Greencastle Resources Ltd.

Greencastle Resources Ltd.

June 12, 2007 09:05 ET

Greencastle Completes Private Placement with Energy Metals

Drilling Begins at Jewel Ridge, Nevada

TORONTO, ONTARIO--(Marketwire - June 12, 2007) - Greencastle Resources Ltd (TSX VENTURE:VGN) is pleased to announce that the Company has completed a non brokered private placement of 4,500,000 units at a price of $0.30 per unit to raise aggregate gross proceeds of C$1,350,000. Each unit consists of one common share and one half of one common share purchase warrant of the Company. Each whole warrant entitles the holder to purchase one additional common share of the Company at a price of $0.40 per share until December 8, 2008. The common shares and warrants comprising the private placement units are subject to a hold period expiring October 9, 2007.

Energy Metals Corporation (TSX:EMC) has subscribed for 1,000,000 units, as announced on May 29, 2007. The remaining 3,500,000 units were acquired by two institutional investors and four individual investors. No fees were paid in connection with this financing. The proceeds will be used for exploration and general working capital.

In addition, Greencastle has received approval from the TSX Venture Exchange to issue 500,000 shares to Energy Metals Corporation under its agreement to earn an interest in the Beaver Claims uranium property in Wyoming, U.S.A. As announced on May 29, 2007, Greencastle can earn an initial 60% interest by completing a total of $2 million in exploration expenditures over five years and by issuing an additional 1.5 million Greencastle shares over 4 years.

At the Company's Jewel Ridge property on the Battle Mountain trend in Nevada, Greencastle reports that drilling is underway. A program of approximately 20 reverse circulation holes is designed to test several new targets defined after compilation and analysis of recently acquired data as well as follow up on encouraging results in the Hamburg Mine area where Greencastle previously reported an intersection of 40 metres of 2.1 grams per tonne gold.

Greencastle is a resource exploration company active in oil and gas, gold and uranium. Greencastle is advancing four gold projects on the Battle Mountain trend in Nevada, two gold concessions in the Republic of Niger, West Africa, currently under option to Orezone Resources Inc. (TSX:OZN) and the Beaver uranium property in Wyoming, USA, under option from Energy Metals.

Greencastle is cash flow positive and receives oil royalty income from a section of the Primate oil field in Saskatchewan, where Greencastle made a significant oil discovery in 2003. For the first quarter 2007 ended March 31, royalty revenue was $550,675 from oil and gas production. The Company recorded net earnings of $0.01 per share for the period. Including proceeds from the financing described above, Greencastle has working capital of $3.6 million.

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

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 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. The Company relies on litigation protection for forward looking statements.

No Stock Exchange has reviewed nor accepted responsibility for the adequacy or accuracy of this news release.

Contact Information