Starfield Resources Scoping Study Confirms Economic Potential at Ferguson Lake Project



    /NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN
    THE U.S./

    IRR of 27% Anticipated At Current Nickel and Copper Prices

    TORONTO, March 20 /CNW/ - Starfield Resources Inc. (TSX: SRU / OTCBB:
SRFDF) today announced positive economics from a preliminary assessment
("scoping study") of its 100%-owned Ferguson Lake project in Nunavut,
completed by Scott Wilson Roscoe Postle Associates Inc. (Scott Wilson RPA).

    
    Highlights

    -  Pre-tax IRR of 27% at Monday's prices of US$14.25 nickel and
       US$3.75 copper, and CDN$1.94 billion NPV at a 10% discount rate
    -  Production anticipated at 27.5 million lbs. nickel, 43.6 million lbs.
       copper, and 2.9 million lbs. cobalt annually.
    -  Resources sufficient to enable operations through 2030
    -  Capital costs estimated to be CDN$1.35 billion
    -  Hydromet process allows for very economical operations by northern
       standards with by-product electrical power generation
    

    "I'm extremely pleased that the scoping study indicates a very viable
project at Ferguson Lake," said André J. Douchane, President and CEO. "We
believe that the scoping study was completed to the highest standards using
very conservative estimates, which will allow us to bypass a prefeasibility
study and go directly to a full feasibility study that would be expected to be
completed in early 2010."
    The study did not include the East Zone, which contains 9.5 million
tonnes, due to insufficient diamond drilling and grade information. Also not
included was the potential of the low-sulphide, PGE style of mineralization
hosted in the sulphide intrusive complex. During the second half of 2007, the
Company commenced a 19-hole drill program to test this PGE mineralization, the
results of which were announced on February 28, 2008. Significant additional
drilling is planned for 2008 to allow a resource estimate for this unique PGE
mineralization. The study did not address the potential sale of excess
electrical power or the potential sale of other by-products such as iron
oxide.
    The scoping study was prepared under the supervision of Graham Clow,
P.Eng., Managing Director of Scott Wilson RPA of Toronto, who is an
Independent Qualified Person as defined under NI 43-101, and based on
Starfield's most recent NI 43-101 report completed by Independent Qualified
Persons John Nicholson, P. Geo. FRGS, Jamie Lavigne, P Geo. M.Sc., and Bryn
Harris, B.Sc, Ph. D. FCIM, FIMMM, C.Eng., as filed on SEDAR on July 15, 2007.
    The scoping study for Ferguson Lake is based on the following general
assumptions:

    
    -  Indicated Resources of 15.3 million tonnes grading 0.71% nickel,
       1.04% copper, 0.08% cobalt, and Inferred Resources of 19.4 million
       tonnes grading 0.68% nickel, 1.13% copper, and 0.08% cobalt
    -  Ore production rate of 6,000 tonnes per day, or 2.1 million tonnes
       per year
    -  Initial mining of 1.8 million tonnes from an open pit at 3,000 tonnes
       per day
    -  Total mine production of 34.2 million tonnes grading 0.60% nickel,
       0.95% copper, and 0.07% cobalt
    -  Grinding facilities at Ferguson Lake
    -  285 km slurry pipeline to Ranklin Inlet to process plant site
    -  Port and ship loading facilities at Rankin Inlet
    -  Average annual production of 27.5 million lbs. of nickel,
       43.6 million lbs. of copper, 2.9 million lbs. of cobalt, and
       1.6 million tonnes of sulphuric acid
    -  Base case model utilized prices of US$8.00 per pound nickel,
       US$2.00 per pound copper, US$25.00 per pound cobalt, and US$80 per ton
       sulphuric acid, which resulted in a pre-tax IRR of 13.4% and a pre-tax
       NPV of $321 million at a 10% discount rate
    -  Total Met plant feed tonnes and grade to be 34.2 million tonnes
       grading 0.60% nickel, 0.95% copper, and 0.07% cobalt
    

    The scoping study shows a very robust pre-tax return on investment of 27%
at Monday's nickel, copper and cobalt prices. On Monday morning, March 17,
2008, nickel and copper, were trading for US$14.25, US$3.75 respectively.
    The study's base case operating cost per tonne processed and per pound of
nickel recovered were calculated assuming copper and cobalt as by-product
credits against operating costs resulting in an estimated operating cost of
CDN$82 per tonne processed and CDN$3.38 per pound of nickel recovered.
    The met plant feed of 34.2 million tonnes grading 0.06% nickel, 0.95%
copper, and 0.07% cobalt was estimated from 34.3 million tonnes of indicated
and inferred resources grading 0.70% nickel, 1.09% copper, and 0.08% cobalt
that was presented in Starfield's 43-101 resource statement filed on SEDAR
July 15, 2007, using normal mining dilution factors and typical mining losses
such as ore left in crown pillars.

    A graph illustrating the pre-tax IRR percentage and associated per-tax
NPV at selected nickel and copper prices can be viewed on the news release
version at Starfield's website at www.starfieldres.com.

    
    Table 1: Pre-Tax Net Present Value per share based on 300 million shares
    outstanding:

    -------------------------------------------------------------------------
    Nickel/copper
     price, US$    $8/$2.00   $11/$2.50   $15/$3.00   $20/$4.00   $25/$4.50
    -------------------------------------------------------------------------
    NPV, CDN$      $321m      $1,003m     $1,867m     $3,051m     $4,095m
    -------------------------------------------------------------------------
    NPV/share,
     CDN$          $1.07      $3.34       $6.22       $10.17      $13.65
    -------------------------------------------------------------------------
    

    Capital costs are estimated to be CDN$1.35 billion. The scoping study was
designed to provide the best return on investment and there were no
constraints placed on initial capital investment. Capital costs include a
large tank farm, development of the Hydromet process, a slurry pipeline
(estimated to cost CDN$160 million) and an overhead power transmission line.
Capital costs of the project are somewhat higher than originally planned, but
are expected to create an operating cost structure that is at the low end of
industry standards for northern operations.
    The Ferguson Lake project will initially consist of a small open pit
mine. Plans call for further development into an underground mine within one
year. Infrastructure is to include a processing plant onsite at Ferguson Lake
to crush, clean and grind massive sulphides into slurry. A 285-km pipeline
will transport the slurry from Ferguson Lake to a metallurgical processing
plant as the crow flies, near Rankin Inlet. The two facilities will be
connected by a 285-km 11-megawatt power line that follows the same path as the
slurry pipeline.
    The hydrometallurgical processing plant will extract pure, LME-grade
nickel, copper and cobalt metals from the Ferguson Lake massive sulphides at
very competitive production costs. Unlike most metallurgical extraction
processes, this environmentally friendly method generates no toxic residues,
recycles key reagents within the process, and produces sufficient electricity
directly from the massive sulphides to power both the plant and the mine, with
some excess electricity left over for potential sale.
    The electricity will be produced from steam generated as a result of
burning the hydrogen sulphide gas generated from the first stage of leaching.
This generates a vast amount of heat while producing a saleable reagent
(sulphuric acid) and superheated steam from which to generate the electricity.
"There is currently a major shortage of sulphuric acid, which is expected to
continue for the foreseeable future. Generating power from the ore itself in
this manner means that there is no need to import fuel oil to power the plant,
and therefore, that no greenhouse gases are emitted to the atmosphere," said
Dr. Bryn Harris. "This is truly a green process." Bryn Harris, B.Sc., Ph.D.,
FCIM, FIMMM, C.Eng, is the Qualified Person for the hydrometallurgical
process.
    "A lot of planning and innovation went into this study," said Mr.
Douchane. "Our ability to generate our own electricity results in very
economical operations, and our proximity to deep water shipping will make it
easier for resupply and by-product transportation."
    The scoping study is preliminary in nature, and includes inferred mineral
resources that are considered too speculative geologically to have the
economic considerations applied to them that would enable them to be
categorized as mineral reserves. There is no certainty that the reserves
development, production and economic forecasts on which this scoping study is
based will be realized.

    Conference Call Details

    -------------------------------------------------------------------------
    The Company will hold a conference call on Thursday, March 20, 2008 at
    11:00 am ET to discuss the Ferguson Lake scoping study in greater detail.

    Analysts and investors can participate by dialing 416-644-3421 or toll
    free 1-800-731-5774. An archived audio recording will be available until
    midnight on March 29, 2008. To access it, dial 416-640-1917 or
    1-877-289-8525 followed by the pass code 21266293 followed by the number
    sign.
    -------------------------------------------------------------------------

    About Starfield

    Starfield Resources Inc. is an advanced exploration and emerging early
stage development company focused on its Ferguson Lake
Nickel-Copper-Platinum-Palladium- Cobalt property in Nunavut, Canada. The
property is emerging as Nunavut's largest ongoing base and precious metal
project. Starfield has developed a novel, environmentally friendly and
energy-efficient hydrometallurgical flowsheet to recover metals from massive
sulphides at Ferguson Lake.

    
                             www.starfieldres.com

    NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN
    THE U.S.
    

    %SEDAR: 00009374E




For further information:

For further information: André J. Douchane, President and CEO, (416)
860-0400 ext. 222, adouchane@starfieldres.com; Greg Van Staveren, Chief
Financial Officer, (416) 860-0400 ext. 223, gvanstaveren@starfieldres.com;
Connie Anderson, Investor Relations, (416) 860-0400 ext. 228,
canderson@starfieldres.com

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