UNION STAR METALS LTD — Capital/Financing Update 2012

Apr 11, 2012

12 APRIL 2012

==> picture [200 x 51] intentionally omitted <==

ASX Announcement

South America’s Emerging Gold Explorer

HIGHLIGHTS

12 April 2012

Promesa Limited

• Promesa Limited (ASX Code: PRA) is pleased to announce that it has entered into an Option to Purchase Agreement (‘Agreement’) to acquire a 100% interest in four exploration mining concessions in Peru, currently held by Kirio Mining S.A.C. a private mineral exploration company in Peru.

ABN 36 124 541 466

• Promesa will pay a total of US$250,000 after completion of due diligence and a 12 month exploration program.

ASX Code: PRA

Address: Level 28 140 St Georges Terrace, Perth WA 6000

Postal Address: PO Box 994 Subiaco WA 6904

Tel:+61 08 9278 2766 Fax:+61 08 9278 2525 Web: www.promesa.com.au

Investor Enquires Contact: Ananda Kathiravelu Executive Director Email: ananda@promesa.com.au Mobile:+61412036789

• Two of these concessions are of major interest (i.e. Alumbre and Quinual) and are 58km south of the Cerro Curunday and Santa Rosita concessions held by Promesa in the La Libertad region.

KIRIO MINING PROJECTS

The Company’s wholly-owned Peruvian subsidiary, Peru Minerals S.A.C, has signed the Agreement to acquire a 100% interest in four mining concessions comprising an area of 2,300ha in Peru. These concessions are currently held by Kirio Mining S.A.C (“Kirio”) a private mineral exploration company in Peru. The project concessions are:

• Alumbre (Au Cu, Mo), located in the district of Chao, Province of Viru, department of La Libertad, comprising an area of 200ha.

• Quinual (Cu, Mo, Au), located in the district of Huaso, province of Julcan, department of La Libertad, comprising an area of 1,000ha.

• Huajoropampa (Pb, Zn, Cu), located in the district of Acobanbilla, province of Huancavelica, department of Huancavelica, comprising an area of 1,000ha.

• Yarpun (Pb, Zn, Cu, Ag, Au), located in the district of Chiquian, province of BolonesiI, department of Ancash, comprising an area of 100ha.

==> picture [197 x 279] intentionally omitted <==

Figure 1 – Location of Promesa and Kirio Projects in Peru

Figure 1. illustrates the location of these concessions with respect to Promesa’s existing concessions in Peru. These projects demonstrate significant potential to increase the exploration footprint of Promesa and its project pipeline. Figure 2. Illustrates the location of these concessions (i.e. Alumbre and Quinual) which are located 58km south of the Cerro Curunday Project concession in the La Libertad Region.

Under the terms of the Agreement, Promesa will make the following payments for 100% of the rights to these concessions:

• a) After the completion of the due diligence (DD), a payment of US$50,000;

• b) At each of 90, 180 and 270 days after completion of DD a further payment of USD$20,000 will be made; and

• c) A final payment, 365 days after completion of DD, of US$140,000 will be made if the Option is exercised.

A total of USD$250,000 will be paid for 100% of the rights to these concessions.

==> picture [188 x 120] intentionally omitted <==

Figure 2 – Curunday is 58km from the Quinual and Alumbre Projects

The Company and Kirio have finalised the terms of the Agreement in respect of the mining concessions and have executed a binding letter of offer. The Agreement is conditional upon the completion of legal, technical and regulatory due diligence.

Promesa regards these projects as complementary to our current exploration portfolio in Peru and part of our objective of expanding and enhancing our exploration inventory in South America. Further prospect specific details will be announced shortly.

Ananda Kathiravelu Executive Director Promesa Ltd

About Promesa Ltd (ASX:PRA)

Promesa Ltd is a Western Australian company with a substantial portfolio of exploration properties in Peru. The Company is focused on precious metal commodities in South America, namely Cerro Curunday and Santa Rosita projects in the La Libertad Region of Northern Peru.

The information in this report that relates to Exploration Results, Mineral Resources or Ore Reserves is based on information compiled by Mr. Rene Lugo, a Member of The Australasian Institute of Mining and Metallurgy. Mr Lugo is a full-time employee of Peru Mineral S.A.C. Mr Lugo has sufficient experience which is relevant to the styles of mineralisation and types of deposits under consideration and to the activity he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the "Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves". Mr. Rene Lugo consents to the inclusion in this report of the matters based on his information in the form and context in which it appears.