Megastar Announces Results of Special Meeting and New Distribution Record Date Vancouver, BC, Canada, December 22, 2010 - Megastar Development Corporation (“Megastar”, the “Company” or “MDV”) (TSX-V: MDV; Frankfurt: M5Q)today announced that its previously announced arrangement under the Business Corporations Act(British Columbia)(the “Arrangement”) has received the requisite shareholder approval at the Companys special meeting of shareholders held on December 20, 2010 (the “Meeting”).

The Arrangement was approved by 99.95% of shares voted at the Meeting.

Pursuant to the Arrangement, Megastar will distribute to its shareholders those shares of Eloro Resources Ltd.

("Eloro"), which it received as consideration for the sale of its Simkar Property to Eloro (the “Distribution”).

In order to comply with Exchange policies, the Company has reset the record date for the Distribution to January 7, 2011. The final court order to approve the Arrangement was obtained on December 21, 2010.

If all other conditions to completion of the Arrangement, including approval of the TSX Venture Exchange (the “Exchange”), are satisfied, Megastar expects to close the Arrangement as soon as possible following the Distribution Record Date.

At the Meeting, shareholders also approved a resolution approving a possible consolidation, if deemed to be necessary or advisable by the Companys board of directors, on the basis of one (1) new post-consolidation Megastar share for up to every six (6) pre-consolidation Megastar shares outstanding.

Such resolution was approved by 93.05% of shares voted at the Meeting. This news release should be read together with the more detailed information containedin the management information circular of the Company dated November 25, 2010,available on SEDAR at www.sedar.com. ABOUT MEGASTAR DEVELOPMENT CORP. Megastar Development Corp.

is an emerging resource company engaged in the acquisition, exploration and development of mineral properties in Canada.

Megastar owns gold and base metal properties in Quebec and British Columbia.For further information, investors and shareholders are invited to visit the Company’s website at www.megastardevelopment.com or call the office at 604-683-6648.

ON BEHALF OF THE BOARD OF DIRECTORS “DUŠAN BERKA” Dušan Berka, P.

Eng. President & CEO
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 news release.

Statements made in this news release that are not historical facts are “forward-looking statements”, and readers are cautioned that any such statements are not guarantees of future performance, and that actual developments or results, may vary materially from those in these “forward-looking” statements.
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