Castillian Resources Corp.

Castillian Resources Corp.

May 08, 2008 07:30 ET

Castillian Intersects Near-Surface Nickel Sulphide Mineralization at MS-1 Target, Mangabal Project, Brazil

TORONTO, ONTARIO--(Marketwire - May 8, 2008) - Castillian Resources Corporation (Castillian) (TSX VENTURE:CT) has intersected significant nickel sulphide mineralization on the MS-1 target at the Mangabal project in Brazil (Figures 1 to 4). The MS-1 target is located approximately 1,200 metres to the southwest of the Mangabal South Deposit, along the same structural trend. The best intersections to date include drill hole CRM1-08-005 which intersected 49.35 metres grading 0.47% nickel and 0.40% copper (from 67.70m), including 3.5 metres grading 0.84% nickel and 0.47% copper, and drill hole CRM1-08-004 which intersected 62.65 metres grading 0.36% nickel and 0.17% copper (from 49.00m), including 7.65 metres grading 0.52% nickel and 0.24% copper. The vertical depth to the top of the mineralized zone in the area of the drilling is only approximately 40 meters from surface (Figure 4). Assays have been received for five of seven drill holes completed on the MS-1 target to date and these are summarized in Table 1 below.

Helio Diniz, Chief Operating Officer of Castillian states, "the mineralization is very similar in character to the disseminated mineralization associated with the Mangabal South Deposit. At this point we have not completed enough drilling to determine the extent of the mineralized zone at MS-1 or whether there is potential for higher grade zones such as we observe in the Managabal South Deposit. We view intersections of wide intervals of magmatic nickel sulphide mineralization as a very encouraging early result and additional drilling will be required to fully understand the potential of this target. We believe that these results also confirm that the Mangabal intrusion has excellent potential to host numerous sulphide deposits."

The MS-1 target is one of a number of targets that Castillian is evaluating in the Mangabal South area (Figure 1). The target is characterized by a pronounced soil geochemical anomaly and a weak VTEM conductor and associated magnetic anomaly that is parallel to the structural trend of the Mangabal South Deposit. Disseminated nickel sulphide mineralization was first intersected in drilling on two sections 50 metres apart by the state company Metago in the 1970s, however the extent of the mineralization was not determined at that time and drilling appears to have been oblique to the strike of the zone (Figure 3). Drilling by Castillian suggests the zone has a shallow plunging to sub-horizontal orientation with the result that mineralization remains near-surface along strike in the area drilled to date.

Drilling on the project continues. In addition to the regional drilling, the resource estimate for the Mangabal South deposit is ongoing and will be completed by AMEC through their office in Belo Horizonte. Castillian expects a resource estimate to be completed by the end of Q2/08.

Table 1: Summary of assays results received to date for MS-1 target drilling.

Azi- Inter-
Hole No UTM-E UTM-N muth Angle From To cept Ni Cu Co
(m) (m) (m) (m) (m) % % %

CRM1-08-001 575685 8195770 315 -45 0 13 13 0.20 0.05 0.02
and 89.35 99.8 10.45 0.27 0.11 0.02
incl 95.75 99.8 4.05 0.35 0.18 0.02
CRM1-08-002 575720 8195780 315 -45 8.00 25.15 17.15 0.36 0.09 0.02
and 75.70 115.50 39.80 0.35 0.27 0.02
incl 80.05 89.30 9.25 0.45 0.40 0.02
and 123.00 137.50 14.50 0.31 0.10 0.02
CRM1-08-003 575670 8195735 315 -45 103.65 127.05 23.40 0.13 0.04 0.02
115.00 116.80 1.80 0.26 0.10 0.02
CRM1-08-004 575704 8195799 315 -45 9.00 18.00 9.00 0.39 0.14 0.02
and 49.00 111.65 62.65 0.36 0.17 0.01
incl 74.35 82.00 7.65 0.52 0.24 0.02
CRM1-08-005 575738 8195762 315 -45 44.20 52.60 8.40 0.23 0.14 0.01
and 67.70 78.75 11.05 0.39 0.33 0.01
and 83.20 132.55 49.35 0.47 0.40 0.02
incl 90.25 98.00 7.75 0.55 0.37 0.02
incl 111.20 114.70 3.50 0.84 0.47 0.02

There is insufficient data to accurately estimate true widths at this time.

Quality Control

The company employs a QA/QC protocol on all aspects of the analytical procedures. Core samples are sawn and one half of the NQ core is restored to the core box for future reference and one half of the core is sent for analysis. Samples are taken in approx. 1.0-metre intervals or less. Sample preparation is completed at the SGS Lakefield preparation lab in Goiania, Brazil and assayed at ALS-Chemex lab in Vancouver, Canada or SGS Lakefield Lab in Belo Horizonte, Brazil using multi-acid digest/ ICP-AES and AAS techniques. A blank sample is inserted every 40th sample and standard samples representing a range of grades are inserted at intervals of 1 in 20 samples. Five percent of pulps are re-analyzed at SGS Laboratory Services in Belo Horizonte, Brazil or ALS Chemex Lab in Vancouver, Canada. This is the same QA/QC protocol that was employed by Falconbridge (now Xstrata) in operating the project.

The Quality Control and all aspects of the exploration program is supervised by Castillian Exploration Manager, Joel Hrominchuk, P.Geo., who is a Qualified Person as defined under National Instrument 43-101. Mr. Hrominchuk has reviewed the scientific and technical information in this press release.

David Gower, P.Geo., President and CEO of Castillian and a Qualified Person as defined by NI 43-101 has reviewed the content of this release.

About Castillian Resources

Castillian Resources Corp. is a Canadian mineral exploration company listed on the TSX Venture Exchange under the symbol "CT" with approximately 87 million shares issued and outstanding. Castillian has 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 a 100% interest in the Kagera Project which comprises over 1,600 square kilometers in the highly mineralized Kabanga Nickel Belt in Tanzania and 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, the potential of the property,estimates regarding the timing for resource modeling and the preparation of a 43-101 compliant technical report and the impact of additional drills on the progress of the program. 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 Figure 1: Map showing the location of the MS-1 target and other regional targets in the Mangabal South area to be drill tested as part of the ongoing drill campaign, please visit:

To view Figure 2: Location of the MS-1 target relative to the Mangabal South Deposit, please visit:

To view Figure 3: Drill hole locations and summary of results of the Metago drill holes completed in the 1970s, please visit:

To view Figure 4: Section showing outline of mineralized zone at MS-1. Note the depth to the top of the zone is approximately 40 metres from surface and drilling along strike indicates it persists at shallow depths due to a shallow to sub-horizontal orientation for the zone, please visit:

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

Contact Information