Duncastle Gold Corp.

Duncastle Gold Corp.

August 26, 2009 12:38 ET

Duncastle Extends Historic Yankee-Dundee Project Mineralization; Hits 2.8 Metres Grading 5.2g/t Au, 122.3g/t Ag, 4.5% Pb and 13.8% Zn

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Aug. 26, 2009) - Duncastle Gold Corp. (TSX VENTURE:DUN)(FRANKFURT:5D3) reported today results from three of five core holes drilled as part of its summer exploration program on the Yankee-Dundee project. These initial three holes successfully targeted high-grade extensions of the Yankee Girl structure and highlight the significant precious- and base-metal potential of this polymetallic vein system located just three kilometres northeast of Ymir, in southeast British Columbia.

Highlights from these holes include (reported as estimated true thickness):

- 2.8 metres grading 5.2g/t Au, 122.3g/t Ag, 4.5% Pb and 13.8% Zn contained within a 17.2 metre interval grading 1.2g/t Au, 21.9g/t Ag and 2.4% Zn from hole YD09-39, and

- 0.9 metres grading 12.2g/t Au, 71.6g/t Ag, 2.8% Pb and 3.1% Zn contained within a 3.2 metre interval, grading 4.2g/t Au, 21.9g/t Ag, 0.9% Pb and 1.1% Zn from hole YD09-40. Three additional intercepts including a 0.4 metre interval of 17.8g/t Au, 124g/t Ag, 3.4% Pb and 3.9% Zn occur in the hangingwall of the main intercept.

Two additional drill holes tested the Goodenough vein system, located on a separate east-west-trending mineralized structure about three kilometres north of the Yankee-Girl veins. Results from these holes are pending. Total drilling for the summer program equaled 1,149 metres.

Drill hole YD09-39 successfully tested the margin of the Yukon Shoot, a precious-metal enriched lens of mineralization located to the west of the historic Yankee Girl Mine workings, extending the known mineralized zone at the "800" level (historical mine level reflecting depth in feet below surface) by approximately twenty-five metres. Although not completely delineated, drilling has now defined a 90 metre strike-length for the shoot and a down dip projection of over 280 metres. Higher grade mineralization within the shoot, similar to that reported from hole YD09-39, averages three metres thickness.

Drill hole YD09-40 successfully tested the 400 shoot, which is located 65 metres to the west of the Yukon shoot in a previously un-drilled extension of the Yankee Girl structure. Multiple precious- and base-metal intercepts were intersected reflecting the presence of several previously unknown hangingwall veins, the most significant being a 0.9 metre interval (est true thickness) grading 12.2g/t Au, 71.6g/t Ag, 2.8% Pb and 3.1% Zn occurring approximately 70 metres up-section from the target Yankee Girl structure. Similar higher grade veins are reported in historical references from earlier mining and exploring and include the Bonus vein and hangingwall structures at the "1235", "1360", and "1625" metre levels. Neither the full lateral extent of these hangingwall veins nor potential continuity between these structures is well defined and provides additional targets for future exploration on the property.

The Yankee Girl structure, as tested in drill hole YD09-40, is a broad mineralized zone extending down hole from 197 metres to 210 metres and is comprised of an upper gold-enriched interval which includes a 1.1 metre interval grading 12.9g/t Au and 13.1g/t Ag and a silver and base-metal-enriched lower interval grading 63.8g/t Ag and 4.1% Zn over a 1.1 metre interval. Continuity of the Yankee Girl structure has now been demonstrated for over 65 metres to the west of the previous drilling (at the Yukon shoot) and for over 240 metres to the west of the historical mine workings. Potential mineralization between the Yukon and 400 shoots has yet to be tested.

Duncastle Gold is currently planning an additional 1,620 metre fall surface drill program to follow-up these and other targets both at the Yankee Girl vein system and other prospects on the Yankee-Dundee property area.

Lawrence Page, CEO of Duncastle, said, "the current drill results continue to add value to the former Yankee-Dundee mine and confirm our understanding of the geology of the Yankee Girl structure and the surrounding area. Based upon three dimensional modeling of historic drill intercepts and our current work we are targeting and successfully intercepting mineralized extensions to the west of the historically significant Yankee Girl mine and have identified significant additional targets for the fall program."

Table I: Significant intercepts from 2009 Summer Drilling on the
Yankee-Dundee Project Ymir, BC

Collar Data Est.
----------------- Inter- True
AZ DIP Depth From To val Thick- Au Ag Pb Zn
Hole # Deg Deg (m) m m m ness g/t g/t % %
YD09-38 159 -60 221.3 200.5 201.2 0.7 0.5 1.9 8.6 0.8 2.4
YD09-39 163 -75 203.3 141.0 165.5 24.5 17.2 1.2 21.9 0.8 2.4
inc. 141.0 145.0 4.0 2.8 5.2 122.3 4.5 13.8
YD09-40 182 -60 224.6 114.5 118.9 4.3 3.2 4.2 21.9 0.9 1.1
inc. 117.2 118.5 1.2 0.9 12.2 71.6 2.8 3.1
YD09-40 154.8 157.0 2.2 1.6 5.0 34.2 0.9 1.1
inc. 154.8 155.4 0.6 0.4 17.8 124.0 3.4 3.9
YD09-40 197.2 203.7 6.5 4.9 3.1 7.2 0.2 0.4
inc. 197.2 198.7 1.5 1.1 12.9 13.1 0.2 0.3
YD09-40 205.6 210.7 5.1 3.8 0.2 24.3 0.2 1.3
inc. 205.6 207.1 1.5 1.1 0.6 63.8 0.2 4.1

Additional results including a long section of the Yankee Girl structure and sections of drill holes YD09-39 and YD09-40 are available for download from the company's website at http://www.duncastlegoldcorp.com.

About Duncastle Gold

Duncastle Gold Corp. is a mineral exploration company based in British Columbia, Canada with projects in both central and southeastern BC. The Yankee-Dundee project comprises 26 crown grants under a 100% option agreement and 95 tenured mineral claims totaling approximately 5,987 hectares in the Nelson Mining District, located three kilometres northeast of the town of Ymir in southeastern British Columbia. Gold mineralization was first reported near Ymir in the late 1800s, with much of the mining taking place at the Yankee Girl, Dundee and Ymir mines during the period 1907 to 1951. Historical records indicate that a total of 375,000 tonnes grading 9.9g/t Au and 57g/t Ag were mined from the Yankee Girl vein during this time. Exploration by the company is targeting high-grade Au-quartz veins throughout the Ymir district which historically, together with the adjacent Sheep Creek district is reported to have produced more than one million ounces of gold(1). The Ymir camp was the largest silver producer in the British Commonwealth in the 1930s (BC MEMPR Bulliten 109, 2001). In central B.C. the company has the 8,641 hectare Porphyry Creek property in the Rocher Deboule Mountains near Smithers, with a porphyry or IOCG copper-gold target. Duncastle Gold Corp is a Manex Resource Group company.

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, Q.C., President, Director, Duncastle Gold Corp.

(1) Production data was obtained from historical government records and has not been independently verified by the current operators of the project.

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. Duncastle Gold Corp. relies upon litigation protection for forward looking statements.

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.

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