Greencastle Resources Ltd.

Greencastle Resources Ltd.

March 30, 2009 14:45 ET

Greencastle Reports Fiscal 2008 Results

TORONTO, ONTARIO--(Marketwire - March 30, 2009) - Greencastle Resources Ltd. (TSX VENTURE:VGN) ("Greencastle," or the "Company,") is pleased to report on the Company's fiscal 2008 financial performance. Total royalty revenue for the year ended December 31, 2008, was $2,968,212 versus $1,620,243 for the year ended December 31, 2007, an increase of 83%. As at December 31, 2008, the Company had working capital of $5,164,901 compared to $3,902,426 as at December 31, 2007, an increase of 32% and cash and short term investments of $5,022,826 compared to $3,190,536 as at December 31, 2007, an increase of approximately 57%. Net income improved to $885,151 ($0.02 per share) versus $164,134 ($0.00 per share) for fiscal 2007. Pre-tax income was $0.03 per share.

Greencastle's oil and gas royalties continue to provide the Company with positive cash flow, even at current low oil prices. Volatile prices and fluctuating production levels make forecasting revenues difficult with quarterly revenues over the past eight quarters ranging between $224,017 and $1,041,963. Although there was a significant decline in fourth quarter revenues to $341,549, prices for heavy oil have seen a modest recovery in the first quarter of 2009.

At the Company's main royalty property near Primate, Saskatchewan, additional drilling locations have been identified by the operator, however, no new wells are planned in the immediate future.

Greencastle continues to hold a portfolio of exploration assets which include: four gold exploration properties on the Battle Mountain trend in Nevada, one of the world's most prolific gold producing trends; a coal exploration permit in Manitoba, immediately east of the recent coal discovery in Saskatchewan by Goldsource Mines Inc.; and an oil and gas exploration permit in the Utica Shale gas play near Montreal, Quebec.

The Company is also pleased to announce the appointment of Carmelo Marrelli as Chief Financial Officer. Mr. Marrelli replaces James Pirie who was formerly the acting CFO and will continue on as President and director. Mr. Marrelli holds a Bachelor of Commerce degree from the University of Toronto and is a qualified Chartered Accountant and Certified General Accountant. Mr. Marrelli is currently president of Marrelli Support Services, a bookkeeping firm.

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.

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.

Contact Information

  • Greencastle Resources Ltd.
    Anthony Roodenburg
    (416) 367-4571