Greystar Resources Ltd.
TSX : GSL
AIM : GSL

Greystar Resources Ltd.

August 18, 2008 02:00 ET

Greystar Launches Feasibility Study

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Aug. 18, 2008) - Greystar Resources Ltd. ("Greystar") (TSX:GSL)(AIM:GSL) reports that the Bankable Feasibility Study for its wholly-owned, multi-million ounce Angostura gold-silver project in the northeastern region of Colombia is now underway.

The Bankable Feasibility Study will comprise two stages with the first stage commencing immediately based on all the data collected to May 15, 2008 and will include a new resource model that has been developed using 49% more drill data than that reflected in the 2007 scoping study (Press Release May 30, 2007).

"We are particularly pleased to officially commence our Feasibility Study because much of the data in the scoping study is now outdated. Our diamond drilling program over the past year has met with significant success and the incorporation of these results in the Feasibility Study is anticipated to show marked economic improvements," said Greystar's Executive Vice President, Frederick Felder, P.Geo. "The first stage of the Feasibility Study will provide technical evaluations, conceptual designs, capital and operating costs for the mine, mills, process plant and site infrastructure, as well as the financial analysis of the project. The second phase will start immediately following completion of the first phase and will include the basic engineering of the project. Upon completion, expected by the fourth quarter of 2009, the study will be bankable."

The estimated $4 million first phase of the Feasibility Study will focus on project trade off studies and optimization, and is expected to be completed by mid-February 2009. Chile-based GRDMinproc, (www.minproc.com.au) with support from its Australian office is responsible for the overall study, as well as the conceptual metallurgical process and site infrastructure engineering.

The resource definition, mine design and planning, and also the supervision of third party studies that include the completion of the hydrology, hydrogeology and geotechnical, as well as baseline studies for the Environmental Impact Assessment, will be provided by Metalica Consultores S.A, (www.metalica.cl) also a Santiago, Chile-based consulting group with recognized experience in the mining industry.

Tenders have also gone out for the access road design. Power supply proposals that had been previously received from two of the power suppliers will also be updated.

Completion of first phase of work will allow Greystar to select the optimum mine design and planning, metallurgical process and site infrastructure, in order to do further optimization and basic engineering in the second and final phase of the Bankable Feasibility Study.

Based on the December 2007 resource update estimation, the Angostura deposit hosts a measured resource of 88.49 million tonnes grading 0.79 gram gold and 4.0 grams silver per tonne for 2.247 million contained ounces of gold and 12.08 million contained ounces of silver; an indicated resource of 145.826 million tonnes grading 1.69 grams gold and 8.0 grams silver per tonne for 7.905 million contained ounces of gold and 37.76 million contained ounces of silver. Combined the measured and indicated resources host 10.15 million ounces of gold and 49.8 million ounces of silver in 234.32 million tonnes of material grading 1.35 grams gold per tonne and 7.3 grams silver per tonne, plus an inferred resource of 3.43 million ounces of gold in 77.7 million tonnes grading 1.37 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 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.

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, 2007 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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