Greystar Resources Ltd.

Greystar Resources Ltd.

November 24, 2009 02:00 ET

Greystar Resource Options the La Plata Property Located Southwest of the Angostura Gold and Silver Deposit in Colombia

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Nov. 24, 2009) - Greystar Resources Ltd. (the "Company") (TSX:GSL)(AIM:GSL) announced that the Company has entered into a binding purchase agreement with Sociedad Minera La Plata Ltda., a private Colombian company, for an exclusive option to acquire a 100% working interest in the La Plata property ("La Plata"). La Plata comprises 78 hectares of mineral rights situated to the southwest and along strike of Ventana's La Mascota discovery and Galway Resources El Dorado and Machuca targets located in the California mining district of Colombia (see map posted at

The La Plata property occurs within a mineralized belt related to the northeast-southwest trending La Baja Fault, which has given rise to a number mineralized occurrences. This mineralization, which has traditionally been mined by local artisanal miners, is now the focus of more modern exploration methods. Within the La Baja structural domain, gold and silver mineralization is associated with flexures along the main fault. This has given rise to such deposits as the Pie de Gallo, which is now called El Dorado by Galway, and Ventana's La Mascota target.

Exploration carried out by Greystar during the second quarter of 2009 has identified vein and stockwork mineralization associated with strong alteration hosted in a dacite porphyry. Rock samples from mine tunnels on site have returned gold assays ranging from no significant gold up to 9.66 grams per tonne gold and silver assays ranging from no significant silver up to 94.3 grams per tonne silver.

Frederick Felder, Executive Vice President, Greystar Resources commented, "The La Plata property is contiguous with existing Greystar holdings on the majority of its borders and greatly enhances our land position in the southern Mascota - Machuca trend. We are very excited about the exploration results we have received to date at La Plata. We intend to quickly move forward with a drilling program to test surface mineralization at depth."

The terms of the purchase agreement include staged payments totaling US$1.9 million; the staged issuance of 160,000 share purchase warrants and minimum annual work commitments, all over a four-year period to acquire a 100% working interest in the property. In addition, if Greystar develops an economically viable ore body at La Plata, the Company will pay a one-time payment of US$7 per ounce of gold and US$0.10 per ounce of silver for extractable reserves up to a maximum of 750,000 ounces. The transaction is subject to the approval of the Toronto Stock Exchange.

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 for 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 Columbia.

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 press release are "forward-looking" within the meaning of Canadian securities legislation. They include statements regarding anticipated drill programs, estimated annual production and estimated mineral resources. 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 Company's final short form prospectus dated September 22, 2009 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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