To: Wade who wrote (1862 ) 8/13/2004 2:25:48 PM From: Andrew Read Replies (1) | Respond to of 29622 Arizona Star Resources Corp (C-AZS) - News Release Arizona Star discloses potential Cerro Casale backer Also Bema Gold Corp (C-BGO) News Release Also Placer Dome Inc (C-PDG) News Release Arizona Star Resources Corp AZS Shares issued 40,375,937 Aug 12 2004 close $ 3.40 Thursday August 12 2004 News Release Mr. Roger Richer of Arizona Star reports ARIZONA STAR RESOURCE CORP.: CERRO CASALE PROJECT UPDATE Arizona Star Resource Corp. has disclosed that a major international bank has submitted to Cia Minera Casale (CMC) an indicative term sheet for an underwritten project loan of up to $1-billion for the development of the Cerro Casale project. This offer to finance is subject to various conditions typical of a project loan financing. In Arizona Star's opinion, this bank proposal confirms that Cerro Casale is financeable under the terms of the CMC shareholders agreement. Placer Dome, in consultation with the CMC finance committee, continues to review various financing alternatives for Cerro Casale. In parallel, this work includes advancing discussions on key commercial contracts and long-term marketing off-take arrangements. The CMC shareholders are currently in discussion about modifications to the shareholders agreement and the alternatives to advance the Cerro Casale project. On July 2, Arizona Star had issued Placer Dome a notice of Default under the terms of the shareholders agreement. Given the continuing discussions between the shareholders and the positive bank proposal, Arizona Star has elected to hold in abeyance any potential arbitration proceedings under the shareholders agreement. Under the terms of the CMC shareholders agreement, Placer Dome is required to present Arizona Star a certificate regarding the financeability of Cerro Casale on Sept. 30, 2004. WARNING: The company relies upon litigation protection for "forward-looking" statements