Duncastle Gold Corp.

Duncastle Gold Corp.

February 29, 2012 09:15 ET

Duncastle Issues Shares as Property Option Payment

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Feb. 29, 2012) - Duncastle Gold Corp. ("Duncastle") (TSX VENTURE:DUN)(FRANKFURT:5D3) reported today that it has elected to issue 1,600,000 common shares to the optionors of the Porphyry Creek property in lieu of an $80,000 cash option payment in accordance with the amended property option agreement which provides for the Company to earn a 100% interest in the property by payment of the total amount of $303,000 of which $63,000 has been paid in cash and $80,000 has been paid in share issuance at a deemed value of $0.05 per share. $160,000 remains to be paid prior to June 30, 2014. The optionors of the property are John Norton, Michael Rowley, President and director, and Crucible Resources Limited, a company owned by director Douglas Warkentin. The amended property option agreement received TSX Venture Exchange acceptance on February 24, 2012.

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.

Planned work for Porphyry Creek in 2012 includes ground based geological and geophysical programs focused on identifying higher grade mineralization at Sultana which will be tested in subsequent drill programs. Similar programs are planned for the five other priority targets summarized above with the aim of advancing these areas as drill targets.

About Duncastle Gold Corp.

Duncastle is a Vancouver-based exploration company with mineral claims covering or surrounding past producing mines in northwest and southeast British Columbia, Canada. Duncastle has assembled contiguous claim blocks totaling more than 210 sq km in these two historic and productive regions. In addition to the Porphyry Creek project in northwest BC, Duncastle controls most of the historic Ymir Mining camp in southeast BC which was once the largest silver producer in the British Commonwealth, producing over $500 million in gross mineral value at today's values before mine closures in the 1940s. Environmental and engineering work is planned at the largest mine in the Ymir camp, the Yankee-Dundee mine, in order to reduce project development delays to potential partners during a proposed return to production. To date, Duncastle has completed positive preliminary engineering and metallurgical studies and drilled 48 holes totaling approximately 7,700m at Yankee-Dundee, resulting in the identification of high-grade gold-silver-lead-zinc mineralization near existing workings at the historic mine.

As part of the Manex Resource Group, Duncastle benefits from shared expertise in corporate finance, public company administration, investor relations, and technical and geological services provided for seven public companies active in North America. Since its formation in 1997, the Manex Group companies have raised over C$300 million in exploration financing.

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.

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