Castleworth Ventures Inc.

Castleworth Ventures Inc.

August 29, 2005 15:46 ET

CORRECTION FROM SOURCE: 2005 Castleworth Annual Report Released

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Aug. 29, 2005) -

The following corrects and replaces the release issued earlier today. In the third paragraph the consulting and management fees should be $173,764 and not $173,764,257.

Gold resource base increases in Nevada, Pan Gold Project Advances

Castleworth Ventures Inc. (TSX VENTURE:WTH) announced today that it has released its quarterly and year end report (BC FORM 51-901F) for the year ending April 30, 2005.

Highlights are as follows:

- Gold Resource Base Increased With Reports On Pan And Afgan

- Pan's 370 Hole Plan Of Operation Approved, Phase III Drilling (30 Holes) Completed

- Consultant's Report Indicates Under-Reporting Of Grades at Pan

- 43-101 Resource Report Gives First Measured Resource at Pan

Castleworth is engaged in the exploration and development of gold resource properties located in Nevada, USA. The key project is Pan Gold Project, part of the Lyle Campbell Trust (LCT) properties; they are all in the exploration stage. In the year ending April 30 2005, Castleworth drilled a total of 30 holes at Pan and commissioned a resource report compliant with NI43-101. Details can be found in press releases on Castleworth's web site ( and at the SEDAR web site (

During the year ended April 30, 2005, the Company met its capital needs from cash on hand, a $50,000 loan from a related party (2004 - $0.00), and $169,000 received from the exercise of options (2004 - $22,979). The Company proposes to meet any additional requirements through equity financing. During the same period, the Company incurred a loss of $1,019,897 (2004 - $312,891); that year over year increase is mostly attributable to the write-off of the Thunder Mountain project in December 2004.

Some significant expenses are as follows: consulting and management fees of $173,764 (2004 - $114,460), office expenses of $28,671 (2004 - $37,107), professional fees of $36,780 (2004 - $47,651), rent expenses of $9,481 (2004 - $9,566), shareholder communication expenses of $15,862 (2004 - $31,097), stock-based compensation expenses of $122,580 (2004 - $33,667), transfer agent and regulatory fees of $13,501 (2004 - $19,843), travel and promotion expenses of $25,185 (2004 - $29,402), write-off of mineral property of $225,065 (2004 - $Nil), and write-off of deferred exploration costs of $375,872 (2004 - $Nil).

During the year ended April 30, 2005, the Company did not enter into any equity subscriptions (2004 - $1,364,999). Working capital as at April 30, 2005 was a deficiency of $110,467 (compared to $679,716 at April 30, 2004) prompting the Company to seek additional financing to meet its anticipated exploration, administrative and overhead expense and project holding costs until mid 2006.

Net cash used for operating activities for the year ended April 30, 2005 was $290,772 compared $266,600 during the previous period. Net cash used for investing activities was $659,960 during the year ended April 30, 2005, compared to $1,011,239 for the year ended April 30, 2004. Cash provided during the year consisted of proceeds from the issuance of common stock and the exercise of stock options. The funds were spent on deferred exploration of the Pan Gold Project.

Subsequent to year end, Castleworth raised $1,647,340.through a private placement of 4,118,350 units priced at $0.40, each unit consisting of one common share and a non-transferable share purchase warrant entitling the holder to purchase one additional common share for 12 months from Closing at C$0.50 per share and at C$0.55 for a further 12 months. As well, the 2005 drilling season commenced with 15,000+-foot reverse circulation program.

Complete information including the BC FORM 51-901F can be found online at the Company website ( as well as at the SEDAR web site (

Castleworth's objective is to create wealth for its stockholders by acquiring, exploring, and developing advanced-stage projects located within the major gold producing areas of Nevada. The Company's total land position is in excess of 12,000 acres, comprised of nine projects on the Tonopah/Walker Lane Trend, two on the Battle Mountain-Eureka Trend and one on the Carlin Trend. Two of the projects have known mineralization or resources of potentially economic grade and dimension.

On behalf of the Board of Directors,

(sgd.) "John E. Watson"


Forward Looking Statements

Certain information set forth in this press release, including management's assessment of plans and projects, contains forward-looking statements. By their nature, forward-looking statements are subject to numerous risks and uncertainties, some of which are beyond the Company's control, including: the results of exploration activities; risks and uncertainties relating to the interpretation of drill results, the geology, grade and continuity of mineral deposits, results of initial feasibility, prefeasibility and feasibility studies, market reaction to future exploration results; the Company's anticipated strategies for growth; the results from future exploration opportunities; the price of metals; currency fluctuations; increases in costs; general market and industry conditions; and the possibility that future exploration, development or mining results will not be consistent with the Company's expectations, and other factors.

Readers are cautioned that the assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on forward-looking statements. Actual results, programs and financial position could differ materially from those expressed in or implied by these forward-looking statements, and, accordingly, no assurance can be given that the events anticipated by the forward-looking statements will transpire or occur, or if any of them do so, what benefits will derive therefrom. Castleworth Ventures Inc. disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

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