ALBUQUERQUE, NM, Jan 03, 2012 (MARKETWIRE via COMTEX) — Lone Star Gold, Inc. /quotes/zigman/5448492 LSTG 0.00% (“Lone Star” or “the Company”) is pleased to announce the Company has decided to move forward with signing a Definitive Agreement to acquire an undivided 65% interest in the San Antonio del Potrero mine tailings project (“Tailings Project”) based on positive due diligence sampling results. The Definitive Agreement will be signed in early January 2012.

The Company originally signed a letter of intent (LOI) on November 28, 2011, committing to the option to acquire an undivided 65% interest in the Tailings Project, which is located in the city of Hidalgo Del Parral in the state of Chihuahua, Mexico. According to information provided to Lone Star by the current owners, the Tailings Project represents a resource of 1.2 million tons of mine tailings which shows potential for Silver recovery and additional bi-products including Gold, Zinc and Lead. As part of the Company’s due diligence process, 10 holes were augured to acquire 40 undisturbed samples at depths of 20-25 meters.

The Company is currently forming a Mexican subsidiary company, which will hold the 65% interest in the Tailings Project. In addition, an agreement will serve to summarize the project and recognize the Definitive Agreement in the USA and Mexico. Lone Star’s President, Daniel Ferris, will sign the agreement in mid-January during his upcoming visit to Chihuahua, Mexico.

[See further below for details on the Definitive Agreement & Tailings Project plan.]

Lone Star’s President, Daniel Ferris, commented: “From the moment we first identified this opportunity it was clearly an ideal fit with our goal of rapidly becoming a mid-tier producer in the short term. Once we’ve signed the Definitive Agreement in mid-January, we’ll effectively be in the position of potentially beginning 6-8 years of production as soon as February 2012.”

DEFINITIVE AGREEMENT DETAILS

The Definitive Agreement outlines the incremental transfer of a total of 600,000 shares of Lone Star’s common stock over a 1-year period following the signing of the agreement; the shares of common stock will carry current and appropriate legends in accordance with U.S. Securities laws. The Definitive Agreement also outlines cash commitments over the first two years for initial and secondary project work/equipment/plant construction totaling up to $1,550,000 with a minimum of $1,300,000. After the project’s estimated 1.2 million tons of mine tailings have been processed, Lone Star will forfeit its 65% interest in the Mexican company, including the plant and all equipment, thereby releasing Lone Star of any further involvement with the project.

TAILINGS PROJECT PLAN DETAILS

The following items outline the project’s Initial Stage details as provided to Lone Star by the current owners with all calculations being solely based on tonnage estimates:

        —  The project is estimated to represent 1.2 million tons of tailings

            from previous mining activities over the last 100+ years.

        —  An agreement is in place with a processing plant in Parral (20-minute

            drive) to take 100 tons per day (tpd) for the first 4-6 months

            starting in February 2012.

        —  Throughput can be increased after that, likely to 200+ tpd during the

            6-12 month period.

The following items outline the project’s Secondary Stage details as provided to Lone Star by the current owners with all calculations being solely based on tonnage estimates:

        —  Following the first year of production, the project would continue to

            ship 200 tpd to the plant in Parral.

        —  Simultaneously, a processing plant would be constructed on the

            property consisting of a heap leach pad and, potentially, a float

            plant (to be determined within the first 6 months of shipping to

            Parral). Total maximum cost for both would be ~$1.5 million.

        —  The plant would take between 4-6 months to construct, and would have

            initial capacity of 200-300 tpd, then ramping up production after the

            first 6 months of operation by adding a second circuit for a total of

            600 tpd capacity on the property.

        —  The onsite plant is expected to liberate over 85% of the resources in

            the tailing’s pile.

        —  In addition to the 600 tpd being processed onsite, the option would

            also exist to continue shipping the 200 tpd to the Parral plant,

            thereby running at 800+ tpd.

        —  Mine life, based on 20 days per month, is calculated at 8.3 years at

            600 tpd; and 6.2 years at 800 tpd.

ADDITIONAL INFORMATION To learn more about the Tailings Project, the Company, and regular news updates, visit Lone Star Gold’s official website: http://www.lonestargold.com .

ABOUT LONE STAR: Lone Star Gold, Inc. is a publicly traded /quotes/zigman/5448492 LSTG 0.00% gold exploration and development company based in Albuquerque, New Mexico. The Company’s aggressive acquisition and exploration approach is strategically focused on proven, stable precious metal regions in America and Mexico. Currently, Lone Star has a 70% Working Interest in concessions covering 800 hectares in the La Candelaria project in Chihuahua, Mexico, which the Company is evaluating to determine the potential sites that represent the best potential for silver and gold deposits. Lone Star also has an option to purchase a 70% interest in the Ocampo Project, a 570-hectare gold-silver project in Chihuahua State, Mexico, and an option to purchase an undivided 65% interest in the San Antonio del Potrero mine tailings project in the city of Hidalgo Del Parral in the state of Chihuahua, Mexico.

ON BEHALF OF THE BOARD OF DIRECTORS,

Lone Star Gold, Inc. Daniel Ferris, Company President

This press release contains statements that are forward-looking and which involve a number of risks and uncertainties. Such forward-looking statements are within the meaning of that term in Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended. The forward-looking statements in question are based on Lone Star Gold, Inc.’s current expectations and projections about future events, based on information currently available. The forward-looking statements found in this press release may also include statements relating to Lone Star Gold, Inc.’s anticipated financial performance, business prospects, new developments, strategies, and similar matters. Lone Star Gold, Inc. provides no assurance regarding the actual outcome of the events contemplated by any forward-looking statements included in this release. Lone Star Gold, Inc. disclaims any obligation to update any of its forward-looking statements, except as may be required by law.

Cautionary Note to U.S. Investors – The United States Securities and Exchange Commission permits U.S. mining companies, in their filings with the SEC, to disclose only those mineral deposits that a company can economically and legally extract or produce. We may use certain terms in this press release, such as “measured,” “indicated,” and “inferred” “resources,” which the SEC guidelines strictly prohibit U.S. registered companies from including in their filings with the SEC. U.S. Investors are urged to consider closely the disclosure in our Form 10-K which may be secured from us, or from our website at http://www.sec.gov/edgar.shtml .

        Contact:

        Lone Star Gold, Inc.

        6565 Americas Parkway NE, Ste 200

        Albuquerque, New Mexico

        87110

        USA
        INVESTOR RELATIONS

        Toll Free: 1-800-986-9358

        E-mail: [email protected]
www.lonestargold.com

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