Greystar Resources Ltd.

Greystar Resources Ltd.

February 10, 2010 02:00 ET

Greystar Resources Files EIA; Begins Colombian Permitting Process

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Feb. 10, 2010) - Greystar Resources Ltd. (TSX:GSL)(AIM:GSL) (the "Company") is pleased to announce that on Dec. 22, 2009, the Company filed an Environmental Impact Assessment (EIA) with the Ministry of the Environment, Housing and Territorial Development (MAVDT) to initiate the environmental permitting process for the development of an open pit gold and silver mine at the Angostura project in Colombia. Subsequently on Jan. 13, 2010, the EIA (1,814 pages) was accepted for review by the MAVDT. The EIA, which is based on the GRD MinProc Preliminary Feasibility Study (March 2009), covers all environmental and social aspects of the proposed mine development including baseline data and end of mine life mitigation plans.

The environmental permitting process for Angostura involves a review process to which the MAVDT names a review team, and requests input from the regional environment authority. The permitting process should take approximately six months, however it is customary that the environmental authorities require additional data and changes to the EIA prior to issuing an environmental license. Therefore, the permitting process may take nine to twelve months.

Greystar has also submitted an application for a Work and Investment Plan (PTO) based on the GRD MinProc Preliminary Feasibility Study. The PTO was submitted to the Ingeominas, a division in the Ministry of Mines and Energy, on Oct. 23, 2009. The PTO is the operating plan for Angostura which must be approved by Ingeominas in a parallel process to the environmental permitting. Both the EIA and the PTO must be approved for the issuance of a mining license.

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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