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Starcore to Step Up Exploration Drilling

VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 12/28/12 -- Starcore International Mines Ltd. (TSX:SAM) ("Starcore" or the "Company") announces that in 2013 it will focus on increasing shareholder value through exploration and development at its wholly-owned San Martin gold and silver mine in Queretaro, Mexico. In order to achieve this goal, Starcore has scheduled an enhanced exploration program to commence in February 2013, comprised of 5000 meters of drilling to unlock the potential at the San Martin gold-silver mine. To facilitate this objective for 2013, the Company has renegotiated its loan facility with Sprott Resource Lending Corp. ("Sprott Lending") whereby Starcore will not be required to make any further principal payments on its outstanding loan with Sprott Lending until October 31, 2013. (See news release of May 10, 2012.) The Company and Sprott Lending have amended the terms of the outstanding credit facility to allow Starcore the flexibility to make one balloon payment by October 31, 2013, thus enabling the Company to immediately allocate surplus revenue to exploration.

Starcore is aggressively pursuing its exploration activities to open up new structures with the expectation that this will increase its reserves. "The loan payment holiday with Sprott Lending will fuel our exploration efforts in the New Year and we expect the drilling results to increase shareholder value in a very attractive gold market," said Robert Eadie, Executive Chairman and CEO of the Company.

As consideration for amending the loan agreement, Sprott Lending will receive, subject to TSX approval, 300,000 shares of the Company.

About Starcore

Starcore is engaged in exploring, extracting and processing gold and silver through its wholly-owned subsidiary, Compania Minera Pena de Bernal, S.A. de C.V., which owns the San Martin mine in Queretaro, Mexico. The Company is a public reporting issuer on the Toronto Stock Exchange. The Company is also engaged in owning, acquiring, exploiting, exploring and evaluating mineral properties, and either joint venturing or developing these properties further. The Company has interests in properties which are exclusively located in Mexico.

ON BEHALF OF STARCORE INTERNATIONAL MINES LTD.

Robert Eadie, Executive Chairman, Interim President and Chief Executive Officer

This press release includes certain statements that may be deemed "forward -looking statements". All statements in this release, other than statements of historical facts, including the planned enhanced exploration programs and the results thereof, expectations of additional available funds resulting from the renegotiation of the Loan Agreement and the use thereof, and the expectation that the identification of new structures will result in the identification of additional reserves, are forward-looking statements. Although Starcore believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in the forward-looking statements. Factors that could cause actual results to differ materially from those in forward-looking statements include fluctuations in the price of gold and general economic, market or business conditions, that there are no significant disruptions affecting operations, whether due to labour disruptions, supply disruptions, damage to or loss of equipment, whether as a result of natural occurrences including flooding, political changes, title issues, intervention by local landowners, loss of permits, or environmental concerns or otherwise; and the Company does not change its development and exploration plans; that the exchange rate between the Canadian dollar, Mexican peso and the United States dollar remain consistent with current levels or as set out in this press release; that prices for gold and silver remain consistent with the Company's expectations; that prices for key mining supplies, including labour costs and consumables, remain consistent with the Company's current expectations; that production meets expectations; that the Company identifies higher grade veins in sufficient quantities of minable ore; that the geology in as yet to be identified structures are as expected; Investors are cautioned that any such statements are not guarantees of future performance and that actual results or developments may differ materially from those projected in the forward-looking statements. Such forward-looking statements are subject to a number of risks, including those set out in Starcore's Annual Information Form and annual Management Discussion & Analysis in Canada available on the SEDAR website at www.sedar.com. Starcore does not undertake any obligation to release publicly any revisions to any "forward-looking statement" to reflect events or circumstances after the date of this press release or to reflect the occurrence of unanticipated events, except as may be required under applicable securities laws. Investors should not place undue reliance on forward-looking statements.

The Toronto Stock Exchange has not reviewed nor does it accept responsibility for the adequacy or accuracy of this press release.

Contacts:
Starcore International Mines Ltd.
1-604-602-4935 or Toll Free: 1-866-602-4935
1-604-602-4936 (FAX)
info@starcore.com
www.starcore.com

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