Shimmerman Penn Title & Associates Inc. (the "Trustee"), in its capacity as trustee of the bankruptcy estate of Greenstone Resources Ltd. (the "Company") and not in its personal capacity, has announced that on December 14, 2006, the Ontario Superior Court of Justice (Commercial List) (the "Court") granted two orders in connection with the reorganization of the Company pursuant to the Companies' Creditors Arrangement Act (Canada) (the "CCAA") and Canada Business Corporations Act (Canada) (the "CBCA"). Both orders were obtained by the Trustee in accordance with an order made by the Court on December 1, 2006 (the "Authorization Order") authorizing and directing the Trustee to the take the steps required to reorganize the Company pursuant to a common plan of compromise and arrangement made under both the CCAA and the CBCA.

The December 14, 2006 order made by the Court under the CCAA: (a) authorizes the Trustee to present a plan of compromise or arrangement (the "Plan") to the Company's creditors; (b) authorizes the Trustee to terminate or repudiate agreements entered into by the Company including warrants or options exchangeable for shares of the Company; (c) authorizes and directs the trustee to provide notice of the Plan to the Company's creditors by publishing two notices in The Globe and Mail (National Edition) and sending an information package containing information with respect to the Plan to all of the known creditors of the Company and any other creditor who requests such information package; (d) establishes a procedure for the Company's creditors to prove their claims against the Company; and (e) establishes the date and location for the holding of a meeting of the Company's creditors to consider the Plan (the "Meeting").

The Meeting will be held at 10:00 a.m. (Toronto time) on January 25, 2007 at Suite 1600, 1 First Canadian Place, 100 King Street West, Toronto, Ontario. If the required majority of the Company's creditors present and voting at the Meeting accept the Plan, the Trustee is required to bring a motion to the Court seeking an order sanctioning the Plan under the CCAA on January 30, 2007.

The December 14, 2006 order made by the Court under the CBCA: (a) declares the Plan to be a plan of arrangement under the CBCA as well as the CCAA; (b) orders that no holder of the shares of the Company or persons holding options or rights to acquire shares of the Company are entitled to notice of the Plan or any application or motion to approve the Plan, other than as provided in the Authorization Order; (c) orders that no meeting of the shareholders of the Company or of the holders of options or rights to acquire shares of the Company need be held with respect to the Plan; and (d) orders that a motion to the Court seeking an order sanctioning and approving the Plan under the CBCA shall be heard at the same time as the motion seeking to sanction the Plan under the CCAA.

The Authorization Order authorized and directed the Trustee to deliver to the registered shareholders of the Company certain information in relation to the proceedings.

The Trustee has published the required notices in The Globe and Mail and is in the process of mailing information packages to the creditors and registered shareholders of the Company.

Reference should be made to the orders in their entirety, copies of which are available at www.sedar.com.

For further information: Sheldon Title of Shimmerman Penn Title & Associates Inc. at (416) 323-7754

Source: newswire