Castillian Resources Corp.
TSX VENTURE : CT

Castillian Resources Corp.

May 30, 2011 07:00 ET

Castillian Nickel Spin Out Starts Diamond Drill Program

Kibaran Nickel Has Identified Two High Conductance Targets at its Tanzanian Project

TORONTO, ONTARIO--(Marketwire - May 30, 2011) - Castillian Resources Corp. ("Castillian" or the "Company") (TSX VENTURE:CT) is pleased to announce that Kibaran Nickel Limited an ASX listed company that trades under the symbol "KNL" ("Kibaran") has started a 3,000 metre drill program at its Kagera Nickel Project located in Tanzania. In October 2010, Castillian and Kibaran (formerly Kagera Nickel Limited) entered into an agreement whereby Kibaran acquired a 100% interest in the Kagera Nickel Project from Castillian (See Press Release dated October 28, 2010). Pursuant to this agreement, Castillian acquired 5,000,000 common shares of Kibaran, to be held in escrow, and 22,500,000 Kibaran performance shares to be converted into common shares of Kibaran pending receipt of certain positive drill results on the property.

The Kagera Nickel Project is located in western Tanzania. The key tenements are located approximately 10 kilometres northeast of Xstrata Nickel and Barrick Golds' Kabanga Nickel Deposit, one of the world's largest undeveloped high grade nickel sulphide deposit, which is currently undergoing feasibility studies. Total measured and indicated resources at Kabanga are reported at 37.4 million tonnes grading 2.59% nickel with an additional 16 million tonnes of inferred resources at 2.9% nickel (source: Xtrata Nickel website).

The 3,000 metre diamond drill program will initially focus on two highly prospective targets outlined by airborne and ground electromagnetic surveys that are closest to the boundary with the adjacent Kabanga property.

"The Kagera Project is located in a highly prospective belt that hosts world class nickel deposits," commented Dr. Bill Pearson, P.Geo., President & CEO of Castillian. "Castillian has excellent exposure to the potential upside of the project through its long term share ownership and potential performance shares.

About Kibaran Nickel Limited

Kibaran Nickel is focused on exploring the highly prospective Kagera Nickel project which is adjacent to the Kabanga Nickel Projects which are among the largest undeveloped, high grade nickel sulphide deposits in the world.

About Castillian Resources

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 15,000 metre drill program.

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 impact of diamond drill program, the potential exposure to the Kagera Nickel Project held by the Company, future financial or operating performance of the Company, its subsidiaries and its projects, statements regarding exploration prospects, statements regarding the potential and financial impact of the filing of the financial statements, the identification of mineral reserves and resources, costs of and capital for exploration projects, exploration expenditures, timing of future exploration, requirements for additional capital, government regulation of mining operations, environmental risks, reclamation expenses, title disputes or claims, limitations of insurance coverage and the timing and possible outcome of pending litigation and regulatory matters. 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; acquisition risks, the actual results of current exploration activities; delay or failure to receive board or regulatory approvals; timing and availability of external financing on acceptable terms; the Property not being integrated successfully or such integration proving more difficult, time consuming or costly than expected, not realizing on the potential benefits of the proposed transaction; conclusions of economic evaluations; changes in project parameters as plans continue to be refined; 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; and, delays in obtaining governmental approvals or required financing or in the completion of activities. 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.

Contact Information