Greystar Resources Ltd.

Greystar Resources Ltd.

September 18, 2007 18:38 ET

Greystar Adds Exploration Ground-Geotechnical Work Underway

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Sept. 18, 2007) - Greystar Resources Ltd. ("Greystar") (TSX:GSL)(AIM:GSL) is pleased to report that it is advancing the predevelopment type work on its wholly owned, multi-million ounce Angostura gold-silver resource in northeastern Colombia, while gearing up its regional exploration efforts.

"We are excited to have acquired three new mining concessions covering 10,678.95 hectares located primarily to the north of the Angostura property," said Greystar's Executive Vice President, Frederick Felder, P.Geo. "This, combined with the already defined, drill ready prospects within our core property, gives us excellent exploration targets to test as we continue the nuts-and-bolts work needed to bring the Angostura deposit through feasibility."

In total, Greystar now holds 25,717.87 hectares of ground in both the Santander and the North Santander Departments. One of the new properties covers the northern extensions of the favourable northeast trending Romeral Fault and the north south trending Quebrada Angostura Fault.

Regional exploration and target definition work has been carried out over many of the concessions. Early reconnaissance geochemical surveys have been ran over approximately 12,000 hectares including portions of the new most northerly concession and results are pending. The environmental authority responsible for permitting has given the go ahead for conducting exploration work including diamond drilling on Integration Claim 3452 which covers 5,244 hectares including the main Angostura area as well as other nearby areas of interest.

At the Angostura deposit, Austrian consulting firm iC Consulenten has begun the first part of a multi-stage engineering, geological, geotechnical and rock mechanics program. The program will include rock mechanical modeling and stability analysis that, in turn, will form the basis for generating an optimum geotechnical open pit design. The program is expected to be completed by September 2008.

On the metallurgical front, McClelland Laboratories Inc. has made the Phase II metallurgical program proposal that is designed to move the metallurgical development for the Angostura project to the next level. Work will include more detailed heap leach cyanidation testing for the oxide and low grade transitional/sulfide ore types, as well as more detailed flotation testing with biooxidation and pressure oxidation amenability studies on flotation concentrate for the higher grade transitional/sulfide ore types. A preliminary evaluation of heap bio-oxidation treatment of the low grade transitional/sulfide ore types is also planned. It is anticipated that some of the metallurgical tests will be complete in about three months, while others will take up to 14 months. Also, eight column tests at CIMEX are currently underway on sulphide samples with sulphur values not fully tested by previous work where only few tests have been carried out in the past.

Contacts and discussions have started towards engaging a senior engineering firm to complete the feasibility study, as well as contractors in specific area of expertise. A number of contractors have made site visits including Colombian based transportation and material handling contracting firms.

In an effort to ensure that the work is completed in an efficient and timely manner, Greystar has further strengthened its Colombian office by adding to its administrative and technical staff, including the appointment of a financial officer.

Based on the December 2006 resource update estimation, the Angostura deposit hosts an indicated resource of 7.42 million ounces of gold in 173.4 million tonnes of material grading 1.33 grams gold per tonne and an inferred resource of 4.2 million ounces of gold in 80.9 million tonnes grading 1.62 grams gold per tonne. Resource estimation was undertaken in compliance with CIM Mineral Resource and Mineral Reserve definitions that are referred to in National Instrument (NI) 43-101, Standards of Disclosure for Mineral Projects. The technical reports, undated resource estimation, a location map of the Angostura drilling, along with a map of the underground tunnel work, and an updated concession map can be accessed from our home page link at Greystar's website:


The results of this press release have been reviewed, verified and compiled by the Company's geological staff (which includes a qualified person, Frederick Felder, P.Geo., for the purpose of National Instrument 43-101, and Guidance Note for Mining, Oil and Gas Companies issued by the London Stock Exchange in respect of AIM companies, which outline standards of disclosure for mineral projects). Frederick Felder, P.Geo., has over 30 years of mineral exploration experience, is a member in good standing with the Association of Professional Engineers and Geoscientists of British Columbia and is the qualified person responsible for this release.

Forward-Looking Statement

Certain statements included in this release are "forward-looking statements" within the meaning of Canadian securities legislation. Forward-looking statements include, among other things, statements regarding targets, estimates and assumptions in respect of gold prices, results, mineral resources and anticipated grades. 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 contingencies. Many factors could cause the Company's actual results to differ materially from those expressed or implied in any forward-looking statements made by, or on behalf of, the Company. Such factors include, among other things, risks relating to additional funding requirements, resource estimates, exploration, development and operating risks, limited experience with development-stage mining operations, dependence on one principal exploration stage property, political and foreign risk, uninsurable risks, competition, production risks, environmental regulation and liability, government regulation, currency fluctuations, potential title disputes and dependence on key employees as set out under the heading "Risk Factors" in the Annual Information Form of the Company dated March 30, 2006 which is available in SEDAR. Investors are cautioned that forward-looking statements are not guarantees of future performance and, accordingly, investors are cautioned not to put undue reliance on forward-looking statements due to the inherent uncertainty therein. The Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

All dollar amounts are in Canadian dollars, unless otherwise stated.

No Stock Exchange has reviewed or accepts responsibility for the adequacy or accuracy of this news release.

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