Castle Gold Corporation

Castle Gold Corporation

April 25, 2008 16:45 ET

Castle Gold Announces a Dispute Concerning the Bridge Project and the Lupita Project Located in Guatemala

VANCOUVER, BRITISH COLUMBIA--(Marketwire - April 25, 2008) - Castle Gold Corporation ("Castle Gold" or the "Company") (TSX VENTURE:CSG) announces the Company has received notice from Exploraciones Mineras de Centro America, S.A., the joint venture partner in Guatemala (the "Partner") electing to terminate the joint venture agreements (the "Bridge and Lupita Agreements") regarding the Bridge and the Lupita Projects. The notice claims that the Company has not met its exploration expenditure and payment obligations within the schedule contained in the Bridge and Lupita Agreements. The Company is disputing this notice as it had received from the Partner consent to an extension to the schedule of exploration expenditures and payment obligations. The Company has elected to pursue dispute resolution procedures as provided for in the Agreements and is suspending further work on these projects pending a resolution to the matter. The Bridge and Lupita Projects are early stage exploration projects in which the Company may earn an interest in by making exploration expenditures to the Partner. The Bridge Project agreement requires Castle Gold to make expenditures on exploration of US$500,000.00 by September 31, 2007 to earn a 51% interest in the Project. The Lupita Project agreement requires Castle Gold to make expenditures on exploration of US$850,000.00 by September 31, 2007 to earn a 51% interest in the Project. As reported in the Management Discussion and Analysis for the period ended September 30, 2007, as of September 30, 2007 Castle Gold had successfully negotiated with the Partner to extend the expiry date for completing the expenditures to September 30, 2008.

The Bridge and Lupita Agreements are unrelated to the to the joint venture with the Partner concerning the El Sastre Mine, a producing gold mine, the El Sastre deposit and the El Arenal deposit all of which are part of the El Sastre concession. The Bridge and Lupita Projects are also separate and distinct from the El Sastre concession and do not form part of the El Sastre concession. The Company does not feel the dispute is material either to the Company or its operations. However, the company will pursue a satisfactory resolution to this matter.

Castle Gold will release further information as it becomes available.

Castle Gold Corporation is a growth focused gold producer currently expanding gold production within the America's. Castle Gold owns a 100% interest in the El Castillo gold mine in Mexico and a 50% interest in the El Sastre gold mine in Guatemala. Castle Gold is also advancing exploration and development work at its La Fortuna gold project in Mexico and at its El Sastre, Bridge and Lupita Projects in Guatemala.


Christopher Babcock, President and Chief Executive Officer

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this news release.

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