Groundstar Director Acquires Additional Common Shares

CALGARY, ALBERTA--(Marketwired - Jan. 3, 2017) - Dale Hammons, a director of Groundstar, announces that on December 30, 2016, he has acquired 250,000 common shares of Groundstar ("Groundstar Shares") through a non-brokered private placement which closed that same day at a price of $0.02 per Groundstar Share. Following these purchases, Mr. Hammons currently owns approximately 13.2% of the issued and outstanding Groundstar Shares, on a fully diluted basis. Mr. Hammons now has direct ownership over 6,088,778 Groundstar Shares or approximately 13.6% of the issued and outstanding Groundstar Shares on an undiluted basis. In addition, Mr. Hammons directly owns 330,000 stock options ("Options"), which, on a fully diluted basis, would give Mr. Hammons' ownership of an aggregate of 6,418,778 Groundstar Shares or approximately 14% of the issued and outstanding Groundstar Shares. Of his outstanding Options, 130,000 are exercisable at $0.20 per Groundstar Share until August 18, 2019 and 200,000 Options are exercisable at $0.05 per Groundstar Share until July 16, 2020.

Mr. Hammons has acquired the Groundstar Shares for investment purposes and from time to time, Mr. Hammons may acquire additional securities of Groundstar, dispose of some or all of the existing or additional securities he holds or will hold, or may continue to hold his current position.

An early warning report is being filed concurrently with this news release under Groundstar's SEDAR profile at www.sedar.com and a copy of the report may be obtained from SEDAR or by contacting Mr. Hammons at 780-826-0920.