MINERAL PROPERTY PURCHASE AGREEMENT


                 THIS AGREEMENT dated for reference February17, 2003.


BETWEEN:

              DAVID G. LORNE, of 101 - 1184 Denman Street, Vancouver,
              British Columbia, V6G 2M9;

              (the "Vendor")

                                                     OF THE FIRST PART

AND:

              ALBERTA   STAR   DEVELOPMENT   CORP.,  a  body  corporate,  duly
              incorporated under the laws of the Province of  British Columbia
              and having its head office  at  200-675  West  Hastings  Street,
              Vancouver, British Columbia, V6B 1N2;

              ("Alberta Star")

                                                     OF THE SECOND PART

W H E R E A S :

A.            The Vendor is the registered and beneficial owner of one mineral
              claim located approximately 350 kilometres north of Yellowknife,
              Northwest Territories, which claim is more particularly described
              in Schedule "A" attached  hereto  which  forms a  material  part
              hereof (collectively, the "Claim"); Target #2-F71014

B.            The Vendor has agreed to  ell  and Alberta  Star  has agreed  to
              purchase a 50% undivided right, interest and title in and to the
              Claim upon the terms and conditions hereinafter set forth;

              NOW THEREFORE THIS AGREEMENT WITNESSETH that in consideration of
              the mutual covenants and provisos herein contained,  THE PARTIES
              HERETO AGREE AS FOLLOWS:

1.            VENDOR'S REPRESENTATIONS

1.1           The Vendor represents and warrants to Alberta Star that:

     (a)      The Vendor is the beneficial  owner  of the Claim and  holds the
              right to transfer title to the Claim and to explore and  develop
              the Claim;

     (b)      The Vendor holds the Claim free and clear of all liens,  charges
              and claims of others, and the Vendor has a  free  and  unimpeded
              right of access to the Claim and has use of  the  Claim  surface
              for the herein purposes;

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     (c)      The Claim has been duly and validly located  and recorded  in  a
              good and miner-like manner pursuant to the laws of the Northwest
              Territories and are in good standing in the Northwest Territories
              as of the date of this Agreement;

     (d)      There are no adverse claims or  challenges  against  or  to  the
              Vendor's ownership of or title to the Claim nor to the knowledge
              of the Vendor  is  there  any basis therefor,  and there  are no
              outstanding  agreements  or  options  to acquire or purchase the
              Claim or any portion thereof;

     (e)      The Vendor has the full right, authority and capacity  to  enter
              into this Agreement without first obtaining the consent  of  any
              other  person  or  body  corporate  and  the consummation of the
              transaction herein contemplated will not conflict with or result
              in any breach  of  any  covenants or agreements contained in, or
              constitute a default under, or result in  the  creation  of  any
              encumbrance under the provisions of any indenture,  agreement or
              other instrument whatsoever to which the Vendor is a party or by
              which he is bound or to which he is subject; and

     (f)      No proceedings are pending for, and the Vendor is unaware of any
              basis for, the institution of any proceedings which  could  lead
              to the placing of the Vendor in bankruptcy, or  in any  position
              similar to bankruptcy.

1.2           The  representations  and  warranties  of  the Vendor set out in
paragraph 1.1 above  form a  part  of  this  Agreement and are conditions upon
which Alberta Star  has relied  in  entering  into  this  Agreement and  shall
survive the acquisition of any interest in the Claim by Alberta Star.

1.3           The  Vendor  will  indemnify Alberta Star from all loss, damage,
costs, actions and suits arising out of  or in  connection  with any breach of
any representation, warranty, covenant,  agreement  or  condition  made by the
Vendor and contained in this Agreement.

1.4           The Vendor acknowledges and agrees that Alberta Star has entered
into this  Agreement  relying on the warranties and representations and  other
terms and  conditions  of this Agreement and that no  information which is now
known or  which  may  hereafter  become known  to  Alberta  Star  shall  limit
or extinguish the right to  indemnity hereunder, and, in addition to any other
remedies  it may pursue, Alberta Star may deduct the amount  of any  such loss
or damage from any amounts payable by it to the Vendor hereunder.

2.            ALBERTA STAR'S REPRESENTATIONS

          Alberta Star warrants and represents to the Vendor that it is a body
corporate,  duly  incorporated  under  the laws of  the  Province  of  British
Columbia with full power and absolute capacity  to  enter into this  Agreement
and that the terms of this  Agreement  have been authorized by  all  necessary
corporate acts and deeds in order to give effect to the terms hereof.

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3.            SALE OF INTEREST IN CLAIM

              The Vendor hereby  sells,  grants and  devises to Alberta Star a
50%  undivided  right, title and interest in and to the Claim in consideration
of Alberta Star:

     (a)      paying $3,500 to the Vendor upon  execution  of this  Agreement;

      (b)     paying  an  additional  $11,500  to  the Vendor upon TSX Venture
              Exchange acceptance  for  filing of this  Agreement  ( "Exchange
              Acceptance");

     (c)      issuing 200,000 common shares in its capital  stock at a  deemed
              price  of  $0.20  to the  Vendor within five  days  of  Exchange
              Acceptance;

     (d)      incurring a  minimum of $50,000 in  exploration  expenditures on
              the Claim prior to December 31, 2003; and

     (e)      incurring a further $50,000 in exploration  expenditures on  the
              Claim prior to December 31, 2004.

4.            TRANSFER OF CLAIM

              Upon  Exchange  Acceptance,  the  Vendor  shall  register  a 50%
interest in and to the Claim into the name of  Alberta Star.   Should  Alberta
Star, at any time, determine that it wishes to  abandon its  interest  in  the
Claim,  Alberta  Star must first provide the Vendor with 30 days notice of its
intention  to  do  so.   Upon  receipt  of such notice, the Vendor may request
Shabute to retransfer the title its interest in the Claim to him,  and Alberta
Star hereby agrees to do so.

5.            COVENANTS OF ALBERTA STAR

              Alberta Star shall perform all work on the Claim in a miner-like
manner and shall comply with all laws, regulations and permitting requirements
of Canada and the Northwest Territories including compliance with all:

     (a)      environmental statutes, guidelines and regulations;

     (b)      work permit conditions for lakes and streams; and

     (c)      work restrictions relating to forest fire hazards.

6.            FORCE MAJEURE

              If Alberta Star is prevented from or delayed in  complying  with
any provisions  of this  Agreement  by  reason of strikes,   labour  disputes,
lockouts,  labour  shortages,  power  shortages, fires,  wars,  acts  of  God,
governmental regulations restricting normal  operations or any other reason or
reasons  beyond   the  control  of  Alberta Star,  the time  limited  for  the
performance of the various provisions of this Agreement as set out above shall
be extended by a period of  time  equal  in  length  to  the  period  of  such
prevention and delay, and Shabute, insofar as is possible, shall promptly give
written notice to the Vendor  of  the  particulars  of  the  reasons  for  any
prevention or delay under this section, and shall take all reasonable steps to
remove the cause of such prevention or delay and shall give  written notice to
the Vendor as soon as such cause ceases to exist.

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7.            JOINT VENTURE AGREEMENT

              Upon Alberta Star providing all the  consideration  due  to  the
Vendor  pursuant  to  paragraph  3,  the  Vendor and Alberta Star shall form a
single purpose joint venture to further  explore  and  develop the  Claim  and
shall execute a joint venture agreement on terms  and conditions acceptable to
each party, substantially in the  form  of  the  Rocky  Mountain  Mineral  Law
Foundation Form No. 5, but not inconsistent with the terms of this  Agreement.

8.            RIGHT OF ENTRY

              For so long as this Agreement continues in full force and effect,
Alberta Star,  its  employees,  agents,   permitted  assigns  and  independent
contractors shall have the sole and exclusive right and option to:

     (a)      enter upon the Claim;

     (b)      have exclusive and quiet possession of the Claim;

     (c)      incur expenditures;

     (d)      bring upon and erect upon the Claim  such  mining  facilities as
              Alberta Star may consider advisable; and

     (e)      remove from the Claim  and sell or otherwise dispose of  mineral
              products.

9.            OPERATOR

              After the execution  of this Agreement, the  Vendor,  or  at the
Vendor's option, his respective associate or nominee or such  other  unrelated
entity as he may determine, will act as the operator of the Claim  under  this
Agreement.  The Vendor, if operator, may resign as the operator at any time by
giving 30 calendar days prior written notice to Alberta Star,  and within such
30 day period, the Vendor may appoint another party who covenants  to  act  as
the operator of the Claim upon such terms as the Vendor sees fit.

10.           POWER AND AUTHORITY OF THE OPERATOR

              After the execution of this Agreement,  the operator  shall have
full right, power and authority to do  everything  necessary or  desirable  in
connection with the exploration and development of the  Claim and to determine
the manner of operation of the Claim as a mine.

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11.           ENTIRE AGREEMENT

              This Agreement constitutes the entire agreement  to date between
the parties hereto and supersedes  every  previous  agreement,  communication,
expectation, negotiation, representation or  understanding,  whether  oral  or
written, express or implied, statutory or otherwise, between the  parties with
respect to the subject matter of this Agreement.

12.           NOTICE

12.1          Any notice required to be  given under  this  Agreement shall be
deemed to be well and sufficiently given if  delivered,  in the  case  of  the
Vendor, as follows:

              David G. Lorne
              101 - 1184 Denman Street
              Vancouver, British Columbia
              V6G 2M9

and, in the case of Alberta Star, as follows:

              Alberta Star Development Corp..
              #200-675 West Hastings Street
              Vancouver, British Columbia
              V6B 1N2

and any notice given as aforesaid  shall be  deemed  to  have  been  given, if
delivered, when delivered, or if mailed, on the fourth business  day after the
date of mailing thereof.

12.2          Either party may from time to time by notice in  writing  change
its address for the purpose of this paragraph.

13.           RELATIONSHIP OF PARTIES

              Nothing contained in this Agreement shall,  except to the extent
specifically authorized hereunder,  be  deemed to  constitute  either  party a
partner, agent or legal representative of the other party.

14.           FURTHER ASSURANCES

              The parties hereto agree to do or cause to be done  all  acts or
things necessary to implement and carry into effect the provisions  and intent
of this Agreement.

15.           TIME OF ESSENCE

              Time shall be of the essence of this Agreement.

16.           TITLES

              The titles to the respective sections hereof shall not be deemed
a  part  of  this  Agreement  but  shall be  regarded as  having been used for
convenience only.

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17.           CURRENCY

              All funds referred to under the terms of this Agreement shall be
funds designated in the lawful currency of Canada.

18.           NONSEVERABILITY

              This Agreement shall be  considered  and  construed as  a single
instrument and the failure to perform any of the terms and conditions in  this
Agreement shall constitute a violation or breach of  the entire  instrument or
Agreement and shall  constitute  the  basis  for  cancellation or termination.

19.           APPLICABLE LAW

              The situs of the Agreement is Vancouver,  British Columbia,  and
for all purposes this Agreement will be governed exclusively by and  construed
and enforced in accordance with the laws prevailing in the Province of British
Columbia.

20.           ENUREMENT

              This Agreement shall enure to the benefit of and be binding upon
the parties hereto and their respective successors and assigns.

21.           ASSIGNMENT

              Either party may assign part or all of its interest in the Claim
with the other party's  consent,  which  consent  shall  not  be  unreasonably
withheld.

              IN WITNESS WHEREOF this Agreement has been  executed as  of  the
day and year first above written.



                                                ALBERTA STAR DEVELOPMENT.

/s/ David Lorne                                 PER: /s/ Tim Coupland
-----------------------                         -------------------------
DAVID G. LORNE                                  TIM COUPLAND
                                                PRESIDENT

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                               SCHEDULE "A"
                               ------------

              TO THAT CERTAIN AGREEMENT MADE AS OF FEBRUARY 17, 2003
             BETWEEN DAVID G. LORNE AND ALBERTA STAR DEVELOPMENT CORP.


The Claim consists of one mineral claims located in the Northwest Territories,
Canada with the following record number and area:

        Claim Name         Record                No.Acreage
        ----------         ------                ----------

        Target 2           F71014                2530.8