Castillian Resources Corp.
TSX VENTURE : CT

Castillian Resources Corp.

September 04, 2007 09:06 ET

Castillian Acquires Macaubas Project in Bahia, Brazil from Xstrata Copper

TORONTO, ONTARIO--(Marketwire - Sept. 4, 2007) - Castillian Resources Corporation (Castillian)(TSX VENTURE:CT) announces that Castillian has entered into a binding letter agreement whereby Xstrata Copper (through Xstrata Brasil Ltda.) has agreed to vend its 100% interest in the Macaubas Project in Brazil (see Figure 1) to Castillian Metais (a wholly owned subsidiary of Castillian) in exchange for reimbursement of certain fees and holding costs. Under the terms of the agreement Xstrata will retain a 2% NSR royalty. Xstrata will also maintain a back-in right to a 60% interest in any deposits on the Property that host at least 500,000 tonnes of copper or 1,000,000 ounces of gold, which back-in right shall be in effect until the date that is 90 days following the date on which the Board of Directors of Castillian provides written notice to Xstrata Brasil of its decision by to proceed to a full feasibility study on the Property. Xstrata must incur expenditures equal to 300% of Castillian's expenditures in order to complete their back-in. As part of this letter agreement Castillian and Xstrata will complete a definitive agreement by December 31, 2007.

The project was identified and explored by Falconbridge which incurred exploration expenditures of approximately $750,000 since 2000, to develop Iron Oxide Copper-Gold (IOCG) targets in the area. As part of the review by Xstrata Copper following the take over of Falconbridge, the project was determined not to be a fit with Xstrata Copper's strategic business plan which led to the opportunity for Castillian's involvement. According to David Gower, President and CEO of Castillian, "The project has the proper geological attributes for an IOCG environment and has seen significant, credible work done by the team at Falconbridge to advance to the point where drill targets have been identified. This agreement provides Castillian the opportunity to take advantage of the significant work already completed and provides Xstrata with the ability to take a significant position in the project at a future date should results warrant." Under the terms of the agreement Castillian will be in a position to drill selected targets in 2007.

The Macaubas Project lies within the Paramirim rift in Central North Brazil, centered about the town of Ibiajara, Bahia State. The Project comprises a large land package covering an area of some 17,000 hectares in 13 concessions (see Figure 1 & 2) in an area that is well serviced by roads. Historical exploration has defined a structurally-controlled magnetic-IP anomaly, which outcrops in the form of copper oxide-bearing magnetite-rich quartz veins. Several Cu-Au "garimpos" (artisinal gold mines) are clustered along this NNW-trending corridor that extends along 15km of strike-length by 8km wide. Within this highly prospective trend, noteworthy is the Baixa Grande Target (see Figure 3) that is defined by a sub-circular Cu soil anomaly juxtaposed on a bull's-eyes magnetic anomaly that is 3,500 meters in diameter, were numerous rock chip samples returned significant Cu-Au grades (e.g., 3.4% Cu and 10.87 g/t Au; 4.3% Cu and 1.61 g/t Au).

The Macaubas district is located in the south-eastern portion of the San Francisco Craton, and bears a similar tectonic setting to other world-class IOCG districts such as Carajas and the Gawler Craton, with mineralization occurring at the contact between Archean crust and younger rift-related Proterozoic sequences, with multiple intrusions of oxidized magnetite-bearing granites. Field reconnaissance and prospecting clearly indicate the epigenetic nature of the mineralization that is hosted either by basement gneiss, graphite schist or mafic volcanic rocks. The structurally-controlled copper-gold mineralization is typically oxidized and sulfur-poor with magnetite-(hematite) associated with chalcopyrite, bornite and minor pyrite +/- gold similarly to other IOCG deposits worldwide.

Dr. Fernando Tallarico, P.Geo., Exploration Manager for Castillian Metais is a qualified person as defined by National Instrument 43-101 and has reviewed the scientific and technical content of this release.

About Castillian Resources

Castillian Resources Corp. is a Canadian mineral exploration company listed on the TSX Venture Exchange under the symbol "CT" with approximately 87.8 million shares issued and outstanding. Castillian is partnered with Xstrata Nickel to explore the approximately 155,000 ha Mangabal nickel-copper project in Brazil. The company has recently acquired the 17,000 ha Macaubus IOCG project in Brasil from Xstrata Copper. The company is earning an interest in the Las Aguilas Nickel-Copper-PGM Project in Argentina from Marifil Mines Ltd. and has the right to purchase a 100% interest in the Kagera Project which comprises over 1,600 square kilometers in the highly mineralized Kabanga Nickel Belt in Tanzania and rights to acquire 90% of the Pederson deposit, an advanced gold exploration project in Bolivia which is currently under force majeure.

Forward Looking Statements

This document may contain or refer to forward looking information based on current expectations. Forward-looking statements are subject to significant risks and uncertainties, and other factors that could cause actual results to differ materially from expected results. These forward-looking statements are made as of the date hereof and we assume no responsibility to update or revise them to reflect new events or circumstances.

To view maps of the Macaubas Project and the Baixa Grande Target, please click on the link below:

http://www.ccnmatthews.com/docs/ct904.pdf

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

Contact Information