Megastar Announces Further Change in Ex-Dividend Date

VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 12/24/10 -- Megastar Development Corporation ('Megastar', the 'Company' or 'MDV') (TSX VENTURE: MDV)(FRANKFURT: M5Q) today provided clarification regarding its earlier announcement of the ex-dividend date relating to the record date for the distribution (the 'Distribution Record Date') of the 70,000,000 common shares of Eloro Resources Ltd.(or approximately 23,333,333 common shares if Eloro's proposed consolidation is effected) (the 'Eloro Shares') under the terms of the Company's shareholder approved arrangement (the 'Arrangement').

The Distribution Record Date is January 7, 2011. The Ex-dividend date, the date as of which a purchaser of Megastar common shares will no longer be entitled to receive any Eloro Shares pursuant to the Arrangement, is January 5, 2011.

Pursuant to the TSX Venture Exchange dividend policy, Megastar shares will commence trading on an ex-dividend basis at the opening of trading on the date which is two trading days prior to the Distribution Record Date, such date being January 5, 2011. The Company previously announced an Ex-dividend date of January 4, 2011, however, the new Ex-dividend of January 5, 2010 date will allow additional time for the trading of Megastar shares prior to the Eloro Distribution.

This news release should be read together with the more detailed information contained in 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

Dusan Berka, P. Eng., President & CEO

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.

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.

Contacts:

Megastar Development Corporation

Dusan Berka, P. Eng.

President & CEO

604-683-6648

604-683-1350 (FAX)
www.megastardevelopment.com