Geostar Metals Inc.
TSX VENTURE : GOS

Geostar Metals Inc.

November 15, 2006 17:37 ET

Geostar Acquires CIS and Continues Negotiations for MMM Investment

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Nov. 15, 2006) - Geostar Metals Inc. (the "Corporation") (TSX VENTURE:GOS), a Vancouver-based merchant banking company, announces that, further to its news releases dated October 13, 2006 and November 1, 2006, it has completed its acquisition of the issued and outstanding shares of CIS Energy Inc. ("CIS") in consideration for the payment of nominal consideration to CIS shareholders. In connection with the transaction, the Corporation has repaid a shareholders loan to CIS made to finance CIS' due diligence expenses related to its potential investment in MontazhMalikMunai LLP ("MMM") in the amount of approximately $180,000. CIS has no material assets, and no material liabilities other than unpaid interest and due diligence expenses in the amount of approximately $500,000. The Corporation continues to negotiate with MMM and its participants for the acquisition of MMM by CIS. Payment of any material consideration to the CIS shareholders under the Corporation's agreement with CIS and its shareholders requires, among other things, that agreements between CIS and MMM and its participants for CIS' investment in MMM be negotiated on terms satisfactory to the Corporation.

The TSX Venture Exchange has in no way passed upon the merits of the transaction and has neither approved nor disapproved the contents of this press release. The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

This news release contains certain statements that may be deemed "forward-looking statements". All statements, other than statements of historical fact, that address events or developments that Geostar expects to occur, are forward looking statements. Forward looking statements are statements that are not historical facts and are generally, but not always, identified by the words "expects", "plans", "anticipates", "believes", "intends", "estimates", "projects", "potential" and similar expressions, or that events or conditions "will", "would", "may", "could" or "should" occur. Although Geostar believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results may differ materially from those in the forward-looking statements. Factors that could cause the actual results to differ materially from those in forward-looking statements include market prices, exploration and production successes or failures, continued availability of capital and financing, inability to obtain required shareholder or regulatory approvals, and general economic market or business conditions. Investors are cautioned that any such statements are not guarantees of future performance and actual results or developments may differ materially from those projected in the forward-looking statements. Forward looking statements are based on the beliefs, estimates and opinions of Geostar's management on the date the statements are made.


Contact Information

  • Geostar Metals Inc.
    Neil Halldorson
    President and CEO
    (604) 669-4899
    (604) 685-2345 (FAX)