INITIATING COVERAGE

August 6, 2012

Urastar Gold Corp.

TSX.V: URS OTCQX: URNRF

Frankfurt: 3U3

Analyst: Stephan Bogner (Dipl. Kfm)

In the Heart of Two Giants

The Battle: Why two major gold producers may bid for this gold explorer
Surrounded by two large gold producers, Urastar Gold Corp. owns the last properties within a special gold district in Mexico that are not controlled by major mining companies. The wellknown miners Agnico-Eagle and Alamos Gold have secured all properties around the Mulatos Gold Mine - solely Urastar is left operating prospective projects in that district and even in the heart of those two majors. How valuable properties near the Mulatos Mine can be demonstrated Grayd Resources in 2011 which company was taken over by Alamos for around $255 million thus paying more than $200 per ounce in the ground - a record price for this part of Mexico. Why this high price? Well, the Mulatos Mine is among the world`s gold mines with the highest profit margins. The production costs are below $400 per ounce, whereas the industry average is getting close to $1,000. Hence, a potential take-over or property acquisition may be around the corner, especially when considering the latest press-release dated August 3: Urastar is exploring strategic alternatives available to the Company, including a potential sale. The Board of Directors intends to consider the full range of available options. Also, the Company is pleased to announce that it has engaged the services of Dahlman Rose & Company, LLC of New York, as its exclusive financial advisor to assist in the evaluation of these options.
Type of Analysis: Recommendation: Price Target: Price Target in view of: Initiating Coverage Speculative Buy C$0.55 6 months Home Exchange: TSX Venture (Canada) Market Capitalization: C$13.8 million Current Price: C$0.40 (08/03/12) Difference to Price Target: +38%

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Analyst: Research Label:

August 6, 2012
Dipl. Kfm. Stephan Bogner Rockstone Research Ltd. Bro #504, 81 Oxford St. London W1D 2EU, England Phone: +44-20-8123-9832 info@rockstone-research.com www.rockstone-research.com

Urastar Gold Corp.

TSX.V: URS

OTCQX: URNRF
C$13.8 million 34.54 million

Frankfurt: 3U3

Market Capitalization: Shares (issued & outstanding):

Warrants (total outstanding): 20.9 million 8.250.000 @ C$0.10 until 11/02/13 12.707.400 @ C$0.75 until 03/11/16 Cash: approx. C$1.5 million Trading Volume (10 Day Average): 64,640 (08/03/12) Moving Averages (08/03/12) 21 Day @ C$0.32 50 Day @ C$0.27 200 Day @ C$0.32 Price Performance (08/03/12) 7 Day: +0.01 (+16%) 21 Day: +0.03 (+25%) 30 Day: +0.11 (+70%) 90 Day: +0.08 (+48%) 180 Day: +0.01 (-14%) 200 Day: +0.14 (+91%) Month to Date: +0.02 (+21%) Quarter to Date: +0.15 (+100%) Year to Date: +0.08 (+48%)

Analyzed Company:

Urastar Gold Corp. Suite 804 - 750 West Pender Street Vancouver, B.C. Canada V6C 2T7 Phone: +1.604.682.2928 Toll Free: +1.888.400.2928 Fax: +1.604.685-6905 info@urastargold.com www.urastargold.com CA91704D1096 Toronto Venture Exchange (Canada) URS Initiating Coverage 08/03/12 Speculative Buy C$0.55 6 Months C$0.40 (08/03/12) 38% C$0.57 / C$0.18

ISIN: Home Exchange: Symbol: Type of Analysis: Initiating Coverage: Recommendation: Price Target: Price Target in view of: Current Price: Difference to Price Target: 52 Week High / Low:

URS @ TSX.V (1 Year Linear in CAD)

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August 6, 2012

Urastar Gold Corp.

TSX.V: URS

OTCQX: URNRF

Frankfurt: 3U3

OTCQX (USA): Symbol: URNRF Current Price: $0.415 (08/06/12) Trading Volume (3 Month Average): 15,549 52 Week High / Low: $0.50/ $0.198

URNRF @ OTCQX (1 Year Linear in USD)

Frankfurt Exchange (Germany): Symbol: 3U3 WKN: A1JJ8S Current Price: 0.37 (08/06/12) 2012 High / Low: 0.45 (03/09/12) / 0.11 (06/27/12) Price Performance / Average Trading Volume per Day 1 Week: +42% / 37,896 4 Weeks: +123% / 30,347 52 Weeks : +56% / 3,052 3U3 @ Frankfurt (1 Year Linear in EUR) 90 Day MA (orange) Sources: www.urastargold.com www.alamosgold.com www.agnico-eagle.com www.newmont.com www.sedar.com www.tsx.com www.edgaronline.com www.vantagewire.com www.quotemedia.com www.canadianinsider.com www.otcmarkets.com www.deutsche-boerse.de www.consors.de www.onvista.de www.stockcharts.com www.googlemaps.com www.mininginvestor.net/company_profile/urastar-goldcorp-urs-v www.theaureport.com/pub/co/5276 www.flickr.com/photos/goiricelaya/3479125923/in/photostream www.navdat.org/coverages/geology www.unige.ch/sciences/terre/mineral/studchap/Activities/ fieldtrips/mex/MexicoFieldGuide09-UniGeneva.pdf Abbreviations: $ = U.S. Dollar = Euro @ = At % = Percent & = And > = Above; more than < = Below; less than Ag = Silver As = Arsenic Au = Gold Ba = Barium B.C. = British Columbia C$ = Canadian Dollar CAD = Canadian Dollar Corp. = Corporation Cu = Copper EUR = Euro g = Gram(s) ha = Hectares ISIN = International Securities Identification Number km = Kilometer Ltd. = Limited m = Meter(s) MA = Moving Average Mn = Manganese NO = North-East NSR = Net Smelter Royalty NW = North-West OTC = Over The Counter Exchange Pb = Lead RC = Reverse Circulation Sb = Antimony SE = South-East SW = South-West t = Ton(s) (metric) TSX.V = Toronto Venture Exchange US$ = U.S. Dollar USD = U.S. Dollar Oz = Troy Ounce(s) (31.1034768 g) WKN = Wertpapierkennnummer Zn = Zinc

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August 6, 2012

Urastar Gold Corp.

TSX.V: URS

OTCQX: URNRF

Frankfurt: 3U3

Evaluation & Prognosis

Vancouver-based Urastar Gold Corp. (URS) is a resource exploration company with 3 gold exploration projects (El Antiminio, El Jabali and La Juliana) in Mexicos Sierra Madre Gold Belt, which is one of the richest gold belts in the world with several major mines and discoveries within the last few years. Another asset is the Black Point property in the prolific Battle Mountain-Eureka District (Nevada, USA). All 4 properties have records of past production and are located in world-class mining camps. Formerly, URS was a capital pool company completing its qualifying transaction on June 30, 2009. After detailed review of all public available information, we rate the stock of Urastar Gold Corp. as undervalued. The reasons are simple. First of all, a management team was installed that is highly experienced in terms of Mexico. Chief geologist Bill Reed has more than 40 years of experience in the mining industry, especially Mexico, where he was cofounder and chief geologist of Paramount Gold & Silver Corp. (TSX, NYSE: PZG; market cap: C$360 million) today developing more than 7 million gold ounces equivalents. Prior to that, he was the chief geologist (Mexico) for Hecla Mining (NYSE: HL; market cap: $1.3 billion). Adrian Robertson (President & CEO of URS) is a professional engineer and worked, among others, for Vale and Teck. Hence, it does not surprise that such a Mexico-experienced management team has secured such prospective exploration properties in the prolific Sierra Madre Gold Belt. Notably, there exist market rumors that senior mining companies may have an interest in taking over URS or forming a joint-venture. The reader is cautioned that the exploration results of the company along with the respective analysis of the author are solely preliminary in nature (initiating coverage) and are not conclusive evidence of the likelihood of the occurrence of an economic/mineable deposit at this stage as further exploration is required by the company for a more in-depth interpretation by the analyst during the next months. However, the recent drilling success made by URS may already lead to a take-over or property acquisition by a senior mining company as the El Jabali and La Juliana properties are situated within mining claims of Alamos Gold Inc. (TSX: AGI; market cap.: C$1.9 billion) and Agnico Eagle Mines Ltd. (TSX: AEM; market cap.: C$7.4 billion). Furthermore, URS has a market value of solely C$14 million which may be considered a bargain by one (or both) of those neighbors entering the bidding that may have already started or may start in the near future as the latest press-release (08/03/12) has demonstrated as having engaged Dahlman Rose as exclusive financial consultant. Last year, Alamos took over Grayd Resources for around C$250 as also operating a prospective project close to the Mulatos Mine. The largest Mexican gold mine, La Herradura, is located only 50 km from the El Antimonio property and where gold is mined with an average mineralization of only 0.78 g/t gold (cut-off: 0.33 g/t). Thanks to the possibility of heap leaching, La Herradura is one of the most cost-effective and thus most profitable gold mines in the world. Close to La Herradura are 3 other gold mines that operate with average mineralizations of around 0.6 g/t. Since El Antimonio is located next to a highway and close to best mining infrastructure, the chances seem good that a cost-effective openpit operation may start here as well, especially when considering that the deposit is strongly oxidized making possible heap leaching. We set our price target for the next 6 months at a minimum of C$0.55 (+38%) thus giving the company a market cap of around C$20 million with 34.5 million shares issued and outstanding. Should the current drilling successes be even improved over the next weeks and months, a much higher market valuation is seen to be not unlikely, especially if market prices for gold and silver stabilize.

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August 6, 2012

Urastar Gold Corp.

TSX.V: URS

OTCQX: URNRF

Frankfurt: 3U3

The Gold Report Interview with Jay Taylor (7/18/12): There are four factors that lead me to consider Urastar Gold Corp. to be a very worthy speculation for investors who can afford to tie up capital for an undetermined length of time and who understand the risk/ reward tradeoff for junior exploration stocks. First, key personnel form the foundation for a strong management team. Secondly, I believe there is a fairly high likelihood that the companys Antimonio property in Mexico can host a near-surface, multimillion-ounce gold deposit. Thirdly, I believe that various people who informally stand behind this project have deep pockets and as such increase the probability that the lights will be kept on even if market conditions become even more strained. Lastly, the current market cap makes this a very low-cost speculation. . .the upside could be a factor of 10, 20, or 30 times the downside risk with exploration success and a turn in the markets. Its difficult to find better A-4 risk/reward opportunities than Urastar Gold at this time. Jay Taylor in Gold, Energy & Tech Stocks (6/29/12): Urastar Gold Corp. is in the midst of a 10,000-m drill program and results reported thus far have been very encouraging, given the fact that sub-1 g/t deposits can be highly profitable at this point in time, especially for projects like the El Antimonio that are located with good infrastructure and easy access. The potential for the El Antimonio property to become another multimillion-ounce deposit within the Mojave-Sonora megashear appears to be good, given the widespread, near-surface mineralization on this 12,500-ha property...the presence of extensive zones of alteration and fracturing, as well as mineralized
Disclaimer

veins over a large area, could provide the kind of massive tonnage that could make for a very profitable open-pit gold mine. Also, on a positive note, there is evidence that this deposit would be largely oxidized and thus most likely amenable to heap-leach extraction. Morning Coffee (6/14/12): Urastar Gold Corp. released results for its reverse-circulation drill program on the El Jabali property in Mexico, including several intercepts of near-surface, high-grade gold. The highlight holes include: LJB-1203, 59m grading 1.462 g/t Au from 7.667.1m, including 24m at 3.324 g/t Au from 13.738.1m and 112.8m grading 0.432 g/t Au and from 0112.8m; and LJB-12-04, 13.7m grading 1.173 g/t Au from 19.833.5m and 53.3m grading 0.396 g/t Au and from 4.657.9m. Jordan Roy-Byrne, The Daily Gold Premium (4/22/12): Urastar Gold Corp. is just getting things started, so expect to hear a lot more in the coming months. . .the backdrop is compelling; the company was founded by a group that has had previous success and has consistently been able to raise money. El Antimonio is located in a highly prospective area and region. . .obviously, the mineralization is there (old workings, extensive occurrences of oxidized rock); Urastar needs to discover the best areas and expand from there.

At the time of publication of this document or its content, the respective author holds shares of Urastar Gold Corp. and may sell them any time. without notice. The companies that are analyzed or mentioned here did not pay any monies or other tangible or intangible valuables (e.g. securities such as shares or stock-options) to Rockstone Research Ltd., the respective analyst or persons affiliated with Rockstone to conduct this content. All information that is provided just represents the opinion, thoughts & intuitions of the author & do NOT reflect an advise or any kind of consultation. The provided analysis of especially markets & companies are solely for the purpose of information & education in no way it is to be construed as a de facto buy-, hold- or sell-recommendation for any kinds of securities, physical goods or markets; hence the provided content does NOT represent an act of consultancy, advise or an offer to buy, hold or sell anything being mentioned here. Rockstone Research & the respective author can NOT provide any guarantee for the accuracy, completeness & currentness of data being provided & mentioned here; hence any kind of liability is excluded & impossible. Rockstone shall not be liable for any information contained in or activities conducted through the websites of any other companies which are hyperlinked by Rockstone. The author and/or Rockstone is not responsible & liable for any external links to websites that are published under the name of Rockstone, nor for any content that is published by Rockstone as it is evident that the content was not produced by Rockstone or its respective author but by external parties and/ or suppliers. The information in this document or website relating to securities & financial services has been reviewed exclusively as to compliance with the laws of the European Union. In other jurisdictions, the furnishing of any such information may be restricted by law. The information is not intended for persons or entities resident, located or registered in jurisdictions that restrict the distribution of such material. Consequently, the provided information does not constitute, and may not be used for the purposes of an offer or invitation to acquire or sell any securities to any person in any jurisdiction: (1) in which any such offer or invitation is not authorized; (2) in which Rockstone Research is not qualified to make such offer or invitation; or (3) in which it is unlawful to make any such offer or invitation. In particular, the provided information is not intended to & does not constitute an offer or invitation to acquire or sell securities to persons especially in the United Kingdom & within the territories of the United States of America. Accordingly, any offer from any such person will not be accepted. Anyone accessing this information from a jurisdiction in which any such restrictions apply should inform themselves about, and observe, such restrictions. The securities referred to on this website have not been & will not be registered under the United States Securities Act of 1933, as amended, and may not be offered or sold within the United States except pursuant to any exemption from, or within the framework of a transaction not subject to, the registration requirements of the Securities Act. Therefore, the securities listed in the following information may not be sold to U.S. nationals or otherwise be transferred to the United States unless the relevant transaction is not subject to registration requirements under U.S. law. Copyright Every content (not only texts but as well tables, graphics, pictures & charts) being provided here and/or published elsewhere or elsehow under the name Rockstone Research is copyrighted. However, this content is free to be published if solely the source www.rockstone-research.com is mentioned. Changing of the texts, charts, graphics or tables is NOT allowed without prior written permission by the author and/or Rockstone Research. We would welcome contacting us if or after you quoted or published content by Rockstone.

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August 6, 2012

Urastar Gold Corp.

TSX.V: URS

OTCQX: URNRF

Frankfurt: 3U3

EL JABILA & LA JULIANA

El Jabali and La Juliana are highly prospective gold exploration properties in the largest epithermal precious metals region of the world - the Sierra Madre Gold Belt. Over the last 400 years, some 40 million ounces of gold and 2 billion ounces of silver were mined in the Sierra Madre Occidental Range. Over the last few years, this district has become an area of global focus and immense opportunity in the search for new precious metal deposits. Both properties are located only approx. 7 km from Alamos Golds flagship Mulatos Mine which, in 2010, reported reserves of 2.4 million ounces gold (proven + probable) and is one of the lowest cost heap-leach gold mines in the world. Gold mineralization at El Jabali and La Juliana is similar to that found at the Mulatos Mine. El Jabali consists of a single exploration concession covering an area of approx. 70 ha, contains several past producing mines including La Dura and Zaragosa and is located only 2 km from La Juliana (704 ha), which is also optioned by URS and where small-scale surface mining took place in the past.

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August 6, 2012

Urastar Gold Corp.

TSX.V: URS

OTCQX: URNRF

Frankfurt: 3U3

Current Exploration
EL JABALI: Mapping and sampling work carried out in 2011 identified numerous targets in addition to the potential extension of the historic mineral zones of the La Dura Mine. Preliminary exploration by URS has returned values from trace to 30 g/t gold in grab samples. Native gold has also been identified in outcrop on the southern extension of the La Dura Mine Trend. URS completed an 805 m reverse circulation (RC) drill program in May 2012 with a total of 10 drill holes, 2 of which were abandoned and twinned in order to reach the target depth. The initial holes were drilled to test for extensions of mineralization to the north (north of the open-pit) and south on the El Jabali Mine Trend. While difficult ground conditions prevented half of the drill holes from reaching their target depth, only 2 of the 8 holes failed to intersect significant gold mineralization. On June 13, URS released assays (see table on next page with best holes). LA JULIANA: URS has reviewed the results of past work and has completed confirmation field work and construction of a geological model. An 850 m RC drill program was completed in early 2012 resulting in significant new gold intersections on the La Juliana deposit. This program focused on historic areas of gold production, interpreting historic drilling and vectoring in on possible mineralized conduits. New assay highlights include 6 m grading 1.9 g/t gold. Previous drill programs employed conventional RC and core drilling technics. These technics have proven to be ineffective for capturing the high grade gold mineralization in the Mulatos district. URS is employing modern centre-face sampling RC drilling at El Jabali and La Juliana. Centre face sample RC has been proven very effective in the Mulatos district by Agnico Eagle (formerly Grady) and Alamos Gold.

RC drilling on the La Juliana property

LA JULIANA: Modern exploration at the La Juliana property includes previous programs of mapping, soil and rock geochemistry, geophysics and drilling by Chesapeake Gold Corp. (2002-2003), Dasher Exploration Ltd. (20042005) and Pediment Exploration (2007). This work shows the presence of large areas of silica altered and brecciated rhyodacite with associated coincident gold, antimony and lead geochemical anomalies. Total drilling to date amounts to 3,668 m with 32 holes, of which 5 holes (515 m) were cored. The area of anomalies and gold showings is 2 km in strike length.

Past Exploration & Mining

EL JABALI: In 1994, Francisco Gold Corp. undertook a campaign of mapping, soil and rock geochemistry, geophysics, and drilling. This work shows the presence of large areas of silica altered and brecciated rhyodacite with associated coincident gold, antimony and lead geochemical anomalies. Drilling consisted of 1,218 m with 12 holes. The area of historic workings, anomalies and gold showings is 1 km in strike length.

History

EL JABALI:

El Jabali has produced gold from small scale operations since first being discovered by Jesuit priests in 1635. Between 1990-2003, the property changed hands a number of times. Previous owners included Kennecott and Placer Dome.

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August 6, 2012

Urastar Gold Corp.

TSX.V: URS

OTCQX: URNRF

Frankfurt: 3U3

www.rockstone-research.com

INITIATING COVERAGE

August 6, 2012

Urastar Gold Corp.

TSX.V: URS

OTCQX: URNRF

Frankfurt: 3U3

The historic mines on the La Juliana property are of significant interest for gold exploration. Historic small scale mining has occurred in several small open-pits which focused on high-grade native gold in the late stage silica veinlets, as well as bulk mining of the silicified rhyodacites in relation to local and regional fault systems. Modern exploration at the La Juliana prospect includes previous exploration programs of mapping, soil and rock geochemistry, geophysics, and drilling by Chesapeake Gold Corp. (2002-2003), Dasher Exploration Ltd. (2004-2005) and Pediment Exploration (2007). The Juliana property consists of 3 concessions and covers an area of approx. 704 hectares. An area of 300 hectares has been covered by detailed exploration including trenching, geological mapping, soil and rock geochemistry, IP/Resistivity geophysics and drilling.

Property Interests
EL JABALI: On November 18, 2010, the Company entered into a Letter of Intent to acquire a 100% interest in the El Jabali property. To earn its interest, URS is required to make cash payments of $2 million over a 5 year period as follows: $10,000 upon signing of the letter agreement; (paid) $40,000 upon the TSX-Venture Exchange approval, subsequently amended to December 31, 2011; (paid) $75,000 on November 30, 2011, subsequently amended to $50,000 (paid) plus 120,000 common shares due within 5 business days from the approval by TSX Venture Exchange. $75,000 on November 30, 2012 $150,000 on November 30, 2013 $200,000 on November 30, 2014 $1.45 million on November 30, 2015. The cash payments are subject to a 16% tax. The property is subject to a 3% NSR. URS has the right to purchase each 1% NSR for $1 million before November 30, 2015. LA JULIANA: URS has entered into an option agreement to acquire a 100% interest in the La Juliana property. To earn its interest, URS is required to make cash payments of $2 million over a 5 year period as follows: $30,000 upon signing of the letter of intent; (paid) $30,000 on January 14, 2012; (paid) $30,000 on July 14, 2012; (paid?) $30,000 on January 14, 2013 $30,000 on July 14, 2013 $100,000 on January 14, 2014

RC drilling on the La Juliana property

In 2003, Alamos and National Gold merged to form Alamos Gold Inc. (AGI). AGI, through its wholly owned Mexican subsidiary MON, owns 100% interest in the Salamandra property. The Salamandra property surrounds the El Jabali property, which in turn covers the La Dura satellite gold system. In total, Alamos Salamandra property consists of the Mulatos deposit (145,000160,000 oz gold production expected in 2011) and 8 satellite gold systems known as El Halcon, La Yaqui, Los Bajios, El Jaspe, La Dura (covered by the El Jabali property), Cerro Pelon, El Victor/San Carlos and El Carricito. Alamos continues to very successfully explore and develop these additional gold resources throughout these claims. The El Jabali property was acquired by lottery. An exploration program of rock chip sampling and limited drilling was done on the property prior to the lottery. Rock chip sample results from this program are significant with gold values ranging up to 28 g/t Au. LA JULIANA: Since colonial times, this area has been attractive for gold mineralization. Gold mineralization is hosted by all the sequences of volcanic and volcano-sedimentary rocks correlated with the Tarahumara Formation.

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$100,000 on July 14, 2014 $100,000 on January 14, 2015 $100,000 on July 14, 2015 $725,000 on January 14, 2016 $725,000 on July 14, 2016

August 6, 2012

Urastar Gold Corp.

TSX.V: URS

OTCQX: URNRF

Frankfurt: 3U3

The property is subject to a 2% NSR. URS has the right to purchase each 1% NSR for $1 million 5 years after signing.

Local & Regional Geology

EL JABALI: The property lies within the Sierra Madre Occidental Tertiary volcanic terrain and within the Mulatos Mining District, which is part of the Sierra Madre Gold Belt. Gold mineralization is hosted by fractured rhyodacites on the south side of a locally dominant rhyolite dome and is similar in habit to that found at the Mulatos Mine. Alteration assemblages at Mulatos are typical of high sulfidation deposits with zonation from distal propylitic alteration to illite to kaolinite to dickite/pyrophyllite to pervasive and vuggy silica alteration. Gold is predominantly hosted within silicic alteration. Gold mineralization controls are both structural and stratigraphic; structural zones control silica alteration and higher-grade gold concentrations, and secondary stratigraphic control is along flow boundaries and within coarse grained volcaniclastic fragmental units. The El Jabali property covers a massive, cliff-forming, silica-hematite altered rhyolite. Massive to banded rhyolite is exposed in the area of mineralization, on cliffs to the east of the claim and extending north and south of the claim. The La Dura (Jabali) hydrothermal system is contiguous with another prospect to the south that is described in the Alamos 2003 Annual Report as Los Bajios. The La Dura satellite gold system is covered by the Jabali claim. In other words, the Jabali project is actually a part of Alamos La Dura prospect, which was described in their 2003 Annual report as follows: The La Dura prospect contains a large area of intense silicic alteration of over 3.5 kilometres in length with several historic gold workings. A core concession is not controlled by Alamos. (The core concession is the Jabali project).

District airborne resistivity response. Silicified areas show up as highly resistive anomalies, shown in red. (La Dura / El Jabali indicated by gold star.) All known gold and gold-copper occurrences are associated with resistivity anomalies. (2003 Alamos Annual report) The Los Bajios area may be the central part of one large, regional hydrothermal system, with Halcon located in the western portion, La Dura to the north, and La Yaqui on the south as lateral, distal equivalents. The size of the airborne resistivity anomalies and extent of alteration indicates potential for at least one Mulatos-size deposit within the zone. LA JULIANA: The La Juliana claim lies within the Sierra Madre volcanic province. It covers historic mine workings of interest for gold exploration. Mineralized structures at the La Juliana pit are exposed and consist of silicified vein breccias with abundant iron oxide (hematite) and with native gold filling late stage veinlets in the breccias. Stratigraphic rock units that outcrop in the region range from Cretaceous to Quaternary in age and include sedimentary, volcano-sedimentary and volcanic sequences with intrusive bodies of granodioritic composition and rhyolite emplaced during the Oligocene. Extensive hydrothermal alteration zones and gold mineralization in the area is associated with the youngest intrusive bodies. These strata overlie the northern edge of the Cortez basement terrane. Structurally, the area is affected by 2 major fault systems: an older NWSE direction and a younger NE-SW direction. In general, the faults can be attributed to tectonic basin and range extension. Curvilinear features often reflect intrusions emplaced during the laramide orogeny. La Julianna hosts large areas of silica altered and brecciated rhyodacite with associated coincident gold, antimony and lead geochemical anomalies in both sill and fault bound environments. Silica alteration

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Urastar Gold Corp.

TSX.V: URS

OTCQX: URNRF

Frankfurt: 3U3

may be vuggy, granular or patchy in texture and is associated with illite, dickite and alunite. Gold-rich zones are closely associated with hematitic silica breccias developed along faults oriented.

Mineralization
Mineralization on the El Jabali property is associated with iron-stained outcrops of silicified volcanic rocks. Mineralized areas are distinguished by yellowish limonitejarosite or blood-red hematite staining, vuggy silica or grey silicification and zones of crackle breccia. Above: Cliff forming rhyolite on the El Jabali property. The view to the northeast at mid-cliff level shows strong blood red hematite stain. Alteration and gold occurrences: The main mineralized zone is marked by a glory hole that exposes highly fractured and jarosite-stained silicified and brecciated rhyolite. An adit located just south and downhill from the glory hole leads to a honeycomb of old underground mine workings. Several fault and fault breccia structures are evident in the underground exposures. Gold was observed by URS geologists during the site examination just west of the old mine. The gold is very fine and occurs on fractures in a vuggy silica altered rhyolite. There are also physical remains of a crude slucing operation which indicates that free gold is present.

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August 6, 2012

Urastar Gold Corp.

TSX.V: URS

OTCQX: URNRF

Frankfurt: 3U3

The following text and pictures are taken from the website of Alamos Gold Corp. (www.alamosgold.com) and give an overview of their flagship property Mulatos: Alamos owns and operates the Mulatos Mine, which is located in the Sierra Madre Occidental mountain range in the east-central portion of the State of Sonora, Mexico. The mine is approximately 220 km by air east of the City of Hermosillo, and 300 km south of the border between the USA and Mexico. The Salamandra group of concessions covers an area of more than 30,000 hectares, which contains the Mulatos Deposit plus several significant satellite gold systems, including Puerto del Aire, El Halcon, La Yaqui, Los Bajios, Cerro Pelon, El Victor, San Carlos, El Carricito, and El Realito. An advanced exploration program to develop additional mineral resources for inclusion into an expanded Mulatos Pit is ongoing. In addition to increasing resources near current mining operations, Alamos has a regional exploration program that is focused on other targets within the Mulatos District.

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Urastar Gold Corp.

TSX.V: URS

OTCQX: URNRF

Frankfurt: 3U3

The Mulatos Mine operates 365 days a year and produces gold on-site as dore containing approx. 60 to 80% gold by weight, which is sent to a refinery for final processing prior to sale. Construction of the mine began in the third quarter of 2004, and the mine was completed in January 2006 at a cost of approx. $74 million. Commercial production was declared on April 1, 2006. Although the 2004 Feasibility Study called for only a 10,000-tonnes-perday ore crushing operation, Alamos sized the major components of the Mulatos Mine, including the crusher, conveyor, and gold recovery plant, to handle a mining and processing operation with a capacity of up to 15,000 tonnes per day. In 2005, an expansion budget of $20 million was approved to increase the scale of mining operations from the 2004 Feasibility Study level of 10,000 tonnes of ore per day. At the start of 2010, Alamos commissioned a closed circuit crushing system designed to improve the size consistency of stacked ore. In October 2010, the company added a scalping screen plant to the crushing circuit designed to increase throughput. Actual average daily crusher throughput for 2010 was 13,000 tonnes per day. Based on current proven and probable mineral reserves and current throughput rates, Mulatos has an expected mine life of approx. nine years. Initial capital costs incurred to construct the mine have been recovered, however, the company is investing further in its current heap

leach operations to improve recoveries and throughput, and in a planned mill expansion in order to increase global production. In 2011, the company started to construct a gravity mill in order to increase global production. The mill has been designed to process high-grade ores, such as those found within the Escondida zone. In the year-ended December 31, 2010, the company produced 156,000 ounces of gold at a cash operating cost of $302 per ounce. In 2011, the Company is forecasting gold production of 145,000 to 160,000 ounces from the Mulatos Mine at a cash operating cost of $365 to $390 per ounce of gold sold, which is exclusive of the 5% royalty. Inclusive of the 5% royalty and assuming an average realized gold price of $1,500 per ounce, this would equate to a total cash cost range of $440 to $465 per ounce of gold sold. The Mulatos Deposit is part of an epithermal, high-sulphidation, disseminated gold system, hosted within an Oligocene rhyodacite flow dome and breccia complex. It is associated with a large hydrothermal alteration zone that covers more than 10 square kilometres. Gold mineralization is closely associated with silicic and advanced argillic alteration occurring near the upper contact of a rhyodacite porphyry and in overlying dacite flows and volcaniclastic rocks.

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Urastar Gold Corp.

TSX.V: URS

OTCQX: URNRF

Frankfurt: 3U3

2012 Production Guidance The Company is forecasting strong production growth in 2012, between 200,000 and 220,000 ounces of gold at a cash operating cost of $365 to $390 per ounce of gold sold, exclusive of a 5% royalty. Including the 5% royalty and assuming a $1,600 gold price, this equates to a total cash cost range of $445 to $470 per ounce of gold sold.

The Company expects gold produced from the gravity mill, which will process high-grade ore from Escondida, will add a minimum of 67,000 ounces of production in 2012 at a grade of 13.4 g/t Au. Based on bulk sample testing conducted in 2007, the Company believes that there is the potential for higher production from the gravity mill as a result of realizing positive grade reconciliation to the reserve grade.

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August 6, 2012

Urastar Gold Corp.

TSX.V: URS

OTCQX: URNRF

Frankfurt: 3U3

A minimum of 22,500 metres (m) of reverse-circulation (RC) and core drilling is planned at Mulatos, with a focus on the following targets: San Carlos Northeast 5,000 m Compadres 4,500 m East Estrella 3,000 m Mulatos Mine Area (Escondida, El Victor North, and El Victor South) 10,000 m In addition to the drill programs outlined above, the Company also has a large reconnaissance-level exploration program planned for 2012 to assess several of its regional grassroots targets, including Puerto del Aire, San Nicolas, La Dura, La Palma, El Halcon and West Halcon, and Ostimuri.

The following key parameters form the basis for the 2012 production forecast and operating cost estimate: Combined gold recovery of 77% (heap leach ore, 72% recovery; mill ore, 90% recovery) Throughput: 17,500 tpd (includes 500 tpd from the gravity mill) Average grade: 1.33 g/t Au blended grade (heap leach ore, 1.0 g/t Au; mill ore, 13.4 g/t Au) Waste-to-ore ratio of 0.64:1 Mexican peso:United States dollar foreign exchange of 13:1 The Company expects these parameters to fluctuate throughout 2012 and as a result, these parameters should be treated as full-year averages and will not necessarily be reflective of quarterly operating results. 2012 Mulatos Operating and Development Budget The 2012 Mulatos capital and development budget is $26 million and includes the following key items: Capital Expenditure - Mexico 2012 Budget Capitalized pre-stripping costs $9.7 million Construction $3.0 million Crusher improvements $5.4 million Sustaining Capital $7.9 million Total $26.0 million

High-Grade Gravity Mill Construction completed in January 2012 Capital cost: $20 million 2012 Planned production: minimum 67,000 oz Au Anticipate about 1 month of gold production in Q1/12 How the Gravity mill system works: Plant recovers gold into a gravity concentrate through the rougher and cleaner Inline Pressure Jigs (IPJ), in combination with a Knelson Concentrator Gold concentrate is intensively leached using the Inline Leach Reactors (ILR) to produce pregnant solution Pregnant solution treated using electrowinning Gravity tailings are dewatered and conveyed to the leach pad.

2012 Mulatos Exploration Budget The 2012 Mulatos exploration budget is $8.6 million. The Company expects that approximately 65% of the 2012 exploration costs in Mexico will be expensed.

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August 6, 2012

Urastar Gold Corp.

TSX.V: URS

OTCQX: URNRF

Frankfurt: 3U3

EL ANTIMONIO
The El Antimonio property is considered significant in respect of numerous factors: The presence of mineralized veins over a large area besides widespread fracturing and alteration of sedimentary rocks suggesting a potential for disseminated-style mineralization. Geological similarities to the near-by La Herradura Mine (largest gold mine in Mexico) with an average mineralization of 0.78 g/t and a cut-off grade of 0.33 g/t gold. Previous artisanal mining activities stopped at the water table and where overburden concealed the veins. Extensive oxidation suggesting possibilities for heap leach oxide gold.

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August 6, 2012

Urastar Gold Corp.

TSX.V: URS

OTCQX: URNRF

Frankfurt: 3U3

Current Exploration

On July 11, URS announced having entered into a contract for 1,500 m of core drilling (3 holes with 500 m each) at its flagship property El Antiminio (12,500 ha) in northwest Sonora, Mexico. Simultaneously, URS is completing its 10,000 m reverse circulation (RC) drilling program, whereas some 8,000 m have been drilled with 37 holes already. Assay results have been announced up to hole 30 (lastly on July 27) and have returned several wide gold bearing intercepts including those summarized in the table below. We consider the preliminary results from these holes to be highly significant and indicative of the potential for a bulk tonnage gold deposit to be mined via open-pit(s).

Given the location in the Mojave-Sonora Megashear, the geology, and the extensive historical workings on the property, we knew there was potential for widespread gold mineralization at El Antimono. I think the results of the first few thousand meters of drilling on the property show that we may be onto something very significant here. Based on these results, were planning to continue to aggressively explore at El Antimonio and expand on some of these intercepts. (Adrian Robertson, P.Eng., President of Urastar Gold Corp.)

Past Exploration & Mining

Several clusters of veins have been previously mined for antimony within an area extending over 6 x 4 km on the El Antimonio property. In each cluster, one or more veins have been excavated by pits, or stoped along the structure and accessed by shafts or adits. Historically, there has been production of antimony and gold from placer workings of gravel. The overall amount mined appears to be relatively small (below 250,000 t).

Today, artisanal miners are recovering small amounts of gold nuggets from gravel using metal detectors. The nuggets do not appear to have been transported very far as they are fairly coarse and not rounded or flattened.

The exploration target is a bulk mineable gold deposit centered on previously mined veins and new areas discovered through field work. So far, 6 main and 10 minor areas with gold values or mining workings have been defined and the current 10,000 meter RC drilling program is expected to test these defined targets in 2012.

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August 6, 2012

Urastar Gold Corp.

TSX.V: URS

OTCQX: URNRF

Frankfurt: 3U3

In 2009, a total of 42 samples were collected from historic workings and altered outcrops over an area of over 4 x 2 km on El Antimonio. These workings are sited on vein swarms, with each swarm localized within areas approx. 0.5 km square. Further sampling was done in October of 2010, following acquisition of additional ground. Several samples from the 2009 campaign returned elevated gold values ranging up to 2.2 g/t Au, with the average of all 42 samples collected being 0.32 g/t Au. Silver results are elevated and range up to 69 g/t Ag, and antimony is high (over 10,000 ppm). Elevated values for several other metals were obtained including As, Ba, Mn and locally Pb and Zn. We consider these results to be highly significant, because most of the samples are of altered and weakly mineralized material that was left behind - hence, the ore grade material that was mined at surface is not included in the sampling average made by URS. The best sample (in terms of grade x width) is 1.23 g/t Au over 5.2 m, which was a chip sample across a ferruginous siltstone containing 10-20% quartz stringers. This sample demonstrates the presence of open-pit ore-grade material in altered sedimentary rocks that were not previously mined.

US$10,000 upon signing of the letter agreement (paid); US$40,000 upon the TSX-Venture Exchange approval (paid); US$45,000 on December 20, 2011 (paid); US$30,000 when drilling contractors and the required equipment are mobilised (paid); US$75,000 on December 20, 2012; US$150,000 on December 20, 2013; US$200,000 on December 20, 2014; US$1,450,000 on December 20, 2015. The cash payments are subject to a 16% tax. The property is subject to a 3% net smelter returns royalty (NSR). URS has the right to purchase each 1% NSR for $1 million before November 2015.

Local Geology

The El Antimonio property consists of 12,500 hectares and is located 40 km west of Caborca, Sonora, in the heart of the Mojave-Sonora Megashear. The host rocks are various sedimentary rocks including Permo-Triassic limestone, Jurassic arenite, and Cretaceous arenite - all intruded by upper Cretaceous-lower Tertiary diorite, Tertiary rhyolite and rhyodacite. Highly ferruginous argillaceous sedimentary units, that host low-grade gold, are present. The mineralization is low sulphidation Sb, Ag, Au veins; mesothermal style with a late-stage epitheral overprint. Quartz veins, vein breccia, quartz veinlets and silicification associated with faults and shear zones cut sedimentary rocks including siltstone, greywacke and local limestone. The vein quartz is of 2 types: 1. The main type is white, medium-grained, and cockscomb-textured to massive white quartz of probable mesothermal style. 2. The second type consists of microcrystalline white chalcedonic quartz of low temperature epithermal style. The 2 types occur together in fault zones that are associated with purple hematitic altered wall rocks. The hematite iron oxide is a supergene weathering product of original sulphides presumed to be pyrite. Sulphide mineralization is rare within the vein quartz and consists of patches and small seams of black-grey fine-grained sulphide. Alteration is generally widespread and consists of argillization with limonite and/or hematitic iron oxide staining that extends a few hundred meters around the mined fault/vein structures. The altered zones commonly contain quartz stringers (10% quartz). There are large areas of alteration and some quartz veins that have never been pitted or mined. All of the historical workings are located on discontinuous quartz veins and quartz stringer zones associated with faults. Several orientations of vein/fault structures are developed. The deposit is characterized by large areas of altered rocks containing intense fracture networks and crackle breccias, with hematite and/or limonite coatings on fractures.

History

The first recorded date of mining activities in the district is 1722. In the early 1800s, explorers panning for gold mistook antimony for native silver. The first underground workings were developed in 1882 by a Boston company in the central part of the district. In 1942-1943, Rafael Ruiz, Charlie Thompson and Roberto Moreno exploited several veins, developed new areas, and installed a 100 tons per day (tpd) flotation mill. Production never reached full capacity. The main mines in production during the 1960s were La Piedra Azul, La Argentina, San Miguel, San Jos, La Montaa, El Promontorio, San Francisco, Palo Verde, La Limea, El Pensamiento and La Fortuna. Estimated total production was 25,000 t of antimony. The Mexican company Vitro developed an exploration program in 1982 cutting 18 trenches that were 100-400 m long and drilled 18 core and 6 RC holes. From 1994 to 1997, Minorco and IMC developed another extensive exploration program that included mapping, sampling and geophysics (VLF-EM and 4 IP-Mag lines). The drilling campaign of 19961997 by Minorco reported several low-grade intersections in the collared RC holes. From 2005 to date, Peoles, thru the subsidiary Exploraciones Mineras Parrea S.A de C.V., consolidated their land position with intermittent activities in the central portion of the district. From 2007 to date, Lic Benjamin Lagarda began to stake claims at El Antimonio, and in 2009, URS optioned the claims from Lagarda.

Property Interests

By an agreement dated November 8, 2010 and subsequently amended on December 22, 2011, URS has acquired an option agreement to purchase a 100% interest in the El Antimonio property. To earn its interest, URS is required to make cash payments of $2 million over a 5 year period as follows:

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August 6, 2012

Urastar Gold Corp.

TSX.V: URS

OTCQX: URNRF

Frankfurt: 3U3

www.rockstone-research.com

19

INITIATING COVERAGE

August 6, 2012

Urastar Gold Corp.

TSX.V: URS

OTCQX: URNRF

Frankfurt: 3U3

Regional Geology of La Herradura

From the guidebook of the ore geology field trip to NW-Mexico by the University of Geneva (2009): In terms of crustal provinces, this region corresponds to the Caborca block (Dickinson & Lawton, 2001) which is a Laurentian affine terrane with an underlying Proterozoic basement ~1.7-1.8 Ga years old. However, its proximity to the proposed Mojave-Sonora megashear in the northeast, the structure that sutures the Caborca block and the North American Block, results in pervasive deformation and complex faulting in the mine area. As would be expected in this tectonic setting, the deposit exhibits a strong structural control. The mineralization is confined to a NW-SE trending slice of amphibolite-facies Proterozoic gneisses that is bounded to the NE by the Victoria fault and to the SW by the Ocotillo fault. These shear zones separate the Proterozoic rocks from a low-grade metavolcanic/metasedimentaryurassic sequence to the east and an incipiently metamorphosed sequence of limestones and quartzites of upper Paleozoic age to the west...

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August 6, 2012

Urastar Gold Corp.

TSX.V: URS

OTCQX: URNRF

Frankfurt: 3U3

Above: Simplified geological map of the mine area (from Quintanar-Ruiz, 2008). The host rocks of the mineralization, the Proterozoic gneisses, are shown in orange. These rocks define a NW-SE trending belt, bounded by the Victoria and Ocotillo faults to the NE and SW respectively. Topographic contours define the actual sizes of the Centauro and Yaqui pits, and the dotted yellow line defines the perimeter of the projected megapit.

La Herradura Mineralization & Mining

...Gold rich veins are restricted to the Proterozoic rocks which consist of biotite-feldspar-quartz and quartz-feldspar gneisses of sedimentary and plutonic origin. The hydrothermal system is structurally controlled and the higher grade mineralization occurs in quartz-sulfide veins filling tensional fractures. Quartzsericite-albite alteration is widespread in the core of the deposit and grades to propylitic in the outer parts where the gneisses are more biotite rich. Geochronological results indicate that the age of the mineralization is lower Tertiary, confirming its Laramidic origin. The average grade is calculated to 1 g/t of Au with a cut-off of 0.33 g/t. Mining of the mineralized body is being conducted in 2 adjacent open pits, the Centauro and the Yaqui pits. The principal pit (Centauro) is approx. 1km long and 0.65 km wide, but the projected megapit will join the 2 smaller ones and will extend another 1.2 km to the NW following the gneissic host rocks along strike.

Below: The Centauro Pit; Mineralized hydrothermal breccias in the mining front. The mineralogy consists of quartz-hematite-galena-gold.

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August 6, 2012

Urastar Gold Corp.

TSX.V: URS

OTCQX: URNRF

Frankfurt: 3U3

The La Herradura Mine (Centauro Pit); Picture above from Chema Goiricelaya, Februar 2009, Flickr.com; Picture below from googlemaps.com The Mojave-Sonora Megashear hosts millions of ounces of gold production, reserves, and resources. The most significant gold mine along this structure is La Herradura. It is the largest producing gold mine in Mexico with resources of more than 8 million ounces, and is located only 50 km from El Antimonio. The district around Herradura is experiencing a major exploration boom which started just few years ago thanks to new discoveries, La Herradura increasing their mined reserves due to their exploration success, and the price increase of gold and silver. Many of the mines in the district currently in production started with small mining prospects that underwent new geological interpretations or were explored in several stages. The mining of antimony with gold and silver, along with the 50 veins in the El Alamo Range district, presents a prospective opportunity to explore for a mineable gold deposit at El Antimonio.

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August 6, 2012

Urastar Gold Corp.

TSX.V: URS

OTCQX: URNRF

Frankfurt: 3U3

Satellite view of the Centauro open pit (Google Earth). Newmont has a 44% interest in La Herradura, which is located in Mexicos Sonora desert 400 km south of Mesquite and 125 km northwest from the nearest large town of Caborca in the State of Sonora, with a population of 81,000 (2010 census). Workers from area villages are provided daily transportation to the mine site. La Herradura is operated by Fresnillo PLC (which owns the remaining 56% interest and is the operator) and comprises an open pit operation with run-of-mine heap leach processing. The Centauro Deep exploration project is taking shape below the main pit of Herradura for development as an underground mine.

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August 6, 2012

Urastar Gold Corp.

TSX.V: URS

OTCQX: URNRF

Frankfurt: 3U3

Management
Adrian Robertson, P.Eng President, CEO, Director Mr. Robertson is a professional engineer with life of mine experience ranging from exploration and financing through production and reclamation. Mr. Robertsons previous work experience includes positions with Vale (formerly Inco Ltd), Teck, Golder Associates and TVX Corp. In addition to his responsibilities with Urastar Gold Corp, Mr. Robertson is also a consultant and corporate pilot working with several Vancouver based junior mining companies. Mr. Robertson is also a director of Meadow Bay Gold Corp and is President and CEO of Silver Pursuit Resources.

Between 1991 and 2000, Mr. Stinglhamber was on the Board of Directors and on the Technical Board of Mexicana de Cananea SA de CV (Grupo Mexico). In 1990, he was instrumental in the Union Miniere team that worked in Mexico for the pre-financing of the acquisition of La Caridad copper mine from Nafinsa for Mexicana de Cobre of the Larrea Group, Grupo Mexico. From 1986 to 2004 he was the chairman of Sogem Mexico SA de CV, the metal trading division of Umicore SA (today Traxis Mexico SA de CV). Between 1980 and 1986, he represented Aquaroc International in Mexico, a filial of the Consortium BURRUS Switzerland. Mr. Stinglhamber was President of the Belgo Luxemburg Mexican Chamber of Commerce in 1987, and in 2002, and was awarded the Belgian decoration of Officer of the Crown.

Charles (Bill) W. Reed Director, Senior Geologist Mr. Reed is a Registered Professional Geologist with over 40 years of work experience in the mining industry exploring for disseminated and high grade vein gold-silver, porphyry copper-molybdenum, and volcanogenic and replacement polymetallic deposits in United States, Mexico, Latin America and Africa. Mr. Reed was directly involved in the discovery and development of numerous mines which have produced more than several million ounces of gold. Mr. Reeds most recent success was as co-founder of Paramount Gold and Silver Corp (TSX, NYSE: PZG). As he was responsible for bringing the flagship San Miguel project in Chihuahua, Mexico into the Paramount portfolio of assets. Mr. Reed is fluent in Spanish and has a very strong knowledge of the business and community culture in Mexico. In addition, Mr. Reed was Chief Geologist (Mexico) for Hecla Mining Company (NYSE: HL)

John Morita CFO, Director Mr. Morita has been a professional accountant for over 35 years and a member of the Certified General Accountants Association of B.C. For the past twenty years. Mr. Morita has been a management consultant, advising on income tax and personal financial matters, and has held a variety of senior positions as a director and/ or CFO with various public companies listed on the TSX Venture Exchange and Canadian National Stock Exchange (CNSX). Mr. Morita played a major role in referring and successfully completing (Mar/ 05) ACP Ace Venture Corps Qualifying Transaction which was the RTO of Cantronic Systems Inc. (TSX.V: CTS) a Tier 1 company. Mr. Morita is currently the CFO and a director of Urastar Energy Inc. (TSXV:URS) and Mineral Mountian Resources Ltd. (TSX.V: MMV). He is CFO of Maxtech Ventures Inc. (TSX.V: MVT), Acadia Resources Corp. (TSX.V: AIC) and Golden Cross Resources (CNSX: GOX). Mr. Morita also serves on the Board of Directors of Polo Biology Global Group Corporation.

Michel Stinglhamber Director Mr. Stinglhamber has significant experience in the Mexican mining industry. He currently represents Umicore Belgium (formerly Union Miniere), a $8 billion public company, in Mexico. They are active in precious metals products and catalysts, advanced materials and zinc specialties. Mr. Stinglhamber is also the Chairman of two very successful Mexican mining companies, Minera Productos Metalicos y Derivados SA de CV, and Minera Recami SA de CV, an exploration company in Sonora, Mexico. He is also a director of Paramount Gold & Silver Corp. (TSX, NYSE: PZG).

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August 6, 2012

Urastar Gold Corp.

TSX.V: URS

OTCQX: URNRF

Frankfurt: 3U3

Technical Analysis
In October 2009, the stock price of Urastar Gold Corp. (URS) on the Toronto Stock Exchange (TSX) rose from approx. C$0.05 to C$0.35, whereafter a consolidation beneath the blue resistance took place - which together with the green support line was forming a (blue-green) triangle. In April 2010, the price managed to break above the blue resistance and undertook a so-called breakout to $0.55, whereafter a consolidation beneath the red resistance took place - which is called a pullback (to the blue-green triangle). In late 2010, the price managed to break above the red resistance at approx. C$0.30, whereafter the so-called thrust started (highlighted in light-green) reaching approx. C$0.90 in mid-2011. After this thrust, a consolidation back to the green support at approx. $0.20 occured, whereafter the price consolidated sideways beneath the blue resistance at approx. $0.30. In early 2012, the price managed to break above the blue resistance and undertook a breakout to approx. C$0.55, whereafter a pullback beneath the red resistance took place. Recently, the price managed to break above the red resistance at approx. C$0.30 - hence, we expect another thrust to have just started. Furthermore and in general, a strong buy-signal is generated when a price succeeds in rising above the 260day Exponential Moving Average (EMA) curve, which currently runs at C$0.34. As the price currently trades at C$0.40, a strong buy-signal is active (sell-signal when breaching this support). Relatively to the HUI mining index, URS has a better performance since mid-2009 (green upward-trend). The next strong buy-signal is generated when breaking above the red resistance. The MACD just rose above the red resistance giving another buy-signal. The PPO indicator generates a strong buy-signal when rising above the red resistance. The ROC broke above the red resistance recently and undertook a pullback. A strong up-move (thrust) is anticipated when rising above the red resistance again.

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Urastar Gold Corp.

TSX.V: URS

OTCQX: URNRF

Frankfurt: 3U3

Financials
Excerpt from the Condensed Consolidated Interim Financial Statements December 31, 2011:

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Urastar Gold Corp.

TSX.V: URS

OTCQX: URNRF

Frankfurt: 3U3

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Urastar Gold Corp.

TSX.V: URS

OTCQX: URNRF

Frankfurt: 3U3

www.rockstone-research.com

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August 6, 2012

Urastar Gold Corp.

TSX.V: URS

OTCQX: URNRF

Frankfurt: 3U3

www.rockstone-research.com

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Urastar Gold Corp.

TSX.V: URS

OTCQX: URNRF

Frankfurt: 3U3

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