DUN

Duncastle Gold Corp. ("Duncastle") (TSX VENTURE:DUN)(FRANKFURT:5D3) has closed
the sale of the historic Yankee-Dundee Mine to Armex Mining Corp. pursuant to an
agreement announced on January 21, 2013. At closing Duncastle received a $50,000
advance royalty as the initial payment on a purchase price which may total about
$4 million or more by way of cash and royalty payments depending on mine
performance, commodity markets and other factors per the following schedule:




--  $50,000 advance royalty payments due on closing, on receipt of a notice
    of work (permit), and annually thereafter until production; 
    
--  $250,000 cash payment on the commencement of production; 
    
--  $250,000 cash payment on the anniversary of the commencement of
    production; 
    
--  additional production payments totaling $1 million payable from 30 per
    cent of net revenues; and 
    
--  a 2.5% net smelter royalty with buy-down at $1 million per 1%. 



In addition to the above, Duncastle retains back-in rights pursuant to the
agreement by which it can re-acquire the project in the event specific
production milestones are not met.


The Yankee-Dundee project includes numerous past-producing, high-grade mines
including the two largest mines in the Ymir camp, 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 (current value), 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 over 7,700 meters of drilling in 48 holes,
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. The Armex team is experienced in
underground mine rehabilitation and development, and plans to use the historic
workings as an inexpensive basis for exploration, expansion and mining
activities.


Duncastle President Michael Rowley reported: "Armex Mining has done great work
advancing the project in a challenging market. Their plans balance near-term
production from less capital intensive operations before expanding into mining
deeper underground as the project advances. Their team is well equipped to
accomplish this with excellent experience in geology and mine development
including environmental regulations and the financial markets. We look forward
to seeing the historic mine return to production with benefit to both parties."


Corporate Update 

Graham Thatcher has been appointed Chief Financial Officer of the Company to
replace Mahesh Liyanage who has resigned such position. The company and the
board of directors thank Mr. Liyanage for his service to the company. Mr.
Thatcher moved from London, England to Vancouver, British Columbia in 2006.
Specializing in financial reporting and auditing across a breadth of business
sectors in both the UK and Canada, he brings extensive experience of operating
with International Financial Reporting Standards and paperless systems. He is
also senior accountant at Manex Resource Group which provides administrative,
financial, corporate, corporate finance and geological services to a number of
public companies in the mineral resource sector.


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 gold projects in Ontario and its
royalty interest in 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.

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.


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.


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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