Groundstar Resources Limited
TSX VENTURE : GSA

Groundstar Resources Limited

August 23, 2012 19:19 ET

Groundstar Resources Limited Announces Extension to Petroleum Prospecting Licence in Guyana

CALGARY, ALBERTA--(Marketwire - Aug. 23, 2012) -

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Kam Fard, President and Chief Executive Officer of Groundstar Resources Limited (TSX VENTURE:GSA) announces that the joint venture partners have been granted a three year extension for the Takutu Petroleum Prospecting Licence ("PPL") by Guyana Geology and Mines Commission ("GGMC") ending May 21, 2015. The work commitment for the first phase of a two phase agreement is drilling of an exploration well by May 2014, in the Takutu Basin with a financial commitment of USD 7.0 million. The work program for the second phase will be developed by GGMC and the joint venture partners jointly. Groundstar, the operator, has a 10% working interest that is carried by Canacol to first commercial production Effective September 1, 2012 the operatorship will be transferred to Canacol.

About Groundstar Resources Limited

Groundstar is a publicly traded Canadian junior oil and gas company actively pursuing exploration opportunities in Guyana, North Africa and the Middle East.

This press release may contain forward-looking statements within the meaning of applicable securities laws. Forward-looking statements may include estimates, plans, anticipations, expectations, opinions, forecasts, projections, guidance or other similar statements that are not statements of fact. Although the Company believes that the expectations reflected in such forward-looking statements are reasonable, it can give no assurance that such expectations will prove to be correct. These statements are subject to certain risks and uncertainties and may be based on assumptions that could cause actual results to differ materially from those anticipated or implied in the forward-looking statements. These risks include, but are not limited to: the risks associated with the oil and gas industry (e.g. operational risks in development, exploration and production; delays or changes in plans with respect to exploration or development projects or capital expenditures; the uncertainty of reserve estimates; the uncertainty of estimates and projections relating to production, costs and expenses and health, safety and environmental risks), commodity price and exchange rate fluctuation and uncertainties resulting from potential delays or changes in plans with respect to exploration or development projects or capital expenditures. The Company's forward-looking statements are expressly qualified in their entirety by this cautionary statement. The forward-looking statements contained in this press release are made as of the date hereof and the Company undertakes no obligations to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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