Greystar Resources Ltd.

Greystar Resources Ltd.

March 16, 2005 18:58 ET

Greystar Resources Ltd.: Angostura Project Update


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: GREYSTAR RESOURCES LTD.

TSX, AIM SYMBOL: GSL
AIM SYMBOL: GSLb

MARCH 16, 2005 - 18:58 ET

Greystar Resources Ltd.: Angostura Project Update

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - March 16, 2005) - Greystar
Resources Ltd. (TSX:GSL)(AIM:GSL)(AIM:GSLb) is pleased to announce that
the international engineering firm Snowden Mining Industry Consultants
Inc. has been retained to produce a new NI43-101 compliant Technical
Report (the "Report") on the Angostura Project. The Report, including a
new resource estimate, will be filed on SEDAR concurrently with the
Company's Annual Information Form and financial statements for the year
ended December 31, 2004. This Report will include the results of 315
holes and 96,627 meters of diamond drilling completed to February 28,
2005. The recent extensive drilling program has provided a very
significant amount of new information on the previously drilled area and
contiguous extensions. New information was gained for both the
previously defined veins and numerous new veins that were discovered
within the confines of the previous resource, as well as on the external
margins. Drilling has now outlined a total of 117 vein-like structures
compared to 90 included in the 2004 resource study and 52 in the 1999
resource evaluation.

Work on all segments of the project has been accelerated including
underground where a new contractor is making good progress. Greystar has
imported a second locomotive, which now is on site and which will
improve materials handling capabilities. In addition to the drifting and
crosscutting that has been underway since last year, a 100-meter raise
is being driven on vein 24. The raise will serve the triple functions of
providing ventilation, a secondary escape way, and sampling of a vein
through a significant vertical section. Material from the raise will
also provide for a bulk metallurgical sample for the continuing studies
being done by METCON Research Inc. of Tucson, Arizona.

METCON was retained in 2004 to begin work on an extensive metallurgical
test program, which will include basic and bench scale testing of
numerous large samples to be taken from the underground workings Six
small diameter column tests utilizing three different vein samples are
now being completed. Their results will be known soon.

The drilling program continues to grow with the addition of machines and
support staff. There are now nine drills on the site with one being
repaired. Two are drilling at the Veta de Barro area, two are drilling
from underground stations and four are on the surface in the main
Angostura deposit. The sample preparation facility, which was
commissioned last year, is being considered for expansion and plans for
other laboratory facilities to allow for more on-site analysis and
metallurgical work are being drafted.

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 (including qualified person, David Rovig,
P. Eng, 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 reassays 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.


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Contact Information

  • FOR FURTHER INFORMATION PLEASE CONTACT:
    Greystar Resources Ltd.
    Mr. David Rovig
    President
    (406) 245-9520
    www.greystarresources.com
    No Stock Exchange has reviewed or accepts responsibility for the
    adequacy or accuracy of this news release.