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 May 01, 2010
Abbastar Releases Annual Audited Financial Statements
 1201 - 700 West Pender St.
Vancouver, BC V6C 1G8
Telephone: 604-658-2044
Facsimile: 604-658-2045

VANCOUVER - May 1, 2010 - Abbastar Resources Corp. ("Abbastar" or "the Company") [TSX-V: ABA] has filed its annual audited financial statements together with the management discussion and analysis and is pleased to summarize the company's progress to date.

Talbot Lake Project - Ontario, Canada

As of December 31, 2009 expenditures incurred on the Talbot Lake Project were only $13,685 and on February 25, 2010, the Company announced the start of a first phase 5000 meter drill program on the Talbot Lake Project. To date, nine holes have been drilled, with an additional five or six holes expected as the program is now resuming following a pause for spring break-up. On March 30, 2010, the Company announced the results of the first two holes and on April 22, 2010 announced the results of the remaining seven holes.

Sample results from the first nine holes drilled on the Talbot Lake Project include:

 

Interval (m)

Au

Hole

From

To

Length

g/t

 

 

 

 

 

1

67.3

76.4

9.1

2.7

includes

69.9

76.4

6.5

3.3

and

69.9

70.4

0.5

11.3

 

 

 

 

 

2

173.1

174.6

1.5

3.6

 

 

 

 

 

3

217.5

238.5

21.0

2.8

includes

233.8

238.5

4.7

9.8

and

233.8

235.0

1.2

15.8

 

 

 

 

 

9

135.0

136.0

1.0

2.5

 

 

 

 

 

 

139.8

140.3

0.5

1.0

Holes # 4-8 intersected mineralized quartz veining with anomalous gold values up to 0.3 g/t. Exploration on the Talbot Lake Project is carried out under the supervision of David Hunt, P.Geo., qualified person under NI 43-101. Mr. Hunt will complete a NI 43-101 Technical Report once all drill results from the first phase have been received.

Doran Property - Quebec, Canada

After completing Doran Phase III during 08Q4, management shifted its focus to evaluate and acquire other assets to complement the Doran Property. Accordingly, mineral exploration expenditures of $26,450 were incurred in the year ended December 31, 2009 but in total, to December 31, 2009, the Company has incurred $1,520,190 in mineral property exploration expenditures as defined in the Doran Agreement and earned a 35% interest.

Wrongful Dismissal Action

On April 9, 2010, the Company's former president's employment was terminated. On April 15, 2010, the former president filed a writ and a statement of claim against the Company in the Supreme Court of British Columbia for wrongful dismissal. Details of the claims are disclosed in the notes to the annual audited financial statements and the accompanying management discussion and analysis.

It is the Company's position that it denies each and every allegation in the statement of claim save for admission that the former President received $5,000 per month directly as compensation while acting in that position.

The statement of defense is under review by our outside legal counsel and the Company will not comment on the specific part of the suit dealing with the dismissal of the former president until our full legal response is prepared and filed.

However, a number of misconceptions can be corrected at this time as a result of errors and misstatements in the statement of claim which appear to be inapt:
  • The Company was not in financial distress as alleged in the statement of claim, in fact, during 2008 and 2009 the Company received over $615,000 in tax refunds for exploration expenses incurred in 2007 and 2008. This information was known to the former president from the Company's financial statements.
  • The CFO of the Company did not receive any bonuses and did not pay any bonuses to himself as alleged in the statement of claim and is paid $2,000 per month by the Company.
  • The Company has been sub-leasing its current office space since 2003 and in January 2006 the head lease was assumed by a company which has Directors in common with Abbastar. The rent has remained unchanged since 2007 at $2000 per month for three offices that house three employees and officers as needed. The amount paid for rent is cost effective for the Company. The arrangement has been accepted quarterly by the audit committee and the former President was a signatory on the cheques issued for rent payments.
The Company's annual audited financial statements and management discussion and analysis are available on www.sedar.com.

Abbastar has 20,024,412 common shares outstanding. For further information please contact Mr. Donald Gordon, President & CEO, at (604) 658-2040 or Mr. David Goldman at (416) 487-0132. To learn more about Abbastar Resources Corp. [TSX-V: ABA], please visit www.abbastarresources.com.

On behalf of the Board,

Donald Gordon
President & CEO


The statements used in this News Release may contain forward-looking statements that may involve a number of risks and uncertainties. Actual events or results may differ materially from the Company's forward-looking statements and expectations.

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.
 
 

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