Castle Resources Inc.

Published : January 14th, 2008

Letter of intent to acquire Cobalt Silver camp

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CASTLE RESOURCES SIGNS LETTER OF INTENT TO ACQUIRE RIGHTS TO A MAJORITY LAND POSITION WITHIN THE COBALT ONTARIO SILVER CAMP: ONE OF THE MOST PROLIFIC SILVER MINING CAMPS IN MODERN HISTORY

� Historic Cobalt Mining Camp produced more than 445 million oz silver, 45 million lbs cobalt

� District-scale exploration opportunity on previously unconsolidated 3,083 ha land package

� Near-term potential for mine rehabilitation , tailings production and additional acquisitions

January 14, 2008 � Toronto � Castle Resources Inc. (�Castle� or the �Company�) (TSX Venture: CRI)announced today that it has signed a Letter of Intent (LOI), dated effective December 4, 2007 with Legends of Cobalt Corporation (�LCC�), a private Ontario company, and Dr. Paul Adams, Mr. Gino Chitaroni, Ms. Carmen Diges, Mr. Jonathan Rae and Mr. Derek Zoldy, five sole shareholders of LCC (the �LLC shareholders�), to acquire all of the issued and outstanding shares of LCC from the LCC Shareholders. The total consideration paid by Castle to the LCC Shareholders will be the issuance by Castle of 18-million common shares in the capital of Castle. All LCC shareholders hold an equal 20% LLC and are Ontario residents. The transaction is subject to due diligence and regulatory approval.

The primary asset of LCC is an option to acquire any or all of a claim package that covers the majority of the Historic Cobalt Mining Camp of northeastern Ontario, one of the most prolific silver mining camps in modern history. The Cobalt Mining Camp began operations in 1903, producing more than 445 million ounces of silver, along with more than 45 million pounds of cobalt and significant base metal byproducts, from more than 100 underground mines through the 1980s. The claim package under option to LCC includes more than 50 of those past-producing mines, including four mines that produced in excess of 40 million ounces of silver. Ore from the district averaged head grades of 20 to 25 ounces per ton (oz/t) silver and was often recovered as remarkably large specimens of �native silver�.

Castle President and CEO Stephen Wallace stated, �We are very excited by the potential of this opportunity. This acquisition will strengthen the Company, giving it presence in two major silver camps, Cobalt and Zacatecas. Our objective at Cobalt will be to quickly assess the rehabilitation of the historic producing mines, resume exploration on the advanced targets developed by Agnico-Eagle Mines Limited (�Agnico-Eagle�) in the 1980s while taking advantage of the opportunity to take a �district-scale� view, exploring orebodies that cut across historic claim boundaries within the camp. We believe that the land package has the potential both for large underground operations, as well as for bulk-tonnage open-pit mining scenarios.�

In its last decades of operation, district production was led by Silverfields Operating Corporation (a subsidiary of Teck Corporation), Agnico-Eagle, and Canadaka Mines Ltd. The 3,083-hectare claim package under option to LCC was assembled by Agnico-Eagle in the 1980s and was later sold to Blackstone Development, Inc. (�Blackstone�), a private Ontario company. The Cobalt area has significant infrastructure, including roads, rail, water, and power. It is politically friendly to mining and home to a skilled workforce. At least some of the underground workings are likely to be useful, at least
for exploration purposes.

Castle management believes that the district has considerable economic potential for its silver, cobalt, and base metal by-products. Prior to the consolidation of the area, modern and district-scale exploration techniques were never used within the camp, due to the fractured nature of its historical ownership. Most of the area mines were relatively shallow (less than 600 feet below surface) and remain untested at depth.

The claim package under option to LCC includes several advanced projects that were under development by Agnico-Eagle prior to its 1990 decision to conclude its operations at Cobalt. These include the Penna Mine, where a 1,200-foot shaft was completed in 1988, which is adjacent to the Langis Mine, a former 10-million ounce silver producer. Exploration records indicate that the Penna-Langis vein system is thought to be 3,000 feet in strike length with a vertical extent of 850 feet, featuring bonanza grades and widths. Historic drill results of this system include silver intercepts of 31.0 feet of 39.0 oz/t, 11.0 feet of 61.0 oz/t, and 5.1 feet of 51.8 oz/t. A second advanced target is the Peterson Lake Mine, where a ramp
was under development to access a 1.84-million ounce (92,275 tons grading about 20 oz/t) historic silver
resource.

There may also be potential for near-term revenue-generating operations at Cobalt through the processing of on-surface, mineralized mine tailings from several locations on the optionable claims. According to a report titled �Cobalt Mining Camp Tailings Inventory - Cobalt, Ontario� there are more than 14 million tons of mine tailings within the camp. Based on this report it is believed that as much as 8 to 10 million tons of these tailings are on the optionable claims, including one million tons averaging 3.6 oz/t silver that were reported by Agnico-Eagle. This exploration target has not been verified by Castle and the potential quantity and grade is conceptual in nature. At present there has been insufficient exploration to define a mineral resource and it is uncertain if further exploration will result in the discovery of a mineral resource.

After closing, Castle will embark on a major data compilation effort, restart exploration on the most advanced-stage projects, investigate the feasibility of processing on-surface tailings, and explore the possibility of bulk-tonnage mining scenarios. The Company also plans to pursue the acquisition of additional mineral rights and processing capabilities opportunities within the camp.

In addition to the significant silver potential, the camp has a history of cobalt mining as both a primary metal and silver mining by-product. At the beginning of 2006 the average offer spread cobalt price stood was US$12 per pound and by 2007 the price had more than doubled to US$25 per pound. By early 2008 the price had risen to more than US$41.00 due increased production of batteries for mobile phones and hybrid cars as well as supply constraints following a moratorium on the export of raw concentrates from the Democratic Republic of the Congo in October 2007. To conduct this exploration and development the Company plans to conclude a financing concurrent with the completion of the agreement with LCC. In addition, the Company is preparing a Filing Statement to explain the full nature of the transaction and a NI 43-101 report both which will be filed on SEDAR when regulatory approval is received.

All geological data and resource estimates quoted herein are based on prior data and reports obtained and prepared by previous operators and information provided by LCC or located in the public domain. The Company has not completed the work necessary to verify the mineral resource estimates. The Company is not treating the mineral resource estimates as NI 43-101 defined resources verified by a qualified person. The historical estimates should not be relied upon. These properties will require considerable further evaluation which Castle�s management and consultants intend to carry out in due course.

About Castle Resources
Castle Resources Inc. is a Toronto-based junior mineral exploration company focusing on high-quality advanced exploration projects in Mexico. The Company's initial focus is on silver exploration and development in Zacatecas, Mexico, one of the most prolific silver camps in Mexico and the world. Management's goal is to quickly advance current projects and to seek additional opportunities to continue to add value for shareholders. For more information about Castle, please visit the Company�s website at www.castleresources.com.

Except for historical information contained herein, this news release contains forward-looking statements that involve risks and uncertainties. Actual results may differ materially. Factors that might cause a difference include, but are not limited to: changes in the worldwide price of mineral commodities, general market conditions, risks inherent in mineral exploration, risks associated with development, construction and mining operations, the uncertainty of future profitability and the uncertainty of access to
additional capital. The Company will not update these forward-looking statements to reflect events or circumstances after the date hereof. More detailed information about potential factors that could affect the financial results is included in documents filed
from time to time with Canadian securities regulatory authorities by the Company.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

Contact Information:
Stephen Wallace P.Geo.
President and Chief Executive Officer
(416) 366-4100

Maurizio Fava
Investor Relations
(416) 917-1812

Data and Statistics for these countries : Mexico | All
Gold and Silver Prices for these countries : Mexico | All

Castle Resources Inc.

EXPLORATION STAGE
CODE : CRI.V
ISIN : CA1484771029
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Castle Res. is a copper exploration company based in Canada.

Its main exploration properties are GRANDUC COPPER MINE and ELMTREE in Canada.

Castle Res. is listed in Canada. Its market capitalisation is CA$ 28.8 millions as of today (US$ 23.0 millions, € 20.2 millions).

Its stock quote reached its highest recent level on April 08, 2011 at CA$ 0.95, and its lowest recent point on December 19, 2014 at CA$ 0.01.

Castle Res. has 191 990 000 shares outstanding.

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Annual reports of Castle Resources Inc.
Annual report 2006
Financings of Castle Resources Inc.
2/18/2011Castle Res. completes 12 001 750 private placement and issue...
2/18/2011Castle Res. completes 12 001 750 private placement and issue...
2/18/2011Completes $12,001,750 Private Placement
Nominations of Castle Resources Inc.
7/10/2013Appoints KPMG Corporate Finance as Financial Advisor
6/23/2011Appoints Mike Sylvestre as Chief Executive Officer
Project news of Castle Resources Inc.
4/24/2013Announces Filing of Preliminary Economic Assessment and Opti...
2/28/2011(Granduc Copper Mine)NI 43-101 Resource Estimate for Granduc Copper Project Excee...
10/26/2010(Granduc Copper Mine)Confirms Significant Copper Mineralization at the Granduc Co...
Corporate news of Castle Resources Inc.
9/12/2013Provides Corporate Update
7/18/2013Announces Mr. Tyler Mitchelson Appointed New Director
6/27/2013Announces Closing of $200,000 Offering
5/3/2013Announces Acquisition of Common Shares of GreenBank Capital ...
3/15/2013Announces Closing of $1.9 Million Offering
12/12/2012Reports New Granduc Resource Estimate With a Significant Inc...
10/25/2012Announces Complete 2012 South Zone Drill Results from the Gr...
10/10/2012Provides Corporate Update on Its Granduc Copper Project, B.C...
10/2/2012Announces Closing of $5.48 Million Offering
9/21/2012Announces Pricing of Previously Announced $6.5 Million Offer...
6/7/2011Initiates Baseline Environmental Studies at Granduc Copper P...
5/26/2011to Rehabilitate 17 km Tunnel at its Granduc Mine, British Co...
4/28/2011Provides Operations Update for the Granduc Copper Project
2/10/2011Adopts Shareholder Rights Plan
10/19/2010Acquires 100% Interest in Granduc Copper Project
1/14/2008Letter of intent to acquire Cobalt Silver camp
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