Greystar Resources Ltd.
TSX : GSL
AIM : GSL

Greystar Resources Ltd.

July 16, 2007 15:23 ET

Greystar Resources Ltd.: Cdn$39.6 Million Private Placement Completed

VANCOUVER, BRITISH COLUMBIA--(Marketwire - July 16, 2007) -

NOT FOR DISTRIBUTION TO U.S. WIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES.

Greystar Resources Ltd. (the "Company") (TSX:GSL)(AIM:GSL) is pleased to announce the successful completion of its marketed private placement announced on June 25, 2007 and priced on June 28, 2007 for aggregate gross proceeds of Cdn$39.6 million (the "Offering"). At the closing of the Offering, the Company issued a total of 6 million common shares at Cdn$6.60 per common share.

The net proceeds from the Offering will be used to advance the Company's Angostura project in Colombia to feasibility, for exploration and for general working capital.

The Offering was managed by a syndicate of agents led by RBC Capital Markets and included Ocean Equities Limited and Scotia Capital Inc. (the "Agents"). The Agents received a fee equal to 6% of the gross proceeds of the Offering.

Application has been made to the London Stock Exchange to admit 6 million common shares in the Company to trading on AIM. The common shares issued pursuant to the Offering will rank pari passu with the Company's existing common shares and it is expected that the common shares issued pursuant to the Offering will be admitted to trading on AIM from 8:00 a.m. (UK time) on July 17, 2007. The common shares issued pursuant to the Offering are subject to resale restrictions, which expire on November 17, 2007.

This press release is not an offer of the securities for sale in the United States. The securities offered have not been, nor will be, registered under the U.S. Securities Act of 1933, as amended, or state securities laws and may not be offered or sold in the United States absent registration or an exemption from the registration requirements of such laws. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any State in which such offer, solicitation or sale would be unlawful.

Forward-Looking Statements

Certain statements included in this press release are "forward-looking statements" within the meaning of Canadian securities legislation including, among other things, statements regarding the use of proceeds. Forward-looking statements are necessarily based on assumptions that, while considered reasonable by the Company, are inherently subject to significant business and economic uncertainties and contingencies. Many factors could cause the Company's actual results to differ materially from those expressed or implied in any forward-looking statements made by the Company including, among other things, risks relating to fluctuation in financial markets and commodity prices. Particulars of other risks are set out under the heading "Risk Factors" in the Annual Information Form of the Company dated March 30, 2007 which is available on SEDAR at www.sedar.com. Investors are cautioned not to put undue reliance on forward-looking statements due to the inherent uncertainty therein. The Company disclaims any intention or obligation to update or revise any forward-looking statements other than as required by securities legislation.

No Stock Exchange has reviewed or accepts responsibility for the adequacy or accuracy of this news release.

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