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VANCOUVER, BRITISH COLUMBIA--(Marketwire - July 25, 2012) - Eagle Star Minerals Corp. (TSX VENTURE:EGE)(PINKSHEETS:ELGSF)(FRANKFURT:E6R) ("Eagle Star" or "the Company") is pleased to announce that the latest results from composite interval channel sampling continue to confirm consistent mineralization within the previously announced 15 kilometers strike outline at intervals grading from 1.0 to 4.7% P2O5. Complementary analysis of mineralized intervals previously reported in the news release dated July 5th also reveal an encouraging perspective for the strong presence of Rare Earth Elements within the high grade phosphate mineralization (1.8m @ 4.7% P2O5% plus 1966 ppm of TREO).

The area is located less than 20km to the north of Picos, the third largest city in Piauí State, Brazil. The city is at the center of the state surrounded by good infrastructure including close proximity to large agricultural centers and railroads. The Bocaina dam located at the heart of the concession block, can supply water for future beneficiation processes.

The Canabrava Block is 100% wholly owned and covers 40,678 hectares across 23 mineral claims.

Rare Earth Elements

The best results from the first set of complementary channel sampling indicate upon analysis a combined mineralization of phosphate and Rare Earth Elements (1.8m @ 4.7% P2O5% plus 1966 ppm of TREO). Considering that the composite channel samples aggregate both the high grade (sandstone) and low grade (siltstone) material into one average result and being that the Rare Earth Elements' seem to be associated with the sandstone it is expected that once the high grade material is separated from the low grade material as part of the concentration process, the REE results will increase in grade quite significantly.

Additional sampling and characterization of lateral and vertical variation of grade and solubility

The study to characterize the lateral and vertical variation of grade and solubility within the materials that compose the mineralized package has been concluded at 3 points located at the northern and central portions (other 2 points are programmed) of the project area. Sampling at the walls of the four trenches opened has been concluded. Pit opening will commence this week at the southern portion to verify the thickness of overburden coverage and to sample the walls for a lateral variation study. Additional channel sampling at new points will also be conducted to expand the options of areas to bulk sample for the beneficiation tests.

To view Figures 1 and 2 please click on the following link: http://media3.marketwire.com/docs/EGE0725.pdf

Detailed mapping and topographic survey

Detailed mapping and topographic surveying of fifteen points along the potential area outlined will be conducted to support the geological model. As reported in earlier press releases, the composite results from channel samples occur within a topographic interval of up to 100 meters and the rock types are stratified (run parallel) suggesting the possibility of having successive packages (with different thicknesses and grades).

Chemical and Metallurgical Tests (solubility)

As previously announced, chemical and metallurgical tests with an objective to determine solubility (conversion of phosphorus in citric acid solution and in CNA+water) are currently taking place. Results are expected by month's end.

Analytical work was conducted by SGS Geosol Laboratorios Ltda. at its Vespasiano facility in Brazil. SGS Geosol is an ISO-certified laboratory and, as part of the SGS group of laboratories, is widely recognized as an expert in geochemical analysis and assaying.

John Harrop, PGeo, FGS, of Coast Mountain Geological, a qualified person under NI 43-101, reviewed and approved the technical disclosures of this press release on behalf of the company.

Conclusions

"The team at Eagle Star is extremely pleased and encouraged by the fact that the first set of results from complimentary sampling along the 15 kilometers potential strike outline continue to indicate good, consistent phosphate grades. Furthermore, the REE results point to a correlation with the high-grade phosphate material and should increase in grade as a result of the separation process planned for the mineralized phosphate package. Together, these results lend strong support to our belief that we have discovered a deposit of significant value. We are now eagerly awaiting results from the chemical and metallurgical tests as they should reveal the possibility and process of beneficiating the mineralized material," commented Dr. Campos, Eagle Stars' COO, Director and expert on phosphate.

About the Company

Eagle Star Minerals Corp. is a publicly listed company focused on the acquisition, exploration and development of agro-mineral properties in Brazil. Over the past two years, Eagle Star Minerals has strategically grown its' presence in Brazil and continues to focus on maximizing shareholder value by acquiring assets located in geological areas known for proven phosphate mineralization, coupled with good logistics in close proximity to agriculture.

The Company's shares are publicly traded on the TSX Venture Exchange under the symbol EGE, on the OTC Pink Sheets under the symbol ELGSF and on Frankfurt Stock Exchange under the symbol E6R.

On behalf of the Board of Directors

EAGLE STAR MINERALS CORP.

Eran Friedlander, President