Greystar Resources Ltd.
TSX : GSL
AIM : GSL

Greystar Resources Ltd.

December 14, 2009 12:50 ET

Greystar Resources and The International Finance Corporation Initiate Royalty Education Program in Angostura Communities

BUCARAMANGA, COLOMBIA--(Marketwire - Dec. 14, 2009) - The International Finance Corporation (IFC), a member of the World Bank, and Greystar Resources Ltd. (TSX:GSL)(AIM:GSL) have initiated a program to support the Municipality of California in establishing effective strategies for management of royalty revenue to be generated from the Angostura gold-silver project. The program will also advise the Vetas and Surata Municipalities in an effort to attract Government resources for the purpose of improving the living conditions of each of the communities.

It is hoped that this US$330,000 initiative (Greystar US$224,000 contribution) will result in an increase of community involvement and public management of Angostura royalties, providing opportunities for all local stakeholders. The two and a half year program will be measured by the adoption of "best practices" in municipal investment and the increase in the number of residents with access to better education, health and potable water supplies.

"This IFC/Greystar initiative is part of an ongoing social responsibility effort within the communities surrounding the Angostura gold-silver project. The goal is to achieve growth and sustainable development within the region by implementing programs that build community participation.", stated Frederick Felder, the Executive Vice President of Greystar, "This program, combined with others which are currently being designed with both the IFC and the Canadian International Development Agency (CIDA), have as their objective to mitigate the social and environmental impacts of the Angostura project on the local communities."

Roberto Albisetti, IFC Manager for Colombia, Ecuador, Peru and Venezuela, highlighted the IFC's commitment to support initiatives focused on improving the living conditions of communities where natural resources are extracted. "This project has the potential to determine new social and environmental standards for Colombia, as well as increasing employment opportunities in the country and additional benefits for the local communities."

Greystar Resources Ltd. is currently completing a Bankable Feasibility Study and Environmental Impact Study of the Angostura gold-silver project. Subject to a positive Bankable Feasibility Study, permitting approval and successful project finance, Angostura is expected to begin production in 2012. Upon commercial production Angostura will generate estimated royalties for the Municipality of California of US$10-$15 million annually.

About The International Finance Corporation (IFC)

The IFC, a member of the World Bank Group, creates opportunity for people to reduce poverty and improve the lives of the population. The IFC fosters sustainable economic growth in emerging countries by supporting private sector development, mobilizing private capital and providing risk mitigation services and advisory services to businesses and governments. IFC new investments totaled US$14.5 billion in fiscal year 2009, helping to play a prominent role during the recent financial crisis. For more information, visit www.ifc.org/.

About Greystar Resources Ltd.

Greystar Resources Ltd. is a precious metals exploration and development company that is currently completing a bankable feasibility study on its wholly owned, multi-million ounce Angostura gold-silver deposit in northeastern Colombia. A positive prefeasibility study announced on March 25, 2009 envisions average annual production of 511,000 ounces of gold and 2.3 million ounces of silver over a 15 year mine life.

Forward-Looking Statements

Certain statements in this news release are "forward-looking" within the meaning of Canadian securities legislation. They include statements regarding the intended use of proceeds of the Warrant exercises. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable by the Company, are inherently subject to significant business, economic, competitive, political and social uncertainties and other contingencies. Many factors could cause the Company's actual results to differ materially from those expressed or implied in the forward-looking statements. These factors include, among others, conclusions or realization of mineral resources, the actual results of exploration activities, possible variations in ore grade or recovery rates, fluctuations in the price of gold and silver, risks relating to additional funding requirements, political and foreign risks, production risks, environmental regulation and liability, government regulation as well as other risk factors set out under the heading "Risk Factors" in the Company's final short form prospectus dated September 22, 2009 which is available on SEDAR at www.sedar.com. Investors are cautioned not to put undue reliance on forward-looking statements due to the inherent uncertainty therein.

Neither the Toronto Stock Exchange nor the AIM Market of the London Stock Exchange has reviewed and neither accepts responsibility for the adequacy or accuracy of this news release.

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