Greystar Resources Ltd.
TSX : GSL
AIM : GSL

Greystar Resources Ltd.

January 18, 2006 23:00 ET

Greystar Reports-Oxide Potential Grows at Angostura

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Jan. 18, 2006) - Greystar Resources Ltd. (TSX:GSL)(AIM:GSL) reports that delineation drilling has returned some of the highest individual gold grades ever reported from its wholly-owned, multi-million ounce Angostura gold-silver deposit in northeastern Colombia.

"The latest results have not only confirmed the continuity of a broad zone of mineralization with associated higher-grade shoots in the Diamante area, but also that the gold mineralization appears to extend into the Cristo Rey area and that the drilling on the eastern limit of the Veta de Barro area demonstrates a propensity for a much greater depth of oxidation, which augurs well to enhance the oxide resources by further exploring the Veta de Barro structures in that direction," states Greystar's President, David Rovig.

In the Diamante area of the deposit, underground drill hole UDM05-4 cut 1.64 grams gold per tonne over 113 metres and a higher-grade shoot running 11.29 grams gold per tonne over 14.25 metres in the hanging wall of a 19 metre section averaging 1.53 grams gold per tonne, as well as another 1.2 metre interval averaging 44.8 grams gold per tonne and 49 grams silver per tonne. This hole corresponds very closely with the zone of mineralization previously reported in hole UDM05-03 (December 7, 2005), which returned 1.65 grams gold per tonne over 140 metres with a higher-grade shoot averaging 9.28 grams gold per tonne over 9 metres. In between these two holes, hole UDM05-05 intersected 1.21 grams gold per tonne over 86.3 metres with a higher-grade shoot running 14.84 grams gold per tonne over 10.8 metres. The down dip extension of the higher-grade shoot has now been intercepted by three underground drill holes over a 200 metre vertical depth. Additional drilling is planned to further define this higher-grade zone.

Surface drilling at Diamante also encountered some significant higher-grade material with hole DM05-28 cutting 157 grams gold per tonne over 1.05 metres, plus a deeper intercept of 1.62 grams gold over 8.5 metres and a higher-grade footwall structure that returned an impressive 85.4 grams gold per tonne and 494 grams silver per tonne over 1.25 metres.

Veta de Barro Oxide Mineralization Grows to the East

Drilling on the eastern limit of the Veta de Barro area continued to show promising results with hole VB05-25 intersecting a new vein running 1.26 grams gold per tonne over 30 metres, plus 0.87 gram gold per tonne over 38 metres. Further to the north, hole VB05-22, drilled below hole VB05-23 intersected 1.97 grams gold per tonne over 13 metres, plus a new vein averaging 1.54 grams gold per tonne over 19.85 metres. Drilling at Veta de Barro has furthermore shown significant increase in thickness of the depth of oxidation towards the east. This is especially encouraging because of the high gold-silver recoveries using traditional, low-cost heap leaching technology for such material.

"These results are very encouraging because the increasing zone of oxide mineralization on the eastern drilled limits of the Veta de Barro is potentially ideally suited to a low-cost, heap leach operation," says Greystar's Executive Vice President, Frederick Felder, "In an effort to outline this emerging oxide area, it is anticipated that up to five of the drill rigs will be moved into the eastern Veta de Barro area over the next six weeks."

Moving to the La Alta area of the deposit, hole AL05-26 returned 1.18 grams gold per tonne over 18.5 metres, plus 2.02 grams gold per tonne over 14 metres and 8.17 grams gold per tonne over 2.5 metres. Hole AL05-27 was drilled in the northern La Alta adjacent to the Las Pozos area and returned 1.13 grams gold per tonne over 17.4 metres, 7.2 grams gold per tonne over 3 metres and 0.77 gram gold per tonne over 28.9 metres.

Moving to the southern portion of the Angostura deposit at the eastern limit of the Silencio area, underground drill hole USI05-26 returned 11.65 grams gold per tonne over 1.4 metres, while surface drilling in the same general area also encountered narrow intercepts including 1 gram gold per tonne over 12.5 metres.

Reconnaissance Drilling Yields Gold at Cristo Rey

Approximately 1-km northeast of the centre of the Veta de Barro area, partial results are in for the first two holes testing the Cristo Rey area. Hole CR05-01 intersected four mineralized intervals grading 1.76 grams gold per tonne over 1.2 metres followed by 0.88 gram gold per tonne over 4.65 metres, 2.39 grams gold per tonne over 1.5 metres and 2.02 grams gold over 12.85 metres. The last intercept is biased by a 1 metre sample grading 21.7 grams gold per tonne. Some 85 metres to the east, hole CR05-02 intersected two structures grading 2.29 grams gold per tonne and 71 grams silver per tonne over 0.8 metre and 6.32 grams gold per tonne and 37. 3 grams silver per tonne over 2.5 metres. These holes were preferentially sampled due to their geological significance and the remaining assay results for the first two holes, plus the complete results from other holes are still pending. So far, four holes have been completed in the Cristo Rey area with a fifth hole currently in progress.

The latest drill results include:



---------------------------------------------------------------------
From To Interval Gold Silver
Hole Intercept (m) (m) (m(iii)) gm/t gm/t
---------------------------------------------------------------------
V24 216.45 224.5 8.05 1.24 2.0
AL05-20 -----------------------------------------------------------
V25 278.0 287.65 9.65 3.16 4.6
---------------------------------------------------------------------
V13/V331 236.0 254.5 18.5 1.18 6.0
-----------------------------------------------------------
V14 272.0 274.5 2.5 8.2 0.8
AL05-26 -----------------------------------------------------------
V322 353.0 367.0 14.0 2.02 1.6
-----------------------------------------------------------
V51 417.5 436.5 19.0 0.53 3.4
---------------------------------------------------------------------
V361 166.6 184.0 17.4 1.13 1.64
-----------------------------------------------------------
V308 192.0 195.0 3.0 7.2 0.6
AL05-27 -----------------------------------------------------------
V359 264.1 293 28.9 0.77 2.1
-----------------------------------------------------------
V3 304.0 321.45 17.45 0.86 3.8
---------------------------------------------------------------------
62.8 64.0 1.2 1.76 24.0
-----------------------------------------------------------
172.0 173.5 1.5 2.39 3.5
CR05-01 -----------------------------------------------------------
182.35 187.0 4.65 0.88 6.9
-----------------------------------------------------------
294.0 306.85 12.85 2.02 3.4
---------------------------------------------------------------------
28.2 29.0 0.8 2.29 71.1
CR05-02 -----------------------------------------------------------
304.3 306.8 2.5 6.32 37.3
---------------------------------------------------------------------
V4 306.35 307.4 1.05 157.0 57.9
-----------------------------------------------------------
DM05-28 V8 402.0 410.5 8.5 1.62 8.0
-----------------------------------------------------------
V7 410.5 411.75 1.25 85.4 494.0
---------------------------------------------------------------------
V332 231.0 243.5 12.5 1.0 3.8
SI05-22 -----------------------------------------------------------
V459 325.0 334.0 9.0 0.54 1.1
---------------------------------------------------------------------
V22-V23 29.0 74.0 45.0 2.27 7.8
-----------------------------------------------------------
Including 60.0 61.1 1.2 44.8 49.0
-----------------------------------------------------------
V24-V25 91.9 125.0 33.1 2.07 9.9
-----------------------------------------------------------
UDM05-04 Including 118.0 121.0 3.0 13.79 60.4
-----------------------------------------------------------
V29HW 158.75 173.0 14.25 11.29 13.3
-----------------------------------------------------------
V29FW 173.0 192.0 19.0 1.53 5.0
-----------------------------------------------------------
V52 222.0 231.0 9.0 1.09 2.1
---------------------------------------------------------------------
V22 TO V26 46.0 132.3 86.3 1.21 7.5
-----------------------------------------------------------
V29 177.95 194.2 16.25 1.3 5.6
-----------------------------------------------------------
UDM05-05 V29/V314 194.2 205.0 10.8 14.83 2.9
-----------------------------------------------------------
V28 205.0 242.0 37.0 0.83 0.8
-----------------------------------------------------------
V12 454.5 469.0 14.5 2.03 15.3
---------------------------------------------------------------------
V53 17.0 32.4 15.4 1.26 1.6
USI05-25 -----------------------------------------------------------
V57 344.0 350.75 6.75 0.89 3.0
---------------------------------------------------------------------
V355 121.5 131.0 9.5 0.98 5.8
USI05-26 -----------------------------------------------------------
V33/V457 228.6 230.0 1.4 11.65 3.9
---------------------------------------------------------------------
V521 8.0 21.0 13.0 1.97 5.6
-----------------------------------------------------------
VB05-22 NEW 49.55 69.4 19.85 1.54 5.4
-----------------------------------------------------------
V560 222.4 229.85 7.45 1.96 6.3
---------------------------------------------------------------------
V512-V513 108.0 146.0 38.0 0.87 3.2
VB05-25 -----------------------------------------------------------
NEW 152.0 182.0 30.0 1.26 3.2
---------------------------------------------------------------------
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). 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, 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 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 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

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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