/NOT FOR DISTRIBUTION TO UNITED STATES WIRE SERVICES OR DISSEMINATION IN THE UNITED STATES/

TORONTO, Dec. 23, 2011 /CNW/ - Polar Star Mining Corporation ("Polar Star") (TSX:PSR) is pleased to announce that it has entered into a binding Letter of Intent option agreement with Kairos Capital Corporation ("Kairos"). Under the agreement Kairos can acquire up to a 75% interest in either or both of Polar Star's Fortuna and Nancagua properties located in Region III and VI respectively, Chile.

The agreement is in the form of a standard mineral industry exploration option in which Polar Star has granted four options to Kairos.  Prior to commencing the first option, Kairos will fund a NI 43-101 technical report on the Fortuna and/or Nancagua properties to be completed on or before September 30, 2012.

The first option requires Kairos to elect to continue work on either or both of Fortuna and Nancagua.  Kairos will complete $850,000 in work commitments with respect to Fortuna and/or $600,000 in work commitments with respect to Nancagua within 12 months from the date of election to earn a 51% interest in either or both of the properties.

With respect to Fortuna, the remaining options will grant Kairos a 60% interest in the property upon completing an additional $1,000,000 of work commitments within 12 months; a 65% interest upon completing a further $1,500,000 of work commitments within 24 months, and a 75% interest upon completing a Bankable Feasibility Study within 7 years of earning a 65% interest.  Work commitments at Fortuna include US$1,450,000 of option payments to a third party in accordance with the Company's original option to purchase agreement.

With respect to Nancagua, the remaining options will grant Kairos a 60% interest in the property upon completing an additional $1,100,000 of work commitments within 12 months; a 65% interest upon completing a further $1,500,000 of work commitments within 24 months, and a 75% interest upon completing an additional $3,000,000 of work commitments within 60 months or by funding the project to production.

Private Placement

Polar Star also announces that it has received conditional approval of the TSX to complete a non-brokered private placement of common shares of the Company (the "Common Shares"), at a price of $0.30 per Common Share, for gross proceeds of up to $400,000 (the "Offering").

The net proceeds of the Offering will be used to finance exploration and development programs and for general corporate purposes.

The Offering is scheduled to close on or before December 28, 2012.

The securities offered have not been registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or exemption from the registration requirements. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any State in which such offer, solicitation or sale would be unlawful.

Forward-Looking Statements 

This news release may contain forward-looking statements based on assumptions, uncertainties and management's best estimates of future events.  Actual events or results could differ materially from the Company's expectations and projections.  Investors are cautioned that forward-looking statements involve risks and uncertainties.  Accordingly, readers should not place undue reliance on forward-looking statements.  When used herein, words such as "anticipate", "will", "intend" and similar expressions are intended to identify forward-looking statements.  For a more detailed discussion of such risks and other factors that could cause actual results to differ materially from those expressed or implied by such forward-looking statements, refer to Polar Star's filings with Canadian securities regulators available on www.sedar.com or the Company's website at www.polarstarmining.com.

About Polar Star

Polar Star is an emerging exploration company with a focus on building value in Chile through discovery and development.  Its flagship property, Montezuma, covers 40 kilometres of the West Fault and the cross-cutting Esperanza Fault system and is located between Codelco's Radomiro Tomic - Chuquicamata - Ministro Hales (formerly known as Mansa Mina) group of copper-molybdenum porphyry deposits, and Antofagasta PLC's El Tesoro - Esperanza - Polo Sur group of copper-gold porphyry deposits. The head offices of Polar Star are located in Toronto.

Share Capitalization

Shares outstanding: 91,072,669 as at December 23, 2011.

About Kairos

Kairos Capital Corporation, a company incorporated under the Business Corporations Act (Alberta) on October 18, 2010, is a capital pool company ("CPC").  The CPC is in the business of identifying and evaluating opportunities with a view to completing a proposed qualifying transaction ("Qualifying Transaction") in accordance with Policy 2.4 of the TSX Venture Corporate Finance Manual.

www.polarstarmining.com