GSA Groundstar Resources Ltd

NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE
UNITED STATES. ANY FAILURE TO COMPLY WITH THIS RESTRICTION MAY CONSTITUTE A
VIOLATION OF U.S. SECURITIES LAWS. 


The board of directors of Groundstar Resources Limited (TSX VENTURE:GSA) (the
"Company") is pleased to announce the licencing of the first of two locations to
be drilled in central Alberta. The 16-26-55-15 W4 well is located 70 kilometers
northeast of Edmonton and will target sweet, heavy oil and gas from a Leduc reef
at an approximate depth of 800 meters. The reef, defined by proprietary 3D
seismic and characterized by extensive core data, is approximately 10,000 acres
in areal extent and represents a large volume Prospective Resource. The
topography of the area makes for ease of operations and extensive, existing
infrastructure provides for rapid monetization pending successful drilling
results. The well(s) are expected to take four days to drill. 


Groundstar is also pleased to announce that is has now closed its offerings by
issuing an aggregate of (i) 5,871,500 units at a price of $0.20 per unit (the
"Units") and (ii) 3,092,000 flow-through units at a price of $0.25 per unit (the
"Flow-Through Units"), for total gross proceeds of approximately two million
dollars (the "Offering"). Each Unit consists of one common share in the capital
of the Company (a "Common Share") and one half of one common share purchase
warrant ("Warrant"). Each Flow-Through Unit consists of one Common Share to be
issued on a "flow-through" basis within the meaning of the Income Tax Act
(Canada) and one half of one Warrant. Each whole Warrant will entitle the holder
thereof to purchase one Common Share ("Warrant Share") at a price of $0.30 each
at any time on or prior to June 24, 2014. 


The short form prospectus offering was conducted on a commercially reasonable
effort basis through a syndicate of agents consisting of PI Financial Corp. and
Canaccord Genuity Corp. (collectively, the "Agents"). In connection with the
Offering, the Company paid the Agents a cash commission of approximately 128,000
dollars and granted 594,360 warrants to the Agents pursuant to the Offering
("Agents' Warrants"). The Agents' Warrants are exercisable into Common Shares at
a price of $0.30 at any time prior to June 24, 2014. 


The Company will use the net proceeds from the Offering to further the
exploration and development activities of its oil and gas properties and for
general corporate purposes. The proceeds received by the Company from the sale
of the Flow-Through Units will be used to incur eligible Canadian Exploration
Expenses ("CEE") which will be renounced in favour of subscribers for the 2012
taxation year. 


The Units and Flow-Through Units were issued pursuant to the Company's short
form prospectus dated December 19, 2012 (the "Prospectus"). A copy of the
Prospectus, which contains important information relating to the Offering, is
available under the Company's profile on the SEDAR website at www.sedar.com 


This news release does not constitute an offer to sell or solicitation of an
offer to sell any of the securities in the United States. The securities have
not been and will not be registered under the United States Securities Act of
1933, as amended (the "U.S. Securities Act") or any state securities laws and
may not be offered or sold within the United States or to U.S. Persons unless
registered under the U.S. Securities Act and applicable state securities laws or
an exemption from such registration is available.


About Groundstar Resources Limited 

Incorporated in 1968, Groundstar Resources Limited is a publicly traded oil and
gas company with exposure to 7.3 million gross acres of resource assets. The
Company is actively targeting and growing a portfolio of producing oil and gas
assets with development opportunities and exploration upside. The Company's
current portfolio of resources assets provides both near term and longer term
potential. Groundstar trades under the ticker symbol "GSA".


This press release contains forward-looking statements within the meaning of
applicable securities laws, including expectations regarding the anticipated use
of proceeds from the Offering. 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 and
uncertainties regarding the intended use of the net proceeds of the Offering.
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. 


FOR FURTHER INFORMATION PLEASE CONTACT: 
Groundstar Resources Limited
Chad Dust
403 608 6505 or 403 668 5547


Groundstar Resources Limited
Tyron Pfeifer
403 614 9902
www.groundstarresources.com

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