press release

Jan. 31, 2012, 7:07 p.m. EST

Green Swan Closes on Golden Triangle Assets

BURLINGTON, ONTARIO, Jan 31, 2012 (MARKETWIRE via COMTEX) -- Green Swan Capital Corp. ("Green Swan") /quotes/zigman/1518133 CA:GSW -13.33% is pleased to announce it has received regulatory approval for its previously announced contemplated acquisition of certain Golden Triangle mining tenures. Green Swan today has closed on acquiring these 11 mining tenures covering 3,572 hectares. Details on this transaction and these tenures are provided below.

Why Target the Golden Triangle, British Columbia

Green Swan's acquisitions are all located in the Golden Triangle, British Columbia's foremost gold and silver district. This area is richly mineralized, containing gold, silver, copper, lead, zinc, molybdenum and anthracite coal, and is home to current and past producers including the historic Eskay Creek, Granduc and Premier Mines. The British Columbia Geological Survey Minfile database reports there are 935 documented mineral occurrences identified within the Golden Triangle.

Current well-known mining projects within the Golden Triangle include Brucejack (Pretium Resources Inc.), Red Chris (Imperial Metals Corporation), Snowfield (again, Pretium), Mt. Klappan (Fortune Minerals Limited), Galore Creek (Teck Resources Limited and NovaGold Resources Inc.), Kutcho (Capstone Mining Corp.), Schaft Creek (Copper Fox Metals Inc.), Turnagain (Hard Creek Nickel Corp.), KSM (Seabridge Gold Inc.), Granduc Copper (Castle Resources Inc.), GJ/Kinaskan Lake (Canadian Gold Hunter, now known as NGEx Resources Inc.), Bronson Slope (Skyline Gold Corporation), Storie (Columbia Yukon Explorations Inc.), and various projects associated with Teuton Resources Inc. Targets at these projects include gold, silver, copper, molybdenum, nickel and zinc.

Further, the British Columbia and Canadian governments are supporting the mining industry in this region by jointly constructing the 344 kilometre, 287 kilovolt "Northwest Transmission Line" into the heart of the Golden Triangle, at a cost of $404 million. Right-of-way clearing and access road building for this major undertaking has already begun. Transmission structure construction is scheduled by B.C. Hydro to begin during the 2012 construction season.

Green Swan is, in management's view, extremely well-positioned to benefit from this regional and governmental activity.

Peggy Property

The Peggy Property consists of five mining tenures covering 1,633 hectares. Peggy is north of Stewart, B.C., in the Eskay Creek - Sulphurets - Premier region, and shares a six kilometre border with Teuton's "Tennyson" property, bordering on the southwest and west sides of Tennyson. Teuton has advised in its December 7, 2011 news release that the Tennyson zone, "...is curving to the west. The zone remains open to the west and mineralogical indications suggest that this may be the direction toward the center of the porphyry copper-gold zone". This interpretation was further delineated in Teuton's December 21, 2011 news release, which included a 3D map.

Peggy is also only six kilometres northeast of Castle Resources' "Granduc Copper" project referred to above. Castle Resources is revitalizing Granduc Copper with a goal of re-opening this past copper producer, and to date has raised over $30,000,000 in financing in support of this goal. On December 21, 2011 Castle released that it had completed the rehabilitation of a 17-kilometre long tunnel that connects the minesite to the haulage road, which in turn connects to the year-round port facilities in Stewart. This tunnel passes just to the south of Peggy. Castle on January 12, 2012 then released the final 2011 assay results for Granduc Copper.

Ryliejack Property

The Ryliejack Property consists of one mining tenure covering 108 hectares. Ryliejack is entirely contained within the "Brucejack" project, owned by Pretium Resources. Ryliejack's northwesterly corner is six kilometres from the Brucejack "Valley of the Kings" zone.

On January 12, 2012 Pretium filed on SEDAR an updated NI 43-101 Technical Report, which Technical Report estimated 5.06 million ounces of gold in the Measured and Indicated resource categories (9.3 million tonnes grading 16.92 grams of gold per tonne), and 3.33 million ounces of gold in the Inferred resource category (4.0 million tonnes grading 25.67 grams of gold per tonne).

SK West

The SK West Property consists of five non-contiguous mining tenures covering 1,831 hectares. SK West is located in the prolific Eskay Creek area, seven kilometres west of Barrick Gold Corporation's former producing Eskay Creek Mine. Prior to its closure in 2008, the Eskay Creek Mine was one of Canada's highest-grading gold mines and the world's fifth largest silver producer, with total production well in excess of 3 million ounces of gold and 160 million ounces of silver.

The Acquisition

Subject to a Net Smelter Royalty, Green Swan has purchased a 100% interest in each of Peggy, SK West and Ryliejack, in consideration of the issuance of 500,000 shares (at an agreed price of $0.15 per share), 100,000 Warrants (more particularly described below), and $7,500.00 cash. Each Warrant has a twelve-month term, is non-transferable, is subject to industry standard adjustments, and entitles the holder to purchase one fully paid GSW common share at an exercise price of fifteen cents ($0.15). The Net Smelter Royalty is equal to two point five per cent, half of which may be purchased at Green Swan's option at any time for $1,000,000, and which is subject to adjustment in the event of certain corporate activities.

Other Acquisitions

"Green Swan continues with its stated strategy of quickly assembling a portfolio of high-impact Canadian mining assets. Green Swan began in December, 2011 with well-positioned properties in Ontario's prestigious Ring of Fire," said Peter M. Clausi, Green Swan's President and CEO. "These acquisitions in the prolific Golden Triangle are the next step in executing that strategy. The locations of these tenures allow them to benefit from regional exploration and development activity."

Ring of Fire, Ontario - Broke Back and Riverbank

Green Swan previously announced that it had closed on an option on the Broke Back and Riverbank properties located in Ontario's Ring of Fire from Melkior Resources Inc. ("Melkior") /quotes/zigman/148581 CA:MKR -4.35% . These two properties aggregate 924 claim units over 14,784 hectares.

After this transaction was announced but before closing, Melkior advised that it had begun the next stage of exploring these properties by drilling one hole of 216 meters on Riverbank and two holes totalling 200 meters on Broke Back. This activity was entirely funded and directed by Melkior.

Melkior's selection of drill locations was based largely on data from its May, 2010 helicopter-borne geophysical survey of the Broke Back and Riverbank properties. The survey was a VTEM magnetic and electromagnetic survey and was comprised of a total of 1659.5 line-kilometres. Melkior chose drill locations to test selected coincident magnetic and conductive VTEM anomalies, for nickel sulphide mineralization. Melkior did not intersect any significant nickel sulphide mineralization in any of the 3 holes, nor did any assay return significant metal values.

Green Swan has assumed management of the next stage of the exploration program. Green Swan will continue with its review of Melkior's drilling, the airborne survey results, and the related exploration data and information, with a view to most effectively continuing exploration on Broke Back and Riverbank. Based upon its assessment of the data to date, Green Swan will be prioritizing its efforts on certain claims on Broke Back and Riverbank and will not renew lower priority claims. Melkior has advised Green Swan that the 2011 drilling on Broke Back and Riverbank was completed using industry standard practices for sampling, chain of custody, and analytical methods. The QA/QC protocol included the use of standard reference materials and repeat analyses. Sample preparation and analyses using Inductively Couple Plasma ("ICP") were completed at Activation Laboratories in Thunder Bay, Ontario.

Jamie Lavigne, P.Geo., Vice President Exploration for Green Swan and a Qualified Person as defined in NI43-101 has reviewed and verified the contents of this news release.