VANCOUVER, BRITISH COLUMBIA--(Marketwire - June 30, 2011) - Duncastle Gold Corp. ("Duncastle") (News - Market indicators)(FRANKFURT:5D3) is pleased to announce that it has closed a tranche of its previously announced non-brokered private placements for gross proceeds of $412,500.

Unit Private Placement

Duncastle closed the first tranche of its unit private placement by issuing 4,290,000 units ("Units") at a price of $0.05 per Unit to raise $214,500. Each Unit consists of one common share and one share purchase warrant, with each share purchase warrant exercisable to purchase one additional common share at an exercise price of $0.10 per share for a period of two years.

Flow-Through Private Placement

Duncastle closed the second tranche of its flow-through private placement by issuing 3,300,000 flow-through units ("Flow-Through Units") at a price of $0.06 per Flow-Through Unit to raise $198,000. Each Flow-Through Unit consists of one flow-through common share and one-half share purchase warrant, with each whole share purchase warrant exercisable to purchase one non-flow-through common share at an exercise price of $0.10 per share for a period of two years. Together with the first tranche closing on June 8, 2011, Duncastle has raised an aggregate $798,000 in this flow-through private placement. 

Securities issued pursuant to this tranche of the private placements, including common shares, share purchase warrants and finder's warrants issued as finder's fees, carry a legend restricting trading of the securities until October 30, 2011. The private placements and finder's fees are subject to regulatory approval.

Proceeds from the private placements will be used to fund upcoming exploration work at the Porphyry Creek project in Northwest British Columbia including reconnaissance geological, ground geophysics, and potential drill programs, as well as for general working capital.

On behalf of the Board of Directors,

Michael Rowley, President, Director, Duncastle Gold Corp.