DUN

Duncastle Gold Corp. ("Duncastle") (TSX VENTURE:DUN)(FRANKFURT:5D3) announced
today that it has signed a Letter Agreement (the "Agreement") with Armex Mining
Corp ("Armex") whereby Duncastle intends to sell 100% of its interest in the
Yankee-Dundee Project in Southeast British Columbia to Armex in exchange for
advance royalty payments, royalty payments, and production payments.


The Yankee-Dundee Project includes numerous past-producing, high-grade mines
including the two largest mines in the Ymir Camp, being the Yankee Girl and the
Ymir mines. The Ymir camp produced 883,000 tonnes of ore at an average grade of
10 g/t gold and 60 g/t silver for a gross total production value of over $500
million at today's prices according to historical government records, ranking it
as the largest silver producing camp in the British Commonwealth for a period
during the 1930s. Duncastle consolidated most of the Ymir camp and completed
numerous drill programs, totaling over 7,700 meters in 48 holes and identifying
a high-grade extension of the Yankee Girl mine that is near existing mine
workings. Duncastle personnel inspected some of the mine workings in 2006 and
found them to be in very good condition. Armex plans to use these workings as a
basis for underground exploration and mining activities.


Terms of the Agreement with Armex include the following:



1.  Grant a 2.5% NSR royalty to Duncastle on production from the mine, with
    Armex holding the right to repurchase the royalty at any time on the
    basis of $1,000,000 for each 1% NSR; 
2.  Pay Duncastle advance royalty payments as follows: 
    a.  $50,000 on or before February 28, 2013, failing which Duncastle will
        receive 500,000 common shares of a publicly listed company to be
        identified by Armex ("Pubco"); 
    b.  $50,000 18 months after a notice of work (permit) is granted; and 
    c.  $50,000 on the anniversary of the second payment and annually
        thereafter until the commencement of commercial production.
3.  Advance royalty payments under 2b) and 2c) that are not made within 60
    days of their respective due dates can be completed by issuing the
    equivalent number of shares in Pubco to Duncastle, calculated at the
    prevailing market price at the time of issue. 
4.  Pay Duncastle production and additional payments as follows: 
    a.  $250,000 upon the commencement of commercial production; 
    b.  $250,000 upon the first anniversary of commencement of commercial
        production; and 
    c.  additional production payments aggregating $1,000,000 payable from
        30% of net revenues as defined in the Agreement;
5.  Armex has the right to satisfy the production and additional payments by
    paying the aggregate sum of $1,250,000 any time during the first year of
    commercial production. 
6.  Armex shall assume all of Duncastle's obligations per the existing
    option agreement between Duncastle and BGM Diversified Energy for those
    claims subject to that agreement. 



All share issuances contemplated by the Agreement are subject to TSX and
regulatory approval.


Duncastle President Michael Rowley reported, "We are very pleased to have vended
the project to Armex, who have the skill set to advance the project to
production, in exchange for a potentially healthy return on our investment in
the historic Ymir Camp. The advance royalty payments will make a very real
difference to our budget in the short term, and the larger payments from
potential production could provide cash flow that is significant to our
operating needs."


About Duncastle Gold

Duncastle Gold Corp. is a Vancouver-based gold exploration company with 100%
ownership potential on over 510 square kilometers of projects in Ontario and
British Columbia, Canada. In addition to three newly acquired gold projects in
Ontario and the past-producing Yankee-Dundee Mine in southeast BC, Duncastle
controls the highly prospective polymetallic Porphyry Creek project in northwest
BC.


As part of the Manex Resource Group, Duncastle benefits from shared expertise in
corporate finance, public company administration, investor relations, and
technical and geological services provided for seven public companies active in
North America. Since its formation in 1997, the Manex Group companies have
raised over $350 million in exploration financing.


Rob Macdonald, (P.Geo.), is the Qualified Person responsible for reviewing the
technical results in this release.


On behalf of the Board of Directors,

Michael Rowley, President, Director, Duncastle Gold Corp.

For further information, please visit the company's website at
duncastlegoldcorp.com.


This News Release may contain forward-looking statements including but not
limited to comments regarding the timing and content of upcoming work programs,
geological interpretations, receipt of property titles, potential mineral
recovery processes, etc. Forward-looking statements address future events and
conditions and therefore involve inherent risks and uncertainties. Actual
results may differ materially from those currently anticipated in such
statements. These statements are based on a number of assumptions, including,
but not limited to, assumptions regarding general economic conditions, interest
rates, commodity markets, regulatory and governmental approvals for the
company's projects, and the availability of financing for the company's
development projects on reasonable terms. Factors that could cause actual
results to differ materially from those in forward looking statements include
market prices, exploitation and exploration successes, the timing and receipt of
government and regulatory approvals, and continued availability of capital and
financing and general economic, market or business conditions. Duncastle Gold
Corp. does not assume any obligation to update or revise its forward-looking
statements, whether as a result of new information, future events or otherwise,
except to the extent required by applicable law.


FOR FURTHER INFORMATION PLEASE CONTACT: 
Duncastle Gold Corp.
Michael Rowley
1.888.456.1112 or 604.641.2742
mrowley@mnxltd.com


Duncastle Gold Corp.
Liana Shahinian
1.888.456.1112 or 604.641.2773
liana@mnxltd.com
www.duncastlegoldcorp.com

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