Castillian Resources Corp.
TSX VENTURE : CT

Castillian Resources Corp.

September 14, 2011 07:00 ET

Castillian Intersects 4.09 g Au/t Over 29.3 Metres in Mine Zone Extension at Hope Brook, Newfoundland

Drilling Confirms Extensive High Grade Mineralization Below Mine Workings

TORONTO, ONTARIO--(Marketwire - Sept. 14, 2011) - Castillian Resources Corp. ("Castillian" or the "Company") (TSX VENTURE:CT) is pleased to report results for two diamond drill holes that tested the downdip and along strike extension of the Mine Zone and Hanging Wall Zones at its Hope Brook gold property, Newfoundland. Significant results are given in Table 1 below.

Table 1: Summary of Drilling Results, Hope Brook Gold Project

Hole(#) From (m) To (m) Core Length (m) True Width (m) Gold (g/t) Copper (%) Zone
Mine Zone/Hanging Wall
HB11-044 452.70 456.40 3.70 2.8 0.77 tr HZ
488.40 490.60 2.20 1.7 2.54 0.96 MZ
HB11-046 470.90 472.90 2.00 1.5 0.84 0.12 HZ
514.70 544.00 29.30 22.0 4.05 tr MZ
incl. 522.70 536.20 13.50 10.1 6.91 tr MZ
Note MZ = Main Zone, HZ = Hanging Wall Zone

The intersection in hole HB11-046 is approximately 120 meters below the 4800 level, the deepest level in the old mine (approximately 340m below surface) and is 360 metres along strike to the northeast from previously reported hole11-036W that intersected 3.02g Au/t and 0.85% Cu over 7.3m (Press Release August 15, 2011).

"Deeper drilling on the Mine Zone Extension continues to confirm high grade mineralization in an extensive area below and southwest of the Hope Brook mine workings. Borehole geophysical surveys indicate continuity of the mineralization between the wide spaced intersections in this area of the deposit. A third drill is being contracted to accelerate drilling on these deeper targets where there is excellent potential to outline a significant mineral resource commented." Dr. Bill Pearson, P.Geo., President & CEO. "In addition we are continuing to aggressively evaluate potential bulk mineable near surface mineralization. We are expanding the drilling program on the major target area immediately south of the open pit. Drilling with the track drill on the Pit Zone target will proceed further to the southwest, beyond the 500m strike length already outlined. Recently completed induced polarization surveys (IP) indicate the geophysical anomaly associated with the mineralization continues up to 800m to the southwest. IP is being used to optimize the drill targeting in this area."

Locations of pierce points for new and previously reported drill holes are shown on vertical longitudinal sections in Figures 1 and 2. The pierce point for Hole HB11-46 (Figure 2) shows increased grade and thickness relative to the historical drill hole CW-094 which occurs up dip and along strike to the northeast. Drill hole CW-094 intersected 3.26 g Au/t over 16.4m and together these holes provide evidence of a thick and high grade zone opening to the southwest and at depth in this area. Further drilling is planned to delineate this area.

Hole HB11-044 was drilled approximately 100m below the south limit of the 4800m level (approximately 340 m below surface). The silicified zone in this hole is disrupted by mafic dykes hence the result of 2.54 g Au/t and 0.96% Cu over 1.7m is narrower than surrounding holes. As previously reported (see Press Release of August 15, 2011) these dykes occur randomly throughout the mineralized silicified zones at Hope Brook but only locally disrupt the mineralization. Unfortunately when they are intersected at the mineralized zone the holes do not represent the full width of the zone as part is displaced by the younger dikes. Holes in which dykes were intersected are shown on the longitudinal sections in Figures 1 and 2.

Borehole resistivity and induced polarization surveys have been completed on eleven holes from the current drilling campaign, extending the vertical range of measurements down to approximately 650 meters in the area of HB11-046. The results suggest that conductivity associated with the high grade mineralization in Hole HB11-023 can be traced a distance of more than 200 m from this hole.

In addition, historic deep hole CE-239 which is about 400m vertically below and 200m southwest of the intersection in Hole HB11-046 was also re-entered and extended 278m as HB11-051 to provide a geophysical platform for the borehole survey to be read from a significant depth below the new drill holes. The borehole resistivity measurements from CE-239 indicate that a large wedge of highly resistive, likely silicified rocks such as characterizes the mineralized zone, is located below and southwest of the gold intersection in HB11-046.

Since the start of drilling in September 2010, a total of 57 holes totaling 15,425 metres of a planned 25,000 metres have been completed at Hope Brook on all target zones.

Table 2: Collar Coordinates and Orientations of Drill Holes Testing Mine Zone, Hope Brook Gold Project, September 13, 2011

Hole UTM Mine Grid Elev.(i) Length Az(ii) Dip(ii)
Easting Northing Easting Northing
HB11-044 418191 5287568 11570 4779 5156 598.9 325 -60
HB11-046 418386 5287692 11800 4770 5159 754.00 325 -66
(i) Elevations have 5000 m added to actual measurements to conform to historical practice
(ii) All measurements are in metres except Azimuth (Az) and Dip which are measured in degrees.

SAMPLING, ASSAYING AND QUALITY CONTROL

The core (NQ (47.6 mm), BQTK (40.6mm) and BQ (36.4mm) is logged, photographed and then sawn in half with one-half sent to the laboratory for analysis and the other half retained and stored on site. All core samples were prepared and assayed at ALS Chemex with sample preparation done in Sudbury and analytical work in Vancouver. All locations of ALS Chemex are ISO 9001:2000 certified. The entire sample received is weighed and crushed to ≥ 70% passing 2mm (10 mesh); a sample split of up to 1000g is then pulverized to ≥ 85% passing 75 microns (200 mesh) to produce a homogenized sample. A 50g aliquot is used for fire assaying with an atomic absorption (AA) finish to determine gold concentration. Copper is initially analyzed using a four acid digestion ICP (inductively coupled plasma-atomic emission spectrometry) method. Any results for copper greater than 10,000 ppm are assayed further by a four acid digestion and "ore grade" ICP method. Internal quality control includes the use of blanks, duplicates and standards in every batch of samples. The Company also conducts internal check assaying using certified external reference standards and blanks. Regular external check assays are performed at a second certified Canadian commercial laboratory. Castillian also inserts external reference standards as well as blank granite drill core in each sample batch as a further external check.

Mr. Dan Lee, P.Geo., Chief Geologist and Project Manager for Hope Brook, and Dr. Bill Pearson, P.Geo., President and CEO of Castillian, both of whom are qualified persons as defined by National Instrument 43-101 ("NI 43-101"), have reviewed and approved the scientific and technical content of this press release. All geophysical survey work and interpretation is supervised by Dr. Chris Hale, P.Geo., Chief Geophysicist for Castillian and a qualified person as defined by NI 43-101.

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 also recently announced the start of exploration 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 diamond drill program at the Hope Brook project and its anticipated results, the exploration program and anticipating timing and costs with respect to the exploration program and the completion of a NI 43-101 compliant resource estimate, future financial or operating performance of the Company, its subsidiaries and its projects, statements regarding exploration prospects, the identification of mineral reserves and resources, exploration expenditures, timing of future exploration, requirements for additional capital,. 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.

To view the figures associated with this press release, please visit the following links:

http://media3.marketwire.com/docs/727923_fig_1.pdf

http://media3.marketwire.com/docs/727923_fig_2.pdf

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