Bearclaw Reports Phase One of Work Program Underway on the Axe Porphyry Copper-Gold Project

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Aug. 28, 2012) - Bearclaw Capital Corp. (TSX VENTURE:BRL)(FRANKFURT:5BQ) is pleased to report that the first phase of exploration work on the Axe Porphyry Copper-Gold Property (the "Property") by Xstrata Copper Canada ("Xstrata") is underway. Bearclaw is party to a joint venture (the "Axe JV") in which it holds a 30% beneficial interest in 25 mineral claims (4,983 hectares) known as the Axe Property which is located in the Similkameen Mining division approximately 20 Kilometers north of Princeton, British Columbia. Bearclaw, together with its partner, optioned the Property to Xstrata in March of this year.

As part of the Phase One work program, Xstrata crews are conducting geological mapping, soil sampling and line cutting on the Property with the goal of expanding the known mineralization zones on the Property. The cut lines will be used to conduct a future induced polarity ("IP") survey on a number of copper-gold targets which were identified during previous drilling and geophysical work conducted by Bearclaw and its Partner.

Bearclaw is pleased to see the Axe Property continue to be advanced through the efforts of Xstrata and looks forward to additional exploration developments on the Property in the future.

This news release contains forward-looking statements. Known and unknown risks and uncertainties may cause actual events or results to differ materially from those expressed or implied by any such forward-looking statements.

Bearclaw Captial Corp. is a Canadian public mineral exploration company which was incorporated in British Columbia in 1999. The Company has several significant copper-gold-silver properties located in British Columbia.

On behalf of the Board

Scott M. Ross, President and Chief Executive Officer

Bearclaw Capital Corp.