Greystar Announces Re-Filing of Restated Q1 Interim Financial Statements

VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 08/05/11 -- Greystar Resources Ltd. (TSX: GSL) (the 'Company') announces that early next week it will re-file amended and restated condensed consolidated interim financial statements for the three months ended March 31, 2011 to correct its accounting treatment for equity tax expense related to its Colombian operations.

On December 29, 2010, the Colombian Congress passed a law that imposes a 6% equity tax levied on the Company's Colombian operations with effect on January 1, 2011. As a result, total equity tax payable is $6,647,624, which is to be paid in eight equal installments of $830,953 in each of May and September during the years 2011 to 2014. The Company has restated its condensed consolidated interim financial statements for the three months ended March 31, 2011, to record the equity tax liability at its net present value of $5,779,878 and related expense on January 1, 2011, rather than recognizing the installment payments as they arise as previously reported. The impact on the previously reported statement of financial position as at March 31, 2011, and statement of comprehensive loss for the three months ended March 31, 2011, is as follows:

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                            As previously
                                 reported       Adjustment      As restated
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Statement of Financial
 Position
March 31, 2011
 Current portion of
  equity tax liability   $              - $      1,657,746 $      1,657,746
 Equity tax liability                   -        4,329,734        4,329,734
 Deficit                     (152,313,762)      (5,987,480)    (158,301,242)

Statement of
 Comprehensive Loss
Three Months Ended March
 31, 2011
 Finance costs                     18,330          101,440          119,770
 Equity tax                             -        5,779,878        5,779,878
 Foreign exchange gain         (2,057,826)         106,162       (1,951,664)
 Loss and comprehensive
  loss for the period
  attributable to
  shareholders of the
  Company                       3,615,977        5,987,480        9,603,457
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The correction had no impact on the statement of cash flows and the Company's financial statements as at and for the year ended December 31, 2010.

The Toronto Stock Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this news release.

Contacts:

Greystar Resources Ltd.

Rafael Nieto Loaiza

President & CEO

57 310 239 8269
rnieto@greystar.com.co


Greystar Resources Ltd.

David Newbold

Interim CFO

1 778 374 0581
dnewbold@greystarresources.com
www.greystarresources.com