LS Capital Enters Agreement to Acquire Mineral Lease Holding and Mineral Interests in Historic White Hills Mining District.

HOUSTON--(BUSINESS WIRE)--July 30, 1998--LS Capital Corporation (OTC BB: CHIP) announced today that it has entered into an agreement to acquire certain mineral lease holdings and mineral interests in the historic Mohave County mining district of White Hills, Arizona, formerly known as the Indian Secret Mining District of Silverado. Finalization of the agreement is subject to due diligence by the Company's geologists over the next 60 days.

LS Capital has agreed to acquire a mineral lease interest in a White Hills, Arizona property contiguous to the property where International STAR Resources, Inc. (OTC BB: ISRI) reported the physical recovery of precious metals from chain of custody ore samples on July 8, 1998 (see www.cyberhighway.net/star). AuRIC Metallurgical Laboratories of Salt Lake City, Utah, conducted a complete chain of custody assay test on a two ton sample of STAR's Arizona mineral property.

The two ton ore samples were extracted from a previously existing trench 1,000 yards long, 200 feet wide, and 40 feet deep and put into tamper-proof sealed containers. All test samples remained in these tamper-proof sealed containers under strict chain of custody at all times. A half ton of ore was then processed by a method of recovery known as vat leaching. This process will most likely be used for commercial development of the property.

When assayed and measured back to head ore, the half ton of ore produced a metal dore bar which revealed the following results: -0-

HEAD ORE RECOVERED BY AURIC FROM WHITE HILLS PROPERTY

Metals Recovered     Per 1,000 lbs head ore    Per short ton head ore

                      Troy oz.     Grams      Troy oz.     Grams

Gold                  0.406       12.628       0.812       25.256

Silver                0.712       22.146       1.424       44.291

Platinum              0.023        0.700       0.045        1.400

Palladium             0.009        0.280       0.018        0.560

-0-

The calculated head ore value per ton is approximately $270 per ton (using current metal prices).

AuRIC calculated the recovery costs at approximately $40 per processed ton. International STAR estimated that total production and recovery costs are approximately $75 per processed ton.

Ahmet B. Altinay, metallurgical engineer and general manager of AuRIC, said, "The STAR ore was processed using a simple conventional recovery process known as vat leaching which we believe represents a commercial recovery process for mineralization. Separation of the various precious metals is routine."

Terry K. Christopher, president of SWM Ventures, Inc., an LS Capital subsidiary, commented, "The initial chain of custody recovery results conducted by AuRIC for International STAR are very encouraging. The key here is a simple and conventional recovery process. We have already begun sampling and testing the Company's mineral interests and are extremely pleased to be operating in Mohave County, where mining has played an important role in the area's economy for well over a century."

Brief History of White Hills

In his book, White Hills, published in 1982, Mohave County historian Roman Malach explained that White Hills referred to a group of mines very rich in silver, especially horn silver, also known as chloride silver. The area was also known as the Indian Secret Mining District because it was rumored that Native Americans knew about the rich silver deposits for many years but kept it secret from settlers in the area.

According to Malach's book, R.G. Paterson, a resident of Mohave County discovered a mine in White Hills which produced mine assay results varying between 400 to 1,400 ounces per ton of silver and 2 to 8 ounces per ton of gold. Other sources have claimed that White Hills produced some of the finest ore ever mined in Arizona for nearly six years in the late 1800s through 27 miles of tunnels that honeycombed the property. The area's historic mining and exploration background is currently being reviewed by LS Capital's team of geologists and will be included in a future detailed geological report.

About LS Capital

LS Capital Corporation is a holding company with several subsidiaries. Griffin Gold Group, Shoshone Mining Co., and Escopeta Minerals, Inc. are currently working in conjunction with Desert Minerals, Inc. to develop a proprietary microfine precious metal extraction process applicable to their desert playa properties in southeastern California. Sam Houston Gold Corporation and Mohave Metals Corporation are currently exploring mineral interests in the White Hills of Mohave County, Arizona. SWM Ventures, Inc. is the consolidation of all research and development efforts in precious metal recovery on LS Capital's California, and Arizona desert playa properties.

Forward-looking statements in this release are made pursuant to the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. Investors are cautioned that such forward-looking statements involve risks and uncertainties, including, without limitation, commodity prices of precious metals, increased levels of competition for the Company, perfection of extraction technology, the Company's dependency upon third-party suppliers, intellectual property rights and other risks detailed from time to time in the Company's periodic reports filed with the Securities and Exchange Commission. The Company assumes no obligation to update the information in this release.

For further updates and a current corporate profile, see www.otcfn.com/chip or www.lscap.com.

    CONTACT: OTC Financial Network
              Mario Iacoviello
              [phone]/ [phone]
              [e-mail]

               or
              International STAR Resources, Inc.
              Kamal Alawas
              360-658-1845
               or
              LS Capital Corp.
              Paul Montle
              [phone]