Document:

Unassociated Document

LONE STAR GOLD, INC. SECURES $15 MILLION EQUITY FINANCING AGREEMENT

ALBUQUERQUE, NEW MEXICO, August 29, 2011 -- Lone Star Gold, Inc. (OTC Bulletin Board: LSTG.OB; "Lone Star" or "the Company") is pleased to announce that on August 26th, 2011, the Company signed a USD$15 million equity financing agreement with Hong Kong based equity investor North American Gold Corp. According to the terms of the agreement, Lone Star is to specifically use the proceeds from the financing to fund operating expenses, working capital and general corporate activities related to the exploration and development of the Company’s Mexico based La Candelaria gold and silver mining project.

The equity financing agreement does not involve any debt. Rather, the terms of the agreement give Lone Star the option to draw down from the $15 million amount as and when needed in the amount of $100,000 or multiples thereof.

“We’re fortunate to have secured a substantial equity financing agreement with a serious investor,” commented Daniel Ferris, Lone Star Gold’s Company President. “We’re also fortunate to have an experienced leadership team in place that will know how to best utilize the agreement’s proceeds to move Lone Star toward its short-term mandate of rapidly becoming a mid-tier producer in Mexico.”

Lone Star is conducting a study of the Company’s La Candelaria property as due diligence toward verifying the findings of the property’s initial report. The Company also currently has a team of geologists on the La Candelaria property conducting additional geo-chemical rock-chip samples; an electro-magnetic geo-physical study; and a stream sediment study of the surrounding drainage areas. Further mapping and a channel/trenching program will be conducted over the following weeks. Once all the new data has been analyzed, the Lone Star team intends to use the data to map a 10-hole core drill program scheduled for early fall 2011. The Company does not have any definitive results regarding the La Candelaria property at this time.

ADDITIONAL INFORMATION

To learn more about the La Candelaria project, the Company, and regular news updates, visit Lone Star Gold’s official website: http://www.lonestargold.com.

ABOUT LONE STAR: Lone Star Gold, Inc. is a publicly traded (OTCBB: LSTG.OB) gold exploration and development company based in Albuquerque, New Mexico. The Company's aggressive acquisition and exploration approach is strategically focused on proven, stable precious metal regions in America and Mexico. Currently, Lone Star owns concessions covering 800 hectares in the La Candelaria project in Chihuahua, Mexico, which the Company is evaluating to determine the potential sites that represent the best potential for silver and gold deposits.

ON BEHALF OF THE BOARD OF DIRECTORS,

Lone Star Gold, Inc.

Daniel Ferris, Company President

Contact:

Lone Star Gold, Inc.

6565 Americas Parkway NE, Ste 200

Albuquerque, New Mexico

87110

USA

 

  

  

  

INVESTOR RELATIONS

Toll Free: 1-800-986-9358

E-mail:    ir@lonestargold.com

Web:      www.lonestargold.com

OTCBB: LSTG.OB

This press release contains statements that are forward-looking and which involve a number of risks and uncertainties. Such forward-looking statements are within the meaning of that term in Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended. The forward-looking statements in question are based on Lone Star Gold, Inc.'s current expectations and projections about future events, based on information currently available. The forward-looking statements found in this press release may also include statements relating to Lone Star Gold, Inc.'s anticipated financial performance, business prospects, new developments, strategies, and similar matters. Lone Star Gold, Inc. provides no assurance regarding the actual outcome of the events contemplated by any forward-looking statements included in this release. Lone Star Gold, Inc. disclaims any obligation to update any of its forward-looking statements, except as may be required by law.Exhibit 10.1
    

    
      

    

    
      [Letterhead of World Fuel Services]
    

    
      

      

    

    
      August 26, 2011
    

    
      

    

    
      Re:  Amendment No. 1 to Employment Agreement
    

    
      

    

    
      Dear Mr. Kasbar,
    

    
      This letter amends the terms of the Agreement by and between you
      (“Executive”) and World Fuel Services Corporation (the “Company”), dated
      March 14, 2008, as it may be amended from time to time (the “Employment
      Agreement”).  All capitalized terms used in this amendment but not
      otherwise defined herein will have the same meaning as defined in the
      Employment Agreement.
    

    
      You and the Company desire to amend the Employment Agreement to, among
      other things, reflect the anticipated change in your title, duties and
      responsibilities and enter into a new four-year term.  Accordingly, in
      accordance with Section 14(a) of the Employment Agreement, the parties
      hereby agree to amend the terms of the Employment Agreement as set forth
      in this amendment.  This amendment will become effective immediately
      upon execution by both parties; provided that, the terms of the
      Employment Agreement as in effect prior to execution of this amendment
      will continue to govern until December 31, 2011, and the terms of the
      Employment Agreement as amended by this amendment will govern beginning
      on January 1, 2012.  
    

    
      Notwithstanding anything to the contrary set forth in the Employment
      Agreement or any other agreement that relates to your employment:
    

    
      1.  Employment.  You hereby agree that the first five
      sentences of Section 1 of the Employment Agreement are hereby deleted in
      their entirety and replaced with the following:
    

    
      “1.       Employment.  Effective
      as of January 1, 2012 (the “Amendment Effective Date”), the Company
      hereby employs Executive pursuant to the terms and conditions of this
      Agreement for a term (the “Amendment Initial Term”), commencing on the
      Amendment Effective Date and ending on the fourth (4th) anniversary of
      the Amendment Effective Date, unless sooner terminated in accordance
      with Section 4 hereof.  The Amendment Initial Term shall automatically
      renew for successive one (1) year terms (subject to earlier termination
      as provided in Section 4 hereof) unless the Company or Executive
      provides written notice to the other at least one (1) year prior to the
      date on which the Employment Term otherwise would expire of its or his
      election not to renew the Employment Term.  The Amendment Initial Term,
      as it may be extended pursuant to this Agreement, is sometimes referred
      to in the Employment Agreement as the “Employment Term”.  During the
      Employment Term, Executive shall serve as President and Chief Executive
      Officer of the Company.  Executive shall faithfully and diligently
      perform all services as may be assigned to him by the Board consistent
      with his position, shall report solely to the Board, and shall exercise
      such power and authority as may from time to time be delegated to him by
      the Board.”
    

    
      

    

    
      
        

        

      

      
        

        

        
          

        

      

      
        

        

      

    

    

    

    
      2.  Base Salary.  You hereby agree that the following
      sentences are hereby added as the last sentences of Section 2.1 of the
      Employment Agreement:
    

    
      “The Compensation Committee has determined that, as of the Amendment
      Effective Date, the Company shall pay you an annual base salary equal to
      Seven Hundred Fifty Thousand Dollars ($750,000).  The term “Base Salary”
      shall mean the base salary as determined from time to time by the
      Compensation Committee in its sole discretion.”
    

    
      3.  Certain Definitions.
    

    
      (a)  Accrued Obligations.  You hereby agree that the
      reference to “Section 2.4(ii)” in Section 3.1(c) of the Employment
      Agreement is hereby deleted and replaced with “Section 2.3”.
    

    
      (b)  Trade Area.  You hereby agree that Section 6(b) of
      the Employment Agreement is hereby deleted in its entirety and replaced
      with the following:
    

    
      “(b)      As used herein, the term “Trade Area” shall mean the United
      States of America and any other foreign countries or regions, which are
      or were serviced by the Company or its subsidiaries or affiliates at any
      time since January 1, 1998.”
    

    
      4.  Full Force and Effect.  Except as specifically set
      forth herein, this amendment shall not, by implication or otherwise,
      alter, amend or modify in any way any terms of the Employment Agreement,
      all of which shall continue in full force and effect.
    

    
      5.  Governing Law/Jurisdiction.  The
      validity and effect of this amendment shall be governed by and construed
      and enforced in accordance with the laws of the State of Florida,
      without regard to any conflict-of-law rule or principle that would give
      effect to the laws of another jurisdiction.   Any dispute, controversy,
      or question of interpretation arising under, out of, in connection with,
      or in relation to the Employment Agreement or any amendments thereof, or
      any breach or default hereunder, shall be submitted to, and determined
      and settled by, litigation in the state or federal courts in Miami-Dade
      County, Florida.  Each of the parties hereby irrevocably submits to the
      exclusive jurisdiction of the state and federal courts sitting in
      Miami-Dade County, Florida.  Each party hereby irrevocably waives, to
      the fullest extent it may effectively do so, the defense of an
      inconvenient forum to the maintenance of any litigation in Miami-Dade
      County, Florida.
    

    
      6.  Counterparts.  This amendment may be executed in
      any number of counterparts, each of which shall be deemed an original,
      and all of which shall constitute one and the same instrument.
    

    
      

    

    
      
        

        

      

      
        
          2
        

        
          

        

      

      
        

        

      

    

    
      7.  Entire Agreement.  This amendment, together with
      the Employment Agreement, contains the entire agreement between you and
      the Company concerning the subject matter hereof and supersedes all
      prior agreements, understandings, discussions, negotiations and
      undertakings, whether written or oral, between you and the Company with
      respect hereto.
    

    
      

      

    

    

    

    	
          
            August 26, 2011
          

        	
          
            WORLD FUEL SERVICES CORPORATION
          

        
	

        	
           
        
	

        	
          by
        
	

        	
           
        	
          
            /s/ R. Alexander Lake
          

        
	

        	

        	
          Name: R. Alexander Lake
        
	

        	

        	
          
            Title: Senior Vice President,
General Counsel and Corporate
Secretary
          

        

    

    
      

      

    

    	
          
            ACCEPTED AND AGREED,
          

        	

        
	

        	
           
        
	
           
        	
          /s/ Michael J. Kasbar
        	

        
	

        	
          Name: Michael J. Kasbar
        	

        

    

    
      

      3

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