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SmallCapNewsRelease:(OTCBB: LSTG) To Cancel Shares and Boost Shareholder Value


JERICHO, NY—(SmallCapNewsRelease)—January 18, 2012, Lone Star Gold, Inc. (OTCBB: LSTG) has announced that two of their largest shareholders have agreed that the company will redeem and cancel a total of 30 million issued and outstanding shares.
The cancellation will effectively reduce Lone Star’s total outstanding shares from 116.7 million to 86.7 million, or a reduction of 25.7%. The move is also intended to enhance the Company’s ability to continue to draw down from its USD$15 million equity financing agreement with equity investor North American Gold Corp. due to the expectation of yielding a higher stock price.
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