FOR:  GREYSTAR RESOURCES LTD.

TSX, AIM SYMBOL:  GSL

August 31, 2009

Greystar Resources Ltd. Files Preliminary Short Form Prospectus

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Aug. 31, 2009) -

THIS NEWS RELEASE IS NOT FOR DISTRIBUTION TO U.S. WIRE SERVICES OR FOR DISSEMINATION IN THE UNITED
STATES

Greystar Resources Ltd. (the "Company") (TSX:GSL)(AIM:GSL) announced today that it has filed a
preliminary short form prospectus (the "Preliminary Prospectus") with the securities regulatory
authorities in the Provinces of British Columbia, Alberta, Ontario and Nova Scotia in connection with
a best efforts offering of units ("Units") of the Company (the "Offering") for gross proceeds of up to
$55 million subject to a 15% over-allotment option.

Each Unit will consist of one common share of the Company (a "Common Share") and one-half of one
transferable common share purchase warrant (a "Warrant"). Subject to the acceleration right described
below, each whole Warrant will entitle the holder to purchase one Common Share for a period of 12
months following the date of closing of the Offering. If, at any time, the closing price of the Common
Shares on the Toronto Stock Exchange is greater than a price to be determined on pricing of the
Offering for 20 or more consecutive trading days, the Company has the right, on notice to the
warrantholders, to accelerate the expiry date of the Warrants to 20 business days following the date
of such notice.

The net proceeds of the Offering will be used to advance the Company's Angostura Gold-Silver Project,
including completion of phase two of the definitive feasibility study, initial design, further
exploration and for working capital purposes.

The Offering will be led by Jennings Capital Inc, with a syndicate comprising Scotia Capital Inc., and
GMP Securities L.P. (collectively, the "Agents"). Final pricing and determination of the number of
Units to be sold pursuant to the Offering will occur immediately prior to the filing of the final
short form prospectus in respect of the Offering.

The Offering is subject to certain conditions including, but not limited to, the execution of a
definitive agency agreement with the Agents and the receipt of all necessary approvals, including the
approval of the Toronto Stock Exchange and the applicable securities regulatory authorities.

About Greystar Resources Ltd.

Greystar Resources Ltd. is a precious metals exploration and development company that is currently
completing a feasibility study on its wholly owned, multi-million ounce Angostura gold-silver deposit
in northeastern Colombia. A positive prefeasibility study announced on March 25, 2009 envisions
average annual production at Angostura of 511,000 ounces of gold and 2.3 million ounces of silver over
a 15 year mine life. Using a base case gold price of US$700/oz in the first three years of operation
and US$650/oz thereafter, the prefeasibility study estimates that the pre-tax after government royalty
net present value (NPV) at a 6% discount is US$558 million generating an internal rate of return of
19.0%. Using a gold price of US$750/oz for the life of mine, the NPV at a 6% discount is US$942
million with an internal rate of return of 24.9%.

Based on the December 2008, resource update estimation, the Angostura deposit hosts a measured
resource of 148.9 million tonnes grading 0.78 gram gold for 3.736 million contained ounces of gold; an
indicated resource of 182 million tonnes grading 1.34 grams gold for 7.813 million contained ounces of
gold. Combined, the measured and indicated resources host 11.5 million ounces of gold in 330.9 million
tonnes of material grading 1.09 grams gold per tonne, plus an inferred resource of 3.472 million
ounces of gold in 90.8 million tonnes grading 1.11 grams gold per tonne. Resource estimation was
undertaken in compliance with CIM mineral resource and mineral reserve definitions that are referred
to in National Instrument 43-101 - Standards of Disclosure for Mineral Projects. A location map of the
Angostura drilling, along with a map of the underground tunnel work and an updated concession map, can
be accessed from the Company's home page link at Greystar's website.

This press release is not an offer of securities for sale or solicitation of an offer of securities
for sale in the United States or in any other jurisdiction in which such offer, solicitation or sale
would be unlawful. The Company's securities have not been, nor will be, registered under the United
States Securities Act of 1933, as amended,( the "US Securities Act") or state securities laws and may
not be offered or sold in the United States or to US persons absent registration under the US
Securities Act and state securities laws or applicable exemptions from the registration requirements
of such laws.

Forward-Looking Statements

Certain statements in this press release are "forward-looking" within the meaning of Canadian
securities legislation. They include statements regarding completion of the Offering, the use of
proceeds of the proposed financing, anticipated annual production, estimated net present value and
internal rate of return and estimated mineral resources. Forward-looking statements are necessarily
based upon a number of estimates and assumptions that, while considered reasonable by the Company, are
inherently subject to significant business, economic, competitive, political and social uncertainties
and other contingencies. Many factors could cause the Company's actual results to differ materially
from those expressed or implied in the forward-looking statements. These factors include, among
others, conclusions or realization of mineral resources, the actual results of exploration activities,
possible variations in ore grade or recovery rates, fluctuations in the price of gold and silver,
risks relating to additional funding requirements, political and foreign risks, production risks,
environmental regulation and liability, government regulation as well as other risk factors set out
under the heading "Risk Factors" in the Preliminary Prospectus which is available on SEDAR at
www.sedar.com. In addition, there is no assurance that the Offering will close on the proposed terms
or at all or that the necessary approvals will be obtained, in which case the Company may be required
to adjust its plans and/or seek financing from other sources. Investors are cautioned not to put undue
reliance on forward-looking statements due to the inherent uncertainty therein.

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FOR FURTHER INFORMATION PLEASE CONTACT:

Greystar Resources Ltd. - Contact in Canada
David B. Rovig
President
(406) 245-9520

OR

Greystar Resources Ltd. - Contact in Canada
Mr. Andreas Curkovic
Investor Relations
(416) 577-9927
www.greystarresources.com

OR

NCB Stockbrokers Limited - Contact in London
Christopher Caldwell
+44 (0) 20 7071 5200
Christopher.Caldwell@ncb.ie

Neither the Toronto Stock Exchange nor the AIM Market of the London Stock Exchange has reviewed and
neither accepts responsibility for the adequacy or accuracy of this news release.

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Greystar Resources Ltd.