GreenStar Provides Update on Beichen Acquisition and Negotiations with Canadian Distributor

TORONTO, ONTARIO--(Marketwired - April 7, 2014) - GreenStar Agricultural Corporation, (TSX VENTURE:GRE) ("GreenStar" or the "Corporation") is pleased to provide an update on its recent acquisition of Bayannur City Beichen Tomato Products Co., Ltd., an Inner Mongolia based tomato pulp producing company ("Beichen"), and the status of negotiations for the acquisition of a Canadian food products distributor operating in North America.

Beichen Acquisition: GreenStar successfully completed the acquisition of Beichen in January of 2014. Subsequent to closing the acquisition, GreenStar has entered into a one year lease for 5,930 acres of land close to the Beichen tomato pulp processing facility. These lands will be used to grow fresh tomatoes, and will be planted in April so that harvesting can commence in August of this year. The harvested tomatoes are expected to provide the additional raw material required for Beichen to increase its tomato pulp production volume. Beichen currently produces 20,000 tonnes of tomato pulp. The leased land could yield up to 30,000 tonnes of tomato pulp per harvesting season... The price of tomato pulp has risen by approximately 40% between 2013 and 2014 and is currently approximately CDN$1,165 per tonne. By securing its' own supply of raw tomatoes for its tomato pulp processing facility GreenStar is attempting ensure its ability to meet the growing demand for its tomato based products. Utilizing its own raw tomatoes will reduce the input costs of raw materials that Beichen uses in the manufacturing of tomato pulp. Beichen will continue to purchase additional raw tomatoes from other local producers.

Negotiations with Canadian Distributor: GreenStar continues its negotiation for the acquisition of a Canadian food distributor, as discussed in its news release dated December 16, 2013. The Corporation's objective is to proceed to the execution of a mutually acceptable Letter of Intent, after all information about the target company has been received, including but not limited to the audited financial statements for the fiscal year ended December 31, 2013.

GreenStar will continue to provide updates on this transaction as events warrant.

About GreenStar Agricultural Corporation

GreenStar operates two main divisions, agricultural and food processing. The agricultural division is involved in the cultivation and harvesting of agricultural products such as fresh fruit and vegetables, for sale either directly as fresh fruit and vegetables or canned, and sold overseas and domestically. The food processing division is primarily involved in the processing of canned food, which includes canned tomato paste, canned boiled bamboo shoots, canned oranges, canned peaches and various other types of fruits and vegetables.