GSAC GelStat Corporation (PK)

GelStat Corporation (Other OTC:GSAC), a consumer healthcare company primarily focused on the development and marketing of over-the-counter (OTC) products for the safe and effective treatment of pain, inflammation and sleep disorders, issues a letter by its CEO to shareholders discussing accomplishments in 2011 and goals for 2012.

To Valued Shareholders and the Investment Community,

I am pleased to say that 2011 was a very productive year for GelStat. We are excited to move into 2012 and begin to reap the rewards of a solid foundation established in 2011. Here are the key accomplishments in 2011 that have prepared the Company to prosper in the coming years:

• Signed a distribution agreement with a partner in Turkey, received approval from its Ministry of Health and shipped the initial orders;
• Settled virtually all outstanding judgments against the Company;
• Settled virtually all outstanding debt owed by the Company;
• Completed the acquisition of GSC Direct, Inc. in a share for share exchange which included approximately 475,000 boxes of GelStat Migraine, the Patent related to GelStat Migraine, the remaining inventory of GelStat Sleep and all rights to GelStat's trade names, websites, website domain names and intellectual property;
• Completed audits for 2005, 2006, 2007, 2008, 2009 and 2010;
• Retained Scarsdale Equities, LLC as the Company's Strategic Advisor and Investment Banker;
• Appointed Mr. Paul Bucha to the Company's Board of Directors;
• Revised GelStat's ecommerce website to increase organic traffic using search engine optimization techniques which lead to placing the Company in top positions for numerous key word searches and increasing monthly unique visitors by 30 times since April of 2011; and
• In numerous discussions with leading distribution and marketing partners in Eastern Europe, Asia and the United States.

As a result, the Company is the strongest it has been since 2004 and positioned to thrive in the future. The strategy for GelStat moving forward is to become a global leader in the areas of nutraceuticals, functional beverages and other effective healthcare products. These goals will be pursued through strategic relationships with leading distribution companies worldwide, by building and leveraging a direct-to-consumer platform to launch new products, by acquiring or licensing the rights to products with proven science, by protecting its intellectual property and through organic growth of existing products. The initial goals for 2012 are as follows:

• Complete all outstanding SEC filings, including all 10-Ks and 10-Qs from 2005 to 2011, file them with the SEC and become a fully reporting company. All filings are expected to be completed and filed in the 1st quarter of 2012;
• Select and sign a distribution partner in Eastern Europe;
• Select and sign a distribution partner in Asia;
• Select and sign a marketing partner in the United States;
• Add members to the Company's Board of Director and create Advisory Board(s);
• Complete an acquisition to acquire significant assets, revenue and cash flows;
• Launch a new website in January of 2012 to optimize the increased website traffic and revenue of GelStat Migraine;
• Launch a significant direct-to-consumer marketing campaign to promote GelStat Migraine and GelStat Sleep.
• Secure the rights to additional healthcare related products; and
• Strengthen the Company's financial condition.

I'd like to thank all of our consultants, advisors and board members for their tireless efforts. Equally important, I would also like to thank all of our investors, shareholders, past creditors and vendors for their patience and cooperation in restructuring the Company and becoming our equity partners.   Without everyone's dedication, the achievements in 2011 would not have been realized and the opportunity for GelStat in the future would not be possible. 

Wishing everyone a happy, healthy and prosperous 2012!

Sincerely,

Gerald N. Kieft

Chief Executive Officer

GelStat Corporation

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ABOUT GELSTAT CORPORATION

GelStat Corporation is dedicated to providing safe and effective over-the-counter (OTC) treatments for pain, inflammation and sleep disorders. GelStat's first two products GelStat Migraine and GelStat Sleep are sold through direct-to-consumer channels as well as in a limited number of independent retailers and pharmacies. The Company also has a suite of additional healthcare products in various stages of development that address large consumer markets. For more information, visit www.gelstat.com.

Safe Harbor Statement

This press release and the shareholder letter contains forward-looking statements including pursuing strategic relationships, building and leveraging a direct-to consumer platform to launch new products, acquiring or licensing the rights to products with proven science, growing organically and achieving each of the goals mentioned above.  Forward-looking statements can be identified by words such as "anticipates," "intends," "plans," "seeks," "believes," "estimates," "expects" and similar references to future periods.

Forward-looking statements are based on our current expectations and assumptions regarding our business, the economy and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict. Our actual results may differ materially from those contemplated by the forward-looking statements. We caution you therefore against relying on any of these forward-looking statements. They are neither statements of historical fact nor guarantees or assurances of future performance. Important factors that could cause actual results to differ materially from those in the forward-looking statements include the failure of our products to be accepted, failure to obtain partners to market and distribute our products, unanticipated delays in launching website or failure of the website to generate revenues, our inability to find a target to acquire on mutually acceptable terms, and the inability to get our reports prepared and filed timely as a result of unforeseen audit issues.

Any forward-looking statement made by us in this press release speaks only as of the date on which it is made. Factors or events that could cause our actual results to differ may emerge from time to time, and it is not possible for us to predict all of them. We undertake no obligation to publicly update any forward-looking statement, whether as a result of new information, future developments or otherwise, except as may be required by law.

CONTACT: Gerald Kieft
         CEO
         GelStat Corporation
         772-283-0020