Greencastle Resources Ltd.
TSX VENTURE : VGN

Greencastle Resources Ltd.

November 28, 2006 10:29 ET

Greencastle Reports Third Quarter Profit and Provides Update

TORONTO, ONTARIO--(CCNMatthews - Nov. 28, 2006) - Greencastle Resources Ltd. (TSX VENTURE:VGN) is a resource company with interests in gold exploration in Nevada, U.S.A. and in the Republic of Niger, West Africa. In addition, Greencastle holds a gross overriding royalty on its section in the Primate oil field in Saskatchewan, Canada, where Greencastle made a discovery late in 2003. Currently production comes from eight wells.

On the strength of that royalty the Company declared a net income for the three months ended September 30, 2006 of $515,891 versus a loss of ($45,477) for the same period in the previous year. Net income for the nine months ended September 30, 2006 was $953,367 versus a net loss of ($210,119) for the same period in the previous year. During the three months ended September 30, 2006, gross revenues were $636,418 versus $36,742 for the same period in the previous year. For the nine months ended September 30, 2006, Greencastle recorded revenues of $1,401,352 versus $328,638 for the same period in the previous year. Total assets of the Company at September 30, 2006, increased to $4,248,491 from $2,458,199 as of December 31, 2005. The Company's working capital at September 30, 2006, was $1,449,143 versus $277,640 as of December 31, 2005.

In Nevada, Greencastle is advancing four exploration projects located on the Battle Mountain-Eureka mineral trend of Carlin-type gold deposits. A drill program designed and permitted for the Jewel Ridge project is awaiting drill rig availability. Previously, Greencastle reported hole HRC-11, drilled at -45 degrees to test a northeast trending structure which returned 2.1 g/t Au over 39.6 m from 94.5 m to 134.1 m including 2.7 g/t Au over 19.8 m from 94.5 m to 114.3 m at Jewel Ridge.

In Niger, Greencastle holds two exploration concessions, currently under option to Orezone Resources Inc. (TSX) 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. Orezone can earn a 50% interest in each concession by spending USD $1,000,000 on each concession. On September 14, 2006, Orezone reported initial drill results from the Namaga concession of 22 m grading 2.4 g/t Au and 10 m grading 4.9 g/t Au.

To find out more about Greencastle Resources Ltd. (TSX VENTURE: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 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