Greencastle Resources Ltd.
TSX VENTURE : VGN

Greencastle Resources Ltd.

January 23, 2006 09:41 ET

Greencastle Joint Venture With Orezone Resources Inc.

TORONTO, ONTARIO--(CCNMatthews - Jan. 23, 2006) -

Orezone Subscribes for Greencastle Units

Greencastle Resources Ltd. ("Greencastle"), (TSX VENTURE:VGN), is pleased to announce that the Company has entered into Joint Venture Agreements with Orezone Resources Inc. ("Orezone"), (TSX:OZN) whereby Orezone will earn an interest in Greencastle's Namaga and Koyria gold exploration concessions in the Republic of Niger, West Africa. The Namaga and Koyria concessions overlie Birimian greenstone-granite assemblages which extend southwest through Burkina Faso and Ghana, where these rocks host multi-million ounce gold deposits.

Ron Little, President of Orezone stated, "Optioning these properties will enable us to move our equipment and crews between the projects and keep them fully occupied while we are waiting for results. In addition, they give us control over approximately 30 per cent of the favourable ground that has been staked in western Niger." Mr Little added that "These are prospective areas that have not received a lot of exploration attention and can rapidly be advanced to the drill ready stage using the same techniques that have proven effective for us in Burkina Faso."

Anthony Roodenburg, CEO of Greencastle commented, "Orezone has a great deal of experience in West Africa and we are pleased to have established a relationship with them in Niger. With Trigger Resources developing the Primate oil project in Saskatchewan and Orezone advancing the Niger properties, Greencastle management can remain focused on exploration at its gold properties south of the Cortez Hills and at South Eureka on the Battle Mountain Trend in Nevada where we plan to be drilling this year."

Under the terms of the agreements, Orezone can earn a 50 per cent interest by spending US$1 million on each property over three years and can increase its interest in either to 75 per cent by completing a Bankable Feasibility Study. If Greencastle elects not to participate should a production decision be made, Orezone will be required to buy the remaining 25 per cent interest for $2.0 million.

The 1,148 km2 Namaga property is located in the Tera greenstone belt and completely surrounds the Koma Bangou gold deposit, an area of extensive artisanal workings. During 1997-98, initial trenching by Ashanti Gold on one of the large gold in soil anomalies returned values of 1.2 g/t gold over 38 m and 1.17 g/t gold over 26 m.

The 1,045 km2 Koryia property is located in the Serba greenstone belt which hosts the producing Samira Hill Gold Mine. The concession contains a number of significant gold prospects and extensive gold in soil anomalies which require follow-up drill testing. In 1996 Imperial Metals/Sumitomo drilled 24 holes on the M'Banga prospect at Koyria, including one intersection which returned 1.64 g/t gold over 65 m.

Separately, Orezone has agreed to subscribe for 1,000,000 units of Greencastle at a subscription price of $0.30 per unit. Each unit consists of one common share and one half common share purchase warrant exercisable for 18 months at $0.45. Proceeds from the proposed private placement will be used for general working capital and exploration in Nevada where 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 a separate initiative, Greencastle has submitted an application to acquire the Tin Negoran Uranium concession in the Republic of Niger, West Africa. 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.

In west central Saskatchewan, Greencastle holds an overriding royalty of up to 15% of production on a heavy oil property near Primate, Saskatchewan. The pool, discovered by Greencastle in 2003, was subsequently farmed-out to Trigger Resources Ltd. of Calgary. Trigger has drilled 4 wells into the pool and has a continuing option to drill up to 16 wells on the property. Royalty revenue received by Greencastle in the month of December 2005 was $78,108.

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

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.

Issued and Outstanding: 33,140,005

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this news release.

Contact Information