Castle Gold Corporation
TSX VENTURE : CSG

Castle Gold Corporation

June 11, 2008 14:58 ET

Castle Gold Filing of First Quarter Financial Statements Delayed

Cease Trade Order Applied

VANCOUVER, BRITISH COLUMBIA--(Marketwire - June 11, 2008) - Castle Gold Corporation (TSX VENTURE:CSG) (the "Company" or "Castle Gold") announces that the British Columbia Securities Commission, the Alberta Securities Commission and the Ontario Securities Commission (collectively, the "Commissions") have issued a cease trade order suspending the trading of the common shares of the Company effective immediately, as a result of the delay in filing its unaudited consolidated interim financial statements (the "Interim Financial Statements") for the three month period ended March 31, 2008 (and interim management discussion and analysis related thereto) by the required filing date May 30th, 2008 under applicable Canadian securities laws.

The Company sincerely regrets the imposition of the cease trade order and the inconvenience this has caused for shareholders. Prior to receiving the cease trade order at the close of trading yesterday, the Company had been working with representatives from the Commissions and was of the understanding that other interim measures were available to it, pending the filing of its Interim Financial Statements, that would not have resulted in the cease trade order. This delay does not relate in any way to the soundness of the Company's mining operations and the Company is absolutely not subject to any insolvency proceedings.

The delay in the filing of the Interim Financial Statements was brought about primarily due to a time delay in the Company receiving and compiling financial information and documentation from its Guatemalan subsidiary, a 50:50 partnership which was not prepared in accordance with Canadian generally accepted accounting principles, and which is required in order for the Company's management to complete the Interim Financial Statements. This issue was exacerbated by the recently announced resignation of the Company's Chief Financial Officer (CFO). At this time, the Company expects to be able to file the Interim Financial Statements by no later than June 23, 2008, and will concurrently apply to the Commissions for a revocation of the cease trade order.

Since the filing date was missed on May 30th, 2008 the Company's Board appointed a new President and CEO on June 2nd, 2008. The new President and CEO, Tom Atkins, has actively started the recruitment process to hire a qualified full time CFO. The Company would like to assure its shareholders that it is committed to the creation of accounting processes and standards in Guatemala that will support the timely filing of financial statements. The new President and CEO and new CFO will, among other duties, prioritize all company and inter-company accounting procedures to ensure timely continuous disclosure filings in the future. The former President and CEO, Chris Babcock, has remained on as a consultant to ensure a professional hand over of the accounts (among other things) to the new President and CEO and new CFO.

About Castle Gold

Castle Gold Corporation is a growth focused gold producer currently expanding gold production within the America's. Castle Gold owns a 100% interest in the El Castillo gold mine in Mexico and a 50% interest in the El Sastre gold mine in Guatemala. Castle Gold is also advancing exploration and development work at its La Fortuna gold project in Mexico and at its El Sastre, El Arenal, Bridge and Lupita Projects in Guatemala.

ON BEHALF OF THE BOARD OF DIRECTORS,

Thomas Atkins, President and CEO

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

Contact Information