Castle Resources Inc.
TSX VENTURE : CRI

October 16, 2009 09:27 ET

Castle Resources Closes Private Placement

- Phase II drilling underway at the Elmtree Gold Project; 2000 metre program to test South Gold Zone and Discovery Zone

TORONTO, ONTARIO - Castle Resources Limited (TSX VENTURE:CRI) ("Castle" or the "Company") is pleased to announce that it has a closed a $480,440 financing pursuant to which it has issued 4,003,666 units at a price of $0.12 per unit. Each unit is comprised of one common share and one-half of one share purchase warrant (each whole share purchase warrant, a "Warrant"). Each Warrant is exercisable for one common share at a price of $0.20 at any time prior to April 15, 2011. Two directors and an officer of the Company purchased an aggregate of 546,666 units for an aggregate purchase price of approximately $65,600.

In connection with the financing, the Company agreed to pay eligible persons (the "Finders") a cash fee of 6% of the gross proceeds raised through each Finder under the financing and also to issue compensation warrants (the "Compensation Warrants") equal to up to 10% of the total number of units issued through each Finder under the financing. On closing, Castle paid an aggregate amount of $16,766 in cash fees to the Finders and issued an aggregate of 232,866 Compensation Warrants to the Finders.

Each Compensation Warrant entitles the holder to purchase one additional unit for a period of 18 months from issuance at an exercise price of $0.12 per unit. Each unit underlying the Compensation Warrant is comprised of one common share and one-half of one share purchase warrant. Each whole warrant underlying the compensation units is exercisable for one common share at a price of $0.20 at any time prior to April 15, 2011.

All securities issued in connection with the financing are subject to a four-month statutory hold period. The financing remains subject to receipt of applicable regulatory approvals including final approval of the TSX Venture Exchange. Proceeds from this financing will be used for general working capital purposes of Castle.

Castle is also pleased to announce that drilling is underway at its Elmtree Gold Project near Bathurst, N.B. The 2,000 metre Phase II program will focus on the unexplored portions of the South Gold Zone and Discovery Zone to test for deeper intersections surrounding known mineralization. At least one hole will also test a prospective target on the newly optioned Murphy Claims, which are contiguous to the east of the Elmtree Gold Project (see Sept. 15, 2009 press release).

Castle's Phase 1 program from August and September of this year was focused on the high-grade West Gabbro Zone where 3000 metres were drilled to test the strike and depth around known mineralization; samples are currently being assayed and analysis of results is underway. Management plans to conduct a preliminary economic assessment later this year of the high grade West Gabbro Zone.

Brad Leonard, P. Geo., Castle's Exploration Manager, is the Qualified Person responsible for the scientific and technical work discussed as defined under National Instrument 43-101 and has reviewed this press release.

About Castle Resources

Castle Resources Inc. is a Toronto-based junior mineral exploration company focusing on high-quality, advanced exploration gold projects. Management's goal is to quickly advance the new Elmtree option and to seek additional opportunities to continue to add value for shareholders. For more information please visit the Castle Resources' website at www.castleresources.com

Disclaimer

Certain statements contained in this news release may contain forward-looking information within the meaning of Canadian securities laws. Such forward-looking information is identified by words such as "estimates", "intends", "expects", "believes", "may", "will" and include, without limitation, statements regarding the company's plan of business operations (including plans for progressing assets), estimates regarding mineral resources, projections regarding mineralization and projected expenditures. There can be no assurance that such statements will prove to be accurate; actual results and future events could differ materially from such statements. Factors that could cause actual results to differ materially include, among others, metal prices, risks inherent in the mining industry, financing risks, labour risks, uncertainty of mineral resource estimates, equipment and supply risks, title disputes, regulatory risks and environmental concerns. Most of these factors are outside the control of the company. Investors are cautioned not to put undue reliance on forward-looking information. Except as otherwise required by applicable securities statutes or regulation, the company expressly disclaims any intent or obligation to update publicly forward-looking information, whether as a result of new information, future events or otherwise.

Neither the 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.

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