GreenStar Announces Resignation of Canadian Board and Management

TORONTO, ONTARIO--(Marketwired - Sept. 25, 2014) - GreenStar Agricultural Corporation (TSX VENTURE:GRE) ("GreenStar" or the "Company") reports that the Canadian directors of the Company, including Mr. Michael Newman (Executive Chairman), and the three members of the audit committee, Messrs., Bryan Knebel, Frank Galati and Bob Guo, resigned today. Also resigning from the Company are the three Canadian management personnel, Michael Lam (CFO), Judith Hong Wilkin (Secretary), Rose Xie (Controller) and Robert Macdonald (Manager of Corporate Development). The Company's Canadian legal counsel has also provided notice that they intend to withdraw their services. The resignations are the result of a lack of co-operation, support and funding from Mr. Guan Lianyun, Chairman, CEO and President of the Company, in order to complete the 2013 audit. Despite repeated requests from the Company's Auditors, Board of Directors, Audit Committee, the Canadian Management and Legal Counsel, and continuous verbal assurances from Mr. Guan to co-operate in completing the audit process, Mr. Guan has not provided either funds nor co-operation to allow for the audit committee, or the auditors to proceed with completion of the audit.

"It is with great regret that we tendered our resignations today," said Mr. Michael Newman. "We tried our best to complete the audit in the past few months faced with the lack of cooperation and funding from Mr. Guan. Our Audit Committee had retained independent legal counsel based in China to assist with completing the audit, and obtaining information regarding GreenStar's bank accounts and securing shareholders' assets at the banks, without any success, due to the banks' unresponsive attitude. We contacted the relevant official at the Chinese Embassy in Ottawa in an attempt to secure their assistance in dealing with the banks, all to no avail. Without the support, co-operation and funding from Mr. Guan and Chinese management, we believe that the Canadian Board and management team will be unable to fulfil its obligations to the Company and to investors."

The Company also announced the resignation of Swartz, Levitsky, Feldman, the Company's auditors, who advised the Company that they had no forward visibility regarding the possibility of completing the 2013 audits, as they were not able to obtain the information requested from the Audit Committee's independent investigation due to reasons enumerated above.