Duncastle Gold Corp.
TSX VENTURE : DUN

Duncastle Gold Corp.

June 12, 2009 18:18 ET

Duncastle Gold Closes First Tranche of Private Placement to Fund Summer Drill Program

VANCOUVER, BRITISH COLUMBIA--(Marketwire - June 12, 2009) - Duncastle Gold Corp. (TSX VENTURE:DUN) reported that the company has closed a first tranche of the two previously announced non-brokered private placements for gross proceeds of C$433,000.

Combination Flow-through and Non Flow-through Unit

Each "combination flow-through and non flow-through unit" issued in the first tranche consists of one flow-through common share priced at $0.11 per share and one non flow-through common share at $0.09 per share with one share purchase warrant exercisable to purchase one additional non flow-through common share at an exercise price of $0.15 per share for a period of two years. The first tranche of this private placement consisted of 800,000 units for gross proceeds of $160,000.

Non Flow-through Unit

Each "non flow-through unit" issued in the first tranche consists of one common share priced at $0.09 per share and one share purchase warrant exercisable to purchase one additional common share at an exercise price of $0.15 per share for a period of two years. The first tranche of this private placement consisted of 3,033,333 units for gross proceeds of $273,000.

Finder's fees may be payable for both offerings. All securities issued pursuant to these two private placements, including common shares, share purchase warrants and finders' warrants issued as finders' fees, carry a legend restricting trading of the securities until October 13, 2009.

The proceeds from both private placements are for working capital and the advancement of the company's projects in SE British Columbia. The private placements and finder's fees are subject to regulatory approval.

Proposed Exploration for 2009

Duncastle said it plans an early summer 1,500-2,000 meter drill program to follow up on recommendations for 3,050 metres of surface drilling at numerous targets including continued work at the Yukon Shoot in the Yankee Girl structure, as well as an expansion to recently developed targets at the Goodenough mine, Bonus vein, 1235 adit, and other targets.

Duncastle reports that a permit has been issued for the above surface drilling program which is expected to start in the third week of June.

Later in the year the company plans to commence a recommended rehabilitation of the Wildhorse Adit, consisting of minimal timber and drainage work as a prelude to 2,300 metres of drilling on numerous targets from underground. The Wildhorse Adit is a 1,417 metre exploration adit built during the period 1928 to 1954 that intersects the Bonus vein and meets the Yankee Girl vein 110 metres below the old mine workings.

2008 Results

A 2008 Summary Report on Exploration on the Yankee-Dundee Project recommends a multi-stage exploration program comprising +5,300 metres of surface and underground diamond drilling on the Yankee Girl and adjacent vein systems and continued surface exploration of several precious-metal-rich mineral showings throughout the 5,987 ha property located three kilometres northeast of Ymir, BC in the Nelson Mining District.

The report details the 2008 results from a 19-hole 3,003 metre core drill program, a 571 line-km DIGHEM EM/Magnetic airborne geophysical survey and surface mapping and sampling.

Results from drilling on the Yankee Girl structure indicate that the Yukon Shoot (thickest and most continuous portion of the vein) persists to a depth of some 280 metres. Higher grade intervals within the core of the Yukon Shoot assay up to 14.14g/t Au, 281g/t Ag, 11.13% Pb and 12.58% Zn over an estimated true thickness of 3.23 metres. Within the area of the Yukon Shoot, the Yankee Girl structure remains largely untested for over 240 metres to the east (toward the historic workings) and down plunge beneath its occurrence in the deepest workings of the Yankee Girl Mine. The entire mineral system remains open along strike to the west.

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). In central B.C. the company has the 7,624 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 reported 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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