Groundstar Resources Limited
TSX VENTURE : GSA

Groundstar Resources Limited

September 29, 2009 16:01 ET

Groundstar Resources Limited to Adopt US Dollar Reporting Currency, and Restate Financial Statements

CALGARY, ALBERTA--(Marketwire - Sept. 29, 2009) - Groundstar Resources Limited (TSX VENTURE:GSA) ("Groundstar" or the "Company") announces that, upon the recommendation of the Company's auditors, the Board of Directors of the Company has approved the adoption by the Company of the U.S. Dollar as its reporting currency. The adoption of the U.S. Dollar as the reporting currency of the Company will substantially reduce the impact of foreign exchange movements in its financial statements, given that most of the Company's oil and gas activities are transacted in the U.S. Dollar which is the functional currency of the international oil industry.

In addition to the transition to the U.S. Dollar, the Company and its auditors have identified amendments necessary with respect to the accounting treatment applied to certain foreign exchange items and stock based compensation during the prior year.

Accordingly, the Company's Board of Directors, on the recommendation of its auditors and management, has decided to restate the Company's financial statements and Management's Discussion and Analysis ("MD&A") for the periods ending July 31, 2008, October 30, 2008 and January 31, 2009. The restated financial statements and MD&A's will replace and be substituted for the previously published and filed financial statements and MD&A's for the same periods.

The following table outlines the net impact of the changes to the financial statements resulting from the restatements. The table reflects the net increase (decrease) to the following financial statement categories:

For the three month periods endedJuly 31, 2009October 31, 2009January 31, 2009
    
Total assets$          266,083$                 2,253$        (1,815,370)
Total liabilities          (280,150)                 86,091             (231,478)
Shareholder's equity            546,233               (83,838)          (1,583,892)
Net income            800,841             (553,784)          (1,319,439)

Please refer to the restated financial statements and MD&A's for the respective periods for further details and discussion.

Further information regarding Groundstar may be found on the SEDAR website www.sedar.com, or on Groundstar's website www.groundstarresources.com.

FORWARD LOOKING STATEMENTS: All statements in this news release that are forward looking statements involve various risks and uncertainties. There can be no assurance that such statements will prove accurate; actual results and future events could differ materially from those anticipated in such statements.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the accuracy or adequacy of this release.

Contact Information