Duncastle Gold Corp.

Duncastle Gold Corp.

February 23, 2012 15:10 ET

Duncastle Amends Porphyry Creek Property Agreement

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Feb. 23, 2012) - Duncastle Gold Corp. ("Duncastle") (TSX VENTURE:DUN)(FRANKFURT:5D3) reported today that it has entered into an amended and restated agreement (the "Agreement") with respect to the Porphyry Creek property. Pursuant to the Agreement, Duncastle has the option to acquire a 100% interest in and to the Porphyry Creek property in consideration of making aggregate cash payments of $303,000 and incurring aggregate exploration expenditures of $1,500,000 on the property. Duncastle may, in its sole discretion, issue common shares to the optionors in lieu of any cash payment. As at the date of the Agreement, Duncastle has paid the optionors $66,000 and incurred $1,793,759 in exploration expenditures on the property. The optionors are entitled to receive a royalty equal to 2% of net smelter returns provided that Duncastle shall have the right to purchase one half of such royalty for $1,000,000 at any time up to and include the commencement of commercial production. The optionors of the property include John Norton, Michael Rowley, President and director, and Crucible Resources Limited, a company owned by director Douglas Warkentin. The amended and restated agreement is subject to TSX Venture Exchange acceptance.

About the Porphyry Creek Project

The Porphyry Creek property consists of over 135 square kilometers of mineral claims in the Omineca Mining Division of northwest British Columbia, a highly prospective area that is home to multiple world class precious and base metal deposits and mines. The Porphyry Creek claim group includes historic workings and numerous high-grade gold, silver and polymetallic showings around a distinct 10 kilometre long magnetic high with coincident copper, lead and zinc geochemical anomalies shown in government data and Duncastle's work to date.

Duncastle conducted ground-based geological work in 2008, added substantially to the claim group in 2009, and completed an airborne geophysical survey in 2010. This body of work, in conjunction with available historic data, presented six priority targets with the most advanced being a porphyry target at the Sultana Mine area. Three holes totaling 1,330 meters were drilled in late 2010 which confirmed the presence of a new Cu-Mo porphyry system at Sultana with mineralization throughout all holes. Six holes totaling 2,583 meters were drilled in 2011 which successfully pushed the discovery to a zone approximately 400 meters by 500 meters by 500 meters deep containing widespread highly anomalous copper and molybdenum mineralization, with additional values of silver, tungsten and other minerals. Further drilling is required to test and delineate the full extent of the mineralizing system as mineralization remains open laterally to the west, south and north, and at depth. Five other priority exploration targets include an IOCG/skarn target, additional porphyry systems, and high-grade polymetallic vein systems.

Rob Macdonald, (P.Geo.), is the Qualified Person responsible for reviewing the technical results in this release.

On behalf of the Board of Directors,

Lawrence Page, Chairman & Director, Duncastle Gold Corp.

This News Release may contain forward-looking statements including but not limited to comments regarding the timing and content of upcoming work programs, geological interpretations, receipt of property titles, potential mineral recovery processes, etc. Forward-looking statements address future events and conditions and therefore involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements. These statements are based on a number of assumptions, including, but not limited to, assumptions regarding general economic conditions, interest rates, commodity markets, regulatory and governmental approvals for the company's projects, and the availability of financing for the company's development projects on reasonable terms. Factors that could cause actual results to differ materially from those in forward looking statements include market prices, exploitation and exploration successes, the timing and receipt of government and regulatory approvals, and continued availability of capital and financing and general economic, market or business conditions. Duncastle Gold Corp. does not assume any obligation to update or revise its forward-looking statements, whether as a result of new information, future events or otherwise, except to the extent required by applicable law.

Neither 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