Megastar Development - The Futures Megastar im Minensektor

[JJOHNS]

Megastar Development - The Futures Megastar im Minensektor
WKN: A0JL3K
ISIN: CA58516P1099
Symbol: M5Q

Mr. Dusan Berka reports $$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$

MEGASTAR DEVELOPMENT CORP.: RESULTS OF ANNUAL GENERAL MEETING; SPECIAL MEETING OF SHAREHOLDERS TO BE HELD ON DECEMBER 20, 2010

At Megastar Development Corp.'s annual general meeting held on Dec. 7, 2010, the shareholders re-elected Dusan Berka, Gary Musil, Richard Roy and newly elected Chris Staargaard as directors of the company for the upcoming year.

Megastar welcomes Mr. Staargaard, MSc, PGeo, a seasoned professional with over 30 years experience in the evaluation of mineral exploration projects in a wide variety of geological environments throughout Canada, the United States, Central and South America, as well as China, the southwest Pacific, Africa, Eastern Europe, Ukraine and Madagascar. Since 2002, he has been president, chief executive officer and director of Lithic Resources Ltd., a company listed on the TSX Venture Exchange.

Brian Thurston chose not to stand for re-election in order to pursue other opportunities. The board wishes to thank Mr. Thurston for his contribution over the past years and wishes him the very best in his future business endeavours.

All other resolutions submitted by management to the shareholders for consideration were approved as presented.

The directors reappointed only the following officers of the company: Mr. Berka as president and chief executive officer; and Mr. Musil as chief financial officer and corporate secretary.

"The board and management of the company wish to thank Shawn Thomas and Andrew Lee, former vice-presidents, for their dedicated service to the company," said Mr. Berka, president and chief executive officer of Megastar.

Special meeting of shareholders -- Dec. 20, 2010

The company wishes to remind and invite shareholders to attend the special meeting of shareholders of Megastar at 10 a.m. on Monday, Dec. 20, 2010, at the offices of Macdonald Tuskey, corporate and securities lawyers, 1210 -- 777 Hornby St., Vancouver, B.C., for the following purposes:

Shareholders will consider a special resolution to adopt an arrangement to distribute to Megastar shareholders 70 million common shares of Eloro Resources Ltd. on a pro rata basis. If the arrangement is approved, Megastar shareholders of record on the distribution record date will remain shareholders of Megastar and will also become shareholders of Eloro on the distribution record date, ultimately receiving as a dividend, approximately 1.7 shares of Eloro for every one share of Megastar beneficially owned on the distribution record date. The distribution record date has been set as Dec. 21, 2010.
Secondly, shareholders will consider the consolidation of the issued and outstanding common shares of Megastar on the basis of one new postconsolidation share for up to every six preconsolidation shares outstanding. If this resolution is approved, it will give the board of directors the ability to consolidate the issued and outstanding common shares of the company on the basis of one new share for up to six old shares, if considered necessary or advisable by the board of directors, with the actual consolidation ratio to be determined by the board of directors.
Shareholders and investors are encouraged to obtain detailed information and read the information circular dated as of Nov. 25, 2010, in its entirety regarding this special meeting. A copy of the information circular can be downloaded from SEDAR or the company's website.

[amberrichards]

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