Castle Peak Intersects 19.0m of 1.5 g/t Au at Apankrah, and 1.0m of 16.1 g/t at the New Scorpio Target

October 2, 2012

Vancouver, B.C., October 2, 2012 - Castle Peak Mining Ltd. ('Castle Peak' or the 'Company', TSX.V: CAP), is pleased to report the final drill results from the exploration and follow up drill program at the Apankrah target area within the Company's Akorade Project in the southern Ashanti belt, Ghana, West Africa. All maps, sections and results tables are available on the Castle Peak website at www.castlepeakmining.com.

Highlights:

  • Apankrah Shoot was intersected with a total of six drill holes; intercepts range from 2.5 metres ('m') to 9.8m and grades range from 3.2 grams per tonne ('g/t') to 79.9 g/t gold ('Au')
  • Apankrah Structure demonstrates a strike length of over 250m and is open; host to the Apankrah Shoot which has an average strike length of over 100m and is open to the West and at depth
  • A new mineralized trend, the Scorpio trend, has now been tested by three drill holes defining a strike extent of 120m and down dip extent of 140m and is open in all directions
Hole ID
Target
Length (M)
Au Grade (g/t)
NKDDH025
New Zone
4.0
1.6
Includes 2.0m of 2.9 g/t Au
NKDDH028
Apankrah Shoot
19.0
1.5
Includes 6.0m of 3.2 g/t Au
NKDDH024
Scorpio
4.0
4.1
Visible gold
Includes
1.0
16.1
Visible gold

Darren Lindsay, President and CEO, stated "We are pleased with the successful completion of our drill program, highlighted by the strength of the Apankrah Shoot target. Strong grades associated with coarse visible gold and no arsenopyrite provides us with a great style of mineralization to follow up. Our next step for this target area will be to revisit the geology model using the newly acquired drill data from this program to define additional potential in the Apankrah area."

Modeling of the Apankrah target area has begun and will assist the Company in determining the further potential of this area. Road construction at the Dansuom target on the POW concession has been re-initiated. The Dansuom target is another high priority area identified in this program and is the focus of exploration efforts thru till the end of the year.

Additionally, as part of Castle Peak's systematic exploration approach and to assist in further targeting, the Company is currently awaiting the final geophysical interpretation and final data on the ground magnetics and induced polarization geophysical surveys completed on the Nkwanta, Asuogya-Ayiem and Great Yorkshire concessions. This third--party interpretation will enhance target generation and compilation by providing a more detailed interpretation of the underlying geology and structure of these high potential target areas in the southern Ashanti gold belt.

Apankrah Shoot:

Drill hole NKDDH028, a roughly 55m step-out east of NKDDH022, returned 19.0 m of 1.50 g/t Au, including and 6.0 m of 3.2 g/t Au.

Three holes were completed to follow up on drill hole NKDDH022, 1.6m of 296 g/t Au, reported in the News Release dated August 24, 2012. Drill hole NKDDH015ext was drilled 80m up dip of NKDDH022 and went over top of the Apankrah Shoot. Drill hole NKDDH025, a step-out hole approximately 100m to the west of NKDDH022 went over top of the Apankrah Shoot. Drill hole NKDDH028 was drilled approximately 55m on strike to the east which returned intercepts of 19.0m of 1.50 g/t Au including 6.0m of 3.22 g/t Au.

These drill hole intercepts together with previously released NKDDH009ext, 010, 016, 017, 018, and 022 intercepts define the Apankrah Shoot; a steeply plunging high grade shoot with a strike length averaging over 100m and increasing with depth and a down plunge/dip extent of over 200m which is open to the west and at depth (see Figure 1 Apankrah Shoot longitudinal section). This high grade shoot is located within the auriferous Apankrah structure which has a known strike length of greater than 250m and is open in all directions.

The drill intercepts indicate that the structure is flattening, or forming a ramp feature (see Figure 2 Cross section), at roughly the 200m level which may be the control for thicker intersections and higher grades. The mineralized structure is defined by an assemblage of silica, carbonate, pyrrhotite, pyrite and gold with the highest grades correlating directly to the presence of visible gold. This structure and the parallel Nana structure and third un-named structure are hosted in a package of poorly understood Birimian mafic metavolcanic rocks and are currently interpreted to be roughly parallel to flow contacts.

Scorpio Trend:

The Scorpio target, defined as a north-northeast trending geophysical anomaly (magnetics, resistivity and chargeability) which has seen some artisanal mining, has been interpreted to be a linking structure between the Apankrah and the Nana structures and was tested with three drill holes. Holes NKDDH024 and NKDDH026 were drilled on the same section and returned 4.0m of 4.11 g/t Au, including 1.0m of 16.1 g/t Au and 11.0m of 0.23 g/t Au respectively. A 100m step-out hole to the southwest, NKDDH027, returned 2.0m of 2.30g/t Au.

All drill holes from the initial 3,030m follow up and target evaluation program are now reported. The current drill results represent the initial testing of the Scorpio target and the continuing evaluation of the higher grade Apankrah Shoot located on the Apankrah structure, one of a series of parallel east-north-east ('ENE') trending structures across the Nkwanta Concession. Road building has commenced at the Dansuom Shear target and field teams are following up on new road exposures, mapping and sampling, in support of further developing the conceptual POW SVI target in the Dansuom area among others.

Summary Table of Drill Results:

Hole ID
Target
From (m)
To (m)
Length (m)
Au (g/t)
Notes
NKDDH015ext
Apankrah
101.4
106.0
5.6
0.2
Over top of Apankrah Shoot
NKDDH024
Scorpio
237.0
241.0
4.0
4.1
Includes
240.0
241.0
1.0
16.1
Visible gold
NKDDH025
NEW Zone
269.0
273.0
4.0
1.6
Includes
270.0
272.0
2.0
2.9
Overtop of Apankrah Shoot
NKDDH026
Scorpio
184.0
186.0
2.0
0.8
And
248.0
251.0
3.0
0.3
NKDDH027
Scorpio
55.0
57.0
2.0
2.3
Visible Gold
And
203.0
223.0
20.0
0.2
Anomalous Zone
Includes
205.0
206.0
1.0
2.0
NKDDH028
Apankrah
226.0
245.0
19.0
1.5
Includes
228.0
234.0
6.0
3.2
  1. Lengths are core lengths; true widths are estimated between 75-90% of core length
  2. Composites are uncapped, length weighted averages with a cut off of 0.1 g/t Au and inclusive of up to 3m of assays below the cut off value unless otherwise noted.
Please refer to the Akorade Project section at www.castlepeakmining.com to view complete table of drill results.


Technical Disclosure
Castle Peak's technical disclosure in this news release has been reviewed and approved by Darren Lindsay, P.Geo., Castle Peak's President and CEO, who serves as a Qualified Person under the definition in National Instrument 43-101 ('NI 43-101'). The exploration activities are supervised by Clive Arthur, Castle Peak's Vice President Exploration. The procedures include the systematic insertion of blanks, standards and duplicates into the sample stream both in the field and at the lab; samples are placed in sealed bags and are delivered to SGS Laboratory Services GH Ltd. in Tarkwa, Ghana, for routine gold analysis by 50g charge fire assay with atomic absorption finish. Samples with visible gold or returning greater than 5 g/t Au from fire assay are subject to analysis using screen metallic assay. The Akorade project is an early stage exploration project and does not contain any mineral resources as defined by NI 43-101. The potential quantities and grades disclosed herein are conceptual in nature and there has been insufficient exploration to define a mineral resource for the targets disclosed herein. It is uncertain if further exploration will result in these targets being delineated as a mineral resource. Further information is available in the NI 43-101 compliant technical report dated February 14, 2011 and entitled "NI 43-101 Technical Evaluation Report on Nkwanta & Ayiem concessions, Wassa-West District, Republic of Ghana, West Africa" authored by Daniel Gaudreault, P.Eng. and Alain-Jean Beauregard, P.Geol. of Geologica Groupe-Conseil Inc., and in the NI 43-101 compliant technical report dated January 2, 2012 and entitled "NI 43-101 Technical Report on the Asuogya License, Ghana" authored by Gareth O'Donovan, Corporate Exploration Consultant, of SRK Exploration Services Ltd, copies of which are filed under the Company's profile on SEDAR at www.sedar.com.

About Castle Peak
Castle Peak Mining Ltd. is a Canadian-based exploration and development company focused on advancing greenfields and early stage gold projects. The Company holds a strategic land package in the Ashanti belt adjacent to several producing gold mines in Ghana, West Africa. The Ashanti belt is known as one of the most prolific gold belts in the world with over 150 million proven ounces uncovered and current investment in excess of $3.3 B USD.

On behalf of the Board of Castle Peak Mining Ltd.:

"Darren Lindsay"
President and Chief Executive Officer

For additional information please visit www.castlepeakmining.com or contact:
Ashlee Utterback, Investor Relations Manager
Tel: 604 681 1466 (X225)
Email: ashleeu@castlepeakmining.com

FORWARD-LOOKING STATEMENTS
Except for statements of historical fact, this news release contains certain 'forward-looking information' and 'forward-looking statements' within the meaning of applicable securities laws including statements regarding proposed exploration, sampling and drilling at the Akorade Project and statements concerning the anticipated results of that exploration, sampling and drilling. Such forward-looking statements are based on the opinions and estimates of management at the date the statements are made, and are subject to known and unknown risks, uncertainties and assumptions that could cause actual results to vary materially from the anticipated results or events predicted in these forward-looking statements, including those risk factors identified in the Company's Annual MD&A and Filing Statement filed under the Company's SEDAR profile. As a result, readers are cautioned not to place undue reliance on these forward-looking statements. The forward-looking statements contained in this news release are made as of the date of this release. Except as required by applicable law, Castle Peak disclaims any intention and assumes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.



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.

FIGURE 1: Apankrah Grade X Thickness Longitudinal Section

Figure 1

FIGURE 2: Apankrah Shoot Cross Section

Figure 2