Castillian Resources Corp.
TSX VENTURE : CT

Castillian Resources Corp.

May 12, 2008 07:30 ET

Castillian Discovers High Grade Nickel-Copper Gossan with 6.71% Copper and 2.21% Nickel in a Grab Sample;

Completes 3,569 line kilometre helicopter- VTEM electromagnetic (EM) and magnetic survey on the San Luis property, Argentina

TORONTO, ONTARIO--(Marketwire - May 12, 2008) - Castillian Resources Corporation (TSX VENTURE:CT) has received assays from a single sample of a high grade gossan occurrence located approximately 6.5 kilometres north northeast of the Las Aguilas Deposits where Castillian is presently drilling to expand the deposits on the San Luis project, Argentina (Figure 1).

A grab sample taken from outcrop of the new gossan, called EF-2 contained 6.71% copper, 2.21% nickel and 0.21% cobalt. The sample was collected by a prospector during recent airborne follow up and was the only sample collected at the site during the initial traverse. The mineralization is weathered and includes malachite, azurite and annabergite also called Ni bloom, and iron oxides (hematite, magnetite and goethite) after massive sulphides. The surface exposure of this occurrence measures 50 metres long and approximately 20 metres wide before it is covered by overburden. The mineralization occurs within a pyroxenitic intrusive rock which is a key host rock for the known nickel mineralization in the area. A single sample of this type is not typically representative of the average grade of the mineralized zone and systematic sampling of this gossan is in progress along with a moving loop ground EM survey in preparation for drilling. There is a series of high priority VTEM (Versatile Time-Domain Electro-Magnetic with derived B-field) EM conductors from the just completed airborne survey that extend north from this showing for approximately 400 meters (Figure 2). Drilling is expected to commence within the next month, upon completion of the ground EM survey and acquisition of applicable permits. EF-2 is located 700 metres north of the El Fierro gossan and is hosted within the same mafic and ultramafic intrusion. The El Fierro occurrence has been trenched in the past and outcrops as a 70 metre long gossan in pyroxenite and gabbro with a best analytical result of 0.5% Ni and 0.22% Cu from the highly weathered surface material. Gossan is developed through the oxidation of sulphide minerals as a result of weathering at the bedrock surface.

Danielle Giovenazzo, Castillian's exploration manager, states "The San Luis trend has tremendous potential for additional discoveries as is evidenced by the early results of our airborne follow up. Several nickel - copper occurrences with associated PGE's within pyroxenites and peridotites have now been identified, of which only Las Aguilas has been systematically drilled and most have never been drill tested. The high grade of the initial sample from the EF-2 gossan together with the extensive surface expression of the zone and the association with high priority VTEM conductors extending 400 meters from the zone make this a very strong target. Given that there is at least one other mineralized zone within this intrusive body, the El Fierro intrusion will be a focus for our ongoing exploration program."

Castillian has completed a 3,569 line kilometre VTEM airborne electromagnetic (EM) and magnetic survey on its San Luis and Las Aguilas projects, Argentina (Figure 3). The survey was flown by Geotech Airborne Limited of South America employing the Versatile Time-Domain Electromagnetic (VTEM) system including derived B-field. Several highly conductive multi-line anomalies were identified by the survey which was completed last week. Recent prospecting and ground follow-up of EM anomalies based on the preliminary interpretations is ongoing and several new gossan and sulphide occurrences have been identified for which analytical results are still pending.

The VTEM survey area covered portions of the San Luis trend of mafic and ultramafic intrusions that host the Las Aguilas East and West Ni-Cu-PGE deposits and several other Ni-Cu-PGE sulphide occurrences and gossans including Virorco, Las Higueras and El Fierro (Figure 3). These targets are priorities for follow up ground surveys and diamond drilling as part of the 2008 exploration program. The survey also covered part of the San Francisco Belt where regional geochemical sampling of stream sediments have highlighted numerous pronounced nickel-copper and Palladium anomalies associated with mafic-ultramafic rocks in the northern part of the belt. The San Francisco belt is located on the western part of the property and the mafic-ultramafic rocks occur as a sub parallel trend to the San Luis belt.

Castillian holds an interest in the Projects through an option joint venture with Marifil Mines Limited (TSX VENTURE:MFM).

Quality Control

The data collected from the airborne survey was monitored during collection and processed by Isabelle Dumas, P. Ing., M.Sc.A. a qualified person as defined by National Instrument 43-101. Danielle Giovenazzo Ph.D, P. Geo has reviewed the scientific and technical information in this press release. Dr. Giovenazzo is a qualified person as defined by National Instrument 43-101.

Sample preparation is completed at the ALS-Chemex lab preparation lab in Mendoza, Argentina and assayed at ALS-Chemex lab in Vancouver, Canada, using multi-acid digest/ ICP-AES for the base metals and A.A. when Ni and Cu are over the detection limits. Platinum, palladium and gold values are determined by 30 gram fire assay with ICP-AES finish. A blank sample is inserted every 40th sample and standard samples representing a range of grades are inserted at intervals of 1 in 20 to 30 samples.

About Castillan Resources

Castillian Resources Corp. is a Canadian mineral exploration company listed on the TSX Venture Exchange under the symbol "CT" with approximately 88 million shares issued and outstanding. Castillian has a 100% interest in the Kagera Project which comprises over 1350 square kilometres in the highly mineralized Kabanga Nickel Belt in Tanzania, an option to purchase a 100% interest in the approximately 153,000 ha Mangabal nickel-copper project in Brazil from Xstrata Nickel. The company is earning an interest in the Las Aguilas Nickel-Copper-PGM Project in Argentina from Marifil Mines Ltd. and has 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, including, but not limited to, mineralization projections and similarities drawn to other deposits, estimates regarding the timing for resource modeling and other exploration programs, future drill programs and the preparation of a 43-101 compliant technical reports. 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 the Figure 1: Location Map, San Luis Project, please visit the following link: http://media3.marketwire.com/docs/castfig1.pdf.

To view the Figure 2: San Luis Project priority VTEM anomalies on Regional Geology map, please visit the following link: http://media3.marketwire.com/docs/castfig2.pdf.

To view the Figure 3: Map showing the outline of the VTEM Airborne Survey and location map, please visit the following link: http://media3.marketwire.com/docs/castfig3.pdf.

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