Greystar Resources Ltd.
TSX : GSL
AIM : GSL

Greystar Resources Ltd.

August 24, 2005 17:29 ET

Greystar Cuts 54.1 g/t Gold Over 4.75 Metres at Silencio

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Aug. 24, 2005) - Greystar Resources Ltd. (TSX:GSL)(AIM:GSL) reports that diamond drilling has encountered higher-grade gold intercepts in the northern limit of the La Alta area of its wholly-owned, multi-million ounce Angostura gold-silver deposit in northeastern Colombia.

Hole VB 05-13 intersected 392 grams gold per tonne over 1.25 metres in Vein 68, while hole AL 05-11 returned 13.66 grams gold per tonne over 8.7 metres in Vein 2 and 2.69 grams gold per tonne over 14.3 metres in Vein 464. Hole VB 05-14, which was collared 100 metres west of the higher-grade intercept returned 4.9 grams gold per tonne over 10 metres in Vein 68.

These latest drill results, which include 13 new holes, continue to show the prospects of defining higher-grade zones of mineralization not only in the La Alta area but also in the adjoining Veta de Barro region, where Vein 563 returned 2.57 grams gold per tonne over 27 metres and Vein 553 yielded 5.83 grams gold per tonne over 6.2 metres.

In the Silencio area a number of higher grade shoots were also encountered including a 4.75 metre interval grading 54.07 grams gold per tonne in underground drill hole USI 05-17. From surface, hole SI 05-16 returned 3.25 grams gold per tonne over 17.05 metres, while drill hole SI 05-15 yielded 2.04 grams gold per tonne over 15.15 metres and 2.37 grams gold per tonne over 16 metres. The prolific Vein 15 was also intersected in one hole returning 2.43 grams gold per tonne over 36 metres.

In the eastern Diamante area, hole DM 05-15 cut 2.56 grams gold per tonne over 19 metres, while in the western Diamante area at the juncture of the northeast trending Vein 7 with east-west trending Vein 21, hole DM 05-14 returned 2.13 grams gold per tonne over 22.7 metres.

So far in 2005, Greystar has completed drilling 31,502 metres in 93 holes bringing the overall total to 124,012 metres in 395 holes. Based on the August 2005 resource calculation, the Angostura deposit contains 5.83 million ounces of gold and 24.6 million ounces of silver within an indicated resource of 148.14 million tonnes grading 1.22 grams gold per tonne and 5.17 grams silver per tonne, plus another 4.47 million ounces of gold and 21.5 million ounces of silver within an inferred resource of 123.3 million tonnes grading 1.13 grams gold per tonne and 5.42 grams silver per tonne using a cut off of 0.4 gram gold for oxide and 0.55 gram gold for sulfide (Press Release August 16, 2005).

Ninth Drill Rig Added

Based on the encouraging results from the 2005 drilling program, a ninth drill machine is being added to the project. "The machine will be used to advance the underground drilling program and further increase the flow of geological information we are gathering about the Angostura deposit from the 2005 program, which is budgeted at $12 million," says Greystar's Executive Vice-President, Frederick Felder.



The latest drill results include:
------------------------------------------------------------------
Interval Gold Silver
Hole Intercept From (m) To (m) (m(iii)) gm/t gm/t
------------------------------------------------------------------
AL05-09 V464 16.75 51.0 34.25 0.97 0.6
---------------------------------------------------------
V2 231.0 263.0 32.0 0.92 4.3
------------------------------------------------------------------
AL05-11 V464 176.2 190.5 14.3 2.69 5.5
---------------------------------------------------------
V2 324.3 333.0 8.7 13.66 38.3
------------------------------------------------------------------
DM05-14 V21/V7 221.0 243.7 22.7 2.13 19.0
------------------------------------------------------------------
DM05-15 V323 23.0 46.0 23.0 0.9 6.4
---------------------------------------------------------
V20 111.0 126.0 15.0 0.99 7.3
---------------------------------------------------------
V21 140.0 159.0 19.0 2.56 13.9
------------------------------------------------------------------
SI05-14 V316 112.0 144.0 32.0 1.01 3.2
---------------------------------------------------------
V15 182.0 218.0 36.0 2.43 6.7
---------------------------------------------------------
V334 254.0 270.0 16.0 1.48 7.5
------------------------------------------------------------------
SI05-15 V12 8.0 24.0 16.0 1.54 15.4
---------------------------------------------------------
V312 107.8 127.0 19.2 1.38 5.9
---------------------------------------------------------
V14 151.0 163.8 12.8 1.69 33.6
---------------------------------------------------------
V31 175.25 190.4 15.15 2.04 8.8
---------------------------------------------------------
V18 307.0 323.0 16.0 2.37 0.9
---------------------------------------------------------
V316 369.6 394.3 24.7 2.24 6.2
------------------------------------------------------------------
SI05-16 V56 81.45 105.0 23.55 1.1 4.2
---------------------------------------------------------
V311 169.95 187.0 17.05 3.25 5.0
------------------------------------------------------------------
USI05-16 V13 12.0 23.0 11.0 0.76 1.5
---------------------------------------------------------
V14/V55 72.0 90.05 18.05 2.78 16.8
------------------------------------------------------------------
USI05-17 V56/V18 253.0 257.75 4.75 54.07 30.1
---------------------------------------------------------
V56 257.75 281.25 23.5 1.4 5.4
------------------------------------------------------------------
VB05-13 V563 60.0 87.0 27.0 2.57 10.8
---------------------------------------------------------
V68 385.25 386.5 1.25 392 10.8
------------------------------------------------------------------
VB05-14 V68 168.0 178.0 10.0 4.9 14.7
---------------------------------------------------------
V361 226.0 237.0 11.0 0.73 2.6
------------------------------------------------------------------
VB05-15 V553 0.0 6.2 6.2 5.83 9.6
---------------------------------------------------------
V554 15.0 54.0 39.0 0.97 6.4
------------------------------------------------------------------
VB05-16 V560 51.0 65.1 14.1 0.56 1.4
---------------------------------------------------------
V502 197.5 206.0 8.5 1.03 7.1
------------------------------------------------------------------
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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