Castle Resources Inc.
TSX VENTURE : CRI

August 31, 2010 08:58 ET

Castle Resources to Acquire 100% Interest in the Granduc Copper Mine, Stewart, B.C.

- Over 420 million pounds of copper produced by Newmont and Esso Minerals from 1971 until 1984

- Significant historical resource remains in place (Non NI 43-101 compliant)

- Drill program underway to twin historical mineralized holes

TORONTO, ONTARIO--(Marketwire - Aug. 31, 2010) - Castle Resources Inc. (TSX VENTURE:CRI) ("Castle" or the "Company") is pleased to announce that it has signed a binding letter agreement ("Letter Agreement") with Bell Copper Corporation ("Bell") to acquire a 100% interest in the past producing Granduc Copper Mine located near Stewart, B.C.

The acquisition of 100% of the Granduc Property from Bell under the Letter Agreement is a continuation of negotiations that led to the previously announced option agreement ("Option") between Bell and Castle (see press release dated July 19, 2010). Upon closing of the formal agreement ("Formal Agreement") to acquire a 100% interest in the Granduc Property, to be completed on or before December 1, 2010, the prior option agreement will be considered null and void. To complete the purchase of the Granduc, Castle agrees to pay Bell $2 million and issue 2,750,000 shares. The acquisition is conditional upon receipt of TXS Venture approval.

"We are very excited that Castle will, following the acquisition, own a 100% undivided interest in the Granduc Property," commented Mr. Mike Sylvestre, President & COO of Castle Resources. "The Granduc is a significant copper asset with excellent infrastructure in place. It is our intent to commission a NI 43-101 resource estimation by drill testing the down dip extent of the historical deposit, then determine the economic feasibility of the project with the aim of ultimately redeveloping the mine."

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
  • 16 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 32 miles on an 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

About Castle Resources

Castle Resources Inc. is a Toronto-based junior mineral exploration company focusing on high-quality, advanced exploration projects. Management's goal is to begin the redevelopment of the 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.

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.

Contact Information