Greystar Resources Ltd.
TSX : GSL
AIM : GSL

Greystar Resources Ltd.

October 11, 2006 23:00 ET

Greystar Drilling Enhances the Veta de Barro East Zone

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Oct. 11, 2006) - Greystar Resources Ltd. ("Greystar") (TSX:GSL)(AIM:GSL) is pleased to report that its on-going drill program is continuing to boost the economic potential of the Veta de Barro East zone on its wholly-owned, multi-million ounce Angostura gold-silver resource in northeastern Colombia.

The results from seven drill holes that tested the eastern extension of the Veta de Barro area all encountered intervals of higher-grade gold mineralization within several much broader zones of lower-grade material so indicative of the Angostura deposit. Hole VBE06-25 returned broad intervals of 51.05 metres grading 0.71 gram gold per tonne, 15 metres grading 2.21 grams gold per tonne, 43.5 metres grading 1.59 grams gold per tonne, 40.4 metres grading 0.67 gram gold per tonne and 36 metres grading 1.23 grams gold per tonne, plus higher-grade sections running 2.36 grams gold per tonne over 6.4 metres and 136 grams gold per tonne over 1 metre. The interval of 152 metres is almost entirely mineralized within the promising bulk structures.

Testing this mineralization some 50 metres lower, hole VBE06-27 returned 22.65 metres grading 1.22 grams gold per tonne, 19.9 metres grading 1.26 grams gold per tonne, 15 metres grading 0.77 gram gold per tonne, 17 metres grading 4.85 grams gold per tonne and 12.5 metres grading 2.06 grams gold per tonne, plus a higher-grade intercept of 20.85 grams gold per tonne over 1.75 metres.

Moving 75 metres to the north, hole VBE06-29 intersected 10 metres grading 0.98 gram gold per tonne, 18 metres grading 0.82 gram gold per tonne and 31.45 metres grading 0.83 gram gold per tonne, while hole VBE06-30 collared 75 metres to the south returned 19 metres grading 0.62 gram gold per tonne and 18.1 metres grading 0.78 gram gold per tonne.

Some 50 metres to the east, hole VBE06-24 intersected 29.3 metres grading 1.42 grams gold per tonne, 26.6 metres grading 1.86 grams gold per tonne, 36 metres grading 1.88 grams gold per tonne and 25 metres grading 0.87 gram gold per tonne, plus a higher grade intercept of 3.7 metres with 27.89 grams gold per tonne. The interval of 98 metres is almost continuously mineralized.

Hole VBE06-28 collared 150 metres east of VBE06-25, returned 2.8 metres grading 15.93 grams gold per tonne and 10 metres grading 0.92 gram gold per tonne, while hole VBE06-26 collared a further 50 metres to the east yielded one significant intercept of 1.23 grams gold per tonne over 14.4 metres.

On the eastern extension of the La Alta area, hole ALE06-01 intersected 11 metres grading 3.4 grams gold per tonne and 8.65 metres running 2.7 grams gold per tonne, while drilling in the Quebrada de Pozo area encountered 2.3 metres grading 10.75 grams gold per tonne, 13.3 metres grading 0.97 gram gold per tonne and 18.35 metres containing 1.22 grams gold per tonne.

Underground drilling also continued to yield encouraging results with two holes drilled in La Diamante area returning 2.75 grams gold per tonne over 6.35 metres and 5.35 grams gold per tonne over 3.2 metres in one hole, and 1.46 grams gold per tonne over 4.75 metres and 1.78 grams gold per tonne over 4.85 metres in the other.

The full complement of ten drills is once again working on the property with the principal focus aimed at outlining additional resources in the very promising Veta de Barro East area.



The latest drill results include:
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From To Interval Gold Silver
Hole Intercept (m) (m) (m(iii)) gm/t gm/t
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ALE06-01 V605 159.0 170.0 11.0 3.4 13.6
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V431FW 191.7 200.35 8.65 2.17 7.2
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V610 429.0 443.65 14.65 0.72 7.0
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UDM06-09 V609 52.15 58.5 6.35 2.75 20.7
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V403 190.8 194.0 3.2 5.53 24.6
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UDM06-10 V602 33.0 37.75 4.75 1.46 15.8
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NEW 184.05 188.9 4.85 1.78 4.5
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UAL06-13 V610 87.5 107.65 20.15 0.82 3.5
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USI06-16 V706 121.6 143.5 21.9 0.64 3.6
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V617 231.15 239.5 8.35 1.23 5.5
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QPO06-06 CLOUD1 129.5 131.8 2.3 10.75 4.6
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CLOUD1 139.7 153.0 13.3 0.97 3.0
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V416 281.0 299.35 18.35 1.22 2.4
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VBE06-24 CLOUD1 199.0 202.7 3.7 27.89 27.8
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CLOUD1 202.7 232.0 29.3 1.42 3.4
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CLOUD1 233.0 259.6 26.6 1.86 2.6
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CLOUD1 261.0 297.0 36.0 1.88 1.7
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CLOUD1 338.0 363.0 25.0 0.87 2.8
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VBE06-25 CLOUD1 76.95 128.0 51.05 0.71 3.2
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CLOUD1 128.0 143.0 15.0 2.21 6.8
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CLOUD1 144.0 187.5 43.5 1.59 4.7
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CLOUD1 187.5 188.5 1.0 136.0 58.0
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CLOUD1 188.5 228.9 40.4 0.67 4.3
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CLOUD1 293.0 329.0 36.0 1.23 9.9
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CLOUD1 358.9 365.3 6.4 20.36 208.9
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VBE06-26 CLOUD1 231.0 245.4 14.4 1.23 11.9
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VBE06-27 CLOUD1 137.8 160.45 22.65 1.22 2.3
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CLOUD1 226.0 245.9 19.9 1.26 1.9
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CLOUD1 272.0 287.0 15.0 0.77 3.6
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CLOUD1 364.0 381.0 17.0 4.86 3.0
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CLOUD1 407.5 420.0 12.5 2.06 1.7
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VBE06-28 CLOUD1 383.2 386.0 2.8 15.93 135.6
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CLOUD1 405.0 415.0 10.0 0.92 18.2
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VBE06-29 CLOUD1 29.0 39.0 10.0 0.98 14.0
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CLOUD1 225.0 243.0 18.0 0.82 2.5
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CLOUD1 264.0 295.45 31.45 0.83 3.1
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VBE06-30 CLOUD1 210.0 229.0 19.0 0.62 2.1
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CLOUD1 245.0 263.1 18.1 0.78 3.1
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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.


Based on 161,710 metres of drilling, the July 2006 resource calculation for the Angostura deposit came in at 6.91 million ounces of gold and 31 million ounces of silver within an indicated resource of 166.4 million tonnes grading 1.31 grams gold per tonne and 6 grams silver per tonne, plus another 4.2 million ounces of gold and 17.6 million ounces of silver within an inferred resource of 83.3 million tonnes grading 1.57 grams gold per tonne and 7 grams silver per tonne. using a cut off of 0.4 gram gold for oxide and 0.55 gram gold for sulphide (Press Release July 31, 2006). 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. 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 (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 quarters (HQ) or halves (NQ), with one quarter or one half of the core 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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