Star Resources Corp. Makes Announcement.

Business Editors

HOUSTON--(BUSINESS WIRE)--March 29, 2000

Star Resources Corp. wishes to announce the results of a ground-based magnetic survey of its diamondiferous lamproite properties in Pike County, Arkansas.

This survey was independently undertaken by Zonge Engineering and by Research Organization of Tucson, Arizona, from February 23 through March 10, 2000. The survey revealed the presence of a significant positive magnetic anomaly stretching continuously from NE-SW over a distance of approximately 2,500 feet, with a width ranging from 200 to 350 feet. The anomaly correlates at its northern and southern limits with the lamproite intrusions known as the American and Black Lick properties. These new data confirm that these localities lie at the extremities of a single large lamproite intrusion.

As the results of the magnetic survey indicated the presence of a large near-surface body of lamproite, the company has embarked upon a core drilling program to define the depth and geometry of this diamondiferous lamproite body. Subject to ongoing results, the drilling program is planned to consist of approximately 15 holes averaging 300 feet. The initial vertical hole drilled in the northern part of the anomaly, completed on March 20th, revealed approximately 220 vertical feet of olivine lamproite tuff and breccia overlain by approximately 70 feet of unconsolidated reworked regolith. The hole terminated in rocks of the DeQueen limestone, Delight sandstone and Pike gravel formations, indicating that this initial drill hole was located at the margins of the vent.

The confirmed presence of a substantial thickness of olivine lamproite tuff and breccia is believed by the company to be extremely significant with respect to the diamond potential of this deposit. This is because similar rocks host diamond deposits in the Argyle and Ellendale lamproites of Western Australia and the Mahjgawan lamproite of India. Significantly, phlogopite lamproite which has less-diamond potential was not present in this core sample.

The new magnetic and core-drilling data confirm that a lamproite deposit of significant tonnage lies beneath an unconsolidated regolith. The latter consists of resedimented Lower Cretaceous and Paleozoic formations together with volcanogenic lamproite clasts and blocks. Previous attempts by other companies to establish the diamond potential of this area have merely sampled this low grade secondary material and not the underlying in-situ primary source which lies in the undisturbed olivine lamproite pyroclastic rocks.

The top of the undisturbed American-Black Lick diamondiferous lamproite vent lies approximately 150 feet higher than the lamproite breccias of the nearby Crater of Diamonds and the vent is interpreted to have undergone significantly less erosion than the latter. The presence of large fragments of fossil wood in the American lamproite immediately below the reworked regolith indicates that the lamproite volcanism was subaerial and that all of the original near-surface rocks have not been removed by erosion. The preservation of rocks belonging to the initial stages of vent emplacement is favorable for the presence and preservation of diamond on the basis of the Ellendale model.

The company believes that this project has now entered an evaluation phase and should no longer be considered as an exploration prospect. It is known from bulk sampling on the American mine property in 1998 that diamonds are present in these lamproites and the objective of further work will be to determine the tonnage and grade of the material in the American-Black Lick vent system. In 1998 the company completed a 100 ton deep excavation sample, recovering 51 diamonds greater than 1mm in size with a total carat weight of 9.6, including two stones greater than one carat. Upon completion of the definition drilling a bulk sampling program will be initiated with the material being processed in the Company's on-site extraction plant.

Star Resources is a diversified diamond exploration company which is listed on the Toronto and Canadian Venture Exchanges under the trading symbol "SRR."

The Canadian Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this news release.