Greystar Resources Ltd.

Greystar Resources Ltd.

May 21, 2010 02:00 ET

Greystar Resources Announces Delay in Appeal Decision to Reinstate Environmental Impact Assessment at Angostura Project, Colombia

VANCOUVER, BRITISH COLUMBIA--(Marketwire - May 21, 2010) - Greystar Resources Ltd. (the "Company") (TSX:GSL)(AIM:GSL) announced that further to its news release dated April 29, 2010, the Company has not received a decision in regard to the Company's appeal with the Ministry of the Environment, Housing and Territorial Development (MAVDT) to reinstate its December 22, 2009 Environmental Impact Assessment (EIA) and to accept that the Company has complied with all legal requirements to proceed with the development of an open pit gold-silver mine at the Company's Angostura project in Colombia.

Greystar will continue to work with the Colombian Government and MAVDT to resolve issues of concern and ensure that the impact of the Angostura project on Paramo is minimized whilst ensuring the financial viability of the Angostura project.

Greystar is in the midst of completing a Definitive Feasibility Study (DFS) on the Angostura project that is expected to be published in the second half of 2010. In addition, the Company has begun the process of securing US$650 million in project finance from international sources. The Company continues to carry out exploration at the project with a total of four drill rigs focused on three targets; Angostura high grade, Mongora and La Plata.

About Greystar Resources Ltd.

Greystar has worked diligently and to the highest environmental standards for more than 15 years to develop the Angostura project. The International Finance Corporation (IFC) is one of the Company's largest shareholders. To date, the Company has spent approximately CDN $140 million and the Company currently employs 350 Colombians.

A Preliminary Feasibility Study (PFS) was completed describing all the areas of mining activity as well as the efforts made to minimize environmental impacts particularly in the Paramos. The PFS envisions a project with US$1 billion in capital expenditures and US$3 billion in operating expenditures over the life of the project. The project will employ 1,500 people during construction and 850 people during its 15 year mine life.

Greystar is committed to developing the Angostura project using best industry practices in social and environmental stewardship. Through its association with the IFC, the Company has brought objective guidance to this commitment. Greystar will continue to work with the Colombian Government to demonstrate that the Angostura project can deliver exceptional economic returns for all Colombians while allowing the Paramos ecosystem to flourish.

Forward-Looking Statements

Certain statements in this news release are "forward-looking" within the meaning of Canadian securities legislation. They include statements regarding estimates of capital and operating expenditures for the Angostura Project and the estimated completion date for a definitive feasibility study. 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, the outcome of the Company's appeal to MAVDT with respect to its EIA, 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 and operating risks, environmental regulation and liability, government regulation as well as other risk factors set out under the heading "Risk Factors" in the Company's Annual Information Form dated March 26, 2010 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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