Alberta Star to Raise up to CDN $4.65 Million in Brokered Private Placement.

VANCOUVER, British Columbia -- Tim Coupland, President and CEO of Alberta Star Development Corp. (the "Company") (TSX VENTURE:ASX)(OTCBB:ASXSF), is pleased to announce that it has engaged Pacific International Securities Inc. (the "Agent") as lead agent for the private placement, on a best efforts basis, of up to 6.0 million non flow-through units (the "Common Share Units") of the Company at $0.40 per Common Share Unit and up to 5.0 million flow-through units (the "FT Units") of the Company at $0.45 per FT Unit, for gross proceeds of up to $4.65 million. In addition, the Company has granted the Agent an over allotment option exercisable at any time prior to closing to increase the size of the offering by 1.2 million Common Share Units and 1.0 million FT Units.

Each Common Share Unit shall consist of one non flow-through common share and one half of one transferable non-flow-through common share purchase warrant, with each whole such warrant exercisable into one additional common share of the Company for two years following closing at an exercise price of $0.65. Each FT Unit shall consist of one flow-through common share and one-half of one transferable non-flow-through common share purchase warrant, with each whole such warrant exercisable into one additional common share of the Company for two years following closing at an exercise price of $0.75.

The Agent will receive a cash commission of 8% of the gross proceeds raised in this offering, payable in cash or, in whole or in part, in Common Share Units of the Company. In addition, the Agent will receive compensation options equal in number to 8% of the aggregate number of Common Share Units and FT Units sold pursuant to the offering. Each such option will entitle the Agent to purchase, at an exercise price of $0.45, one common share and one half of one warrant, with each whole such warrant exercisable into one additional common share of the company for two years following closing at an exercise price of $0.75.

The proceeds from the offering will be used to finance ongoing exploration of the Company's projects, including exploration of the Company's Contact Lake property and for general working capital. 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 source information of data presented in this technical report is believed to be reliable and accurate.

The private placement is subject to TSX Venture Exchange acceptance for filing and required regulatory approvals.

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 accuracy of the content of this News Release.

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