Groundstar Resources Limited

Groundstar Resources Limited

June 05, 2008 21:00 ET

Groundstar Resources Updates NW Tanan 1 Well

CALGARY, ALBERTA--(Marketwire - June 5, 2008) - Groundstar Resources Limited (TSX VENTURE:GSA) has been informed by the operator Aminex Petroleum Egypt Limited that the NW Tanan 1 exploratory well on the West Esh El Mallaha (WEEM) block in Egypt, reached basement at 7,730 feet, higher than expected. However, the well logs indicated that no hydrocarbon reservoirs have been encountered; therefore, the well will be plugged and abandoned.

Groundstar is disappointed by the results of this well and the previously drilled Malak 1 well on the WEEM block. The Company's net interest in the block is 20% and the total net cost of both wells was approximately $1.8 MM USD.

The rig will be released to the contractor. The results from both wells will be studied and integrated with the seismic grid to determine future drilling locations.

Groundstar wishes to stress that the non-operated, minority interest WEEM block is a small part of the Company's total portfolio which includes world class, high potential prospects on the West Kom Ombo block in Egypt; the Qara Dagh anticlinal structure on block 10 in Kurdistan; the Karanambo, Rewa and Pirara River prospects on the Takutu Basin in Guyana and the two recently awarded blocks (XIV, XVI) in Syria.

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

FORWARD LOOKING STATEMENTS: All statements in this news release that are forward looking statements involve various risks and uncertainties. There can be no assurance that such statements will prove accurate; actual results and future events could differ materially from those anticipated in such statements.

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

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