Greystar Resources Ltd.

Greystar Resources Ltd.

June 28, 2005 17:42 ET

Greystar Launches New Mineral Resource Evaluation

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - June 28, 2005) - Greystar Resources Ltd. (TSX:GSL)(AIM:GSL) reports that an updated, independently-directed mineral resource study is now underway on its wholly-owned, multi-million ounce Angostura gold-silver property in northeastern Colombia.

The new resource update will encompass an additional 14,701 metres of drilling in 51 holes and will include 25 new veins predominantly found in the Silencio, Perezosa and Veta de Barro areas of the deposit, bringing the total vein count to 145. The resource update will also include the sampling of an additional 385 metres in the Perezosa tunnel and crosscut.

In total, the resource evaluation will include 111,328 metres of drilling in 366 holes, compared to 96,627 metres in 315 holes used in the March study, which yielded 3.45 million ounces of gold and 14.5 million ounces of silver within an indicated resource of 87.26 million tonnes grading 1.23 grams gold per tonne and 5.2 grams silver per tonne, plus another 4.52 million ounces of gold and 16.9 million ounces of silver within an inferred resource of 111.51 million tonnes grading 1.26 grams gold per tonne and 4.7 grams silver per tonne (Press Release April 4, 2005).

The present study will be done by the same international consulting firm that completed the March study, namely Snowden Mining Industry Consultants in their head office in Perth, Australia with the support of their Vancouver office. The Perth team is presently evaluating the information to determine the appropriate methodology to use in the new evaluation, which is expected to be complete in the second half of July.

Metallurgical testing is also progressing well on the Angostura project with composite core samples from 13 veins in the sulphide zone of the Veta de Barro area being sent to Metcon Research, Inc. in Tucson, Arizona. Currently ongoing work at the Metcon facility comprises flow rate evaluations on the Perezoso samples sent earlier in the year.

At the project site a sampling facility aimed at preparation of metallurgical samples from the tunnels has been established. The facility includes a 6 inches by 9 inches crusher that can crush vein material to minus 2 inches. The facility is housed in a separate enclosed building in order to prevent ambient dust contamination, as well as providing proper segregation of samples on concrete pads.


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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