LONESTAR GOLD INC.

Searching for Gold in Canada´s Yukon Territory

ELDORADO PROJECT

Lonestar Gold Inc is a private Company set to be

listed on the TSX Venture Exchange.

Management: Brings a combined experience of

over 70 years in the exploration mining industry.

Share Structure: 5 million shares issued including

4 million towards property payment.

ELDORADO PROJECT

The Asset: The Company recently acquired the Option to

earn a 100% interest in the 710 registered Quartz Claims

and Crown Grants that make up the Eldorado Bonanza

Quartz Claim Project, located in the Klondike, Yukon.

Lonestar Gold is the exclusive operator of the

Project.

Target: To exercise the full option and proof up a

multimillion ounce gold deposit at a cash cost of less than

$100 per ounce over a 3 years exploration period.

ELDORADO PROJECT

The Option

Lonestar Gold earns a 50% interest by investing

$2,750,000 towards exploration as a minimum work

requirement and issues shares equivalent in number to

the common shares of Lonestar issued to obtain the

funding necessary to finance the expenditures for the

minimum work requirement.

.

ELDORADO PROJECT

Lonestar has the option to earn an additional 25%

interest by completing up to $22 million in work

commitments to produce a Bankable Feasibility

Study and issue shares equivalent in number to the

common shares of Lonestar issued to obtain the funding

necessary to finance the expenditures for the minimum

work commitments.

ELDORADO PROJECT

Lonestar, at its discretion, may increase its position to a

full 100% interest in the property by paying $40 per

ounce based on the measured and proven ounces

confirmed in the bankable feasibility study.

Should Lonestar Gold choose not to extend beyond the

initial 50% it may activate a joint venture with the

Optionor in which Lonestar remains the Operator of the

project.

THE YUKON TERRITORYCanada´s Yukon has attracted Gold Seekers

and Prospectors since the mid 1800´s.

As of today the Yukon Territory is still one of the

most prospective areas for minerals in the world.

Its riches have been protected by its rugged

landscape and ferocious climate until a

combination of modern transport and positive

market conditions are slowly lifting the veil.ELDORADO PROJECT

ELDORADO PROJECT

Mineral claims staked, 1982-2010.

80,000 new Mineral Claims recorded in the Yukon in 2010

ELDORADO PROJECT

Mineral claims in good standing, 1982-2010.

By the end of 2010 there were over 160,000 mineral claims registered in

the Yukon

ELDORADO PROJECT

Mineral exploration in Canada's Yukon in 2010

remained strong. Exploration expenditures were

estimated to be $160 million. Several advanced

exploration projects returned significant drill results,

highlighting the under-explored potential of these

properties even at an advanced stage of exploration.

Exploration expenditures in Yukon, 1982 to 2010

The Klondike Gold Fields hosted some of the highest

concentration of gold per area in the world. Over 100 years

of exploration and mining suggest that the gold produced

from the placers came from local sources.

The traditional core of the Klondike Gold Fields are the

creeks and tributaries of Eldorado, Bonanza, Hunker,

Dominion and Quartz. They are among the richest placer

creeks in history.

The source of their enrichment has never been discovered.ELDORADO PROJECT

Klondike Gold Fields

Eldorado Creek is one of the richest creeks in the

Klondike district and produced by 1905 over 25 million

Dollars in gold at $15 per ounce over an area of

approximately 3 miles of placer claims. At current gold

prices this adds up to approximately $2.5 Billion.

Eldorado Creek continues to host mining activity to

this day.

ELDORADO PROJECT

Eldorado Creek

Bonanza Creek

ELDORADO PROJECT

Bonanza Creek, much like Eldorado Creek was one

of the richest creeks in the Klondike Gold Fields.

Individual Creek Claims yielded over

30,000 ounces of gold. Upper Bonanza Creek

Gravels alone are reported to have produced

approximately 1,000,000 ounces between Victoria

Gulch and Grand Forks.

Bonanza Creek is currently being mined for Placer

Gold.

LONESTAR GOLD INC.

EXPLORING & DEVELOPINGTHE

ELDORADO / BONANZA

PROJECT

ELDORADO PROJECT

Lonestar has an exclusive option to acquire up to

100% of the 710 quartz mineral claims and Crown

Grants making up the Eldorado / Bonanza Quartz

Claim Group.

ELDORADO PROJECT

Lonestar Gold Inc. Is the Operator of the Eldorado / Bonanza Quartz Claim Project.

LONESTAR `S ELDORADO / BONANZA

Quartz Claim Group

ELDORADO PROJECT

Lonestar´s Eldorado-Bonanza Project covers key areas

over the drainages of Eldorado Creek, Bonanza Creek

and Hunker Creek.

A network of nearly 100 km of roads and trails facilitate

exploration drilling, trenching and sampling .

The Lonestar property is fully permitted for exploration

This Project holds the promise in providing the key to

unlocking the secret origin of the Klondike Gold Field

Riches.

ELDORADO PROJECT

A network of nearly 100 km of roads and trails

facilitate exploration drilling, trenching and

sampling.

The Lonestar property is fully permitted for

exploration.

ELDORADO PROJECT

ELDORADO PROJECT

Lonestar Gold Inc. explores to find the origin of the

gold which supported the gold rush of 1898, and

the Yukon economy ever since.

Lonestar will continue to build on the vast amount of

data it has collected from historic and recent

exploration efforts to advance its Eldorado Bonanza

Quartz Project to feasibility.

Lonestar Property location in the centre of the current gold rush

ELDORADO PROJECT

ELDORADO PROJECT

RICHEST KLONDIKE GOLD FIELD PLACER

Lonestar Gold Inc.Eldorado / Bonanza Project Area

ELDORADO PROJECT

Over $18,000,000 has been invested in exploration

between 1985 and 2007. Recent expenditures

totalling over $10,000,000 between 2003 and 2007

have produced a significant amount of data

including some of the following highlights:

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Eldorado / Bonanza Quartz ProjectIdentified Zones of Mineralization

ELDORADO PROJECT

Eldorado / Bonanza Quartz Project:Trench working location

127 tonnes of bulk samples of gold-bearing ore were processed

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Eldorado / Bonanza Quartz Project:Diamond drilling locations

45 000 feet of drilling completed

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Eldorado / Bonanza Project:IP (geophysical survey) locations

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Eldorado / Bonanza Quartz Project:Soil test locations (blue circles), Auger drilled locations (white squares)

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Eldorado / Bonanza Quartz Project:Rock chips collected (locations)

ELDORADO PROJECT

The following mineralized zones have so far been identified within the

Project Area.

ELDORADO PROJECT

Buckland Zone

Pioneer Zone

Nugget Zone

JF Zone

Lone Star Zone

THE CREEKS AND GULCHES THAT FEED MOST OF THE OF PLACER GOLD IN TO THE KLONDIKE GOLD FIELD.

THEIR HEADWATERS ORIGINATE WITHIN THE LONESTAR PROPERTY

ELDORADO PROJECT

LONESTAR `S ELDORADO / BONANZA PROJECT

identified mineralized areas, open in all directionsClaim Group

ELDORADO PROJECT

Buckland Zone

Pioneer Zone

Parnel Zone

Lone Star Zone

7 PUP Zone

Jf Zone

0`Neil Gulch Zone

Under explored

Buckland Zone Highlights

2.06 g/gold over 21m

22.6 g/gold over 1m

1.29 g/gold over 160m

24.9 g/gold over 0.5m

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Preliminary investigations confirm: Significant near surface mineralization over 450,000 M²

Pioneer Zone Drilling

1.54 g/gold over 15.24m

7.4 g/gold over 1.5m

1.48 g/gold over 1.52m

ELDORADO PROJECT

Preliminary investigations confirm a mineralized

zone of 600m by 200m (120,000 m²) open in all

directions, 455m of drilling included (2007).

Pioneer ZoneGeophysics

15km line of IP survey (2007)

200m of new trenches (2007)

Drill Target identified.

100m trench samples including

12.5 gr/gold over 6m

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Nugget Zone Highlights

Three hole diamond program (2006) confirmed;HOLE nº Interval (meters) Gold (grams/tonne)

06NZ01 1.00 1.42

13.25 0.14

6.00 1.31

0.75 4.54

06NZ02 3.25 27.50

0.90 98.68

3.00 0.28

8.50 0.34

06NZ03 4.90 5.89

0.90 30.15

ELDORADO PROJECT

ELDORADO PROJECT

Chip sampling at the nugget shear zone showed

assays of

42.50 g/gold over 4m

74.03 g/gold over 2m

Nugget Zone Highlights

JF Zone.

400m x 500m soil Geological Anomaly peak values

of 291 ppb gold (1980`s)

480m of trenching including 95m of 100ppb+ gold

(1980`s)

20km line of IP geophysical survey

1km² geochemistry 299 samples (2007)

Drill targets are identifiedELDORADO PROJECT

Lone Star Zone Highlight

The Lone Star Zone has been drill tested over a strike

length of 900m with a potential strike length of over

3,500m and remains open in all directions.

Mineralization is present across widths of tens to

hundreds of meters along this length. The Zone is

open to expansion to the northwest, to the east, to the

north and particularly in depth.

ELDORADO PROJECT

Lone Star Zone

1.67 g/gold over 61.7m.

2.74 g/gold over 8.4m.

2.1 g/gold over 24m.

10.75 g/gold over 1m.

1.91 g/gold over 15.7m.

4.03 g/gold over 2.1m.

98.7 g/gold over 0.90m.

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Historic Mine Tunnel

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Lone Star Zone Visible Gold is a common occurrence

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Previous operators released results from diamond drilling

on the Lone Star zone (primary exploration target, site of

the former producing Lone Star Mine) including;

1.67 g/gold over 61.7m

2.74 g/gold over 8.4m

2.1 g/gold over 24m

10.75 g/gold over 1m

1.91 g/gold over 15.7m

4.03 g/gold over 2.1mELDORADO PROJECT

Lone Star Zone

Recent drilling shows there is a strong

association of gold with disseminated sulphides

without quartz veins at Lone Star Ridge. The

recognition of disseminated mineralization in

Klondike Schist is encouraging and has

expanded the exploration target.

ELDORADO PROJECT

ELDORADO PROJECT

The company`s preliminary strategy

Produce a 43-101 instrument.

Increase the ounces of the inferred gold potential.

Confirm a minable resource and feasibility for a multimillion ounce deposit.

Keep cash acquisition cost for the first one-million confirmed ounces below $100 per ounce in situ.

ELDORADO PROJECT

2011 Season

The Company plans to invest $750,000 to re-evaluate all available data, produce a

43-101 report and advance the existing geological model. This work will be

complimented with targeted field work which is to include additional geophysics,

trenching, geochemistry and drilling. Work done in the 2011 season will prepare the

Lone Star Zone for a comprehensive drilling campaign in 2012.

2012 Season

$3,000,000 are budgeted for a drilling campaign to extend the mineralized zone and

increase the current 250,000 ounce inferred resource. Work in 2012 is to set the

stage for an all out drilling campaign in 2013.

Eldorado / Bonanza Project TIME LINE

ELDORADO PROJECT

2013 Season

A budget of $10,000,000 is planned to optimize inferred resources and to bring the

inferred to the confirmed and measured category.

2014 Season

Continue drilling to extend the confirmed and measured resource. Produce an

advanced 43-101 report and complete a bankable feasibility study and carry out a

mine development study.

ELDORADO PROJECT

Yukon mining exploration www.miningyukon.com

Klondike Research Proposal Prepared for: Klondike Star Mineral Corporation J.K. Mortensen, Ph.D., P. Eng. Mineral Deposit Research Unit, University of British Columbia December 30, 2005

Boge & Boge (1998) LTD.

Yukon Hardrock Mining, development and Exploration overview 2010 http://miningyukon.com/

Slide nº Exploration expenditures in Yukon, 1982 to 2010http://webcache.googleusercontent.com/

Bibliography

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ELDORADO PROJECT