Groundstar Resources Limited announced that it has signed a letter of intent to acquire certain oil and gas assets located in Rainbow Lake and Farrell, Alberta (the Assets) from a private Alberta company (PrivateCo). The LOI further contemplates that all of the directors of Groundstar except for Stephen Hughes would resign upon the closing of the transaction and be replaced by nominees of PrivateCo. In addition, the President and Chief Executive Officer of PrivateCo would become the President and Chief Executive Officer of Groundstar and Chairman of the Board of Directors.

Nominees of PrivateCo would also become the Chief Operating Officer and Chief Financial Officer and Stephen Hughes would become Corporate Secretary. All of the current members of the Groundstar management team would resign upon the completion of the transaction.