September 9, 2015 - 1:12 PM EDT
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Groundstar Resources Limited Provides Corporate Update

CALGARY, ALBERTA--(Marketwired - Sept. 9, 2015) -


Groundstar Resources Limited ("Groundstar" or the "Company") (TSX VENTURE:GSA) is providing an update with respect to the filing of the audited financial statements for the year ended April 30, 2015 as well as with respect to misstatements discovered in the previously filed unaudited interim financial statements for the first three quarters of the year ended April 30, 2015. Current management is working diligently with the Company's new auditors to complete and file the audited financial statements for the year ended April 30, 2015 as soon as possible. In the course of preparing the annual financial statements, current management has uncovered errors from the unaudited interim financial statements which were prepared by prior management. The majority of the errors are not material and generally result in an overall increase to general and administrative expenses. In addition, there were two issuances of capital stock to consultants of the Company which were granted in lieu of debt owed to those individuals which went unreported during the quarterly filings. The more significant error relates to depletion, which was materially understated throughout the year ended April 30, 2015. As a result, expenses are understated in the first three quarters and assets related to property, plant and equipment are overstated.

Given that the Company is in the midst of preparing its audited annual financial statements, which will supersede and replace the financial information in the unaudited quarterly statements, the Company does not intend to restate or refile its interim financial statements for the year ended April 30, 2015. Instead, the Company will file its audited annual financial statements and accompanying management's discussion and analysis ("MD&A") and include a note in such filing relating to the past misstatements and indicating that future quarterly filings will contain corrected information for the comparable periods. The MD&A will also contain an explanatory note under the quarterly information table that explains why the numbers in the chart (which will contain the corrected figures) are different from what was filed publicly in the interim statements. Future quarterly filings will contain corrected information for the comparable corresponding periods along with a note explaining the differences from previous filings.

As a result of the above, the Alberta Securities Commission has revoked the management cease trade order which was previously in effect and implemented a broader cease trade order on the Company's common shares until such time as the Company has filed its annual financial statements and applied for a revocation of the cease trade order. The Company will provide further particulars as they become available.

About Groundstar Resources Limited

Incorporated in 1968, Groundstar Resources Limited is a publicly traded oil and gas company actively growing a portfolio targeting producing oil and gas assets with development opportunities and exploration upside. The Company's current portfolio of resource assets provides both near term and longer term potential. Groundstar is quoted and trades under the ticker symbol "GSA" on the TSX Venture Exchange.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this press release.

Tyron Pfeifer
[email protected]

Murray Stodalka
[email protected]

Groundstar Resources Limited
Suite 2300, 144 4th Avenue SW
Calgary, Alberta T2P 3N4

Source: Marketwired (Canada) (September 9, 2015 - 1:12 PM EDT)

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