Castillian Resources Corp.

Castillian Resources Corp.

December 20, 2007 07:30 ET

Castillian and Xstrata Nickel Finalize Purchase of Mangabal Nickel-Copper Project, Brazil for US$7.0 Million

TORONTO, ONTARIO--(Marketwire - Dec. 20, 2007) - Castillian Resources Corporation (Castillian) (TSX VENTURE:CT) has signed an agreement with Xstrata Nickel to purchase a 100% interest in the Mangabal Nickel-Copper project, located in Goias State, Brazil. The project hosts the Mangabal South Deposit and comprises 83 concessions covering 153,000 hectares of mineral rights in the highly prospective Mangabal area. The agreement is subject to TSX Venture Exchange approval and the purchase price will be US$7,000,000 in cash, staged over a three year period as follows:

US$2,000,000 on signing of the agreement;
US$1,500,000 on or before the first anniversary of the agreement;
US$1,500,000 on or before the second anniversary of the agreement;
US$2,000,000 on or before the third anniversary of the agreement.

There are no underlying royalties or back in rights retained by the parties. Xstrata Nickel will have the right but not the obligation to purchase off take from the Project at competitive terms. Should Castillian default on any payments the agreement will revert to the terms of the original joint venture agreement provided Castillian has maintained an adequate level of exploration expenditures to meet the requirements of the original agreement.

David Gower, P.Geo., President & CEO of Castillian stated, "This is a very important development for Castillian. It provides Castillian with full control to develop the Property without the encumbrance of a very complex earn in agreement. Under the previous agreement Castillian was required to fund US$15 million to earn a 50% interest. It would have been difficult to develop a deposit of the scale of Mangabal South in a joint venture relationship with Xstrata as their target threshold contemplates a larger scale development. Xstrata has been an excellent partner and this agreement is a win for both parties."

Drilling and geophysical surveys continue on the Mangabal Project. The company expects to release a NI 43-101 compliant resource estimate in the first quarter of 2008 as soon as assays are received and complete scoping studies on the Mangabal South Deposit thereafter. The company has approximately $13.5 million in its treasury and can aggressively advance the project.

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 87.8 million shares issued and outstanding. Castillian is in the process of purchasing 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 that 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 completion of the acquisition, receipt of regulatory approval, benefits of the acquisition, mineralization projections, 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.

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

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