NEWS RELEASE
January 8, 2004

Further to its News Release dated September 19th, 2003, whereby the Company announced the results of its annual general meeting held on August 29th, 2003, the Company advised that the shareholders had approved a private placement of 6,500,000 units at a price of $0.10 per unit.  Each unit consists of one common share and one share purchase warrant to purchase one additional common share at a price of $0.20 per share, exercisable for a period of two years from the date of payment for the units. 

The Company advises that it has increased the private placement from 6,500,000 units to 10,000,000 units, in order that the Company may meet the minimum listing requirements of the TSX Venture Exchange, including the minimum capital requirements.  

The private placement proceeds will be utilized for the acquisition and exploration of mineral properties and for general working capital.  The issuance of the private placement units is subject to regulatory acceptance.

ON BEHALF OF THE BOARD OF
CAL-STAR INC.

“Anton J. Drescher”

Anton J. Drescher
Director

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this News Release.