Castle Resources Inc.

April 10, 2007 22:43 ET

Castle Resources Begins Trading Following Completion of Name Change From Black Hat Capital Inc.

- Castle Resources Inc. commences trading under symbol "CRI" - Exploration to begin on Se los Dije silver project in Zacatecas, Mexico - Final tranche of private placement financing completed for CAD$2,000,000 total

TORONTO, ONTARIO--(CCNMatthews - April 10, 2007) -


Castle Resources Inc. ("Castle", or the "Company") (TSX VENTURE:CRI), is pleased to announce that effective Tuesday, April 10, 2007, the Company has commenced trading under the new name of CASTLE RESOURCES INC., under the new symbol CRI. This name change reflects the Company's move from Capital Pool Company status to Tier 2 Issuer status in accordance with the policies of TSX Venture Exchange Inc. (the "Exchange").

The move coincides with the Exchange's acceptance of the Company's previously announced qualifying transaction (the "Qualifying Transaction"), described in the information circular of the Company dated February 16, 2007. The Qualifying Transaction involved the acquisition by a wholly-owned subsidiary of the Company, Castle Resources Mexico S.A. de C.V. ("Castle (Mexico)"), of the Se los Dije Claim Group (the "SLD Claim Group") from Great Horn Inc., on which Castle will quickly begin detailed exploration.

The SLD Claim Group, 100% owned by Castle (Mexico), is composed of eight concessions totalling 312.2 hectares located approximately five kilometres north-east of the city of Zacatecas, Mexico in the historical Zacatecas silver district.

Known mine workings within the subject claims are located in two main areas: San Ramon and Los Gatos covering approximately 300 metres of the La Platosa and Veta del Alto veins. The San Ramon mine workings comprise the San Ramon and Azul shafts approximately 95 metres deep with four subsurface levels. The Azul shaft was refurbished in 2003 and was used to dewater the mine workings for mapping and sampling purposes.

Historical resource and reserve estimates of the SLD Claim Group have been reported at 640,000 tonnes of oxide ore with 0.5 g/t gold and 246 g/t silver and 1.2 Mtonnes at 1.3 g/t gold and 274 g/t silver of sulphide ore. It has been reported that during the 1950s, approximately 20,000 tonnes of ore grading 1.0 to 2.0 g/t gold and 400 to 600 g/t of silver were extracted at San Ramon. The Company notes that these estimates do not comply with existing code under National Instrument 43-101 Standards of Disclosure for Mineral Projects ("NI 43-101"), and refer to Potential Mineralization only.

With the completion of the Qualifying Transaction, Castle will now begin the exploration program outlined in the technical report completed by Behre Dolbear in accordance with NI 43-101 and dated October 10, 2006. The program includes a 4,000 metre, 23 diamond drill hole program that is designed to:

- detail drill test the known mineralization in the San Ramon and Los Gatos zones;

- drill test the potential along the 2 kilometre strike length of the San Fernando, La Platosa and Veta del Alto veins; and

- drill test the San Miguel vein.

In parallel with the drilling program, a detailed surface mapping and sampling program is planned to outline the full surface extent of the five known mineralized veins and to explore the concessions for additional vein structures. It is anticipated the surface program will begin within three weeks; and the drill program, within 60 days. Based on present knowledge of the SLD Claim Group, the aim is to define a resource of 10 to 20 million ounces of silver.

Completion of Private Placement Financing

Further to the Company's news release dated March 30, 2007 (the "March 30 Release"), which announced the partial closing, on March 28, 2007, of the Company's private placement financing in connection with the Qualifying Transaction (referred to therein as the "Additional Offering"), Castle is pleased to announce completion of the Additional Offering effective April 4, 2007. Pursuant to the Additional Financing, an aggregate of 2,666,665 common shares of the Company ("Common Shares") were sold at a price of CAD$0.30 per Common Share for gross proceeds of CAD$800,000.

In combination with the completion of the Black Hat Private Placement on March 28, 2007 (as defined and as previously announced in the March 30 Release) in conjunction with the closing of the Qualifying Transaction, the completion of the Additional Offering has yielded combined aggregate gross proceeds of CAD$2,000,000, through the sale of a total of 6,666,665 Common Shares at a price of CAD$0.30 per Common Share.

About Castle Resources Inc.

Castle Resources Inc. is a Toronto-based junior mineral exploration company focusing on high-quality advanced exploration projects in Mexico. The Corporation's initial focus is on silver exploration and development in Zacatecas, Mexico, one of the most prolific silver camps in Mexico and the world. Management's goal is to quickly advance current projects and to seek additional opportunities to continue to add value for shareholders.

This news release has been reviewed and approved by Baltazar Solano-Rico, a Qualified Person under NI 43-101.

Except for historical information contained herein, this news release contains forward-looking statements that involve risks and uncertainties. Actual results may differ materially. Factors that might cause a difference include, but are not limited to: changes in the worldwide price of mineral commodities, general market conditions, risks inherent in mineral exploration, risks associated with development, construction and mining operations, the uncertainty of future profitability and the uncertainty of access to additional capital. The Company will not update these forward-looking statements to reflect events or circumstances after the date hereof. More detailed information about potential factors that could affect the financial results is included in documents filed from time to time with Canadian securities regulatory authorities by the Company.

The Exchange has neither approved nor disapproved the contents of this press release.

Contact Information

  • Castle Resources Inc.
    Stephen Wallace
    President and Chief Executive Officer
    (905) 627-8786
    Castle Resources Inc.
    Maurizio Fava
    Vice-President, Corporate Development
    (416) 917-1812