Groundstar Resources Limited

Groundstar Resources Limited

September 23, 2005 18:18 ET

Groundstar Executes Memorandum of Understanding with Kyrgyzneftegaz

CALGARY, ALBERTA--(CCNMatthews - Sept. 23, 2005) - Kam Fard, President and Chief Executive Officer of Groundstar Resources Limited ("Groundstar") (TSX VENTURE:GSA), is pleased to announce that Groundstar has executed a Memorandum of Understanding ("MOU") with Kyrgyzyneftegaz, the National Oil Company of the Republic of Kyrgyzstan, on September 12, 2005. The MOU provides for the negotiation of a Production Sharing Agreement and Joint Venture Agreement between Groundstar and Kyrgyzneftegaz in respect to a producing oil field, as well as two exploration blocks (Exploration Block-1 and Exploration Block-2) in the Fergana Valley Basin, all of which lands are located in Kyrgyzstan.

Exploration Block-1 covers 120 square kilometers. The exploration target is the Jurassic formation at a depth of about 2,000 meters.

Exploration Block-2 is in the Kugart depression and covers 370 square kilometers in the Fergana valley Basin. This exploration block has multi-zone objectives, to a total depth of about 4,000 meters.

Groundstar is also pleased to announce that Messrs. Brian E. Bayley, Stuart B. McDowall and J.W. (Jack) Halpin have been appointed as independent members of Groundstar's Audit Committee and that Mr. Jim Rice has been appointed as Groundstar's Chief Financial Officer.

Groundstar Resources Limited is a publicly traded Canadian based junior oil and gas company actively pursuing international exploration and production opportunities, particularly in Guyana, Libya, and Central Asia.


KAM FARD, President & Chief Executive Officer

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

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