Groundstar Resources Limited Provides Corporate Update

CALGARY, ALBERTA--(Marketwired - July 13, 2015) -

NOT FOR DISTRIBUTION TO THE U.S.A. NEWS WIRE SERVICES OR FOR DISSEMINATION TO THE U.S.A.

Groundstar Resources Limited ("Groundstar" or the "Company") (TSX VENTURE:GSA) is pleased to provide an update with respect to the ongoing restructuring of the Company. The Company has recently retained two consultants, being a geologist and an engineer, to assist the Company with its ongoing initiatives and growing the production and reserves of the Company on a go forward basis.

Production Update and Reserves Report

With production rates at Neilburg remaining steady at 110 barrels of oil per day net to the Company, Groundstar is pleased to announce that it is currently licencing a new drilling location at 2-13-45-26 W3. This low risk, development location is a result of the Company's recent mineral leasing activities in the area. The well is expected to drill in early August.

The Company is also pleased to announce that it has received a report regarding its reserves from its independent reserves evaluator, Sproule Associates Ltd. ("Sproule") for all of the Company's properties effective April 30, 2015 (the "Sproule Report"). These estimates were prepared in accordance with National Instrument 51-101 Standards of Disclosure for Oil and Gas Activities ("NI 51-101") and the full reserves information is expected to be included in the Company's annual information form, which will be available under the Company's profile on SEDAR at www.sedar.com once filed. This is expected to occur at approximately the same time as when the Company files its yearend financial statements.

The following tables summarize the Company's gross and net interests in proved and probable reserves at April 30, 2015 using the Sproule April 1, 2015 forecast prices and cost assumptions.

		RESERVES SUMMARY (1)
		OIL & NGLS		NATURAL GAS		TOTAL OIL EQUIVALENT
RESERVES CATEGORY		Gross	Net	Gross	Net	Gross	Net
		(Mbbl)	(Mbbl)	(Mmcf)	(Mmcf)	(Mboe)	(Mboe)
Proved
	Producing	27	25	0	0	27	25
	Developed Non-Producing	15	13	0	0	15	13
	Undeveloped	0	0	0	0	0	0
TOTAL PROVED		42	38	0	0	42	38
PROBABLE		21	19	0	0	21	19
TOTAL PROVED PLUS PROBABLE		63	57	0	0	63	57

Notes:

1. Numbers in this table are subject to rounding.

The following table summarizes Groundstar's share of the net present value of future net revenue attributable to its reserves before taxes but prior to the provision for interest and general and administrative expenses:

		NET PRESENT VALUES OF FUTURE NET REVENUE(1)(2)(3)(4)
		BEFORE INCOME TAXES DISCOUNTED AT (%/year)
RESERVES CATEGORY		0%	5%	10%	15%
		(M$)	(M$)	(M$)	(M$)
Proved
	Producing	477	469	461	454
	Developed Non-Producing	196	165	139	118
	Undeveloped	0	0	0	0
TOTAL PROVED		673	634	600	572
PROBABLE		279	254	234	216
TOTAL PROVED PLUS PROBABLE		952	888	834	788

Notes:

1. Gross reserves are the Company's total interest share before the deduction of royalties and without including any royalty interest of the Company.
2. Utilizes Sproule's escalated price forecasts as of April 1, 2015.
3. Numbers in this table are subject to rounding.
4. Estimates of future net revenue disclosed herein may not represent fair market value.

Annual General Meeting

In addition, the Company has received a requisition for a shareholders meeting from a former consultant of the Company. As the Company is required to hold a shareholders meeting in each calendar year in accordance with the policies of the TSX Venture Exchange and since holding an additional shareholders meeting will impose unnecessary expenses on the Company during a period of rebuilding, the Company has determined that it is in its best interests to hold the shareholders meeting in conjunction with its annual general meeting which would normally occur in January. As such, the Company has set January 13, 2016 as the date for the next meeting of shareholders, with a record date set for December 16, 2015.

Option Grant

Lastly, Groundstar announces that it has issued 600,000 stock options to its directors and executive officer at an exercise price of $0.05 pursuant to the Company's rolling Stock Option Plan. These options vest over a 24-month period, with a five year term to expiry.

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.

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.

This press release contains forward-looking statements within the meaning of applicable securities laws, including expectations regarding the holding of its next shareholders meeting and the associated timing thereof and expectations regarding the timing of drilling on the Company's properties. 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, 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.