Greystar Project Greystar Resources Ltd. (the Company or Greystar) is a TSX and AIM listed junior mining company that owns 100% of the Angostura gold and silver exploration project (the Project) near Bucaramanga, in the Santander region of Colombia.  Greystar has acquired concessions covering approximately 30,000 hectares over a 15-year timeline and during this time has spent approximately C$95 million in exploration and concession acquisition/maintenance costs.  As of December, 2008, the company had completed an intensive drilling program yielding a resource estimate of 11.6 million ounces of measured and indicated gold in 330.9 million tonnes of material grading 1.09 grams gold per tonne and 3.47 million ounces of inferred gold in 90.8 million tonnes grading 1.11 grams gold per tonne, making it one of the worlds largest undeveloped gold resources.    The company is now commencing with a bankable feasibility study (BFS), environmental and social impact assessment (ESIA), and other associated work, with the goal of developing the mine in late 2009/early 2010. Colombia has substantial mineral resources, but the country still suffers from country risk perceptions among many potential foreign investors.   A successful project of this size would likely spur significant additional global mining interest in Colombia, particularly valuable at a time when Colombia has demonstrated considerable progress in addressing security issues and political risk and is well positioned for continued economic success.  IFC has identified Colombia as a primary target for mining investment because of the potential for substantial development impact from the mining sector.  This would be IFCs first mining investment in Colombia.  A mine development of the expected size could have substantial impact on the local communities, not only through direct employment and services, but also from government royalties and taxes that flow back directly to local municipalities.  It is estimated that 97% of the royalties will flow back directly to the region, with 87% of total royalties flowing to the municipality level.  The Government of Colombia and oil and gas companies have been working with IFC on a pilot municipal level royalty management and capacity building program in the petroleum sector.  The Government of Colombia, the Ministry of Mines, and mining associations have expressed interest in expanding this program to the mining sector.  The two municipalities where the project is located could be part of any second pilot program, further ensuring greater development benefits to the local communities.   IFCs proposed investment will fund the completion of a BFS and ESIA, which will be used as the basis by which a decision for mine development will be made.  The immediate development impacts from this investment will be limited.  However, in the event that the mine goes forward, it is currently estimated that the Angostura project will generate approximately 1,500 direct jobs during the construction phase and approximately 500 during operations.  It is currently estimated that approximately four indirect jobs will be created for each direct job created in the mine. The majority of the new jobs would be for local residents from the California municipality and for Colombian engineers from the region; one of the leading engineering schools in the country is located in the city of Bucaramanga, which is close to the mining site.  The company is working with local technical institutes to train local people for future employment at the expected mine.