Greystar Resources Ltd.

Greystar Resources Ltd.

December 08, 2009 02:00 ET

Greystar Resources Accelerates Expiry of Warrants

VANCOUVER, BRITISH COLUMBIA--(Marketwire – Dec. 8, 2009) - Greystar Resources Ltd. (the "Company") (TSX:GSL)(AIM:GSL) announces that it has elected to accelerate the expiry of 9,035,714 warrants ("Warrants") to purchase common shares ("Common Shares") of the Company issued on September 29, 2009 as part of a public offering of units of the Company. Each Warrant entitles the holder to purchase one Common Share at a price of C$4.30 per share. The Warrants will now expire on January 7, 2010. If all of the Warrants are exercised, the Company will receive gross proceeds of approximately C$38,853,000. The net proceeds of the Warrant exercises will be used to advance the Company's Angostura Gold-Silver Project and for working capital purposes.

Pursuant to the warrant indenture governing the Warrants, the Company has the right to accelerate the expiry date of the Warrants in the event that the Common Shares trade at a closing price of greater than C$5.00 on the Toronto Stock Exchange for twenty (20) or more consecutive trading days (the "Acceleration Event"). To exercise this right, the Company must, within five business days of the Acceleration Event, elect to accelerate the Expiry Date of the Warrants by giving notice to the holders ("Notice"), by way of news release in which case the Expiry Date of the Warrants is accelerated to the date that is twenty (20) business days after the date on which the Notice is given.

This news release constitutes Notice that the Acceleration Event has occurred, in that the closing price of the Common Shares on the Toronto Stock Exchange has been greater than C$5.00 for twenty (20) or more consecutive trading days, and the Company has elected to accelerate the Expiry Date of the Warrants.

Warrant holders may exercise their rights to acquire Common Shares by duly completing and executing the exercise form attached to the Warrant Certificate representing their Warrants before 5:00 p.m. (Vancouver time) on January 7, 2010 and surrendering the Warrant Certificate to Computershare Trust Company of Canada (the "Warrant Agent") together with a certified cheque, money order or bank draft in lawful money of Canada payable to or to the order of the Company at par at the principal office of the Warrant Agent in the City of Vancouver for the aggregate exercise price for the Common Shares subscribed for.

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 news release are "forward-looking" within the meaning of Canadian securities legislation. They include statements regarding the intended use of proceeds of the Warrant exercises. 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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