Castle Resources Inc.
TSX VENTURE : CRI

October 26, 2010 07:15 ET

Castle Resources Confirms Significant Copper Mineralization at the Granduc Copper Project, Stewart B.C.

- GD10-02 Intersected 16.75 Metres Averaging 2.15% Cu, Including 5 Metres of 3.27% Cu

- GD10-01 Intersected 9.78 Metres Averaging 2.49% Cu, Including 5.3 Metres of 3.00% Cu

- GD10-12 Intersected 33.48 Metres Averaging 1.45% Cu, Including 15 Metres of 1.72% Cu

- Results from First 13 Holes of 18 Hole (8,300 Metre) Drill Program Demonstrate Widespread Copper Mineralization Over 300 Metres Below Previous Mining Operations and Over 1,000 Metres Along Strike at the Granduc

TORONTO, ONTARIO--(Marketwire - Oct. 26, 2010) - Castle Resources Inc. (TSX VENTURE:CRI) ("Castle" or the "Company") is pleased to announce initial results from the recently completed 8,300 metre, 18 hole drill program at the Granduc Copper Project ('Granduc') near Stewart, B.C.

"Our initial goal of confirming historical drill results and resource estimates by Newmont and Esso Minerals is on track," said Mr. Mike Sylvestre, President & COO of Castle Resources. "We have shown that there exists the potential for a large copper resource at Granduc and it is our objective now to formulate these results into an initial NI 43-101 resource estimate."

The objective of Castle's 2010 drill program at Granduc was to test the down dip extent of the historical deposit as well as replicate certain Newmont and Esso drill results. Drill results to date indicate this goal was achieved as every hole has encountered visible copper mineralization along a 1,000 metre strike. Specifically, drilling targeted Blocks 3 and 4, which includes the A, B and C zones between the 2175 and 2600 foot level (above sea level) in addition to targeting Block 5, between 1600 foot elevation and 2175 foot elevation, which includes the F, A, B and C zones (see press release dated July 22, 2010, to learn more about historical non NI 43-101 compliant resource estimates). All holes intersected locally massive to semi massive and disseminated chalcopyrite, pyrrhotite and pyrite within massive to semi massive magnetite and agrillitic metasediments of the mine series (see Figure 1).

Castle moved quickly in August of this year to initiate and complete a drill program that would begin to demonstrate there remains a large copper resource at the Granduc (see updated NI-43-101 at www.castleresources.com). Given the excellent infrastructure that surrounds Granduc, confirming the historical in-situ resources became the immediate objective. These first results indicate that the selected historical in-situ Newmont and Esso resource estimates appear to be reliable; the larger objective is to continue this process through subsequent assay results this year and ultimately into a comprehensive drill campaign next field season.

Granduc Drilling Results        
(to date)        
               
Note: all widths are downhole thickness    
               
Hole Start End Width (m) % Cu Au (g/t) Ag (g/t) Comments
               
GD10-01 126.72 136.5 9.70 2.49 0.21 5.28 A, B, C Zones twin @ 2500' elevation
incl 131.2 136.5 5.30 3.00 0.24 6.45  
              Intersected multiple lenses as anticipated
and 224.2 227.75 3.55 1.82 0.15 21.11  
               
  256 276.5 20.5 1.38 0.13 14.60  
incl 256 263 7.00 1.71 0.17 14.70  
incl 256 261 5.00 1.90 0.20 22.00  
incl 267.5 274.5 7.00 1.79 0.14 14.60  
               
               
GD10-02 158.3 175.1 16.75 2.15 0.17 6.80 A, B, C Zones twin @ 2100' elevation
incl 158.3 163.3 5.00 3.27 0.22 8.80  
              Intersected multiple lenses as anticipated
and 277.3 294.7 17.40 1.73 0.24 21.69  
incl 287.2 291.2 4.00 3.26 0.50 21.50  
               
and 312.1 321.5 8.50 1.45 0.16 9.30  
               
               
GD10-03 488.5 508.65 20.15 1.38 0.16 12.90 F, A zones @ 1600' elevation
incl 488.5 491.5 3.00 2.54 0.43 14.40  
              Intersected two lenses
and 499.5 504.5 5.00 1.37 0.13 21.10  
               
               
GD10-04 341 349 8.00 1.32 0.13 7.40 A, C Zones @ 2100 elevation
               
               
GD10-05 354.95 368 14.50 1.26 0.15 12.10 A, C Zones twin @ 2500' elevation
incl 360.5 366.5 6.00 1.62 0.17 14.70 Intersected lenses as anticipated
               
               
GD10-06 587.55 636.5 48.95 0.46 0.12 5.30 F, A zones @ 2100' elevation
incl 589.55 592.55 3.00 1.47 0.14 7.70 Intersected weakly disseminated sulphides
               
               
GD10-07 137 156.58 15.78 0.81 0.09 4.90 A Zone @ 2400' elevation
incl 154 156.58 2.58 1.20 0.11 4.40  
               
               
GD10-08 264.18 297.03 32.85 0.82 0.09 7.90 B1, B2, Zones twin
incl 289 297.03 8.03 1.54 0.11 13.00 @ 1600' elevation
incl 292 296 4.00 1.88 0.11 13.30  
               
GD10-09 205.7 227.7 17.00 0.99 0.14 5.20 A, B, C zones @1600' elevation
incl 205.7 209.7 4.00 1.70 0.36 9.00  
               
and 349.5 363.5 15.00 1.83 0.18 14.60 Intersected two lenses
incl 360.5 363.5 3.00 3.36 0.29 17.40  
               
               
GD10-10 562 567 5.00 2.14 0.27 12.30 F, A zones @ 1800' elevation
               
and 597 599 2.00 1.44 0.11 4.20  
               
               
GD10-12 335 358.5 23.5 1.36 0.14 12.80 Targeting A, B, C zones @ 1400' elevation
incl 343 348.25 5.25 2.88 0.30 17.00  
               
and 393 426.48 33.48 1.45 0.24 16.50 Intersected multiple lenses
incl 396 411 15.00 1.73 0.24 20.50  
               
and 417 426.48 9.48 1.75 0.31 19.20  
               
               
GD10-13 485 495 10.00 1.09 0.13 15.40 F, A zones @ 1600' elevation
incl 491.3 493.5 2.20 1.71 0.28 23.50  
               

Granduc Highlights

  • Newmont and Esso Minerals operated the Granduc Mine between 1971-1984; processed over 15 million tonnes of ore grading 1.71% Cu; produced 420 million pounds of copper (plus gold and silver credits); the mine was closed in 1984 due to low copper prices
  • Operators of the Granduc Mine invested over $115 million from Oct 1965 until start-up operations began in 1971
  • 17 km haulage tunnel remains in good condition today
  • Mining operations at the Granduc Mine consisted of crushing underground then processing of up to 9000 tpd. The concentrate was trucked on a 54 km all weather road to the year-round deep sea port facility in Stewart which remains in operation today
  • Bell Copper's exploration activities between 2004 and 2007 have confirmed mineralization within 4 kms to the north and south of the main Granduc orebody

Independent Quality Control and Analytical Protocol

Castle Resources implemented a QA/QC protocol for all its exploration and diamond drilling program on the Granduc. The drilling contractor was Morecore Drilling Services and core diameter was a combination of NQ and thin wall NQ, enabling the possibility for at least two step-downs if ground conditions should require it. All drill hole locations were spotted using a hand-held Garmin GPS receiver with a 2m to 6m accuracy. Core was delivered to the secure Core Shack facility located on the property. In addition to recovery and RQD (Rock Quality Designation) data, geologic parameters including lithology, alteration, presence and identification of sulphide mineralization along with other geologic parameters are noted and recorded. Core was marked in one meter intervals for splitting, sampling and assaying, unless geologic data indicate a shorter sample interval. Prior to splitting, all core was photographed. Core splitting was done with a diamond core saw or by manual splitter and ½ of the drill core was submitted to EcoTech Laboratories (part of the Stewart Group of Companies), a certified sample preparation facility located in Stewart B.C., where samples were crushed, pulped and screened to 100 mesh. The pulps were then sent by courier to the main EcoTech laboratory facility in Kamloops B.C. for assay, while the rejects are stored at the EcoTech prep facility in Stewart. All samples were analysed through an aqua-regia digest and analysesd through a 35 element ICP/MS package and gold fire assay with an Atomic Absorption (AA) finish. All sample over-runs through the ICP package automatically were fire assayed with an AA finish.

A QA/QC protocol was followed for the drill core sampling program, which involved inserting sample blanks and standards at regular intervals into the sample stream. Blanks were inserted at the nominal rate of 1 in every 35th sample as well as after a sample which contained significant visible sulphides. Sample standards were inserted at the nominal rate of 1 in every 20th sample (alternating between OREAS_93 and OREAS_95). Every 20th sample on odd multiples was selected as a "referee sample" whereby instructions were given to the prep facility to prepare 2 pulps, analyze one and keep the second to be sent to another credited laboratory for verification of results. Three duplicate samples were selected per hole, located in a mineralized zone to assure continuity of higher grade results, where half the core was quartered and sent as a separate sample. Sample tags made of sturdy Tyvek were inserted into each plastic sample bag and securely sealed. The sample number along with the sample interval was recorded on the drill log. The sample interval was recorded in the sample tag book. A 3rd sample tag was stapled into the core box at the end of the sample interval. All core is currently and securely stored in the remote camp location.

Brad Leonard, P. Geo., Castle's Exploration Manager, is the Qualified Person responsible for the scientific and technical work (as defined under National Instrument 43-101) discussed in this press release, and has reviewed this press release.

Conference Call

Castle's management will hold a conference call on Wednesday, October 27, 2010, at 10:00 a.m. EST to discuss the drilling results. Shareholders, media and interested investors are invited to listen to the live conference call by dialing 416-507-9740 or 1-866-512-0904 and entering the Participant Code #: 5318157.

About Castle Resources

Castle Resources Inc. is a Toronto-based junior mineral development company focusing on high-quality, advanced projects. Management's goal is to begin the redevelopment of the 100% owned past producing Granduc Copper Mine and begin new exploration activities; as well, management is quickly advancing the Elmtree Gold Project in New Brunswick toward feasibility in 2010. For more information please visit the Castle Resources' website at www.castleresources.com.

Disclaimer

Certain statements contained in this news release may contain forward-looking information within the meaning of Canadian securities laws. Such forward-looking information is identified by words such as "estimates", "intends", "expects", "believes", "may", "will" and include, without limitation, statements regarding the company's plan of business operations (including plans for progressing assets), estimates regarding mineral resources, projections regarding mineralization and projected expenditures. There can be no assurance that such statements will prove to be accurate; actual results and future events could differ materially from such statements. Factors that could cause actual results to differ materially include, among others, metal prices, risks inherent in the mining industry, financing risks, labour risks, uncertainty of mineral resource estimates, equipment and supply risks, title disputes, regulatory risks and environmental concerns. Most of these factors are outside the control of the company. Investors are cautioned not to put undue reliance on forward-looking information. Except as otherwise required by applicable securities statutes or regulation, the company expressly disclaims any intent or obligation to update publicly forward-looking information, whether as a result of new information, future events or otherwise.

This news release does not constitute an offer to sell or solicitation of an offer to sell any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") or any state securities laws and may not be offered or sold within the United States or to a U.S. Person unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.

To view Figure 1 (Plan view of Granduc orebodies on 2600 ft. level with drill locations), please visit the following link:

http://media3.marketwire.com/docs/granducorebodies.pdf.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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