Greencastle withdraws permit application

2008-12-09 11:53 ET - News Release

Mr. Anthony Roodenburg reports

GREENCASTLE REDUCES COAL EXPLORATION PERMIT AREA

Greencastle Resources Ltd. has withdrawn an application to the government of Manitoba for an additional coal exploration permit on the Manitoba/Saskatchewan border and has been reimbursed its cash deposit. The application was the subject of a press release in Stockwatch July 10, 2008.

The company continues to evaluate its recently granted coal exploration permit located on the Manitoba/Saskatchewan border. This permit adjoins the eastern boundary of the block of coal exploration permits held by Goldsource Mines Inc. in Saskatchewan. The Greencastle permit application covers approximately 1,586 hectares on the Manitoba side of the Saskatchewan border approximately 25 kilometres southeast of the Goldsource discovery drill holes.

Goldsource has recently announced that it is now permitted to drill up to 300 holes within its project area in a phased program based on success. Goldsource will proceed with potential resource definition drilling in the area of its recent coal discovery as well as exploration drilling on other areas with geophysical signatures indicative of potential coal basins within the 132,000-hectare project. The phase I plan is to drill approximately 50 holes this winter commencing as soon as road preparations and access to drill sites are completed.

The company also announces that 1.22 million incentive stock options exercisable at 10 cents, expiring on Dec. 9, 2013, have been granted to certain officers, directors and consultants of the company.

We seek Safe Harbor.