Castillian Resources Corp.
TSX VENTURE : CT

Castillian Resources Corp.

March 06, 2007 08:00 ET

Castillian Announces Acquisition of 100% of Maximus Resources Ltd.'s Option/JV Rights to Acquire an Interest in the Las Aguilas Nickel Copper-PGM Property, Argentina From Marifil Mines Ltd.

TORONTO, ONTARIO--(CCNMatthews - March 6, 2007) - David Gower, President & CEO of Castillian Resources Corporation (Castillian) (TSX VENTURE:CT) announces that, subject to regulatory approval, Castillian has reached an agreement with Maximus Resources Ltd. (Maximus) whereby it will acquire 100% of Maximus's rights to acquire an interest (the Underlying Agreement) in the Las Aguillas Nickel-Copper-PGM Project from Marifil Mines Ltd. (Marifil) (TSX VENTURE:MFM). David Gower states: "This is an important acquisition for Castillian as it adds an additional advanced nickel sulfide exploration project within a highly prospective belt-scale property to the company's project portfolio. The property is in an excellent mining jurisdiction with good access which will allow work to proceed efficiently. Advanced nickel sulphide properties such as Las Aguilas are rare in the current market."

The Las Aguilas project is located in San Luis Province, Argentina, 250 km east of Mendoza. It has good infrastructure, being 40 km by paved road from the city of San Luis (population 200,000). Mining is an important contributor to the local economy in San Luis Province. The project covers a large land position which includes the prospective mafic/ultramafic rocks along an 80 km long belt. Previous work has outlined a near-surface resource of 2,200,000 tonnes grading 0.52% nickel, 0.50% copper, 0.04% cobalt, primarily based on drilling between 19701984 by Fabricaciones Militaires (Argentina Government Survey). The resource estimate has not been verified by Castillian and predates the establishment of NI 43-101 standards and as such should not be relied upon by investors. It is provided as information for the purpose of illustrating that a significant quantity of disseminated to semi-massive nickel-copper-PGM rich sulfides are present and represent an excellent exploration target. Previous operators did not analyze for platinum group metals (PGM) and subsequently significant PGM values have been identified in re-analyses of drill core from the resource area. For example quarter core assays show an intercept in hole LA-5-3 of 42 meters grading 0.91 g/t Pt and 0.11 g/t Pd including 3 meters grading 9.1 g/t Pt and 0.45 g/t Pd. Drill hole LA-6-4 intersected 28 meters grading 0.74 g/t PGM.

In order to acquire Maximus's interest Castillian agrees to pay Maximus US$250,000 in cash on signing and issue 200,000 shares of Castillian. The initial cash payment includes reimbursement of funds Maximus has paid to Marifil with respect to obligations in the Underlying Agreement between Maximus and Marifil. In order acquire 100% of Maximus's interest Castillian will also pay Maximus US$100,000 and issue 200,000 shares to Maximus on each of the first and second anniversaries of the agreement.

Castillian agrees to acquire all of Maximus's rights and obligations in the Underlying Agreement with Marifil such that Castillian will have the option to earn up to a 65% interest in the Las Aguilas Project as follows:

Castillian may earn a 50% interest by incurring expenditures aggregating US$3,000,000 in accordance with the following schedule:

1. US$400,000 on or before December 11, 2007;

2. US$600,000 additional on or before December 11, 2008;

3. US$1,000,000 additional on or before December 11, 2009;

4. US$1,000,000 additional on or before December 11, 2010.

Castillian will have the right to accelerate the earn-in.

In addition the Underlying Agreement requires periodic payments totaling US$490,000 over four years to Marifil in accordance with the following schedule:

1. US$15,000 within 30 days for due diligence period (payment already made by Maximus);

2. US$100,000 on or before February 11, 2007 corresponding with the end of the due diligence period (payment already made by Maximus);

3. US$125,000 on or before December 11, 2007;

4. US$125,000 on or before December 11, 2008;

5. US$125,000 on or before December 11, 2009.

Marifil may elect to have 50% of its periodic payments paid by an equivalent value of common stock based on the average 10 day trading price prior to the date that payment is made.

Upon vesting its 50% interest Castillian will have the option to increase its interest to 60% by completing an additional US$2,000,000 in expenditures and delivering a feasibility study.

At Marifil's option Castillian may be granted the right to increase its interest in the Property to 65% by arranging financing for the Property. The financing would become a joint venture obligation and is subject to the parties agreeing to the terms of the financing including payback provisions. This option expires 60 days following Castillian's decision to bring the Property into commercial production and Marifil shall be entitled to $75,000 from the annual cash flow of the project until payback is achieved should they opt for this option.

Joel Hrominchuk, MSc, P.Geo., Exploration Manager for Castillian has reviewed the project, including an on-site review and has verified the technical information included in 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 62.8 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 also owns the Kagera Project which comprises over 1600 square kilometers in the highly mineralized Kabanga Nickel Belt in Tanzania and 100% rights to the Pederson deposit, an advanced gold project in Bolivia.

About Marifil Mines Limited

Marifil Mines Ltd. is a Canadian mineral exploration company listed on the TSX Venture Exchange under the symbol "MFM". For further information regarding Marifil Mines Ltd., please refer to the Company's filings available on SEDAR (Http://www.sedar.com) or at Marifil's Website (Http://www.marifilmines.com.)

Statements in this release that are not historical facts are "forward-looking statements" within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Readers are cautioned that such statements are not guarantees of future performance and that actual developments or results may vary materially from those in these "forward-looking statements".

To view a map of the Las Aguilas Project Area, please visit the following website: http://www.ccnmatthews.com/docs/castmap0306.jpg

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

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