Groundstar Resources Limited Provides Corporate Update

CALGARY, ALBERTA--(Marketwired - Feb. 29, 2016) -

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Groundstar Resources Limited (TSX VENTURE:GSA) ("Groundstar" or the "Company") is pleased to announce the disposition of its recently drilled Manitoba well to a private oil and gas producer for cash proceeds of $300,000. These funds, in conjunction with the recent financing, are expected to provide Groundstar with the ability to seek out and bring focus to more meaningful new oil and gas opportunities.

In the Neilburg heavy oil area, Groundstar has suspended 75% of the wellbores due to low commodity pricing. The remaining on-stream production produced 24.8 barrels of oil per day net to Groundstar for the month ending January 2016. Production is expected to be brought back online as improved commodity pricing allows.

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.

Disclaimers

This press release contains forward-looking statements within the meaning of applicable securities laws, including expectations regarding the strategic direction of the Company and future increases to production based on improvement commodity pricing. 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 and resource 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 press release.