UNION STAR METALS LTD — Capital/Financing Update 2011

Oct 26, 2011

27[th] October 2011

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DRILLING UPDATE AT CERRO CURUNDAY PROJECT - PERU

HIGHTLIGHTS

• Second hole completed at flagship Cerro Curunday gold project in the La Libertad Province of Peru, to a depth of 335m hitting the oxide zone and push through to the primary sulphide zone.

• Further supplemental water sources have been established for the Phase One Drill Program.

• Field level exploration and sampling around the Cerro Curunday and La Haucas project area is progressing.

South American focused gold explorer Promesa (ASX: PRA) is pleased to advise that it has completed drilling of it second diamond hole (CU002). The drilling program at Cerro Curunday gold project located in the La Libertad Province in Peru has completed its second diamond drill hole to a depth of 335m which is part of overall 6,000m Phase One drill program.

The aim of the program is to test a series of gold-bearing zones identified by channel and rock chip sampling along a 2.1km strike length of epithermal gold mineralisation. All drilling will be undertaken using diamond drilling from surface to enable detailed logging and sampling.

The second drill hole has taken slightly longer than forecast as result of drilling continuing beyond the initial target depth of 200m. Highly fractured ground conditions were encountered similar to the first drill hole. These ground conditions resulted in addition water being required for drilling. During the month an additional water resource was located and licensed. A review of drilling practices on site to optimise the mud weights was completed. The ground conditions and the type of host rock environment encountered support the targeting of this location for the first phase of the drilling programme.

The aim of drilling in Phase One is to initially target the oxide zone. This was reached a depth of 200.5m. The drilling then progressed and intersected the top of sulphide zone to test the potential for epithermal mineralisation and structure.

The geology observed by our geological team on site, confirmed that the diamond core obtained from the hole depth of 335m (CU002) has similar features to the first hole drilled (CU001) which hit a target depth of 358m as illustrated in Figure 1.

Promesa Ltd ACN 36 124 541 466 www.promesa.com.au Level 28, 140 St Georges Tce, Perth WA 6000 / PO Box 994, Subiaco, WA 6904 Phone +61 8 9278 2766 Fax +61 8 9278 2525

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Figure 1 – East-West Cross Section of CU001 and CU002 drill hole at Cerro Curunday

Promesa Ltd ACN 36 124 541 466 www.promesa.com.au Level 28, 140 St Georges Tce, Perth WA 6000 / PO Box 994, Subiaco, WA 6904 Phone +61 8 9278 2766 Fax +61 8 9278 2525

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The mineralisation presents as a shallow marine sedimentary siliciclastic sequence of interlayered quartz sandstones and siltstones belonging to Cretaceous Chimu Formation that shows consistently as advanced argillic, chloritic and silicification as main alterations. The morphology of the potential ore body is an important stockwork with moderate to strong intensity mineralisation characterised by pyrite, enargite and chalcopyrite as copper sulphides and also traces of galena and sphalerite (Pb and Zn sulphides).

From a depth of 251.95m to the end of the hole, pyrrhotite (magnetic pyrite) is present along with pyrite, chalcopyrite and traces of molybdenite, into type ‘A’ quartz veinlets. This mineral assemblage represents an important feature for the extension of the epithermal zone into the porphyry environment. These preliminarily observations confirm the original modelling of the mineralization.

Currently core is being logged, cut and sampled with samples being sent to world class laboratory testing facilities in Lima. Assay result we be reported in due course once QAQC procedures and check have been completed.

Additional field level exploration is underway to further understand the Cerro Curunday and Las Huacas project areas. This has included channel sampling and mapping of the eastern slope of Curunday and to progress field sampling and a mapping programming on the western slope of Curunday, towards Las Huacas project area.

Further updates on the drilling and other progress will be provided in due course.

For further information please visit our website at www.promesa.com.au or contact:

Ananda Kathiravelu Executive Director Promesa Limited Tel: +61 8 9278 2766 Email: ananda@promesa.com.au

Promesa Ltd ACN 36 124 541 466 www.promesa.com.au Level 28, 140 St Georges Tce, Perth WA 6000 / PO Box 994, Subiaco, WA 6904 Phone +61 8 9278 2766 Fax +61 8 9278 2525