Greystar Resources Ltd.
TSX : GSL
AIM : GSL

Greystar Resources Ltd.

February 08, 2010 02:00 ET

Greystar Resources Receives C$6.1 Million From Exercise of Warrants By IFC

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Feb. 8, 2010) - Greystar Resources Ltd. (the "Company") (TSX:GSL)(AIM:GSL) is pleased to announce that the Company has received proceeds of C$6,093,947 from the exercise of 2,467,185 common share purchase warrants at a price of C$2.47 per share. The share purchase warrants were associated with the Company's financing completed with IFC (International Finance Corporation), a member of the World Bank Group, on March 20, 2009. Following the warrant exercise, IFC's position in Greystar totals 9,046,346 shares or 10.76% of the Company's issued and outstanding shares. To date, IFC has not sold any shares that it has purchased in Greystar. IFC continues to hold an additional 2,467,185 common share purchase warrants exercisable at a price of C$2.47 per share which expire on March 20, 2014. As of February 8, 2010 the Company had approximately C$125 million in cash and no debt.

About IFC

IFC, a member of the World Bank Group, creates opportunity for people to escape poverty and improve their lives. IFC fosters sustainable economic growth in developing countries by supporting private sector development, mobilizing private capital, and providing advisory and risk mitigation services to businesses and governments. IFC's new investments totaled $14.5 billion in fiscal 2009, helping channel capital into developing countries during the financial crisis. For more information, visit www.ifc.org.

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 www.sedar.com. 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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