Greystar Resources Ltd.
TSX : GSL
AIM : GSL

Greystar Resources Ltd.

June 21, 2005 17:40 ET

Greystar Cuts 37.1 g/t Gold Over 1.9 Metres at Veta de Barro

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - June 21, 2005) - Greystar Resources Ltd. (TSX:GSL)(AIM:GSL) reports that diamond drilling in the central Diamante area of its wholly-owned, multi-million ounce Angostura gold-silver deposit in northeastern Colombia has returned 48 metres grading 1.72 grams gold per tonne, plus another 29 metres grading 4.42 grams gold per tonne.

The latest drill results, which include 15 new holes, not only confirm the mineral continuity of the Diamante core area but also show the prospects of defining higher-grade zones of mineralization in the La Alta and Veta de Barro areas.

In the La Alta area, drill hole Al 05-07 intercepted a new vein yielding 6.48 grams gold per tonne over 11.5 metres, while a separate hangingwall vein returned 28.5 grams gold per tonne over 1.5 metres. Hole AL05-08 also cut two significant veins yielding 2.16 grams gold per tonne over 16.35 metres in Vein 30 and 8.92 grams gold per tonne over 6.65 metres in Vein 320.

Moving to the north, the results from four new holes further confirm that the Veta de Barro area marks the northern extension of the Main deposit, which based on the March 2005 calculation hosts 3.45 million ounces of gold and 14.5 million ounces of silver within an indicated resource of 87.26 million tonnes grading 1.23 grams gold per tonne and 5.2 grams silver per tonne, plus another 4.52 million ounces of gold and 16.9 million ounces of silver within an inferred resource of 111.51 million tonnes grading 1.26 grams gold per tonne and 4.7 grams silver per tonne (Press Release April 4, 2005). Hole VB05-08 contained 1.61 grams gold per tonne over 6 metres and 3.93 grams gold per tonne over 4 metres, including a higher grade section running 10.9 grams gold per tonne over 1.55 metres. Hole VB05-09 intersected 38.6 metres grading 0.82 gram gold per tonne and 1.2 grams gold per tonne over 7.8 metres in a new vein. Hole VB05-10 intersected 20 metres grading 0.92 grams gold per tonne with an isolated vein returning 38.8 grams gold per tonne over 1.7 metre and hole VB05-11 returned an encouraging 4.53 grams gold per tonne over 17.2 metres, including a 1.9 metre section running 37.1 grams gold per tonne.

To the south, drilling in the Silencio area has successfully extended the known vein structures both to the west and to the south with hole SI05-10 returning 1.38 grams gold per tonne and 1.27 grams gold per tonne over 20.4 and 36 metres, respectively.

Underground drilling in the Silencio/La Perezosa area encountered broader, moderate grade mineralization with hole USI05-11 intersecting 0.71 gram gold per tonne and 0.85 gram gold per tonne over 19 and 20 metres, respectively, while hole USI05-10 cut 1.85 grams gold per tonne over 15 metres. Results from the more southerly chamber of the crosscut yielded 3.68 grams gold per tonne over 16 metres, while hole USI05-14 drilled 30 metres to the east failed to return any significant values.

The month of May saw 4,546.15 metres of drilling completed, bringing the total to 21,610 metres for the year as of May 31, 2005.

The latest drill results include:



--------------------------------------------------------------------
From To Interval Gold Silver
Hole Intercept (m) (m) (m(iii)) gm/t gm/t
--------------------------------------------------------------------
V454 0.0 14.65 14.65 1.2 3.8
-----------------------------------------------------------
AL05-07 NEW 92.0 103.5 11.5 6.48 18.6
-----------------------------------------------------------
V68 141.0 149 8.0 1.58 4.5
--------------------------------------------------------------------
V53 168.25 179 10.75 1.0 4.5
-----------------------------------------------------------
AL05-08 V30 383.0 399.35 16.35 2.16 3.5
-----------------------------------------------------------
V320 442.5 449.15 6.65 8.92 63.2
--------------------------------------------------------------------
V25-V26 24.5 72.5 48.0 1.72 33.7
-----------------------------------------------------------
DM05-09 V314/V52 141.0 170.0 29.0 4.42 1.8
-----------------------------------------------------------
V450 294.0 314.5 20.5 1.06 1.9
--------------------------------------------------------------------
DM05-11 V11 115.0 127.0 12.0 1.06 3.9
-----------------------------------------------------------
V305-V52 166 214.35 48.35 1.17 1.5
--------------------------------------------------------------------
SI05-09 V360 98.5 111.0 12.5 1.47 3.1
-----------------------------------------------------------
V18 142.0 148.0 6.0 2.67 18.9
--------------------------------------------------------------------
V56/V311 29.0 49.4 20.4 1.38 18.3
-----------------------------------------------------------
SI05-10 V317 123.0 152.0 29.0 0.5 0.6
-----------------------------------------------------------
V19-V18 267.0 303.0 36.0 1.27 2.1
--------------------------------------------------------------------
USI05-10 V52 81.0 96.0 15.0 1.85 2.1
-----------------------------------------------------------
V455 44.5 63.5 19.0 0.71 0.8
--------------------------------------------------------------------
USI05-11 V53 68.0 88.0 20.0 0.85 1.8
-----------------------------------------------------------
V314/V29 157.7 177.5 19.8 2.37 3.1
--------------------------------------------------------------------
USI05-12 V52 26.0 42.0 16.0 3.68 8.9
--------------------------------------------------------------------
USI05-13 V358 0.0 14.0 14.0 1.0 0.2
-----------------------------------------------------------
V54 25.0 32.0 7.0 1.45 1.5
--------------------------------------------------------------------
USI05-14 V28 76.0 92.1 16.1 0.55 0.5
-----------------------------------------------------------
V351 194.0 199.0 5.0 2.07 1.3
--------------------------------------------------------------------
NEW 42.0 46.0 4.0 3.93 5.6
-----------------------------------------------------------
VB05-08 NEW 76.5 82.5 6.0 1.61 13.6
-----------------------------------------------------------
V67 326.45 328.0 1.55 10.9 2.5
--------------------------------------------------------------------
VB05-09 V554-V555
-V556 21.4 60.0 38.6 0.82 6.1
-----------------------------------------------------------
NEW 316.7 324.5 7.8 1.2 1.0
--------------------------------------------------------------------
VB05-10 V559 99.3 101.0 1.7 38.8 103.0
-----------------------------------------------------------
NEW 203.0 223.0 20.0 0.92 5.3
--------------------------------------------------------------------
VB05-11 NEW 136.0 153.2 17.2 4.53 8.7
-----------------------------------------------------------
NEW 210.7 220.7 10.0 1.44 3.1
--------------------------------------------------------------------
Note: m(iii) - 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.


A location map of the Angostura drilling, along with a map of the underground tunnel work, 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 under the guidance of Frederick Felder MSc, Executive Vice president and verified by David B. Rovig, P. Eng., the President of the Company, who is the qualified person for the purpose of National Instrument 43-101, which outlines standards of disclosure for mineral projects.

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 reassays 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

Some statements in this report contain forward-looking information. These statements address future events and conditions and, as such, involve inherent risks and uncertainties. Actual results could be significantly different from those projected.

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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