Greystar Resources Ltd.
TSX : GSL
AIM : GSL

Greystar Resources Ltd.

March 21, 2006 23:00 ET

Greystar Reports-Eastern Expansion Yields 9.3 g/t Gold over 12 Metres

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - March 21, 2006) - Greystar Resources Ltd. (TSX:GSL)(AIM:GSL) is pleased to report that favourable results have prompted the dedication of seven diamond drill rigs to the northeast sector of the Veta de Barro and El Pozo areas of its wholly-owned, multi-million ounce Angostura gold-silver deposit in northeastern Colombia.

"The consistent thicknesses and grade of mineralization in the eastward extension of the Veta de Barro vein system continues to be particularly attractive," states Greystar's Executive Vice-President, Frederick Felder. "In fact based on the results received to date, this sector has the potential to develop into a significant component of the very large Angostura gold-silver system."

The latest assays from 12 holes include hole VBE06-01, which was collared 100 metres west of a previously reported 250 metre eastern step-out hole in the Veta de Barro area (VBE05-01, which returned 1.35 grams gold per tonne over 74 metres, Press Release February 15, 2006) and intersected 11 metres grading 1.18 grams gold per tonne, 1.5 metres grading 21.7 grams gold per tonne, 12 metres averaging 9.29 grams gold per tonne and 25 metres averaging 1.02 grams gold per tonne.

Hole VBE06-02 tested the zone some 100 metres below hole VBE05-01 and cut 7.65 metres grading 2.38 grams gold per tonne and 28.1 metres running 2.87 grams gold per tonne.

At Quebrada Pozo, immediately north of the La Alta area, hole QP006-02 cut 10 metres grading 0.81 gram gold per tonne, 4.5 metres grading 1 gram gold per tonne and 6.35 metres running 3.42 grams gold per tonne. Some 100 metres to the east, hole QP006-01 intersected a higher-grade structure averaging 39.8 grams gold per tonne over 1.2 metres, plus 2.62 grams gold per tonne over 5.3 metres.

Infill drilling in the La Alta area continued to intersect significant zones of mineralization with hole Al06-02 returning 16.8 metres running 1.04 grams gold per tonne, 12.6 metres running 1.04 grams gold per tonne and 8 metres averaging 3.28 grams gold per tonne.

Underground drilling in the Silencio area yielded broader, lower-grade intercepts with hole USI06-01 cutting 11.4 metres averaging 0.55 gram gold per tonne, 32 metres grading 0.66 gram gold per tonne and 3.75 metres running 1.63 grams gold per tonne and hole USI06-03 encountering 8 metres grading 1.34 grams gold per tonne, 16 metres grading 0.64 gram gold per tonne and 24.45 metres running 0.73 gram gold per tonne. Drilling from the north drift of the La Alta area, intersected 45.95 metres of 0.78 gram gold per tonne and 13.6 metres running 1.34 grams gold per tonne.

On the resource evaluation front, Greystar initiated a new program of closer, 25 metre spaced horizontal drill holes from the north and south drifts of the underground development. This program was proposed by Strathcona Minerals Services Inc. ("Strathcona") as a detailed test of selected areas of the deposit in order to more accurately evaluate the resource model. Strathcona is assisting in an updated resource evaluation that will form part of the Angostura scoping study (Press Release, January 11, 2006). The first phase of this program will comprise 5,840 metres in 28 holes. To advance this program more rapidly two additional electric diamond drills were mobilized in late February and the middle of March, respectively. Of the twelve drill rigs on the property, five are currently allocated for this program.

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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AL06-01 V6 30.5 37.8 7.3 0.78 1.7
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AL06-02 V1 290.8 307.6 16.8 1.04 7.6
----------------------------------------------------------
V3 358.0 370.6 12.6 1.04 3.2
----------------------------------------------------------
V4 416.0 424.0 8.0 3.28 3.2
---------------------------------------------------------------------
AL06-03 V5 127.0 134.0 7.0 1.51 8.1
---------------------------------------------------------------------
SI06-01 V459 201.0 205.25 4.25 1.36 3.1
---------------------------------------------------------------------
SI06-03 V311 31.0 35.5 4.5 1.07 72.5
----------------------------------------------------------
V353 94.65 99.5 4.85 2.24 9.0
---------------------------------------------------------------------
QPO06-01 V562 187.8 189 1.2 39.8 7.1
----------------------------------------------------------
V2 322.2 327.5 5.3 2.62 5.6
---------------------------------------------------------------------
QPO06-02 V561 39.0 49.0 10.0 0.81 2.0
----------------------------------------------------------
V306 321.5 326.0 4.5 1.0 3.6
----------------------------------------------------------
V4 336.65 343.0 6.35 3.42 18.2
---------------------------------------------------------------------
UAL06-02 V29-V364-V51 191.55 237.5 45.95 0.78 0.7
----------------------------------------------------------
V12 343.0 356.6 13.6 1.34 9.7
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USI06-01 V16 146.6 158.0 11.4 0.55 2.2
----------------------------------------------------------
V29-V27 192.0 224.0 32.0 0.66 1.7
----------------------------------------------------------
V24 289.5 293.25 3.75 1.63 7.7
---------------------------------------------------------------------
USI06-03 V12 13.0 21.0 8.0 1.34 1.9
----------------------------------------------------------
V52 41.0 57.0 16.0 0.64 2.6
----------------------------------------------------------
V364-V331 92.0 116.45 24.45 0.73 1.7
---------------------------------------------------------------------
VBE06-01 V524 125.0 136.0 11.0 1.18 3.6
----------------------------------------------------------
V551 256.0 257.5 1.5 21.7 8.7
----------------------------------------------------------
V552 315.0 327.0 12.0 9.29 53.9
----------------------------------------------------------
V553 341.0 366.0 25.0 1.02 6.5
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VBE06-02 V551 403.35 411.0 7.65 2.38 4.6
----------------------------------------------------------
V552 418.4 446.5 28.1 2.87 3.6
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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 112,797 metres of drilling, the August 2005 resource calculation for the Angostura deposit came in at 5.83 million ounces of gold and 24.6 million ounces of silver within an indicated resource of 148.14 million tonnes grading 1.22 grams gold per tonne and 5.17 grams silver per tonne, plus another 4.47 million ounces of gold and 21.5 million ounces of silver within an inferred resource of 123.3 million tonnes grading 1.13 grams gold per tonne and 5.42 grams silver per tonne using a cut off of 0.4 gram gold for oxide and 0.55 gram gold for sulphide (Press Release August 16, 2005). 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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