INDY India Star

RNS Number:0349R
India Star Energy plc
09 February 2007





India Star Energy Plc ("India Star")
9 February 2007



Canadian Golden Dragon signs joint venture agreement



India Star Energy PLC (AIM: INDY) is pleased to note that its investee, Canadian
Golden Dragon Resources Limited ("Dragon"), has executed a letter of intent in
relation to a C$3m joint venture agreement for its Shebandowan Belt property.


Dragon has been exploring for copper, zinc, gold and silver in the Shebandowan
greenstone belt since 2002 and has assembled 421 claims covering an 8km long
section of favourable rhyolite-basalt volcanic stratigraphy, that hosts two
deposits; Vanguard East and West.



The property is situated 110 km west of Thunder Bay in the Shebandowan
greenstone Belt. Highway 11 to Atikokan and two power lines traverse the length
of the property. The main CNR rail line also crosses the north boundary of the
claims. With excellent infrastructure, exploration and development of the
property is expected to be inexpensive.



Dragon's announcement which was released to the Toronto Venture Exchange 
("TSX-V") yesterday is reproduced in full below.



Paul Mc Groary, commented:



"Following the progress which we recently announced to the market of East West's
drilling programme, it is pleasing to see that Dragon's work since 2002 is
progressing apace. The Shebandowan property in Ontario contains some relatively
overlooked geological opportunities which can now be developed using advanced
geological techniques. We remain positive on prospects."


Paul Mc Groary                                         07930 568 160

India Star Energy PLC



The TSX-V announcement released yesterday by Golden Dragon is reproduced below:



Canadian Golden Dragon arranges $3-million JV with Everett



2007-02-08 12:37 ET - News Release



Dr. Elliot Strashin reports



CANADIAN GOLDEN DRAGON RESOURCES LTD.: $3M JV FOR VANGUARD
ZINC-COPPER-GOLD-SILVER PROPERTY



Canadian Golden Dragon Resources Ltd. ("Dragon") has executed a letter of intent
for a joint venture agreement with Everett Resources Ltd., with an effective
date of Dec. 10, 2006, on the 421-claim-unit Vanguard-Shebandowan property, 110
kilometres west of Thunder Bay, Ontario.



Dragon has been exploring a chert-exhalite horizon, which extends over eight
kilometres from the East and West Vanguard zinc-copper-silver-gold zones located
in the northeastern part of the property, to the southwest toward the North
Coldstream copper-silver-gold mine (102.3 million pounds of copper, 440,000
ounces of silver and 24,000 ounces of gold produced from 2,728,000 tons, MNDM
resident geologist files). The geological setting, which resembles the
Thompson-Bousquet camp between Noranda and Val d'Or, is thought to have the
potential for more VMS deposits.



A 1991 Noranda Inc. report (before NI 43-101) provided by the vendors describing
the Vanguard property states, "The property hosts two VMS prospects, the west
and east zones, which hosts 200,000 tonnes of 1.3 per cent Cu, 1 to 2 per cent
Zn, 8.26 grams per tonne Ag, four to six grams per tonne Au and 100,000 tonnes
of 1.8 per cent Cu, 3 to 6 per cent Zn, 6.8 g/t Ag, four to six grams per tonne
Au, respectively."



All of the exploration results disclosed herein are historic in nature and do
not presently conform to National Instrument NI-43-101 Standards of Disclosure
for Mineral Projects. They have been reviewed, but not verified by Robert S.
Middleton, PEng, who is the designated qualified person. He is responsible for
the verification and quality assurance of exploration data, as well as
analytical results. In the opinion of the qualified person, based on the
information available, the mineralization at the Vanguard property would be
classified as an inferred mineral resource, based on the definition of the CIMM,
since it will be required to do further infill drilling to establish grades.
Therefore, the historic figures should not be relied on.



Diamond drill work by Alleghany Mines Corp. in the east zone in 1997 showed
mineralization in adjacent mafic, massive to semi-massive sulphide and
silicified zones. Grades as high as 24 per cent zinc and 5.78 per cent copper
were noted in the mineralized zones. The mineral resources described above are
at or near surface.



Dragon exploration programs have extended the Vanguard east zone, with drilling
in 2002 (hole VE02-2 yielded 6.6 m of 2.14 grams of gold, 43.39 g silver, 2.73
per cent copper and 3.49 per cent zinc per tonne) and again in 2004 (hole
VE-04-05 yielded 4.15 m of 0.8 g gold, 28.31 g silver, 1.89 per cent copper and
6.39 per cent zinc per tonne). Lineation measurements suggest that the zone is
steeply plunging to the west at 60 to 70 degrees.



In 2006, a program was designated to test a sericite schist alteration zone,
along this trend approximately two kilometres northeast of the North Coldstream
mine. Disseminated sulphides were intersected, including a 0.8-metre zone at a
32-metre depth below surface, assaying 3.4 per cent zinc, 0.12 per cent copper
and 1.25 g gold, and a second one-metre zone at 35 m below surface, assaying
0.41 per cent copper and 20.1 g silver. Dragon initiated a large geophysical IP
program, now financed by Everett, in the area of this third discovery to
delineate the extent of mineralization. "The proximity to the former North
Coldstream mine makes us hopeful for a large deposit," president Dr. Elliot
Strashin was quoted.



In the short to medium term, Dragon and Everett plan to complete the geophysical
program and drill both the area of latest discovery, as well as continue to
expand the Vanguard East zone.



The agreement calls on Everett to spend $3-million in exploration before Jan.
20, 2011, to earn a 50-per-cent interest in the Vanguard property. In addition,
starting Jan. 20, 2008, Everett must pay a total of $150,000 in option payments.
With TSX Venture Exchange approval, Everett will issue 200,000 common shares of
its stock to Dragon in tranches of 50,000. After earning a 50-per-cent interest,
Everett has the right to earn an additional 20 per cent in two stages: first, 10
per cent by completing a bankable feasibility study; and then an additional 10
per cent by taking the property to production. Dragon will carry out the program
for the first two years, for which it will receive a fee of 15 per cent of all
third party contracts. The joint venture agreement is subject to the approval of
the TSX Venture Exchange and any other regulatory bodies.



The Vanguard exploration program is being supervised by Dragon's qualified
person, Mr. Middleton. The company maintains a base of operations in Thunder
Bay, Ont.



We seek Safe Harbor.




                      This information is provided by RNS
            The company news service from the London Stock Exchange
END

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