Vancouver, British Columbia--(Newsfile Corp. - May 25, 2023) - Blue Star Gold Corp. (TSXV: BAU) (OTCQB: BAUFF) (FSE: 5WP0) ("Blue Star" or the "Company") announces that, further to its news release of May 17, 2023, and subject to the approval of the TSX Venture Exchange (the "Exchange"), it has closed the first tranche of its non-brokered private placement (the "Private Placement") issuing 6,250,000 units (each, a "Unit") at a price of $0.40 per Unit for aggregate gross proceeds of $2,500,000. Each Unit consists of one common share (each, a "Share") and one-half of one transferable common share purchase warrant (each whole warrant, a "Warrant") exercisable at $0.50 per Share for a period of 24 months (the "Expiry Date") from the closing date of the Private Placement. No finder's fees were paid in connection with the closing of the first tranche.

All securities issued are subject to a four-month and one day hold period pursuant to securities laws in Canada and, where applicable, the Exchange Hold Period. The Company intends to use the net proceeds from the Private Placement for exploration of the Company's projects in Nunavut and for general working capital.

Dr. Georg Pollert, a director and controlling shareholder of the Company, and his wife, Gabriele Pollert, together purchased an aggregate of 6,250,000 Units pursuant to the Private Placement. As a result, the issuance of these Units pursuant to the Private Placement is considered a related party transaction (as defined under Multilateral Instrument 61-101 Protection of Minority Security Holders in Special Transactions ("MI 61-101")). The Company relied upon the "Fair Market Value Not More Than 25% of Market Capitalization" exemption from the formal valuation and minority shareholder approval requirements, respectively, under MI 61-101.

About Blue Star Gold Corp.

Blue Star is a gold company focused on exploration and development within Nunavut, Canada. Blue Stars landholdings total 270 square kilometres of highly prospective and underexplored mineral properties in the High Lake Greenstone Belt, Nunavut. The Company owns the Ulu Gold Project, comprised of the Ulu Mining Lease and Hood River Property, and the Roma Project. A significant high-grade gold resource exists at the Flood Zone deposit (Ulu Mining Lease), and numerous high potential exploration target areas occur throughout the Company's extensive landholdings, providing Blue Star with excellent resource growth potential.

Blue Star is listed on the TSX Venture Exchange under the symbol: BAU, the U.S. OTCQB Venture Market under the symbol: BAUFF, and on the Frankfurt Exchange under the symbol: 5WP0. For information on the Company and its projects, please visit our website: .

For further information, please contact:

Grant Ewing, P. Geo., CEO
Telephone: +1 778-379-1433
Email: info@bluestargold.ca

Raffi Elmajian, Corporate Communications Manager
Telephone: +1 778-379-1433
Email: relmajian@bluestargold.ca

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the Policies of the TSX-Venture Exchange) accepts responsibility for the adequacy or accuracy of this Release.

The securities referred to in this news release have not been, nor will they be, registered under the United States Securities Act of 1933, as amended, and may not be offered or sold within the United States or to, or for the account or benefit of, U.S. persons absent U.S. registration or an applicable exemption from the U.S. registration requirements.

This news release does not constitute an offer for sale of securities for sale, nor a solicitation for offers to buy any securities. Any public offering of securities in the United States must be made by means of a prospectus containing detailed information about the company and management, as well as financial statements.

NOT FOR DISSEMINATION IN THE UNITED STATES OR FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES AND DOES NOT CONSTITUTE AN OFFER OF THE SECURITIES DESCRIBED HEREIN.

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