) additional common share of the Company at an exercise price of $2.10 per share on or before eighteen (18) months after the closing date of the Offering.

The Company has retained Pacific International Securities Inc. to act as the agent (the "Agent") for the offering. The Company has granted the Agent an over allotment option exercisable at any time prior to the closing of the Offering to increase the size of the Offering by up to an additional 500,000 Units. The Agent will receive a commission of seven percent (7%) of the gross proceeds received by the Company payable in cash or, in whole or in part at the option of the Agent, in units of the Company. These commission units will have the same terms as the Units but shall be issued on a non-flow through basis. In addition, the Agent will receive Agent's options equal to eight percent (8%) of the number of Units sold pursuant to the Offering. Each Agent's option is exercisable into one (1) common share of the Company at an exercise price of $2.15 for 18 months from closing.

The flow-through proceeds raised in this Offering will be used for general exploration expenditures on the Company's Contact Lake property, which will constitute Canadian exploration expenses (as defined in the Income Tax Act) and will be renounced for the 2006 taxation year. The proposed issuance of Units is subject to completion of formal documentation and receipt of regulatory approval, including the conditional approval of the TSX Venture Exchange.

Alberta Star has recently completed and filed a comprehensive NI 43-101 report on the Contact Lake property with copper, gold, cobalt, silver and uranium mineralization identified in an iron oxide, copper, gold ("IOCG"), setting. The report can be viewed at www.sedar.com. The report was prepared in accordance with the guidelines of National Instrument 43-101 "Standards of Disclosure for Mineral Projects and is based on data and geological information gathered from public sources, assessment files, historical information, Federal government maps, reports and assessment files. The sources of information for the data presented in the report are believed to be reliable and accurate.

On behalf of the Board of Directors of

ALBERTA STAR DEVELOPMENT CORP.

Tim Coupland, President & CEO 

This news release does not constitute an offer to sell or a solicitation of an offer to sell any of the securities in the United States. The securities have not been and will not be registered under the United States Securities act of 1933, as amended (the "U.S. Securities Act") or any state securities laws and may not be offered or sold within the United States or to a U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.

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)