Greystar Resources Ltd.
TSX : GSL
AIM : GSL

Greystar Resources Ltd.

September 06, 2007 18:53 ET

Greystar Announces Drill Results and Project Review

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Sept. 6, 2007) -

Drill Results

Greystar Resources Ltd. ("Greystar") (TSX:GSL)(AIM:GSL) is pleased to report that delineation drilling is continuing to enhance the potential economics of its wholly owned, multi-million ounce Angostura gold-silver resource in northeastern Colombia.

"The latest drill results (11 holes) have returned good widths of mineralization in the La Alta - Los Laches gap area and this promises to have a positive impact on the highwall design of the future mine," said Greystar's Executive Vice President, Frederick Felder, P.Geo. "Given that the highwall is projected to exceed seven hundred metres, the results indicate the possibility of greatly improving the geometry of the pit wall by identifying resources in an area that was previously designated as waste."

This is best evidenced by hole ALE07-23 that was collared in the middle of the gap area and returned 38.9 metres averaging 1.28 grams gold per tonne. Moving 150 metres to the southwest, hole ALE07-20 encountered the extension of known structures by yielding 0.74 gram gold per tonne over 7.25 metres, 1.17 grams gold per tonne over 4 metres and 0.5 gram gold per tonne over 10.3 metres.

Drilling in this gap area is now almost complete on 100 metre spacings and further infill drilling is getting underway. Overall, the ongoing drill program is continuing to focus on testing the gap areas between La Alta area and the Veta de Barro East and Los Laches areas, in an effort to potentially enhance the already positive economics of the project by reducing stripping, increasing mine life and reducing mining costs.

Project Review

Concurrent with the drilling activities, a project review is underway with the participation of Strathcona Mineral Services of Toronto. Data from 39,703 metres of drilling, plus 205 muck samples from new development in the Perezosa Tunnel, will be included in an update of the November 2006 resource estimate. Areas that provide additional upside potential for the project will also be identified. The conversion of inferred to indicated resources, the reduction of waste tonnage, pit optimizations and a detailed evaluation of the haul road design will be included in the review. Better resource modeling, especially in those areas such as Veta de Barro East and Los Laches, where previously relatively little information existed, will also result from this new effort.

No Exposure to the ABCP Market

Greystar currently holds $53 million in cash and short-term investments of which $23.5 million is held in a National Bank Bankers Acceptance, $27.5 million in a one week rolling term deposit with National Bank and $2 million in the current account. Greystar has no exposure to the troubled asset-backed commercial paper market.

The latest drill results include:



-------------------------------------------------------------
Interval Gold Silver
Hole Intercept From (m) To (m) (m(i)) (gm/t) (gm/t)
-------------------------------------------------------------
ALE07-12 CLOUD3 233.0 235.0 2.0 1.98 67.6
-------------------------------------------------------------
V706 264.5 271.75 7.25 0.74 3.7
---------------------------------------------------
ALE07-20 V702HW 293.0 297.0 4.0 1.17 49.8
---------------------------------------------------
V702FW 302.7 313.0 10.3 0.51 3.4
-------------------------------------------------------------
NEW 187.05 194.5 7.45 0.83 54.5
ALE07-21 ---------------------------------------------------
CLOUD3 221.0 226.6 5.6 0.63 14.7
-------------------------------------------------------------
NEW 0.0 7.7 7.7 1.16 14.7
---------------------------------------------------
ALE07-22 CLOUD3 362.0 381.45 19.45 0.47 34.9
---------------------------------------------------
CLOUD3 448.2 487.9 39.7 2.22 51.8
-------------------------------------------------------------
ALE07-23 NEW 359.1 398.0 38.9 1.28 9.4
-------------------------------------------------------------
NEW 336.5 343.35 6.85 1.29 10.3
ALE07-24 ---------------------------------------------------
NEW 462.0 468.0 6.0 0.68 3.0
-------------------------------------------------------------
V609 243.0 248.35 5.35 2.44 18.7
---------------------------------------------------
V605FW 306.5 322.4 15.9 3.73 41.9
DM07-08 ---------------------------------------------------
V629 327.0 349.0 22.0 0.56 2.3
---------------------------------------------------
V612 363.25 382.5 19.25 0.49 1.6
-------------------------------------------------------------
LL07-06 CLOUD3 208.0 248.45 40.45 0.82 5.7
-------------------------------------------------------------
V907 199.3 205.4 6.1 1.84 9.9
---------------------------------------------------
V926FW 223.5 252.0 28.5 0.82 7.0
---------------------------------------------------
NA07-03 V934FW 266.5 278.0 11.5 1.02 4.5
---------------------------------------------------
V910HW 391.5 403.5 12.0 0.55 2.1
---------------------------------------------------
V943FW 478.75 487.0 8.25 1.4 9.1
-------------------------------------------------------------
V908HW 48.0 63.0 15.0 0.95 4.5
---------------------------------------------------
V908FW 72.0 86.0 14.0 3.37 7.0
---------------------------------------------------
NA07-06 V901FW 207.0 217.05 10.05 1.14 3.2
---------------------------------------------------
V920 252.0 264.35 12.35 0.66 2.9
---------------------------------------------------
V943 291.4 320.0 28.6 0.8 3.8
-------------------------------------------------------------
V605HW 3.85 40.55 36.7 1.46 9.7
---------------------------------------------------
UAL07-06 V605FW 64.2 71.45 7.25 1.33 20.4
---------------------------------------------------
V403HW 144.45 169.0 24.55 2.45 5.7
-------------------------------------------------------------
Note: m(i) - Down-hole width, not corrected but based on
drill holes and structural dip of the mineralization, the
interval is considered to be close to true width.


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: www.greystarresources.com.

REVIEW BY QUALIFIED PERSON, QUALITY CONTROL AND REPORTS

The results of the Company's drilling program have been reviewed, verified (including sampling, analytical and test data) 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.

The Company has implemented a quality control program to ensure sampling and analysis of all exploration work is conducted in accordance with the best possible practices. Under these quality assurance measures, drill core is sawn in halves with one half of the core prepped on site and samples shipped to ALS-Chemex Laboratory (ISO 9002 registered) in Vancouver, B.C. for analysis. The remainder of the core is retained for future assay verification. Gold analysis is conducted by fire assay (one assay tonne) using an atomic absorption finish. The laboratory re-assays using the ALS-Chemex protocol, and additional checks may be run on anomalous values. Greystar has independent re-analysis and sample preparation checks run at other accredited laboratories. The Company also introduces background blanks prepared from previously analyzed core samples from the Angostura Project.

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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