Greencastle Resources Ltd.

Greencastle Resources Ltd.

June 15, 2012 08:00 ET

Greencastle AGM Results and Corporate Update

TORONTO, ONTARIO--(Marketwire - June 15, 2012) - Greencastle Resources Ltd. (TSX VENTURE:VGN) ("Greencastle" or the "Company"), is pleased to announce that the Company has held the 2012 Annual Meeting and all resolutions were passed. On behalf of shareholders, the Company would like to welcome to the board of directors Mr. James (Jim) Borland. Jim has been involved in the mining industry for more than 25 years and currently serves as CEO of Strait Gold Corporation. The Company would also like to thank Richard Zakaib for his years of service on the Greencastle board and wishes him well. Richard did not stand for re-election at this year's meeting.

The Company also announces that a total of 1,850,000 stock options to purchase Greencastle common shares were granted today to directors, officers and consultants of the Company at an exercise price of $0.10 per share, expiring on June 14, 2017. The grant of options is subject to Exchange approval.

Corporate Update

Preliminary fieldwork including soil sampling and prospecting are in progress on the Company's three early stage, base metal (copper and zinc) properties in the Sturgeon Lake, Ignace and Shebandowan Lake areas of Northwest Ontario.

At Greencastle's Jewel Ridge gold property near Eureka, Nevada, Rainbow Resources Inc. ("Rainbow") (TSX VENTURE:RBW), following a review of the historical data and receipt of assay results from initial sampling on the property, has reported that a 2,000-metre phase 1 RC drill program at Jewel Ridge is planned for later this year.

Jewel Ridge is located on the south end of Nevada's prolific Battle Mountain - Eureka Trend, along strike and contiguous to Barrick Gold's two-million ounce Archimedes / Ruby Hill mine to the north and the advanced-stage Lookout Mountain Project to the south. Jewel Ridge contains several historic small open-pit gold mines which align along a north-south trending stratigraphic contact of Lower Paleozoic sedimentary rocks as well as several other gold mineralized zones with a variety of structural and lithological controls. One of Rainbow's initial priorities will be to follow-up on encouraging results from Greencastle's previous drilling including 2.1 g/t Au over 39.6 metres (from 94.5 m to 134.1 m) at the old Hamburg Mine workings.

Significant results from recent work by Rainbow included chip samples across 15 metres from the south wall of the Hamburg pit (southern portion of Jewel Ridge) that assayed 0.98 g/t Au, 14.1 g/t Ag and 3.45 per cent zinc, while another chip sample across seven metres from the nearby Paroni pit assayed 0.91 g/t Au and 3.9 g/t Ag. A hematite float sample, believed to have originated from the Dunderberg mine area in the northwest section of the property, graded 3.6 g/t Au, 30.4 g/t Ag and 2.2 per cent lead.

The Jewel Ridge property consists of 96 unpatented lode mining claims and eleven patented claims covering approximately 1,510 acres. Rainbow can earn up to a 75-per-cent interest in Jewel Ridge as part of its option agreement with Greencastle, announced March 29, 2012.

This news release includes certain "forward looking statements" within the meaning of that phrase under Canadian securities laws. 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. Forward-looking statements reflect management's current views with respect to possible future events and conditions and, by their nature, are based on management's beliefs and assumptions and subject to known and unknown risks and uncertainties, both general and specific to the Company. Although the Company believes the expectations expressed in such forward-looking statements are reasonable, such statements are not guarantees of future performance and actual results or developments may differ materially from those in our forward-looking statements. 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 commodities, general market conditions, risks inherent in exploration, risks associated with development, construction and mining operations, the uncertainty of future profitability and the uncertainty of access to additional capital. Additional information regarding the material factors and assumptions that were applied in making these forward looking statements as well as the various risks and uncertainties we face are described in greater detail in the "Risk Factors" section of our annual and interim Management's Discussion and Analysis of our financial results and other continuous disclosure documents and financial statements we file with the Canadian securities regulatory authorities which are available at The Company undertakes no obligation to update this forward-looking information except as required by applicable law. The Company relies on 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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