Redstar Gold Significantly Expands Strike & Depth Extent of High-Grade Gold Mineralization within the Shumagin Gold Zone at the Unga Gold Project

2016 Drill Program Highlights at the Shumagin Gold Zone:

• -High-grade gold-silver mineralization was encountered in all drilling areas.

• -Drilling has expanded high-grade gold-silver mineralization, totaling approximately 950 metres of drilled strike length.

• -Breccia and stockwork zones widen at depth towards the southwest, indicating further expansion potential along strike of the Shumagin Gold Zone.

• -Consistent high-grade gold mineralization occurs to depths of approximately 330 metres from the surface.

• -Mineralization remains open in all directions.

Please refer to www.redstargold.com/2016_Drill_Program to key sections and maps related to discussion below.

"We are excited to have intersected gold mineralization in all areas drilled during the recent 2016 drill program, and to have also significantly increased the current drilled strike length of the Shumagin Gold Zone. The overall size of the system has increased 300 metres east to Bunker Hill, and approximately 400 metres to the southwest of the deepest previous drill hole BM-01 drilled in the 1990s. Shumagin has once again delivered double digit gold grades consistently in almost every drill hole," commented Redstar's President & CEO, Peter A. Ball. "Our technical team, led by Jesse Grady, Redstar's VP Exploration, was successful in expanding and enhancing the geological model, as well as furthering our understanding of the Shumagin Gold Zone and its potential size and scale within the much larger Unga district scale project. Given these highly encouraging results, we intend to commence an expanded drill program in March/April 2017, and with approximately CDN$6.5M in our treasury, we have the balance sheet to do so."

Selected Intervals from Drill Holes 16SH019 to 16SH025

*True widths of the mineralized intervals are close to 80% of Core length. Hole 16SH025 encountered gold mineralization but not significant grades for reporting purposes.

Of the seven drill holes completed during the program, two holes (16SH019 &16SH020) were designed to test the down-dip potential approximately 100 metres below previously drilled high-grade zones located along the Main Breccia and returned high-grade intercepts of 0.9 metres @ 14.95 g/t Au & 1.15 metres of 11.3 g/t Au, respectfully.

The other five holes (16SH021-16SH025) were drilled to test the potential for high-grade mineralization below weakly mineralized breccias exposed at Bunker Hill and returned values of 1.5 metres @ 16.97 g/t Au; 0.3 metres @ 34.5 g/t Au; and 0.9 metres @ 11.65 g/t Au.

Long Section L-L': (as shown at www.redstargold.com/2016_Drill_Program) New 2016 drill holes highlighted in bold. High-grade mineralization has been expanded into areas below exiting drill holes and remains open along strike and at depth.

Based on results from the 2016 fall drill program, high-grade gold-silver mineralization within the Shumagin Gold Zone occurs at depth for approximately 950 metres of strike length and is not constrained to a northeast plunging mineralized shoot as previously interpreted.

All of the deepest holes at the Shumagin Gold Zone drilled to date (e.g 16SH019, 16SH020, BMS-01, 16SH023) contain high-grade gold results. This indicates that the system remains intact to depths of approximately 330 metres below the surface and remains open at depth for the entire approximate 950 metres of drill tested strike length.

Of particular importance, drill hole 16SH019 the deepest and southwestern-most drill hole, encountered a thick section (>50m) of syn-hydrothermal eruption breccias that are cross-cut by one of the thickest stockwork/breccia sections drilled to date along the Shumagin Gold Zone, and is a positive indicator that the hydrothermal system is robust in this area and is open along strike towards the southwest.

The Shumagain Gold Zone, with a currently defined strike length of approximately 1.2 km by surface mapping and sampling, is part of the approximate nine (9) km long Shumagin Trend, a major regional structure responsible for the localization of epithermal mineralization along its exposed strike length. Geological mapping and sampling towards the southwest from Shumagin indicates a very strong expansion potential along strike for an additional three (3) km towards Orange Mountain, the interpreted hydrothermal center along the Shumagin Trend.

The Shumagin Gold Zone is only one of several noteworthy gold-silver structures found on Redstar's Unga Gold Project and is a high-priority exploration target.

Results: Main Breccia Deep Test

The first two holes of the program 16SH019 & 16SH020, were drilled to test the down-dip potential of high-grade intercepts previously drilled along the Main Breccia at Shumagin. These drill holes cover an approximate 350m of strike length and were both drilled >75-100 metres away from existing drill holes (see Long Section L-L' - as shown at www.redstargold.com/2016_Drill_Program).

Drill hole 16SH019, was drilled approximately 260 metres below previously reported high-grade surface samples (e.g. 2.3 metres of 37.2 g/t Au and 103.7 g/t Ag) and intersected an impressive approximate 50 metre thick section of phreatomagmatic breccias and an approximate 50 metre thick section of quartz-adularia-carbonate breccias and stockwork localized within the footwall of the Shumagin fault (see www.redstargold.com/2016_Drill_Program for Cross-section 2300NE). High-grade stockwork localized along the faulted contact returned values of 0.6 metres of 9.25g/t Au and 17.1g/t Ag and 0.9 metres of 14.95g/t Au and 2.67g/t Ag.

Drill hole 16SH020, was drilled approximately 150 metres below previously reported high-grade drill intercepts (e.g. DDH46; 1.22 metres of 365.3 g/t Au and 190.6 g/t Ag & 11SH009; 0.9 metres of 43.1 g/t Au and 37.2 g/t Ag) and approximately 100 metres west of drill hole BM-01, the deepest hole at Shumagin (e.g. BM-01; 5.49m of 24.02 g/t Au and 19.4 g/t Ag). This hole intersected an approximate 25 metre section of quartz-adularia-carbonate breccias and stockwork that returned values up to 1.15 metres grading 11.3g/t Au and 72.9g/t Ag (see www.redstargold.com/2016_Drill_Program for Cross-section 2700NE).

Results:Bunker Hill Zone

Bunker Hill is located approximately 300 metres to the northeast of the Main Breccia along the Shumagin Gold Zone and hosts an approximately 200 metre long exposure of quartz-adularia-carbonate breccias identical to exposures along the Main Breccia (see Shumagin Plan Map). Previous surface sampling along the exposed breccia bodies returned trace-to-minor gold-silver values and only one out of seven historic, shallow drill holes targeting these breccias returned significant high-grade intercepts (e.g. DDH26; 0.76m@ 37.7g/t Au and 1.21m @ 11.48g/t Au).

To test this second dilational structure along the Shumagin Gold Zone, the final five drill holes of the program (16SH021-025) were drilled along two vertical fences (pattern), separated by approximately 100 metres, testing the down-dip extension of the exposed breccia bodies and below historic drill intercepts (see Long Section L-L' - as shown at www.redstargold.com/2016_Drill_Program).

All of the five drill holes intercepted two breccia veins, one parallel to the foot-wall/hanging-wall contact (approximate 70 degrees dip to the southeast) and a second breccia vein located deeper within the footwall (approximate 82 degrees dip to the southeast) (see www.redstargold.com/2016_Drill_Program for Cross-section 3100NE). The conjugate breccia veins collectively exhibit characteristic Shumagin-style gangue mineralogy and textures. High-grade gold-silver intercepts occur within the footwall breccia vein that span elevations from sea level, to approximately 130 metres BSL where narrow high-grade colloform textured veins occur (16SH023; 0.3m@ 34.5g/t Au and 16.45g/t Ag).

Drill Program Geological Discussion

The 2016 drill program tested approximately 750 metres of strike and approximately 275 metres of depth extent along the Shumagin Gold Zone and has effectively validated our structural models and geological interpretation that gold-silver mineralization along the Shumagin Gold Zone occurs within dilation zones localized along major structures, is vertically extensive and remains open at depth across the entire strike length of the Shumagin Gold Zone (see Long Section L-L' - as shown at www.redstargold.com/2016_Drill_Program).

Of particular importance, the approximate 50 metre thick section of phreatomagmatic breccias intersected in drill hole 16SH019 is the thickest section of syn-hydrothermal eruption breccias observed along the Shumagin Gold Zone to date (www.redstargold.com/2016_Drill_Program for Cross-section 2300NE). Syn-hydrothermal phreatomagmatic eruption breccias have been recognized along the entire length of the approximate nine (9) km long Shumagin Trend and are linked to Advanced Argillic alteration assemblages localized at Orange Mountain and occur along major and subsidiary structures that radiate from- and cross cut this inferred hydrothermal centre (see www.redstargold.com/2016_Drill_Program for Fig. Geological Features of the Shumagin Trend).

The thickness and location of this phreatomagmatic breccia in conjunction with an adjacent approximate 50 metre thick section of gold-silver bearing hydrothermal breccias and stockwork localized within the footwall of the Shumagin Gold Zone, indicates a very strong potential for strengthening of the hydrothermal system along strike towards the southwest.

The discovery of dilational jogs resulting from syn-mineral movement along conjugate and/or subsidiary structures to the southwest of the Shumagin Gold Zone could potentially host late-stage intermediate sulfidation-style high-grade quartz-adularia-carbonate (rhodochrosite) breccias comparable to those drilled at Shumagin and collectively represents a significant exploration target trend (see www.redstargold.com/2016_Drill_Program for Fig. Geological Features of the Shumagin Trend). The Company anticipates a larger expansive drill program initiated during the spring of 2017 and will focus on expanding the Shumagin Gold Zone to the southwest along strike.

Quality Assurance/Quality Control

The 2016 fall drill program at the Unga Project included a rigorous Quality Assurance/Quality Control program, overseen by Jesse C. Grady, Redstar's Vice President of Exploration.

Drill core selected for geochemical analysis was sawn in half, with one-half of the core being shipped in a sealed bag to ALS Minerals in Fairbanks, Alaska for sample preparation. One (1) kilogram splits were taken from each crushed drill core sample, pulverized into laboratory pulps and analysed at ALS Minerals in Vancouver where gold was assayed using a 50g fire assay and AA finish. Gold values in excess of 10 ppm were then re-assayed by 50g fire assay with a gravimetric finish. Trace elements were analysed using a four-acid digestion and ICP-MS finish. Redstar's QA/QC protocol consisted of insertion of calibration standards for gold and blanks at a rate of 1 standard for every 10 samples. Each drill hole represented a single sample shipment. Blank samples were also inserted at the beginning of each sample shipment and two calibration standards were used, including high-grade and low-grade standards in each shipment. A single lab duplicate was selected on a random basis for each shipment and employed at the end of each sample stream in consecutive order. Internal QA/QC review of the analytical results of gold standards, blanks, duplicates and geochemistry show that the lab has performed well and within expected tolerances.

Jesse C. Grady, MSc, CPG-11592, is a Qualified Person as defined by NI 43-101. Mr. Grady has prepared and approved the technical information contained within this release.

About The Unga Gold Project

The 100% controlled Unga Gold Project is an low to intermediate-sulfidation epithermal district located along the Alaskan Peninsula on adjacent Unga and Popof Islands, approximately 950 km southwest of Anchorage, Alaska. The 240 km2 property contains numerous volcanic-hosted, structurally-controlled and disseminated gold-silver mineral occurrences localized along multiple approximate nine (9) km long regional structures. High-grade gold zones drilled or identified at surface occur within dilation zones along the regional and/or subsidiary structures and are the main exploration target-type for the project.

The Unga Gold Project has excellent infrastructure including daily flights from Anchorage, a deep-water port and a temperate climate. The former Apollo-Sitka gold mine, located on the southern Apollo-Sitka Trend, was Alaska's first underground gold mine and the site of historic high-grade (~10 g/t Au) gold production.

About RedStar Gold Corp.

Redstar is well-financed junior exploration company, with a very strong institutional shareholder base, no debt, and is focused on advancing its high-grade Unga Gold Project in Alaska. The 100% controlled Unga Gold Project is known as an intermediate sulfidation epithermal high grade gold project on a district scale, with the property encompassing approximately 240 km2, and containing multiple high grade gold zones drilled or identified at surface. The Unga Project also hosts Alaska's first underground producing gold mine, has extensive infrastructure with daily flights from Anchorage and a deep-water port on neighbouring Popof Island, and a moderate climate noting it resides at the 57 degree latitude and next to the ocean. In addition, Redstar owns approximately 26.6% of NV Gold Corp. (TSXV: NVX). Redstar also owns 30% of the Newman Todd Gold Project, in Red Lake, Ontario, Canada.

On Behalf of the Board of Directors,

Peter A. Ball, President and CEO

For additional information please contact:

T: +1.604.245.5861

Toll Free: 877.310.3330

E: pball@redstargold.com

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Forward-Looking Information This release includes certain statements that may be deemed "forward-looking statements". All statements in this release, other than statements of historical facts, that address events or developments that Redstar Gold Corp. (the "Company") expects to occur, are forward-looking statements. Forward-looking statements are statements that are not historical facts and are generally, but not always, identified by the words "expects", "plans", "anticipates", "believes", "intends", "estimates", "projects", "potential" and similar expressions, or that events or conditions "will", "would", "may", "could" or "should" occur. Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results may differ materially from those in the forward-looking statements. Factors that could cause the actual results to differ materially from those in forward-looking statements include market prices, exploitation and exploration successes, and continued availability of capital and financing, and general economic, market or business conditions. Investors are cautioned that any such statements are not guarantees of future performance and actual results or developments may differ materially from those projected in the forward-looking statements. Forward-looking statements are based on the beliefs, estimates and opinions of the Company's management on the date the statements are made. Except as required by applicable securities laws, the Company undertakes no obligation to update these forward-looking statements in the event that management's beliefs, estimates or opinions, or other factors, should change.

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