Greencastle Resources Ltd.
TSX VENTURE : VGN

Greencastle Resources Ltd.

March 28, 2011 17:08 ET

Greencastle Reports Year End Results

TORONTO, ONTARIO--(Marketwire - March 28, 2011) - Greencastle Resources Ltd. (TSX VENTURE:VGN) ("Greencastle" or the "Company") is pleased to report on fiscal 2010 financial performance.

Net income for the year ended December 31, 2010 was $ 626,856 or $0.01 per share. Total assets of the Company increased to $9,845,872 from $8,082,478 at December 31, 2009 while liabilities decreased to $105,987 from $121,586 over the period.

At December 31, 2010, the Company had working capital of $7,998,359 (December 31, 2009 – $5,915,980). The Company had cash and cash equivalents of $5,097,551 at December 31, 2010(December 31, 2009 - $4,450,517). The increase was largely due to the sale of marketable securities at a profit for cash proceeds of $1,787,671, cash proceeds from the exercise of stock options of $96,000 and ongoing royalty income. Total royalty revenue for the year ended December 31, 2010, was $1,269,703 (year ended December 31, 2009 - $1,303,898).

Net assets increased 22% to $9,739,885 with current (liquid) assets being $7,998,359 (82%).

Commenting on the results, Anthony Roodenburg, CEO, noted: "Despite aggressive write downs and depletion totalling $1,519,303 in fiscal 2010, Greencastle's balance sheet performed very well thanks in large part to the performance of our marketable securities portfolio. The challenge now is to unlock value in our gold exploration assets and we hope to announce some initiatives in this area in the second quarter. Richfield Ventures Corp.'s Blackwater project is shaping up to be a significant discovery and we are looking forward to getting ground work started on our Nechako property nearby."

During the year ended December 31, 2010, gold exploration activities were limited except for the Company negotiating for the acquisition of the Nechako property in British Columbia. On October 9, 2010, the Company entered into an option agreement to acquire a 100% interest in the Nechako property, covering approximately 13,000 hectares (28 claims), in the Nechako Plateau region of British Columbia. The property is geologically on trend with the Blackwater property of Richfield Ventures Corp. where that company is currently working to delineate its bulk tonnage gold project.

During fiscal 2010, the Company decided to discontinue work on the Boggy Lake project and has written-off $972,928 of expenditures. The Boggy Lake area appears prospective for natural gas and, should gas prices improve considerably, the Company may consider further work to evaluate the gas potential of the landholdings.

Further to the Company's press release dated November 1st, 2010, announcing the engagement of Douglas McKay & Associates to provide investor relations services to the Company, the Company wishes to clarify that the option grant of 150,000 options at $0.20 to that firm was for a period of two years, i.e. to November 1st, 2012.

Readers are encouraged to read the Company's year end financial statements and Management Discussion and Analysis documents filed at www.sedar.com.

This news release includes certain "forward looking statements" within the meaning of that phrase under Canadian securities laws. 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. Forward-looking statements reflect management's current views with respect to possible future events and conditions and, by their nature, are based on management's beliefs and assumptions and subject to known and unknown risks and uncertainties, both general and specific to the Company. Although the Company believes the expectations expressed in such forward-looking statements are reasonable, such statements are not guarantees of future performance and actual results or developments may differ materially from those in our forward-looking statements. 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. Additional information regarding the material factors and assumptions that were applied in making these forward looking statements as well as the various risks and uncertainties we face are described in greater detail in the "Risk Factors" section of our annual and interim Management's Discussion and Analysis of our financial results and other continuous disclosure documents and financial statements we file with the Canadian securities regulatory authorities which are available at www.sedar.com. The Company undertakes no obligation to update this forward-looking information except as required by applicable law. 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