Groundstar Resources Limited
TSX VENTURE : GSA

Groundstar Resources Limited

December 12, 2014 09:20 ET

Groundstar Resources Limited Announces Non-Brokered Private Placement Financing of Up to $1.5 Million

CALGARY, ALBERTA--(Marketwired - Dec. 11, 2014) -

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Groundstar Resources Limited (TSX VENTURE:GSA) (the "Company") is pleased to announce that it intends to complete an offering of up to 15,000,000 common shares in the capital of the Company to be issued on a "flow-through" basis within the meaning of the Income Tax Act (Canada) (the "Flow-Through Shares") at a price of $0.10 per Flow-Through Share by way of a non-brokered private placement for total gross proceeds of up to $1.5 million (the "Offering").

The Company expects to use the net proceeds from the Offering to further the exploration and development activities of its oil and gas properties and for general corporate purposes. The proceeds received by the Company from the sale of the Flow-Through Shares will be used to incur eligible Canadian Exploration Expenses ("CEE") which will be renounced in favour of subscribers for the 2014 taxation year.

The Flow-Through Shares will be issued on a private placement basis in the Provinces of Alberta, British Columbia, Ontario and such other jurisdictions as the Company may determine in its sole discretion and will be subject to a statutory hold period of four months and a day from the closing date of the Offering, expected to be on or about December 29, 2014. Closing of the Offering and the issuance of the Flow-Through Shares are subject to approval of the TSX Venture Exchange.

This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.

About Groundstar Resources Limited

Incorporated in 1968, Groundstar Resources Limited is a publicly traded oil and gas company actively growing a portfolio targeting producing oil and gas assets with development opportunities and exploration upside. The Company's current portfolio of resource assets provides both near term and longer term potential. Groundstar is quoted and trades under the ticker symbol "GSA" on the TSX Venture Exchange.

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