Castillian Resources Corp.
TSX VENTURE : CT

Castillian Resources Corp.

December 16, 2011 17:17 ET

Castillian Announces Amendment to Terms of Non-Brokered Private Placement

TORONTO, ONTARIO--(Marketwire - Dec. 16, 2011) -

NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES

Castillian Resources Corp. ("Castillian" or the "Company") (TSX VENTURE:CT) announces that the terms of the non-brokered private placement announced on November 29, 2011, and amended on December 8, 2011, have been amended to change the exercise price of the Warrants forming part of the Units (as each such term is defined below) from $0.14 to $0.12.

The non-brokered private placement will now consist of flow-through common shares (the "Flow-Through Shares") of the Company at a price of $0.11 per Flow-Through Share and units (the "Units") of the Company at a price of $0.11 per Unit, for aggregate gross proceeds of up to $3,000,000 (the "Offering"). Each Unit will consist of one common share of the Company and one-half of one common share purchase warrant (a "Warrant"). Each whole Warrant will entitle the holder thereof to acquire one common share of the Company at a price of $0.12 for a period of 18 months from the closing date of the Offering.

In connection with the Offering, the Company will pay a cash finders' fee equal to 6.0% of the gross proceeds raised under the Offering.

The Closing Date of the Offering is expected to occur on or about December 21, 2011. All securities issued will be subject to a four month hold period. The Offering is subject to a number of conditions, including, without limitation, receipt of all regulatory approvals.

The net proceeds of the sale of the Flow-Through Shares will be used by the Company to incur Canadian exploration expenditures (as defined in the Income Tax Act (Canada)), which will be renounced for the 2011 taxation year. The net proceeds of the sale of the Units will be used for exploration expenditures on the Company's Hope Brook and Canadian Creek projects and for general corporate purposes.

ABOUT CASTILLIAN

Castillian Resources Corp. is a Canadian mineral exploration company listed on the TSX Venture Exchange under the symbol "CT" which has gold and base metal properties in Canada and South America. Castillian's flag ship property is the Hope Brook Gold Project located in southwestern Newfoundland where it is carrying out a 25,000 metre diamond drill program. Castillian has outlined an extensive new Gold-in-Soil anomaly trend on its Canadian Creek property in the Yukon that is adjacent to Kaminak's Sugar Gold-in-Soil trend.

Cautionary Note Regarding Forward-looking Information

This press release contains "forward-looking information" within the meaning of applicable Canadian securities legislation. Forward-looking information includes, but is not limited to, statements with respect to the terms and closing date of the Offering and the use of proceeds of the Offering. Generally, forward-looking information can be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or state that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved". Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking information, including but not limited to: general business, economic, competitive, political and social uncertainties; the actual results of current exploration activities; future prices of mineral prices; failure of plant, equipment or processes to operate as anticipated; accidents, labour disputes and shortages and other risks of the mining industry. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking information. The Company does not undertake to update any forward-looking information, except in accordance with applicable securities laws.

NEITHER 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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