GreenStar Agricultural Provides Update on 2013 Audit

TORONTO, ONTARIO--(Marketwired - Sept. 4, 2014) - GreenStar Agricultural Corp., (TSX VENTURE:GRE) ("GreenStar") today announced that due to a lack of co-operation from its China-based management team, it has not been able to advance the audit for the 2013 financial year. The audit committee, Canadian management, auditors and Canadian legal counsel are all continuing to work to try and move the 2013 audit forward, but there is no visibility on if, or when the 2013 audit will be completed.

All efforts over the past two months, by GreenStar's Audit Committee, with assistance from Chinese legal counsel retained by the Audit Committee to conduct an independent investigation to verify certain critical documentation at GreenStar's banks and the local tax authority, have to date been frustrated by the China-based management team. China based management has to date, failed to co-operate with the investigation process, or provide the necessary funding to the Audit Committee or the independent Chinese counsel that has been engaged to conduct the investigation.

Over this period the China-based management team has also made numerous conflicting representations to the auditors, Chinese and Canadian legal counsel, Board, and the Canada-based management team during the audit process, a consequence of which the Board has been unable to confirm the accuracy of numerous material facts concerning the current situation at the Company and the status of its business operations.

The Audit Committee, the Canadian management team, Canadian and Chinese legal counsel and the Company's auditors have gone to great lengths to try and advance the audit process but the China-based management team has continually failed to fulfil its commitments. These efforts culminated in the Company's auditors in the third week of August, having sent an audit team from their Shanghai affiliate to the Company's offices in Pucheng at the request of the Audit Committee, the Board and China based management. This audit team was to conduct certain procedures to determine the steps required to proceed with their audit. Despite the fact that the Audit Team were assured that they would receive the co-operation of the China based Management, commitments were not met and as a consequence, the auditors returned to Shanghai having been unable to make any progress toward their enquiries into ascertaining what would be required for them to proceed with the 2013 audit.