VANCOUVER, BRITISH COLUMBIA -- (MARKET WIRE) -- 06/21/2006 -- Alberta Star Development Corp. (the "Company") (TSX VENTURE: ASX)(OTCBB: ASXSF) is pleased to announce that the Company has successfully mobilized its drills and drilling equipment to the Company's Contact Lake Project. Drilling was commenced at the Company's Contact Lake and Eldorado IOCG and uranium projects in Canada's Northwest Territories (the "Project") in early June. The Company's drill contractor is Connor's Drilling Ltd. which is now operating three Boyles BBS-25A drills currently located on site at the Project. Mr. John Camier B.Sc. (Specialist), M.Sc., a principal of South Bay Exploration Ltd., a geological services company of Brandon, Manitoba, is supervising the Company's 2006 diamond drilling program on behalf of the Company. Tim Coupland, President and CEO, stated, "We are currently drilling 24 hours a day and intend to continue non-stop until late fall. The Company is currently on schedule with the diamond drilling programs." The Company has targeted 5 strongly anomalous zones with several secondary anomalies within the intensely altered target areas at Contact Lake. The Company is now permitted for over 40,000 meters of diamond drilling and has received permission to drill from the Chief Inspector of Mines.

CONTACT LAKE & ELDORADO IRON OXIDE COPPER, GOLD, SILVER AND URANIUM PROJECT

The Contact Lake & Eldorado Projects are located on the east side of Great Bear Lake in Canada's Northwest Territories. The projects are situated 670 kilometers north of the city of Yellowknife. The total size of the Project and surrounding area is over 51,473.96 acres in size. The Company's mineral tenure in the Eldorado Mineral Belt covers hundreds of known or recorded silver, copper, cobalt, rare earth elements, and uranium occurrences in Proterozoic rock that correlate with rock of other IOCG deposits worldwide (Olympic Dam in western Australia, Kiruna Belt of Sweden). The Eldorado IOCG Project area includes two past producing high grade silver and uranium mines, the Echo Bay Silver Mine which produced 23,779,178 ounces of silver and the Eldorado Uranium Mine which produced 15 million pounds of uranium and 8 million ounces of silver. The Contact Lake Mine is a former past producer of silver and high-grade uranium. The five past producing silver and uranium mines include the Echo Bay Silver Mine, Eldorado Uranium Mine, Contact Lake Silver and Uranium Mine, Bonanza and El Bonanza Silver and Uranium mines and are now included within the Company's land package ownership. The Company is the first mineral exploration company in 75 years to successfully stake, acquire and permit one entirely contiguous land package in this mineral rich region of the Northwest Territories. The Contact Lake and Eldorado Uranium Belt have long been recognized by geologists, as one of the most prospective Iron oxide copper, gold, silver and uranium regions in northern Canada. The current June 5, 2006 spot price for Uranium is now $45.00 US per pound, Copper $3.12 per pound and Gold $583.00 per ounce.

ALBERTA STAR DEVELOPMENT CORPORATION

The Company is a Canadian mineral exploration company that identifies, acquires, finances advanced stage exploration projects in Canada. The Company is focused in the discovery of base and precious metals and uranium.

ALLAN FELDMAN-INVESTOR RELATIONS

Investors are welcomed to contact Mr. Allan Feldman, In-house Investor Relations and Corporate Communications Specialist, for all corporate updates at (604) 948-9663.

ALBERTA STAR DEVELOPMENT CORP.

Tim Coupland, President & CEO

Dr. Hamid Mumim Ph.D., P.Eng. is the qualified person for the Contact Lake project.

This News Release includes certain "forward looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995. Without limitation, statements regarding potential mineralization and resources, exploration results, and future plans and objectives of the Company are forward looking statements that involve that involve various degrees of risk. The following are important factors that could cause Alberta Star's actual results to differ materially from those expressed or implied by such forward looking statements: changes in the world wide price of mineral commodities, general market conditions, risks inherent in mineral exploration, risks associated with development, construction and mining operations, the uncertainty of future profitability and the uncertainty of access to additional capital.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this News Release.