trading halt, page-3

Second page of ASX announcement

RE: FINANCING ARRANGEMENTS WITH CHILLEE LTD
Information has been made available to Morning Star Gold NL (MCO)
early this morning (AEST) which materially alters our financing
arrangements announced via ASX on 15th March 2012.
Chillee Limited our major shareholder and financier has early this
morning unilaterally terminated the $10 Million AUD facility agreed at
that time.
As a result the Board of MCO will determine other means of financing
as a matter of urgency and in the meantime requests a trading halt
effective immediately under ASX Listing Rule 17.1.
MCO’s Board will keep the market informed immediately new
financing information is at hand.

Sincerely,
NM Garling