News & Updates

Petrostar Announces JV Agreement and $550,000 Private Placement

June 14, 2011 – Victoria, BC – Petrostar Petroleum Corp. (TSX-Venture: PEP; Frankfurt: LMQ; “Petrostar” or “the Company”) has arranged, subject to TSX Venture Exchange approval, a private placement of 3,928,572 units at $0.14 per unit for gross proceeds of $550,000 CAD (“the Offering”).  Each unit shall consist of one common share and a two-year common share purchase warrant. Each warrant shall entitle the holder thereof to purchase one additional common share for $0.16 in the first year and $0.18 in the second year.  Proceeds will be used for funding obligations under the newly created joint venture described below and for general working capital.

Petrostar has entered into a joint venture agreement (“the JV”) with Four Sands Petroleum Corp. (“Four Sands”), a privately held resource merchant and Investment Corporation that has extensive exploration and production experience among its principal shareholders.  The JV has been created to pursue oil and gas concessions throughout greater Europe and North America.  The JV interests are a 30% interest to Petrostar and a 70% interest to Four Sands.

Four Sands has been actively engaged in the process of acquiring and developing projects in Europe and North America, and the formation of the JV will ensure that the Company will be able to participate in new projects with minimal initial risk or development costs.  A principal term of the JV is mutual consent of the JV parties to proceed with any project.  Under the terms of the JV, Petrostar will make an initial contribution to the JV in the amount of $250,000 CAD and, upon acceptance of a project, an additional $1 million for development of such project.  Future contributions to the JV will be made by both parties on a pro rata basis.  Four Sands has agreed to locate places for the Offering described above in an amount not less than $250,000, which will cover the Company’s initial costs of participating in the JV.

“Forming a joint venture with the experienced and successful management team of Four Sands will allow Petrostar to be part of larger opportunities and growth potential with minimal downside risk.”

Bruce Scafe, President and CEO of Petrostar Petroleum Corp.

About Petrostar Petroleum Corp.

Petrostar is Canadian-based oil and gas exploration company trading as a Tier 2 company on the TSX Venture Exchange.  The long-term objective of management is to aggressively seek properties with high potential that can be advanced with minimum expenditures.  The policy of the Company is to lower shareholders’ risk exposure to various stages of exploration by entering into joint ventures with third parties or acquiring projects that the Company can operate as the sole owner-operator.

For further information contact Bruce Scafe, President at 1-877-737-8864.