NorStar Seeks to Recover its Gold Assets

Business Wire, Dec 26, 2002

Business Editors

FORT LAUDERDALE, Fla.--(BUSINESS WIRE)--Dec. 26, 2002

NorStar Group, Inc., (OTCBB:NSTG) confirmed this morning that it is activating its Mining and Mineral Division, and that NorStar's Board of Directors have unanimously approved for the Company to move forward and seek a joint venture partner for its 17 lode claims totaling 340 acres in the Gold Mountain district of Esmeralda County, Nevada. NorStar's mining claims are located in the southwestern part of Nevada adjacent to the California border in an area that is historically known for its rich gold ore deposits. The Company believes that its gold and silver deposits can be recovered swiftly and economically.

"With the recent and dramatic rise in gold prices, the Company's asset has become an extremely valuable piece of real estate," said NorStar's CEO, Jay Sanet. "NorStar is anticipating heavy industrial demand for gold and silver as aerospace and other defense industries continue ramping up for war."

Gold, known for its malleability, ductility, reflectivity, resistance to corrosion, and unparalleled ability as a thermal and electrical conductor, is widely used in electronics. Gold is considered an indispensable component in aerospace and defense industries. Gold's main role in defense electronics is in semi-conductor devices where gold wire or strip is used to connect parts such as transistors and integrated circuits, and in printed circuit boards to link components.

Sanet went on to say, "In the Afghanistan theater we watched armadas of American war planes attacking their targets with vast numbers of smart and standoff weapons. As other military campaigns begin elsewhere, weapons stockpiles will obviously dwindle, and they will have to be replenished potentially resulting in pure gold wire being ferociously consumed by weapons manufacturers and other defense industries."

Through selective acquisitions and partnering alliances, NorStar Group, Inc. (NSTG) is positioning itself to be a provider of gold and silver and a leading provider of interactive, virtual reality, entertainment, educational, and business products and services. NorStar is also the developer of a proprietary lightweight, comfortable and affordable virtual reality headgear, The Cybervisor(TM), which is designed for home and school.

Safe Harbor: Certain statements contained in this press release, including but not limited to information regarding the future economic performance and financial condition of the Company, the plans and objectives of the Company's management and the Company's assumptions regarding such performance and plans, are forward-looking in nature. Many factors and conditions could cause actual results to differ from the forward-looking information contained in this public announcement.