Groundstar Resources Limited
TSX VENTURE : GSA

Groundstar Resources Limited

May 28, 2009 19:31 ET

CORRECTION FROM SOURCE: Groundstar Resources Announces Closing of Non-Brokered Financing

CALGARY, ALBERTA--(Marketwire - May 28, 2009) -

NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES. ANY FAILURE TO COMPLY WITH THIS RESTRICTION MAY CONSTITUTE A VIOLATION OF U.S. SECURITIES LAWS.

A correction from source is issued with respect to the news release that was disseminated today at 17:42 ET. The third sentence in the opening paragraph has been altered. The figure 12,774,000 has been changed to 1,277,400. The corrected release is as follows:

Groundstar Resources Limited (TSX VENTURE:GSA) ("Groundstar") is pleased to announce that it has closed its previously announced non-brokered private placement (the "Offering") of 13,500,000 common shares ("Common Shares") at a price of $0.15 per Common Share for aggregate gross proceeds of $2,025,000. A finder's fee (the "Finder's Fee") of $191,610 was paid, equal to 10% of the gross proceeds raised on 12,774,000 shares by a finder (the "Finder"). In addition, the Corporation issued common share purchase warrants (the "Finder's Warrants") to the Finder to purchase 1,277,400 Common Shares. The Finder's Warrants will entitle the holder to purchase one Common Share at an exercise price of $0.16 for a period of five (5) years from date of closing of the Offering.

Proceeds from the Offering will be utilized to fund ongoing exploration and development activities in Groundstar's high potential blocks in Egypt, Kurdistan region of Iraq and for general corporate purposes. The Common Shares and Finder's Warrants issued upon closing of the Offering are subject to a 4-month hold period from the date of issue.

Groundstar is a publicly traded Canadian junior oil and gas company actively pursuing exploration opportunities in Guyana, North Africa and the Middle East.

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.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as the term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Contact Information