Greystar Resources Ltd.

Greystar Resources Ltd.

December 16, 2010 09:48 ET

Greystar Hits 189.5 g/t Gold and 701 g/t Silver Over 1.5 Metres at Cristo Rey

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Dec. 16, 2010) - Greystar Resources Ltd. (TSX:GSL)(AIM:GSL) ("the Company") is pleased to announce that diamond drilling on the northern margin of the proposed pit shell of the multi-million ounce Angostura deposit in northeastern Colombia has returned some of the highest gold-silver grades encountered to date.

The latest results from the Cristo Rey area, which marks the current northern limit of the Angostura deposit, included 189.5 g/t gold and 701 g/t silver over 1.5 metres in hole CR10-05, 6.89 g/t gold and 85.4 g/t silver over 1.6 metre in hole CR10-04 and 12.45 g/t gold and 96.7 g/t silver over 1 metre in hole CR10-02. These significant intercepts confirm the presence of mineralization along strike and down dip in the northern limit of proposed Angostura pit.

"Both exploration and delineation drilling in 2010 continued to show potential for further economic enhancements of the Angostura deposit as evidenced by the latest drill results from Cristo Rey," states Greystar's Executive Vice President, Frederick Felder, P.Geo. "Drilling is also targeting higher-grade mineralization in the Silencio area on the southern margin of the deposit, as well as in the Los Laches area to the northeast."

Previous reported drill holes intersecting the same structure in the Cristo Rey area during 2006 and 2008 contained 74 g/t gold and 167 g/t silver over 3 metres (CR06-03), 10.7 g/t gold and 219 g/t silver over 1.5 metres (VBE06-39), 14.95 g/t gold and 134 g/t silver over 0.7 metres (CR06-04), 8.98 g/t gold and 75 g/t silver over 1.3 metres (VBE06-23) and 4.84 g/t gold and 38 g/t silver over 12.8 metres (CR08-04).

Mineralization in the Cristo Rey area is similar in style to the Veta de Barro area immediately to the south where higher grade structures have considerable strike extent, and although relatively narrow the structures have much higher grades than in the core of the deposit.

A total of 3,524 meters of core has been drilled at Cristo Rey, and additional drilling will be carried out to further test the higher grade mineralized structures at depth and along strike. Currently drill rigs are working at Silencio, Los Laches, Mongora and La Plata.

The drill results from the 2010 Cristo Rey program are included in Table 1.

Table 1 – 2010 Cristo Rey Drill Results

HOLE FROM-TO LENGTH (metres) Gold (g/t) Silver (g/t) Copper (%) S (%)
CR10-01 332.1 - 334 1.9 4.12 16.50 0.00 2.390
CR10-02 38 - 39 1 3.53 86.90 0.00 0.520
74 - 75 1 12.45 96.70 0.01 3.020
264 - 294 30 0.66 3.72 0.02 2.326
CR10-03 266 - 268 2 2.29 0.90 0.00 1.060
CR10-04 119.4 - 121 1.6 6.89 85.40 0.03 5.580
334 - 336 2 2.85 1.10 0.00 1.890
CR10-05 184 - 186 2 8.78 90.10 0.01 4.850
237 - 238.5 1.5 189.50 701.00 0.10 5.760
CR10-06 205.65 - 221 15.35 0.86 2.76 0.00 1.835
387.75 - 401.1 13.35 1.12 5.10 0.02 2.657
443.4 - 445 1.6 3.40 11.00 0.07 2.450
539 - 540.5 1.5 5.36 40.90 0.05 1.790
CR10-07 268 - 270 2 5.72 25.90 0.02 4.780
383 - 384.2 1.2 2.50 19.30 0.08 1.360

Down hole width, not corrected but based on drill holes and structural dip of the mineralization, the intervals vary from 67 to 92% of the true thickness of the structures.

A drill plan map, cross sections and a longitudinal section are attached and will be posted on the Greystar Resources website, or you may view the maps accompanying this press release by visiting the following link:

Review by Qualified Person, Quality Control and Reports

The Company employs 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 into 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.

The above information has been reviewed and approved by Mr. Frederick Felder, P.Geo., a "qualified person" as that term is defined in 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 of mineral projects. Mr. Felder is a geologist with more than 40 years of industry experience and a member in good standing with the Association of Professional Engineers and Geoscientists of British Colombia.

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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