Castillian Resources Corp.

Castillian Resources Corp.

March 19, 2007 17:13 ET

Castillian Resources Announces C$10,070,000 Bought Deal Private Placement

TORONTO, ONTARIO--(CCNMatthews - March 19, 2007) -


Castillian Resources Corp. ("Castillian" or the "Company") (TSX VENTURE:CT) is pleased to announce that it has entered into an agreement with a syndicate of underwriters led by Westwind Partners Inc. (the "Underwriters") which have agreed to purchase, on a bought deal private placement basis, 10,600,000 units (each, a "Unit") of the Company at a price of C$0.95 per Unit, for aggregate gross proceeds of approximately C$10,070,000. The Underwriters will have the option to purchase up to an additional 5,300,000 Units at the offering price for a period of up to 48 hours prior to closing for additional gross proceeds of up to C$5,035,000.

Each Unit is comprised of one common share in the capital of the Company, and one half of one common share purchase warrant. Each whole warrant will entitle the holder to purchase one common share at an exercise price of C$1.20 and expires 24 months from the date of closing. If the common shares of the Company trade at a closing price on the TSX-V of greater than $1.50 per share for a period of 20 consecutive trading days at any time after four months and one day after the closing of this offering, the Company may accelerate the expiry date of the warrants.

In consideration for its services, the Company will pay to the Underwriters a cash commission equal to 6.5% of the gross proceeds of the offering and issue to the Underwriters broker warrants to acquire that number of common shares equal to 6.5% of the units sold under the offering at an exercise price equal to the offering price.

The Company plans to use the net proceeds of this financing for increased exploration in Argentina, Tanzania and Brazil, property acquisitions and general corporate purposes.

The offering is scheduled to close on or about April 5, 2007 and is subject to certain conditions including, but not limited to, the receipt of all necessary approvals including the approval of the TSX Venture Exchange.

About Castillian Resources

Castillian Resources Corp. is a Canadian mineral exploration company listed on the TSX Venture Exchange under the symbol "CT" with approximately 62.8 million shares issued and outstanding. Castillian is partnered with Xstrata Nickel to explore the approximately 155,000 ha Mangabal nickel-copper project in Brazil. The company also owns the Kagera Project which comprises over 1600 square kilometers in the highly mineralized Kabanga Nickel Belt in Tanzania and 100% rights to the Pederson deposit, an advanced gold project in Bolivia.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any State in which such offer, solicitation or sale would be unlawful. The securities have not been registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements.

Forward-Looking Statements

This document may contain or refer to forward looking information based on current expectations. 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.

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

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