TSTR.L Regulatory News (TSTR)

TRI-STAR RESOURCES PLC

("Tri-Star" or the "Company")

MOU for Antimony Roaster in UAE for antimony metal & tri-oxide production

Tri-Star is pleased to announce that it has entered into a non-binding memorandum of understanding ("MOU") with Union International Holdings Group ("Union Group") to develop a 20,000 tonne per annum antimony metal and tri-oxide finished products facility (the "Project") in the Emirate of Ras Al Khaimah ("RAK"), located in the United Arabs Emirates ("UAE"). The site chosen for the Project is located in the Al Ghail Industrial Zone owned and operated by the Ras Al Khaimah Investment Authority ("RAK IA"), the sovereign investment company of RAK.

Under the MOU, Tri-Star and Union Group will form a new limited liability company in the Free Trade Zone of RAK to develop the Project, to be named Tri-Star Union Minerals LLC ("TSUM"), which will be owned 90 per cent. by Tri-Star and 10 per cent. by Union Group. The Company intends to fund the Project via a combination of equity fundraisings and debt finance.

Union Group will be rewarded their initial 10 per cent. interest in TSUM, upon the successful commissioning of the plant and obtaining all necessary permits and licenses for the Project and to enable TSUM to conduct business, at which point, and subject to the same conditions, Union Group will also be issued 300 million ordinary shares of 0.005p each in Tri-Star ("Ordinary Shares"). The issue of Ordinary Shares will be subject to all necessary regulatory approvals. In addition, Union Group will have an option to increase their interest in TSUM to 50 per cent. less one share by contributing its share of the project development costs. The terms of the MOU dictate that Tri-Star and Union Group will seek to enter into a binding agreement in relation to the Project by 30 September 2011.

The Project

The Project is an integral part of Tri-Star's strategy to supply value added antimony products to customers in the EMEA region. The location of the facility in the Gulf region provides an excellent centralised logistics route, a supply of secure and relatively inexpensive energy, a modern infrastructure, an experienced workforce and strong industrial partners.

The Project has been designed to produce regalus antimony (European Standard Grade 1 & 2) for export and a finished 'high tint' antimony tri-oxide ("ATO"), branded as Tri-Star ATO, with low lead (Pb) for the European flame retardant markets, as well as for the wider global chemical markets.

The Project will have a name plate design capacity of 20,000 tonnes per annum of combined metal and ATO products, representing approximately 12 per cent. of average annual world antimony production over the past five years. The Project is expected to take approximately 18 months to two years to design, engineer, construct and commission to full production.

In addition to treating the expected antimony concentrates sourced from Tri-Star's own or joint ventured mines, the facility will handle third party concentrates containing antimony and other by-product credits. Accordingly, the Company has begun the investigation of potential third party concentrate suppliers and has already received expressions of interest from a number of international customers seeking supplies of both finished metal and ATO, once the facility is operational.

Next Steps

Having received such expressions of interest and entered into the MOU, the Company now intends to negotiate detailed documentation and further progress discussions with both potential suppliers and potential customers. In parallel with these discussions, Tri-Star will also further explore funding opportunities available to the Company, with a view to entering into a binding agreement to move forward with the Project by 30 September 2011.

Technical advisers to the Project

The Company's technical team has been working with the following group of engineering and environmental consultants with in relation to the Project.

·; GBM Mineral Engineering (UK): plant design & engineering

·; SNC-Lavalin (UK): gas handling & pyrometallurgy design

·; Golder Associates (UK): environmental consulting

·; Wardell Armstrong (UK): concentrate metallurgical testwork

·; Hazen Research Inc (US): pyro metallurgical test work

The Company's partners in UAE

The two principal partners in the Project are Union Group and RAK IA:

Union International Holdings Group

Union Group is the wholly owned holding entity to a diversified industrial portfolio of businesses and investments founded over 25 years ago by H.H Sheikh Tariq Bin Kayed Al Qasimi. Today, Union Group manages, via a number of intermediate holding companies, some 30 different business units engaged in various activities in the UAE and elsewhere including real estate, construction and engineering, shipping and aviation, manufacturing and retail, education and hospitality. Union Group employs over 2,000 people worldwide and has revenues in excess of US$1 billion. The Union Group's stated intention is for further significant expansion in revenues with growth coming from in the arenas of oil and gas, mining and in renewable energy.

Ras Al Khaimah Investment Authority

RAK is one of the seven independent Emirates that form the UAE in the Arabian Gulf region. The sovereign owned investment authority known as RAK IA was constituted by the late H.H Sheikh Saqr Bin Mohammed Al Qasimi, Supreme Council Member and Ruler of RAK. RAK IA's vision is to become a leading authority in making sound investments in RAK and to partner with others that share the vision. RAK IA is under the direction of the current Ruler H.H Sheikh Saud bin Saqr Al Qasimi, of RAK, with the goal of making the Emirate a regional hub for industrial manufacturing, the service sector and tourism. RAK's GDP has increased by more than 50 per cent. in the past four years and grew by 8 per cent. in 2010.

The board of the Company (the "Board") believes that RAK offers certain key advantages to its partners including, inter alia, the following:

·; 100 per cent. personal income tax and corporate tax exemptions

·; No VAT

·; No import or export taxes (Free Trade Zone)

·; No income, sales or wealth taxes

·; 100% repatriation of capital

·; No foreign exchange controls

·; 25 year renewable land lease agreements

·; Inexpensive and secure supply of gas and electricity

·; Proximity to Gulf and global markets

RAK is endowed in rich natural resources and an abundance of natural raw materials, minerals and mining resources. Key sectors in RAK include major quarrying operations supplying regional cement, aggregate and steel sectors. Ceramics is a key sector in RAK and RAK Ceramics is a world leading producer of high quality ceramic products.

The Al Ghail Industrial and Free Trade Zone is a designated industrial park with 23 km2 of zone land with power and infrastructure supplies. The site houses a large power station, a cement plant and a steel mill. The site can be easily accessed via tarred roads and is connected to the key ports in the UAE, including the bulk terminal at Saqr Port.

Further information about RAK IA can be found on their website: www.rak-ia.com

Adrian Collins, Chairman of the Company, commented:

"We are delighted to be working with our partners in the UAE and our strong technical team to begin the development of the Project. Though there is a lot of work still to be done, the Board firmly believes that should the Project complete successfully, it will become a pivotal piece of infrastructure for the antimony industry. Over 90 per cent. of the world's antimony metal and products are derived from China. The importance of antimony in the European Union has already been recognised and this facility should greatly improve the availability and reliability of supply to customers in the EMEA region."

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