PROJECT UPDATE

NANY-VARAS COPPER-GOLD PROJECT,

CHILE

Nany Option Agreement exercised (WSR 100% equity),

Varas Option extended

Option over Nany property fully exercised, giving White Star a 100% equity interest

Six-month extension granted on option over neighbouring Varas Property

Ground position increased to 504ha through active tenure pegging

IP geophysical orientation survey at Nany-Varas commenced

Perth Western Australia – Monday 23 January 2012: South

American-focused copper-gold explorer White Star Resources

(ASX: WSR – “White Star”) is pleased to announce that the

option agreement on the Nany property has been exercised,

with White Star taking a 100% equity interest in the licence. In

addition, the Varas option agreement has been extended until

30 June 2012 (Figure 1).

The Nany-Varas project is located approximately 40km south of

the world-renowned Inca de Oro mining district in Northern

Chile’s Atacama Region. The Inca de Oro area has been mined

extensively for copper, gold and silver and is currently is the

focus of significant exploration activity targeting copper and vein

gold mineralisation.

White Star completed the acquisition of the Nany property by

the payment of USD 350,000, with White Star taking a 100%

equity interest with no additional encumbrances. In addition,

the option agreement over the adjacent Varas property to the

north (Figure 1), has been extended for a period of 6 months

until 30 June 2012. The Nany vein structure continues north

into the Varas property under shallow transported cover. This

extra time will allow the Company to carry out sufficient

evaluation work to make an informed decision relating to the

exercise of the Varas option agreement.

White Star has also extended its land holding in this historic

mining area to over 500ha, through the pegging of 8 additional

contiguous mining exploitation licences.

23 January 2012 (ASX Ticker: WSR)

Registered Office: White Star Resources Level 45, 108 St Georges Tce PERTH WA 6000

Web www.whitestarresources.com.au Email admin@whitestarresources.com.au Directors: Bill Turner Non-Executive Chairman Tony Greenaway Managing Director & CEO Nathan McMahon Non-Executive Director Felicity Repacholi - Muir Non-Executive Director Amy Musgrave Company Secretary

Issued Capital: 250 million shares 91.6 million options

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As more results come in, the Company continues to advance its understanding of the steeply

dipping, structurally controlled quartz-vein system hosted in Paleocene andesitic volcanics.

Currently work is focused on improving the understanding of the geology, structure, mineralogical

variations and alteration characteristics. The style of mineralization shows affinities with both low-

sulphide epithermal gold deposits and mesothermal Cu-Pb-Zn-Au and Ag vein deposits.

The principal vein system comprises at least 3 stages of veining that includes a phase of massive

and brecciated quartz veining, a phase of banded quartz veining and open-space-infill quartz

veining, and a phase of millimetric and sub-millimetric quartz-stockwork veining. Sulphides are

associated with all vein events. Pyrite, sphalerite, chalcopyrite and galena are the dominant base

metal suphides with minor bornite, gold and silver are associated in the vein structure. Gold also

occurs outside of the main vein zone within very fine quartz pyrite veins.

Chlorite alteration associated with the main vein structure extends from centimeters to tens of

meters into the host volcanics and a characteristic feature of this alteration is the destruction of

magnetite. Local silicification and argillic alteration are also present.

Better results received since December 2011 from diamond drilling samples include:

DDNN11 6.90m @ 1.47g/t Au, 7.38g/t Ag from 55.3m

DDNN12 22.03m @ 2.57g/t Au, 30.72g/t Ag from 80.6m

DDNN12 9.56m @ 2.02g/t Au, 16.14g/t Ag from 105.3m

DDNN14 5.24m @ 1.30g/t Au, 16.57g/t Ag from 84.04m

DDNN15 1.15m @ 1.27g/t Au, 4.80g/t Ag from 43.45m

A full list of the latest results can be found in Table 1, with only 12% of samples now pending.

White Star has commenced an IP geophysical orientation survey over the main Nany vein

structure to better define drill targets at depth. This survey will extend to the north along the

projected strike of the Nany vein into the Varas property, where it is covered by shallow

transported soils.

The Company has begun establishing field support at the Henry and Condor project sites in

anticipation of field work, comprising systematic surface geochemistry and geological mapping,

commencing in Q1 and Q2 of 2012.

- ENDS -

For more information, please contact:

Tony Greenaway

Managing Director & CEO

Cell: +61 (0) 407 981 057 (Perth)

+56 (9) 7 386 5542 (Chile)

Email: tony@whitestarresources.com.au

Website: www.whitestarresources.com.au

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About White Star Resources:

White Star Resources Limited (ASX: WSR - “White Star”) is an exploration company which has acquired a significant

portfolio of copper-gold and gold projects in the world-class Atacama mining region in Chile.

White Star has secured the backing of leading Western Australian copper company Sandfire Resources Ltd which holds

a cornerstone 17.3 per cent shareholding and provides strategic and technical support and advice under a Technical

Services Agreement.

White Star will be undertaking aggressive exploration programs across its five key projects during 2012: Nany (gold -

copper), Condor (copper), Henry (iron oxide copper-gold), Dundee (gold) and Amigo (iron oxide copper-gold); as well as

actively looking to build its presence in Chile through further acquisitions, joint ventures and active tenement

management.

The Company is well funded to pursue its objectives with approximately $8.0 million in available cash resources.

Whinnen Resources Ltd | Tel: +61 8 9322 6579 | Web:

Key Statistics

Shares on Issue: 250 million + 91.6 million options

Board and Management: Bill Turner – Non-Executive Chairman

Anthony Greenaway – Managing Director and CEO

Nathan McMahon – Non-Executive Director

Felicity Repacholi-Muir – Non-Executive Director

Amy Musgrave - Company Secretary

Jim Royal – Exploration Manager

Major Shareholders: Sandfire Resources Limited 17.3%

Zero Nominees Pty Ltd 10.6%

Ravenhill Investments Pty Ltd 7.27%

Qualifying Statement

This release may include forward‐looking statements. These forward‐looking statements are based on White Star

Resources Limited’s expectations and beliefs concerning future events. Forward‐looking statements are necessarily

subject to risks, uncertainties and other factors, many of which are outside the control of the Company, which could

cause actual results to differ materially from the views expressed in such statements. White Star Resources Limited

makes no undertaking to subsequently update or revise the forward‐looking statements made in this release to reflect

events or circumstances after the date of this release.

JORC Competent Persons Statement

The information that relates to the drilling data and geological interpretations is based on information compiled by

Anthony Greenaway who is a Member of The Australasian Institute of Mining and Metallurgy and a Director of the

Company. Mr Greenaway has sufficient experience that is relevant to the style of mineralisation and type of deposit

under consideration and to the activity being undertaking to qualify as a Competent Person as defined in the 2004

Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Mr

Greenaway consents to the inclusion of his name in the matters based on the information in the form and context in

which it appears.

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Figure 1: Nany-Varas Project Tenure

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Figure 2: Nany-Varas Project Drill Collar Plan

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Hole ID East North RL Dip Elevation EOH From (m)

To (m)

Interval (m)

Au (g/t)

Ag (g/t)

Cu (%)

Pb (%)

Zn (%)

DDNN-11 409538 7014203 1872 -45 270 100.40 33.4 34.2 0.84 0.54 1.20 0.01 0.04 0.06

43.0 43.4 0.42 1.56 2.40 0.01 0.04 0.03

45.0 45.8 0.77 1.05 0.90 0.01 0.02 0.03

48.7 48.9 0.25 2.29 1.80 <0.01 <0.01 <0.01

53.6 60.5 6.90 1.47 7.38 0.02 0.08 0.08

62.4 65.3 2.91 0.13 6.84 0.19 0.62 0.75

DDNN-12 409538 7014203 1872 -70 270 149.25 55.1 55.8 0.74 1.42 3.30 <0.01 0.10 0.04

56.1 56.9 0.77 0.86 1.00 <0.01 0.03 0.03

60.1 61.0 0.86 0.57 2.10 <0.01 0.04 0.03

63.1 64.7 1.69 1.40 1.45 <0.01 0.02 0.03

68.8 70.7 1.93 1.04 1.91 <0.01 0.02 0.04

72.5 73.4 0.91 1.77 3.10 0.01 0.04 0.07

76.2 77.9 1.69 2.52 2.58 0.01 0.02 0.04

80.6 102.6 22.03 2.57 30.72 0.03 0.13 0.12

105.4 114.9 9.56 2.02 16.14 0.02 0.08 0.11

DDNN-14 409532 7014154 1884 -70 270 136.48 71.9 72.8 0.91 0.91 0.70 <0.01 0.01 0.02

76.0 76.9 0.94 1.52 1.10 0.01 0.01 0.03

79.8 80.7 0.92 1.60 2.10 <0.01 0.02 0.03

84.0 89.3 5.24 1.30 16.57 0.03 0.15 0.11

92.0 93.0 0.92 1.03 8.00 0.01 0.07 0.10

98.2 99.2 1.00 1.51 1.30 0.01 0.06 0.17

100.4 101.4 1.00 1.67 2.70 0.01 0.05 0.09

DDNN-17 409404 7014042 1907 -40 90 105.85 61.2 62.2 1.00 0.01 6.80 0.25 0.33 0.68

92.1 93.1 1.00 1.35 <1 0.02 <0.1 0.01

DDNN-18 409404 7014042 1907 -60 90 232.70 36.1 41.9 5.75 0.86 7.41 0.09 0.48 1.14

51.5 52.5 1.00 0.78 0.40 0.01 0.07 0.22

67.4 68.4 1.00 0.60 <1 0.01 0.16 0.27

158.1 158.9 0.77 0.52 6.00 0.02 0.13 0.19

161.1 162.8 1.70 0.95 2.22 0.02 0.10 0.38

164.8 165.4 0.60 0.59 2.2 0.02 0.08 0.27

178.4 183.4 5.00 0.74 1.04 0.01 0.02 0.05

187.4 194.0 6.60 0.93 0.93 0.01 0.02 0.05

205.3 207.0 1.76 0.63 1.45 0.02 0.01 0.04

DDNN-19 409572 7014601 1870 -70 270 196.13 50.0 52.2 2.17 1.01 2.22 0.05 0.08 0.07

55.1 63.0 7.94 0.85 1.18 0.01 0.01 0.05

68.7 69.1 0.36 0.58 0.60 0.01 0.03 0.06

75.1 80.5 5.37 0.76 3.48 0.01 0.07 0.12

DDNN-20 409549 7014449 1872 -70 270 141.35 77.7 78.7 1.00 0.89 0.50 0.01 0.00 0.01

Table 1: Nany-Varas Project Assay Results received since December 2011

Note:

All results are based on ½ HQ drill core samples.

Analysis conducted by ALS Laboratories in Coquimbo Chile, using a 30g Fire Assay with AAS analysis for Gold; and Aqua Regia digestion with

ICP-AES analysis for multi element geochemistry.

Intervals are calculated using a minimum 0.5 g/t Au or 0.1% Cu cut off with a maximum of 2 meters internal dilution. No top cuts applied.

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