Greencastle Resources Ltd.
TSX VENTURE : VGN

Greencastle Resources Ltd.

June 07, 2005 16:30 ET

Greencastle Applies for Uranium Concession in Niger, West Africa

TORONTO, ONTARIO--(CCNMatthews - June 7, 2005) - Greencastle Resources Ltd. ("Greencastle"), (TSX VENTURE:VGN), is pleased to announce that the Company has submitted an application to acquire the Tin Negoran Uranium concession in the Republic of Niger, West Africa.

Uranium in Niger

The Republic of Niger is currently the world's third largest producer of uranium and ranked fourth in known reserves with most of the production going to Western Europe. Uranium production in Niger comes from two mines operated by COGEMA and AREVA, which account for almost 10% of worldwide production. This near monopoly situation has left much of the country under explored. The government of Niger is actively working to re-establish uranium exploration in the Arlit area, where little work has been done since the 1970's.

Greencastle has submitted an application to acquire the Tin Negoran Uranium concession covering 1,988 sq km. The Tin Negoran concession has a brief history of uranium production from a small open pit in the 1990's. No details regarding the operation are available in the official records. The Tin Negoran concession covers part of the same general sequence of Mesozoic sedimentary rocks where the two main producing uranium mines are located and which lie to the west of the Proterozoic basement rocks of the Air Massif.

Greencastle currently holds two gold exploration concessions in Niger and management is comfortable with the application process and confident that the Tin Negoran permits will be granted in due coarse, however, approval of the concession application is subject to final review and acceptance by the Government of Niger and certain regulatory authorities in the Republic of Niger. Investors are cautioned that there can be no guarantee that the applications will be granted. Exploration plans and more details will be made available upon receipt of final approval of the Tin Negoran application.

Greencastle is a mineral exploration company with a focus on gold exploration in Nevada, U.S.A. and the Republic of Niger, West Africa. In Nevada, Greencastle is advancing three exploration projects located on the Battle Mountain-Eureka mineral trend of Carlin-type gold deposits. This highly productive regional trend hosts multimillion ounce gold deposits such as Placer Dome's Pipeline deposit and recent discovery nearby at Cortez Hills.

In Niger, Greencastle is advancing two exploration concessions in the Liptako area of southwestern Niger. The Namaga and Koyria concessions, covering 1,148 km2 and 1,045 km2 respectively, overlie Birimian greenstone-granite assemblages which extend southwest through Burkina Faso and Ghana, where these rocks host multimillion ounce gold deposits.

Greencastle also holds royalties on six oil and gas properties in Saskatchewan, Canada, where exploration and development is being carried out by joint venture partners.

Exploration plans for the 2005 field season and an update on oil and gas operations will be announced in the coming weeks.

Issued and Outstanding: 32,709,005

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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