Castillian Resources Corp.

Castillian Resources Corp.

April 10, 2007 10:06 ET

Castillian Resources Closes Private Placement Financing

TORONTO, ONTARIO--(CCNMatthews - April 10, 2007) -


Castillian Resources Corp. (TSX VENTURE:CT) is pleased to announce that it has closed the bought deal private placement of units previously announced on March 19, 2007 to raise gross proceeds of $15,105,000 pursuant to an underwriting agreement between Castillian and Westwind Partners Inc., as lead Underwriter on behalf of a syndicate of Underwriters including Orion Securities Inc. and Pacific International Securities Inc. In connection with today's closing, the Underwriters exercised their option to acquire an additional 5,300,000 units in addition to the 10,600,000 units to be purchased under the initial firm commitment for a total of 15,900,000 units. Each unit was issued at a price of $0.95 per unit and consists of one common share and one-half of one common share purchase warrant. Each whole common share purchase warrant entitles the holder to purchase one additional common share of Castillian at an exercise price of $1.20 per share until April 9, 2009. If the closing price of Castillian's common shares on the Toronto Venture Exchange is $1.50 per share or greater for 20 consecutive trading days at any time after August 10, 2007, Castillian may accelerate the expiry date of the warrants.

In consideration of the Underwriters' services, Castillian paid the Underwriters an aggregate cash commission of $981,825, equal to 6.5% of the total gross proceeds received by the Corporation from the private placement, and issued to the Underwriters 1,033,500 broker warrants, each such broker warrant entitling the holder thereof to acquire one common share of Castillian at a price of $0.95 until April 9, 2009.

The common shares and warrants comprising the units and the broker warrants are subject to a hold period expiring on August 10, 2007.

The net proceeds from the private placement will be used by Castillian for increased exploration in Argentina, Tanzania and Brazil, property acquisitions and general corporate purposes.

The units sold, and the common shares and warrants underlying such units have not and will not be registered under the United States Securities Act of 1933, as amended, and may not be offered or sold within the United States or to, or for the account or benefit of, U.S. persons absent U.S. registration or an applicable exemption from the U.S. registration requirements. This release does not constitute an offer for sale or the solicitation of an offer to buy the securities in the United States.

About Castillian Resources

Castillian Resources Corp. is a Canadian mineral exploration company listed on the TSX Venture Exchange under the symbol "CT" with approximately 81.7 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 is earning an interest in the Las Aguilas Nickel-Copper-PGM Project in Argentina, has the right to acquire a 100% interest in the Kagera Project which comprises over 1,600 square kilometers in the highly mineralized Kabanga Nickel Belt in Tanzania and 100% rights to the Pederson deposit, an advanced gold exploration project in Bolivia which is currently under force majeure.

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 and will not be 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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