Update on VGN from SolomonSmallCaps Friday, August 29:

GREENCASTLE REPORTS RECORD REVENUE/EARNINGS

August 29, 2008

Greencastle Resources’ (VGN, TSX-V) Q-2 financials came out this afternoon and the numbers even slightly exceeded our estimates.

We’ll be posting a new report on Greencastle this Sunday evening, August 31, analyzing the numbers in more detail and looking ahead to what could be next for this company, but below are the quick financial highlights:

• Q-2 revenue - $1,000,000 (vs. our $900,000 estimate)
• Six-month profit - $1,111,000 (pre-tax, or 3 cents per share)

Greencastle’s pre-tax profit for the first six months of this year increased by 636 per cent over the same period last year. The company has taken a tax provision for the first six months of $370,000, leaving it with an after-tax profit of $741,000 or two cents per share.

Greencastle’s had $5.3 million cash on hand as at June 30 (vs. our estimate of $5 million), and we believe its coffers have swelled to $6 million now.

An Agoracom interview with Greencastle CEO Tony Roodenburg was posted on the Greencastle web site this afternoon. Roodenburg stated that the company’s last monthly oil royalty check was for $370,000. He also said, “If we play our cards right, we may never have to go back to the market for capital…which sets us apart from hundreds or a thousand other junior resource companies.”

Roodenburg also confirmed the company is reviewing a lot of “deal flow” at the moment. More on Sunday evening when we’ll also be releasing our 30-stock “model” portfolio, and VGN will be in “Group A” of that portfolio for the highest probability of a significant share price advance over the immediate to short term.

As with all investments, we recommend you do your own due diligence, invest only with money you can afford to lose, and never put all your “eggs” in one basket. Invest wisely, and we suggest taking at least half your profits off the table on a “double”. Also, please read our disclaimer near the top of our web site.