Greystar Resources Ltd.

Greystar Resources Ltd.

December 21, 2010 02:00 ET

Greystar Confirms Request for a Second Public Hearing and Provides Feasibility Update

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Dec. 21, 2010) - Greystar Resources Ltd. (the "Company")(TSX:GSL)(AIM:GSL) announces that on December 20, 2010, it was notified by the Ministry of Environment, Housing and Territorial Development (MAVDT) of a request for a second public hearing about the Company's Angostura Project, contained within Writ No. 4251 dated December 3rd, 2010. MAVDT's decision to hold a second hearing is based on the fact that certain participants previously registered to address the general public during the first hearing were, in their view, unable to participate on account of alleged restrictions in the roads heading to the town of California (Santander). The Company will be coordinating a meeting with the MAVDT to define matters related to place and date of the second hearing, as well as to further understand the grounds for this petition.

Nevertheless, the first public hearing held this past November 21st, 2010 has not been questioned legally and has therefore complied with the requirements established under Colombian Law (Law 99 of 1993 and Decree 330 of 2007). No ruling to the contrary has been issued, to the actual knowledge of the Company. Additional hearings that may be ordered by the MAVDT will be analyzed under applicable legal norms in force.

As a matter of public knowledge, requests for additional hearings have been made by certain groups opposed to the project, some of whom decided not to attend the public hearing held on November 21st, 2010.

When the time comes and with full respect for applicable norms, the Company will diligently support any additional public hearings that are ordered within the rule of law.

Feasibility Study Update

The Company also announces that the feasibility study for its 100% owned Angostura Project will be completed in early 2011 and not before the end of 2010 as previously advised.

The feasibility study summary has been received and is under internal review by the Company's Project team. In addition, the Company has retained Alquimia Conceptos, a Santiago based engineering group, to complete an external review to confirm the robustness of the engineering principals used and identify potential further optimizations to be incorporated in the detailed engineering phase.

With regard to ongoing project development, the Company is in discussions with selected EPCM consultants with the view to defining detailed engineering once the pending Environmental License is approved.

About Greystar Resources Ltd.

Greystar Resources Ltd. is a precious metals exploration and development company that is currently completing a feasibility study on its wholly owned, multi-million ounce Angostura gold-silver deposit in northeastern Colombia. A positive prefeasibility study announced on March 25, 2009 envisions average annual production at Angostura of 511,000 ounces of gold and 2.3 million ounces of silver over a 15 year mine life.

Forward-Looking Statements

Certain statements in this news release are "forward-looking" within the meaning of Canadian securities legislation. They include statements about the estimated annual production from the Angostura Project. 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 other contingencies. Many factors could cause the Company's actual results to differ materially from those expressed or implied in the forward-looking statements. These factors include, among others, conclusions or realization of mineral resources, the actual results of exploration activities, possible variations in ore grade or recovery rates, fluctuations in the price of gold and silver, risks relating to additional funding requirements, political and foreign risks, production risks, environmental regulation and liability, government regulation as well as other risk factors set out under the heading "Risk Factors" in the Annual Information Form dated March 26, 2010 which is available on SEDAR at Investors are cautioned not to put undue reliance on forward-looking statements due to the inherent uncertainty therein.

Neither the Toronto Stock Exchange nor the AIM Market of the London Stock Exchange has reviewed and neither accepts responsibility for the adequacy or accuracy of this news release.

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