Press Release   

URASTAR GOLD CORP.
URS-TSX-VENTURE
Tel: 604-682-2928         WWW.URASTARGOLD .COM        FAX: 604-685-6905

URASTAR STARTS DRILLING GOLD PROPERTIES
IN MULATOS GOLD BELT

January 18th, 2012

January 18, 2011 – Vancouver, Canada (Marketwire) – Urastar Gold Corp (“Urastar”) (TSXV: URS) is pleased to announce that it is starting a drill program to test its two gold properties located in the Mulatos Gold Belt in Sonora State, Mexico. A total of 1500 m of reverse circulation drilling is planned for the Jabali and Juliana gold properties

El Jabali is a 70 hectare property located only 6 km from the Mulatos gold mine of Alamos Gold Inc. (see location map at www.Urastargold.com). This property covers the historic La Dura gold mine where gold mineralization of similar character to that at the Mulatos mine was previously mined on a small scale. An area of historic workings, geochemical anomalies and gold showings 1 kilometer in strike length has been defined. The initial holes will be drilled to test for extensions of the La Dura mine and other outcrops of gold mineralization in vuggy silica altered and brecciated rhyodacite.

The second property to be tested is Juliana, a 700 hectare property located near to Jabali and only 7 km west of the Mulatos gold mine of Alamos Gold Inc. (TSX:AGI)  The La Juliana property covers silicified vein breccias, with native gold filling late stage veinlets, within an area of anomalies and gold showings that is 2 kilometers in strike length. Juliana is currently being worked for free gold by local miners. The first holes will test for extensions of the gold mineralization currently being mined from shallow pits.

Dr. Matt Ball, Ph.D, P.Geo., is a the Qualified Person pursuant to National Instrument 43-101 who prepared the technical information contained in this news release.

About Urastar Gold Corp.

Urastar is currently drilling the BlackPoint gold-silver property in Nevada and will continue to focus its efforts on gold exploration in Mexico's Sierra Madre gold belt targeting areas that contained former producing properties. The Sierra Madre Gold Belt is one of the richest gold belts in the world hosting several world class mines and many major recent discoveries.

For further information, please visit contact:

Urastar Gold Corp.
Tom Kennedy, CEO
Tel: 604.682.2928

For further information, please visit www.firstcanadiancapital.com or contact:

Jason Monaco
First Canadian Capital Corp.
Tel: 1-866-580-8891
jmonaco@firstcanadiancapital.com

Bobby Mullins
First Canadian Capital Corp.
Tel: 1-866-580-8891
rmullins@firstcanadiancapital.com

THIS NEWS RELEASE WAS PREPARED BY MANAGEMENT WHO TAKES FULL RESPONSIBILITY FOR ITS CONTENTS. THE TSX-VENTURE EXCHANGE does not accept responsibility for the adequacy or accuracy of this release.

This news release includes certain statements that express management’s expectation or estimates of future performance and may be deemed “forward-looking statements”. These forward-looking statements include plans, estimates, forecasts and statements as to management’s expectations regarding the BlackPoint Project. These forward-looking statements involve assumptions, risks and uncertainties and actual results may vary materially. For these reasons shareholders should not place undue reliance on such forward-looking information.

United States residents are cautioned that some of the information that may be published by Urastar may not be consistent with United States Securities and Exchange Commission disclosure rules and may be materially different from what the Company is permitted to disclose in the United States and therefore United States residents should not rely on such information.