International Star, Inc.

OTC: ILST

Welcome to Ask the CEO

Welcome to Ask the CEO – my weekly website blog where I answer questions, each Monday morning, from shareholders, investors and other interested parties on issues related to the Company. Many of the emails and phone calls I receive from stakeholders focus on common themes such as the future of ILST as an investment and how our plans to grow and improve our business will translate into meaningful benefits for the shareholders.
My posts will focus on the Company and its growth strategies. In addition to discussing our performance and the current issues facing our business, from time to time, I will also address the external challenges we face, including volatility in the capital/equity markets.
My objective is to be transparent and accessible in communicating with you, our stakeholders. This is your forum to have your questions answered, and I encourage you to submit question to This email address is being protected from spambots. You need JavaScript enabled to view it. . I look forward to hearing from you.
Michael Shea
CEO

18 July 2016

Dear Shareholders and Friends of ILST, I wanted to provide you with a corporate update.

Management continues in its discussions with several investment banking firms as well as our contacts in the US, Europe and China. The consensus of participants in the precious metals space is that the price of gold will remain above $1,300/oz. ILST has updated our projections to reflect to what is believed to be the floor for gold ($1,300). We now have a much more compelling story for investors as shown in the summary table below.

$1,300 Au   Principal Repayment Total % Return IRR
Early Stage Permit investor          
Single Note ($100,000)   $100,000 $127,555 128% 39%
Full Amount($2,500,000)   $2,500,000 $3,188,881 128% 39%
Late Stage Build-out investor          
Single Note ($100,000)   $100,000 $85,037 85% 29%
Full Amount($5,000,000)   $5,000,000 $4,251,841 85% 29%

As the above chart indicates, the return the investors will receive is substantially greater at $1,300 gold. As an example, an Early Stage investor at $100,000 not only receives his original principal back, but also a 128% profit ($127,555) generating a IRR of 39%.

Additionally, the expiration date for the offering is extending for an additional 90 days. The collateral material has been updated and is in being disseminated to previous interested parties, as well as, new contacts.

Results of the meeting with the Swiss investor provided some suggestions for moving the project forward, but no definitive interest. However, our dialogue with other European bankers are ongoing. We can continue to be solicited by Canadian investment banking firms that are confident that they can raise the capital, and we are pursuing funds needed to engage them, as well as, fund the SEC Industry Guide 7 Technical Report.

Lastly, I want to inform investors that I moved to Southern Florida which will allow me to network with high net worth individuals and promote our offering.

6 June 2016

Dear Shareholders and Friends of ILST, I wanted to provide you with a corporate update.

Funding:

Management continues in its efforts to raise the capital to progress the Van Deemen gold project through permitting and into production. Non-dilutive capital raising has been and continues to be the number one priority. To say it has been extremely difficult would be an understatement.
Despite the challenges, the Van Deemen is a ready to go project, drilling done, metallurgical testing done, some permitting work done, and a Technical Report (equivalent to the Canadian 43-101) is in progress, but need funds to pay the geo and engineer to complete. The report is important as it will allow us to state the mineralization of the deposit which is the base for the mine planning and project financials to move the project into production.

We have people, working on a success fee basis only, in Israel, UAE, Australia, Canada, Switzerland and the US marketing the placement to accredited investors. We are in fundraising discussions with a Canadian boutique investment bank focused on metals and mining.  They are confident they can raise the capital needed to bring the project on-line, but require an upfront engagement fee. The project has been submitted by our Swiss contact to Cannacord, a Canadian investment bank for review, and there are 2 meetings scheduled this week with potential investors.

Year End & Q1 Financials:

The 2015 Annual Financials and 2016 Q1 Financials have been posted on the Company’s website. Management will continue to utilize the corporate web site for these postings until such time as they receive the OTC Markets Pink Current designation.

06-Apr-2016

Dear Shareholders and Friends of ILST, I wanted to provide you with a corporate update.
Funding:
We continue to aggressively solicit interest in filling out the 506C and have numerous parties actively seeking investors on a success based Finder’s Fee basis. As we reach certain milestones in funding, updates will be provided. The terms on the proposal, as summarize on our website (http://www.ilstholdings.com/investors/private-placement/81-content/investors/142-prospectus-summary.html) are very attractive and compelling, not only for investors, but for shareholders.   
Year End Financials:
The 2015 Annual Financials will be completed by mid-next week. The financials will be posted on the Company’s website. Management has made the decision not to renew the Company’s OTCMarkets subscription strictly due to cost, $2,600 ($2,100 6 month subscription plus $500 activation fee).  In addition, to receive OTCMarkets Pink Current designation, the Company’s SEC counsel is required to submit a Current Opinion Letter (cost of $750).  Total cost to remain Pink Current is $3,350.
While this step is not taken lightly, the reality is that given the severely depressed share price, dilution, if possible, would have to occur equal to approximately 67 million shares. Management has determined that the benefit of not diluting outweighs being Pink Current.

8-March-2016

Dear Shareholders and Friends of ILST, I wanted to provide you with an update.
As reported in the last press release, ongoing efforts to raise the necessary capital to move the Van Deemen project through permitting and into production are ongoing. Has it been easy, absolutely not, but the team is committed to bringing the project into production and providing the value shareholders have patiently and painfully been awaiting.
Ms. Karpel, in conjunction with other members of management, are having constant conversations with investors. These conversations have led to further refinement of our 506C offering. The offering is now structured as Profit Participation Promissory Notes. Rather than relying on debt, the new structure allows investors to directly participate in the Van Deemen’s profit once in production. This not only allows investors to benefit from production profits, but provides an upside should gold prices climb.
Further, the offering is bifurcated such that early investors get a higher percentage of profits to entice them to commit ASAP. Whether an investors comes in early or later, the returns are very attractive based on $1,200/oz. gold. This provides a ‘win-win’ solution for all involved.
On another topic, I have received many emails regarding claim ownership. Those who say we own no claims are ill informed regarding the subject. The Bureau of Land Management (“BLM”) leases claims to mining companies, they do not sell the claims. ILST leases a portion of its claims directly from the BLM with annual payments requirements. ILST also leases critical claims from La Cuesta LLC, which is the direct lessee from the BLM. ILST pays a lease fee to La Cuesta, as well as, makes the annual BLM payments on their behalf.
Lastly, thru Ms. Karpel’s contacts, I was interviewed by UpTick Media yesterday. A link to the interview will be available on our website soon. The radio interview reaches not only retail investors, but more importantly, up to 50,000 accredited investors. This is just one of the many outlets we are pursuing to reach potential investors looking for a very unique way to take advantage of gold prices.
Make no mistake, I am acutely aware of the depressed and ridiculous share price relative to value of the Van Deemen Gold project. The whole purpose of the 506C offering is put the Van Deemen into production and put dilution behind us once and for all. We are determined to succeed.

11-Nov-2015

Dear shareholders and friends of ILST,

In an ongoing effort to maintain full transparency with our valued stakeholders I will be requesting that the Transfer Agent provide current share structure numbers upon request to any/all interested parties. I would ask that inquiries be sent via email to ClearTrust. Our experience with Clear Trust has been excellent and they are prompt in responding. Please allow one (1) day before making inquiries.
The current share structure of ILST is as follows:
Outstanding    1,061,564,615
Float:        918,737,109
Authorized:     3 Billion
 We recently completed a small raise of capital to pay for essential items like business licenses. None of the ILST team takes a salary nor are they selling the stock that they hold in the company. We are looking ahead to getting the Van Deemen gold project online. Speaking for myself and the entire ILST team, we know that our efforts won’t be rewarded until gold is produced. We are indeed motivated to get the company into the production phase.
Some have inquired about the recent A/S increase. I hope that yesterday's press release sheds some light on why it was essential to make room for accredited investors that want to take part in the 506C Private Placement. I will continue to update the market about our progress on this placement.

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