Castillian Resources Corp.
TSX VENTURE : CT
OTCQX : CTIIF

Castillian Resources Corp.

May 29, 2012 07:00 ET

Castillian Begins Metallurgical Testing at Hope Brook

Part of Technical Work to Precede Preliminary Economic Assessment

TORONTO, ONTARIO--(Marketwire - May 29, 2012) - Castillian Resources Corp. ("Castillian" or the "Company") (TSX VENTURE:CT)(OTCQX:CTIIF) is pleased to announce that it has commenced a metallurgical testing program on samples taken from the Hope Brook Gold Project, located in southwestern Newfoundland.

The metallurgical testing program is a preliminary engineering level study designed to support a National Instrument 43-101 ("NI 43-101") Preliminary Economic Assessment ("PEA") planned by the Company. The metallurgical testing program is being carried out by ALS Metallurgy in Kamloops, British Columbia, under the guidance of Mr. Lyn Jones, P.Eng., of AGP Mining Consultants.

Castillian plans to test a minimum of 200 kilograms of split core and 50 kilograms of tailings, potentially establishing the optimal processing route, basic engineering parameters, reagent consumptions and potential opportunities for additional recovery and cost savings.

Dr. Bill Pearson, P.Geo., President & CEO of Castillian, commented: "These tests are an important first step to provide the foundation technical work for a PEA. In particular, the study will help identify potential opportunities for additional recovery in the mineral deposit compared to historical results and establish potential recovery in the tailings."

The NI 43-101-compliant mineral resources on the Company's Hope Brook Gold Project, as reported in the press release issued by Castillian on February 14, 2012, are estimated to contain 290,000 indicated ounces of gold and 740,000 inferred ounces of gold as set out in Table 1 below. There is a possible copper credit that is not included in the mineral resource estimate due to missing copper assays for the historical drill holes. An independent technical report entitled "Mineral Resource Estimate Technical Report, Hope Brook Gold Project, Newfoundland and Labrador, Canada", dated February 14, 2012, prepared for Castillian by AGP Mining Consultants Inc. and Mercator Geological Services Limited is available under the Company's profile on SEDAR at www.sedar.com and on the Company's website at www.castillian.ca.

Table 1: Hope Brook Project Mineral Resource Summary as at February 14, 2012

Table 1. NI 43-101 Mineral Resource Estimate, Hope Brook Gold Project as at February 14, 2012
Within constraining* shell
@ 0.50 g Au/t cutoff
Below constraining* shell
@ 2.0 g Au/t cutoff
Total
Category Tonnes
(millions)
Gold
g/t
Gold
(k Oz)
Tonnes
(millions)
Gold
(g/t)
Gold
(k Oz)
Tonnes
(millions)
Gold
g/t
Gold
(k Oz)
Indicated 4.0 1.11 140 1.5 3.04 150 5.5 1.65 290
Inferred 11.2 1.57 570 2.0 2.65 170 13.2 1.73 740
* Constraining shell incorporates essentially all of the remaining historic resources in the former Hope Brook mine in addition to new areas of resource as defined by Castillian, including the Pit Zone, Hanging Wall Zone and Mine Zone Extension.
** Mineral resources that are not mineral reserves do not have demonstrated economic viability. This estimate of mineral resources may be materially affected by environmental, permitting, legal, title, taxation, sociopolitical, marketing or other relevant issues.

Mr. Jones is a Senior Associate Process Metallurgist with 15 years of progressive experience in mineral processing and hydrometallurgy at the bench-scale, pilot plant, and process plant levels. He has extensive knowledge of metallurgical process flowsheet development and has been involved in many metallurgical projects globally. Mr. Jones is an independent qualified person as defined by NI 43-101.

Castillian directors Messrs. Michel Hoffman, P.Eng., and Brian Penney, P.Eng., will serve as the technical oversight committee for the metallurgical testing program. Mr. Hoffman is a professional mining engineer with over 25 years of experience in mine operations, projects and engineering. Mr. Penney is a professional engineer with 15 years experience. He graduated from the Technical University of Nova Scotia with a degree in metallurgy.

QUALIFIED PERSONS

Dr. Bill Pearson, P.Geo., President and CEO of Castillian, and Mr. Lyn Jones, P.Eng, both of whom are qualified persons as defined by NI 43-101, have reviewed and approved the scientific and technical content of this press release.

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, which has 290,000 ounces of NI 43-101 compliant indicated mineral resources and 740,000 ounces of inferred mineral resources. Castillian has also 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 regarding the Company's expectations regarding the results of the metallurgical testing program, exploration prospects and timing of future exploration. 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.

Information Concerning Estimates of Indicated and Inferred Resources

This news release uses the terms "indicated resources" and "inferred resources". Castillian advises investors that although these terms are recognized and required by Canadian regulations (under NI 43-101), the U.S. Securities and Exchange Commission does not recognize them. Investors are cautioned not to assume that any part or all of the mineral deposits in these categories will ever be converted into mineral reserves. In addition, inferred resources have a great amount of uncertainty as to their existence, and economic and legal feasibility. It cannot be assumed that all or any part of an inferred mineral resource will ever be upgraded to a higher category. Under Canadian rules, estimates of inferred mineral resources may not form the basis of feasibility or pre-feasibility studies, or economic studies except for preliminary economic assessments as defined under NI 43-101. Investors are cautioned not to assume that part or all of an inferred resource exists, or is economically or legally mineable.

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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