Castillian Resources Corp.
TSX VENTURE : CT

Castillian Resources Corp.

December 21, 2011 18:59 ET

Castillian Closes First Tranche of Non-Brokered Private Placement Financing

TORONTO, ONTARIO--(Marketwire - Dec. 21, 2011) -

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Castillian Resources Corp. (TSX VENTURE:CT) ("Castillian" or the "Company") is pleased to announce that it has completed the first tranche of its previously-announced non-brokered private placement financing by issuing 10,255,455 flow-through common shares (the "Flow-Through Shares") at a price of $0.11 per Flow-Through Share and 8,768,727 units ("Units") at a price of $0.11 per Unit, for aggregate gross proceeds of $2,092,660.

Each Unit consists of one common share of the Company (a "Unit Share") and one-half of one common share purchase warrant (a "Warrant"). Each whole Warrant entitles 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 date hereof.

In connection with the closing of the first tranche of the financing, the Company paid cash finders' fees totaling $19,800.

The Flow-Through Shares, Unit Shares and Warrants are subject to a four month hold period that expires on April 22, 2012.

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.

The closing of the second tranche of the financing is expected in the coming days.

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 of the financing and the use of proceeds of the financing. 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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