VANCOUVER, BRITISH COLUMBIA -- (MARKET WIRE) -- 10/18/2006 -- Alberta Star Development Corp. (the "Company") (TSX VENTURE: ASX)(OTCBB: ASXSF) is pleased to announce that it has completed its previously announced brokered private placement of 6,380,000 flow-through units ("Units") (including the exercise of an over allotment option) of the Company at a subscription price of $1.90 per Unit, for total gross proceeds of (Cdn) $12,122,000 (the "Offering"). Each Unit consisted of one (1) flow-through common share ("Common Share") of the Company and one-half of one (1/2) common share purchase warrant ("Warrant"). Each whole Warrant is exercisable into one additional common share at an exercise price of $2.15 per share on or before April 18, 2008.

Pacific International Securities Inc. acted as agent (the "Agent") for the Offering and was paid a cash commission equal to 7% of the gross proceeds raised. In addition, the Agent was issued 508,296 Agent's compensation options whereby each Agent's option is exercisable into one (1) common share at an exercise price of $2.20 per share on or before April 18, 2008.

The Company intends to use the flow-through proceeds from the Offering to fund its 2006/2007 exploration program, including exploration of the Company's Eldorado & Contact Lake IOCG and uranium properties and renounce, for the 2006 income tax year, qualifying exploration expenditures (as defined in the Income Tax Act (Canada)) to the Unit subscribers.

ALLAN FELDMAN-INVESTOR RELATIONS

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

On behalf of the Board of Directors of ALBERTA STAR DEVELOPMENT CORP.

Tim Coupland, President & CEO

This news release does not constitute an offer to sell or a solicitation of an offer to sell any of the securities in the United States. The securities have not been and will not be registered under the United States Securities act of 1933, as amended (the "U.S. Securities Act") or any state securities laws and may not be offered or sold within the United States or to a U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.

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 accuracy of the content of this News Release.