Mr. Tyron Pfeifer reports

GROUNDSTAR RESOURCES LIMITED PROVIDES CORPORATE UPDATE

Groundstar Resources Ltd.'s audited annual financial statements, chief executive officer and chief financial officer certifications, and management's discussion and analysis for the year ended April 30, 2015, were not released as scheduled on Aug. 28, 2015. It is now anticipated that the release will occur on or about Sept. 15, 2015.

The company is late in the preparation of the annual filings due to the change of auditor and the inability of the company to find a suitable replacement for the outgoing chief financial officer since its chief financial officer resigned on March 9, 2015. The preparation of the annual filings has been tasked to various financial consultants of the company and, working with new auditors that are not familiar with the company, it is taking more time than earlier thought to complete the audit. In addition, issues surrounding the record keeping of previous management continue to hamper efforts to complete the audit in a timely manner. The audit has been commenced and is close to being completed.

As a result of the delay, the company has voluntarily requested that the securities commissions in Alberta, British Columbia, Saskatchewan and Ontario issue a temporary order that prohibits certain current directors, officers and insiders of Groundstar from trading in securities of Groundstar for so long as the annual filings are not filed. The issuance of such management cease trade order generally does not affect the ability of persons who are not directors, officers or insiders of the issuer to trade in their securities. Groundstar intends to provide updates in accordance with National Policy 12-203 with respect to further developments in respect of this matter promptly following their occurrence, including the issuance of biweekly status update reports until such time as the annual filings are completed.

The reports required under Section 2.1 of National Instrument 51-101 are expected to be filed shortly.