NEWS RELEASES
June 30, 2004

Further to its News Releases dated September 19th, 2003 and January 8th, 2004, the Company announces that it has now completed the private placement of 10,000,000 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 June 25th, 2004.

The private placement securities have now been issued and the common shares forming part of the units, together with any shares that may be acquired upon exercise of the warrants are restricted from trading until October 26th, 2004.

No finder’s fee is payable with respect to the private placement.

The Company also announces that the shares for debt settlement announced on May 31st, 2002 has now been completed and an aggregate of 1,272,860 common shares were issued to a director of the Company in settlement of a debt in the sum of $127,286.  The debt settlement shares are restricted from trading until October 26th, 2004.

The private placement securities being issued to insiders and a related party, as well as the debt settlement shares, being an aggregate of 7,172,860 common shares are subject to escrow restrictions as follows:

1. 1/10 of the remaining escrow securities or 717,286 common shares were released as of the June 24th, 2004;


2. 1/6 of the remaining escrow securities or 1,075,929 common shares are releasable as of December 24, 2004;


3. 1/5 of the remaining escrow securities or 1,075,929 common shares are releasable as of June 24, 2005;


4. 1/4 of the remaining escrow securities or 1,075,929 common shares are releasable as of December 24, 2005;


5. 1/3 of the remaining escrow securities or 1,075,929 common shares are releasable as of June 24, 2006;


6. 1/2 of your remaining escrow securities or 1,075,929 common shares are releasable as of December 24, 2006; and


7. all of the remaining escrow securities or 1,075,929 common shares are releasable as of June 24, 2007

The Company further announces that the terms and conditions of the following Property-Asset Agreements have now been met:

1. by agreement dated July 23, 2002, the Company acquired exploration and development rights to 96 hectares of land, held under Special Prospecting Licenses by Amanta Limited, on the Langu Property located in Satun Province, Southern Thailand, for and in consideration of an aggregate of US$50,000 cash, which has been paid, and a 2% net smelter royalty. There are no shares being issued and Amanta Limited is arm's length to the Company;


2. by agreement dated December 30, 2002, the Company acquired exploration and development rights to 15.4 hectares of land, held under two mining licenses owned by Arun Sapachai Mining Partnership, on the Arun Property located in Southern Thailand, 12 km north of the village of Langu, for and in consideration of Cdn$18,500 per year, for a period of up to four years for an aggregate of Cdn$74,000, of which two annual payments have been made to date, and a 2% net smelter royalty. The property is located in the middle of the Langu Property. There are no shares being issued and Arun Sapachai Mining Partnership is arm's length to the Company; and


3. by amendment agreement dated April 30, 2003, the Company agreed to reimburse up to US$125,000 in exploration costs and other obligations related to the licenses as advanced by Amanta Limited, which has now been paid.

As a result of the above transactions, the Company completed the terms of its reverse takeover and met the requirements to be listed as a TSX Venture Exchange Tier 2 company.  Accordingly, effective June 25th, 2004, the Company commenced trading on the TSX Venture Exchange under the trading symbol “CAI”.

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.