Greystar Resources Ltd.
TSX : GSL
AIM : GSL

Greystar Resources Ltd.

March 28, 2007 18:40 ET

Greystar Drills 41.8 g/t Gold Over 6 Metres at Angostura

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - March 28, 2007) - Greystar Resources Ltd. ("Greystar") (TSX:GSL)(AIM:GSL) is pleased to report that the latest drill results continue to enhance the potential economics of its wholly owned, multi-million ounce Angostura gold-silver resource in northeastern Colombia.

"The results from Los Laches-La Alta Este area in particular have significant economic implications by indicating the prospects for improving the projected high wall section to the east of the envisioned main pit in La Alta, as well as enhancing the stability of the proposed pit walls," says Greystar's Executive Vice President, Frederick Felder, P.Geo. "Plus the results from the Veta de Barro and Veta de Barro East areas are continuing to confirm the width and grade of the bulk structures in those sections of the resource."

In-fill drilling in the Veta de Barro and Veta de Barro East areas yielded higher grade values like 32.5 grams gold per tonne over 2 metres and 7.62 grams gold per tonne over 3.7 metres in hole VBE07-01, all within the broader zone of mineralization known as the Cloud 1 bulk structure. In hole VBE07-01, 14 mineralized intervals mark the Cloud 1 bulk structure with intercepts including 0.75 gram gold per tonne over 6 metres, 1.64 grams gold per tonne over 8 metres, 0.59 gram gold per tonne over 14 metres and 1.91 grams gold per tonne over 5.4 metres. To the north of Cloud 1, intercepts included 23 metres grading 0.58 gram gold per tonne and 9.5 metres grading 1.02 grams gold per tonne, as well as a higher grade section of 41.83 grams gold per tonne over 6 metres.

Hole VBE07-02 was collared on the next section to the west and 13 mineralized intervals marked the Cloud 1 bulk structure with similar mineralization of 0.59, 0.62 and 1.25 grams gold per tonne over 5.9, 15.9 and 12 metres, respectively as well as 48.4 grams gold per tonne over 1 metre and 13.55 grams gold per tonne over 1.1 metre. Also to the north of the Cloud 1 bulk structure, intercepts included 1.55 grams gold per tonne over 16.15 metres and a high grade structure occurring on the hanging wall contact of the Cloud 1 yielding 24.25 grams gold over 6.1 metres.

Moving 50 metres west and 125 metres south of VBE07-02, hole VB06-13 drilled the upper part of the southern limit of the Cloud 1 with 4 mineralized intervals marking the bulk structure yielding values of 0.87, 1.31, 0.3 and 0.77 gram gold per tonne over 10.75, 22.0, 9.55 and 24.45 metres, respectively. Structures encountered in the footwall returned intercepts of up to 8.7 grams gold per tonne over 7.5 metres

In Los Laches-La Alta East area, hole ALE07-01 and hole ALE07-02, which was collared 50 metres to the west, both intersected nine mineralized structures that correspond to La Alta vein system, while hole LL07-02 collared 500 metres to the east northeast also cut nine mineralized structures. The best results included 1.19 grams gold per tonne over 3 metres in hole ALE07-01, 1.23 grams gold per tonne over 6.25 metres and 25.3 grams gold per tonne over 2.1 metres in hole ALE07-02, and 2.31 grams gold per tonne over 21.1 metres, 1.36 grams gold per tonne over 5 metres, 2.45 grams gold per tonne over 3.95 metres and 2.32 grams gold per tonne over 3.3 metres in hole LL07-02.

Some 50 metres east and 25 metres south of LL07-02, hole LL07-01 intersected 5 structures yielding 1.08 grams gold per tonne over 5.05 metres, 14.96 grams gold per tonne over 10 metres, 0.84 gram gold per tonne over 8 metres, 1.03 grams gold per tonne over 14.95 metres and 3.25 grams gold per tonne over 13.3 metres. On the eastern limit of the system, hole QPO07-01 returned 0.9 gram gold per tonne over 33 metres at the El Pozo fault and further down the hole intersected Los Laches veins in six intercepts including 0.51 gram gold per tonne over 39.2 metres.

Hole ALE06-15, which was collared in La Alta area of the Angostura resource, intersected 17 mineralized structures and along with a higher-grade interval of 7.95 grams gold per tonne over 8.05 metres, the hole also yielded intercepts of 0.61 gram gold per tonne over 46.15 metres, 1.97 grams gold per tonne over 8.7 metres, 3.94 grams gold per tonne over 12.5 metres and 0.76 gram gold per tonne over 24 metres.

Meanwhile, hole QPO07-03 drilled to fill in the central zone of the southern limit of the Veta de Barro-El Pozo areas and the northern limit of La Alta system intersected eleven structures including 1.34 grams gold per tonne over 14.9 metres in the Veta de Barro system and 1.79 grams gold per tonne over 14.5 metres in the Pozo - La Alta vein system.

In the northwestern portion of the resource, hole AL07-01 intersected three structures including 1.53 grams gold per tonne over 17.5 metres and 1.14 grams gold per tonne over 3.5 metres, while on the western edge of La Alta system, hole DM07-01 intersected two veins of 1.07 and 0.95 grams gold per tonne over 4 and 5.4 metres, respectively.

Underground drilling in the Silencio and La Alta area returned 0.65 gram gold per tonne over 28 metres and 0.59 gram gold per tonne over 36 metres in hole USI06-23, while hole UAL07-02 returned 1.45 grams gold per tonne over 5.05 metres, 0.91 gram gold per tonne over 4 metres and 0.62 gram gold per tonne over 16.7 metres, as well as a higher grade intercept of 10.4 grams gold per tonne over 6.25 metres.

Scoping Study

Greystar also reports that the Angostura scoping study being completed by consulting firm Hatch is progressing with the Resource and Mine scheduling now well advanced. Following a very comprehensive metallurgical test program in 2006 (press release January 15, 2007), Greystar has developed a metallurgical model that allows for the development of a comprehensive life of mine plan. The details of the metallurgical model for the sulfides were completed by Greystar and its metallurgical consultants in early January. Unlike many gold deposits with an oxide component that lay out a staged mine plan, Greystar's approach is that the deposit should be evaluated for its life of mine potential since it has such a large resource base. Hatch is preparing a capital cost estimate for the project, which takes into account both the oxide and sulfide components of the operation. The complexity of the study, as well as the limitations of resources by engineering and other consulting firms has resulted in a delay in completing the scoping study, which is now expected in the early part of the second quarter of 2007.

The latest drill results include:



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Interval Gold Silver
Hole Intercept From (m) To (m) (m(iii)) (gm/t) (gm/t)
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ALE07-01 V605 27.15 30.0 2.85 0.64 3.5
-------------------------------------------------------------
V410HW 47.6 51.0 3.4 0.3 1.3
-------------------------------------------------------------
V410FW 55.0 62.5 7.5 0.33 1.5
-------------------------------------------------------------
V431 94.1 97.2 3.1 0.78 14.9
-------------------------------------------------------------
V406 118.0 121.0 3.0 1.19 1.7
-------------------------------------------------------------
V407 187.5 195.95 8.45 0.41 1.8
-------------------------------------------------------------
V439HW 249.0 253.0 4.0 0.43 0.8
-------------------------------------------------------------
V439FW 261.75 267.0 5.25 0.58 2.7
-------------------------------------------------------------
V613 425.1 432.4 7.3 0.53 3.7
-----------------------------------------------------------------------
ALE07-02 V418 14.0 20.25 6.25 1.23 3.3
-------------------------------------------------------------
V605HW 51.0 59.0 8.0 0.4 1.1
-------------------------------------------------------------
V605FW 62.7 68.0 5.3 0.27 2.3
-------------------------------------------------------------
V406 123.0 128.0 5.0 0.55 1.2
-------------------------------------------------------------
V438HW 138.25 140.35 2.1 25.3 108.0
-------------------------------------------------------------
V438FW 153.0 159.0 6.0 0.38 2.2
-------------------------------------------------------------
V407 195.3 200.75 5.45 0.49 1.7
-------------------------------------------------------------
V413 312.8 319.0 6.2 0.57 4.8
-------------------------------------------------------------
V613 387.0 392.65 5.65 0.43 4.3
-----------------------------------------------------------------------
ALE06-15 V225 21.8 67.95 46.15 0.61 2.2
-------------------------------------------------------------
V427 104.0 111.5 7.5 0.62 4.2
-------------------------------------------------------------
V416 142.3 151.0 8.7 1.97 2.6
-------------------------------------------------------------
V421HW 239.05 265.45 26.4 0.61 2.5
-------------------------------------------------------------
V421FW 265.45 273.5 8.05 7.95 18.1
-------------------------------------------------------------
V421 273.5 295.65 22.15 1.0 1.9
-------------------------------------------------------------
V402HW 317.0 329.5 12.5 3.94 7.4
-------------------------------------------------------------
V418 369.55 386 16.45 0.72 1.1
-------------------------------------------------------------
V605 386.0 410.0 24.0 0.76 1.9
-----------------------------------------------------------------------
AL07-01 V423 139.0 156.5 17.5 1.53 4.6
-------------------------------------------------------------
V417 169.0 172.5 3.5 1.14 8.4
-------------------------------------------------------------
V430 204.25 208 3.75 0.46 3.4
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CR07-01 NEW 77.0 87.7 10.7 0.98 5.3
-----------------------------------------------------------------------
DM07-01 V401 38.1 42.1 4.0 1.07 6.8
-------------------------------------------------------------
V403 123.7 129.1 5.4 0.95 2.1
-----------------------------------------------------------------------
LL07-01 V1002HW 181.95 187.0 5.05 1.08 37.1
-------------------------------------------------------------
V1002HW 187.0 197.0 10.0 14.96 246.0
-------------------------------------------------------------
V1002FW 197.0 205.0 8.0 0.84 4.1
-------------------------------------------------------------
V1001FW 217.4 232.35 14.95 1.03 5.1
-------------------------------------------------------------
V1001HW 238.95 252.25 13.3 3.25 18.7
-----------------------------------------------------------------------
LL07-02 V502 7.55 28.65 21.1 2.31 7.3
-------------------------------------------------------------
V1002 168.0 175.85 7.85 0.54 7.9
-------------------------------------------------------------
V1001HW 252.0 257.0 5.0 1.36 4.2
-------------------------------------------------------------
V1001FW 269.0 274.05 5.05 0.61 21.7
-------------------------------------------------------------
V1001FW 274.05 278.0 3.95 2.45 42.0
-------------------------------------------------------------
V1001FW 278.0 283.0 5.0 0.4 2.5
-------------------------------------------------------------
NEW 342.4 350.0 7.6 0.37 5.1
-------------------------------------------------------------
NEW 352.0 357.0 5.0 0.56 0.6
-------------------------------------------------------------
NEW 450.7 454.0 3.3 2.32 5.6
-----------------------------------------------------------------------
QPO07-01 V502 132.0 165.0 33.0 0.9 8.9
-------------------------------------------------------------
V1002FW 321.0 360.2 39.2 0.51 0.7
-------------------------------------------------------------
V1001FW 396.75 401 4.25 0.69 3.8
-----------------------------------------------------------------------
QPO07-03 V210 4.0 18.9 14.9 1.34 1.4
-------------------------------------------------------------
V202 34.0 43.0 9.0 0.41 5.2
-------------------------------------------------------------
V203 47.0 53.0 6.0 0.37 1.9
-------------------------------------------------------------
V424 57.0 62.0 5.0 0.44 4.5
-------------------------------------------------------------
V416 203.4 217.9 14.5 1.79 3.3
-------------------------------------------------------------
V417 255.15 273.55 18.4 0.47 1.4
-----------------------------------------------------------------------
UAL07-02 V606HW 8.95 14.0 5.05 1.45 0.9
-------------------------------------------------------------
V606FW 21.0 27.25 6.25 10.4 16.9
-------------------------------------------------------------
V617 89.65 93.65 4.0 0.91 3.8
-------------------------------------------------------------
V615 131.1 147.8 16.7 0.62 8.0
-----------------------------------------------------------------------
USI06-23 V927 0.0 28.0 28.0 0.65 2.2
-------------------------------------------------------------
V951 - V902 83.0 119.0 36.0 0.59 4.0
-----------------------------------------------------------------------
VB07-01 V216 8.0 10.55 2.55 0.99 1.1
-------------------------------------------------------------
V201 66.0 75.0 9.0 0.92 4.3
-----------------------------------------------------------------------
VBE07-01 V214HW 20.0 43.0 23.0 0.58 1.1
-------------------------------------------------------------
V214HW 43.0 49.0 6.0 41.83 13.4
-------------------------------------------------------------
V214FW 49.0 58.5 9.5 1.02 3.5
-------------------------------------------------------------
CLOUD1 99.0 105.0 6.0 0.75 0.9
-------------------------------------------------------------
CLOUD1 115.0 123.0 8.0 1.64 1.6
-------------------------------------------------------------
CLOUD1 136.0 138.0 2.0 32.5 45.0
-------------------------------------------------------------
CLOUD1 159.5 163.2 3.7 7.62 24.9
-------------------------------------------------------------
CLOUD1 177.0 191.0 14.0 0.59 7.8
-------------------------------------------------------------
CLOUD1 331.0 336.4 5.4 1.91 8.8
-----------------------------------------------------------------------
VBE07-02 V214HW 0.0 6.55 6.55 0.71 2.7
-------------------------------------------------------------
V206 27.85 44.0 16.15 1.55 4.3
-------------------------------------------------------------
CLOUD1 73.6 79.7 6.1 24.25 7.1
-------------------------------------------------------------
CLOUD1 126.0 127 1.0 48.4 64.6
-------------------------------------------------------------
CLOUD1 185.55 191.45 5.9 0.59 5.7
-------------------------------------------------------------
CLOUD1 226.5 242.4 15.9 0.62 3.5
-------------------------------------------------------------
CLOUD1 242.4 243.5 1.1 13.55 67.1
-------------------------------------------------------------
CLOUD1 267.0 279.0 12 1.25 2.3
-----------------------------------------------------------------------
VB06-13 CLOUD1 3.9 14.65 10.75 0.87 3.7
-------------------------------------------------------------
CLOUD1 35.0 57.0 22.0 1.31 8.3
-------------------------------------------------------------
CLOUD1 57.0 66.55 9.55 0.3 4.4
-------------------------------------------------------------
CLOUD1 66.55 91.0 24.45 0.77 4.4
-------------------------------------------------------------
V202 197.0 225.0 28.0 0.5 3.3
-------------------------------------------------------------
V203HW 225.0 232.5 7.5 8.7 10.0
-------------------------------------------------------------
V203FW 232.5 244.0 11.5 1.21 0.7
-------------------------------------------------------------
V416 417.0 421.0 4.0 0.46 0.5
-----------------------------------------------------------------------

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 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. 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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