CALGARY, ALBERTA–(Marketwired – March 16, 2017) – Groundstar Resources Limited (TSX VENTURE:GSA) (the “Company“) announces that it has received a proposal from Canada Revenue Agency (“CRA“) as a result of a recently completed audit of the Company’s renunciations of flow-through expenditures for the taxation years 2012 through 2014. CRA has determined that there has been a shortfall in the amount available for renunciation under the look-back rule in the amounts of $248,997 and $563,998 for 2012 and 2013, respectively, with no shortfall in the 2014 year. As a result of the above, CRA has assessed the Company an aggregate amount of $116,519 in Part XII.6 tax, penalties and interest. While the Company has been aware of and has been reporting on certain of these shortfalls, current Management is none the less disappointed in the additional audit findings relating to inaccurate financial reporting and poor operational accounting practices by previous management. Groundstar concurs with the audit findings and is preparing its response to the CRA as well as assessing the impact it will have on shareholders. The Company will provide further information as it becomes 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.