Groundstar Resources Limited (TSX VENTURE:GSA) (the "Corporation") is pleased to announce the closing today of a non-brokered private placement (the "Offering") of 13,000,000 units ("Units") of the Corporation at a price of $0.10 per Unit, each Unit consisting of one common share ("Common Share") in the capital of the Corporation and one-half of one Common Share purchase warrant ("Warrant"). Each whole Warrant entitles the holder to acquire one Common Share at an exercise price of $0.15 for a period of 18 months from the date of the closing of the Offering. An aggregate finder's fee of $43,400 was paid to Primary Capital Inc. for services provided to the Corporation in connection with the Offering.

Proceeds from the Offering will be utilized for general and corporate purposes. The Common Shares and Warrants issued under the Offering will be subject to a four month hold period from the date of issue.

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