Stock trading just above 12mth and GFC lows. Commencing 40000m...

Stock trading just above 12mth and GFC lows.

Commencing 40000m RAB program (using company-owned rig) at 100% owned, 10000skm gold project in Ghana.

Extract from company report:

'Wa Project (Castle Minerals 100%)

Quarterly exploration activities were focussed on the Company’s extensive Wa Project (10,000km2) in north west Ghana concentrating on four regional scale highly prospective gold corridors known as:

- Julie-Jang Trend 50km long trend that includes the Baayiri discovery

- Kandia Trend 30km corridor of anomalous gold in soils

- Wa South (Batie West trend) 60km long corridor on intersection of two greenstone belts

- Wa-Lawra Greenstone Belt 80km of untested greenstone belt stratigraphy (includesKambale graphite deposit).

The focus for the 2012/13 year is to achieve our ultimate goal of defining sufficient standalone gold
resources capable of commercial development.

Further RC drilling at the high grade Danyawu gold prospect is planned before year end to allow a maiden resource to be established. Castle’s own RAB rig, located in Wa is scheduled to complete approximately 40,000m of drilling in the 2012/13 season at less than one third of contract rates.'

Graphite:

The Resource consists of 3.4mt @ 7.1% C of oxide and 11.0mt @ 7.2% C primary graphite and is calculated within the first one kilometre of strike drilled. Subsequent to the resource being estimated drilling has doubled the known graphite strike. New drill intercepts since the
announcement of the maiden resource in July 2012 include:

KBRB 76 23m @ 6.21% graphitic carbon from 5m
KBRB 77 12m @ 5.39% graphitic carbon from 10m
KBRB 80 13m @ 5.40% graphitic carbon from 10m
KBRB 82 15m @ 6.15% graphitic carbon from surface
KBRB 83 36m @ 10.68% graphitic carbon from 5m
KBRB 183 10m @ 8.76% graphitic carbon from 10m
KBRB 185 8m @ 4.28% graphitic carbon from surface
KBRB 206 19m @ 7.64% graphitic carbon from 5m
KBRB 207 10m @ 5.65% graphitic carbon from 10m
KBRB 208 8m @ 4.59% graphitic carbon from 10m


Competent management team.