Greencastle Resources Ltd.

Greencastle Resources Ltd.

March 31, 2006 09:00 ET

Greencastle Acquires Fourth Property on Battle Mountain Trend, Nevada

TORONTO, ONTARIO--(CCNMatthews - March 31, 2006) - Further to its release of March 20, 2006, Greencastle Resources Ltd. ("Greencastle")(TSX VENTURE:VGN), is pleased to announce that the TSX Venture Exchange has accepted for filing the documentation regarding an option agreement, dated March 15, 2006, between its wholly owned subsidiary, Greencastle U.S.A. Ltd. and Nevada Eagle Resources LLC ("the Vendor") regarding the Indian Creek Property. The property, comprising 20 claims in Lander County, Nevada, is located in the heart of the highly productive Battle Mountain-Eureka Trend, approximately 5 miles north of the Pipeline open pit gold mine operated by the Cortez Joint Venture of Barrick/Kennecott.

In 1988, Newmont Exploration Limited carried out a reverse circulation drill program in the area with one hole on the Property returning values of 17.7 g/t gold and 130 g/t silver over 1.52 m at a depth of 169 m, close to the NNW trending Gold Quartz Fault which crosses the property. Highly anomalous arsenic and antimony values occur with these precious metal values.

Greencastle can earn a 100% interest in the Property by paying a total of US$250,000 and issuing 150,000 shares over four years to the Vendor. The Vendor retains a 3% net smelter return royalty, with Greencastle having the right to purchase up to one third (1%) of the royalty for US$1 million.

Additionally, Greencastle announces that, subject to TSX Venture Exchange approval, it has entered into an agreement with Seafield Resources Ltd. ("Seafield") to purchase its 7.5% working interest in the Manitou heavy oil project located in west central Saskatchewan, for $50,000. The sale price represents a 20% premium on expenditures made by Seafield in connection with the project to date.

Anthony Roodenburg and James Pirie are directors and officers of Greencastle and Seafield, resulting in the purchase of the assets being a related party transaction for the purposes of Ontario Securities Commission rule 61-501. The purchase of the assets was approved by the independent directors of Greencastle. The purchase of the assets was exempt from the valuation and independent shareholder requirements of the rule as the securities of Greencastle trade on the TSX Venture Exchange and the value of the assets is less than 25% of the market capitalization of Greencastle.

To find out more about Greencastle Resources Ltd (TSX-V: VGN), visit our website at

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this news release. This news release includes certain "forward looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995. Without limitation, statements regarding potential mineralization and resources, exploration results, and future plans and objectives of the Company are forward looking statements that involve various degrees of risk. The following are important factors that could cause the Company's actual results to differ materially from those expressed or implied by such forward looking statements: changes in the world wide price of mineral commodities, general market conditions, risks inherent in mineral exploration, risks associated with development, construction and mining operations, the uncertainty of future profitability and the uncertainty of access to additional capital.

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