Castillian Intersects 1.51 G Au/T Over 14.0 Metres in Connector Zone at Hope Brook

TORONTO, ONTARIO--(Marketwire - Jan. 17, 2013) -Castillian Resources Corp. (TSX VENTURE:CT)(OTCQX:CTIIF) ("Castillian" or the "Company") has completed 5,951 meters of reconnaissance diamond drilling in 21 holes at its Hope Brook Gold Project in southwestern Newfoundland. All of the holes, except two that were lost, intersected the mineralized silicified zones as targeted from geological and geophysical data.

The drilling intersected multiple zones of gold mineralization in a major new near surface target zone in the Mine Zone - 240 Connector Target ("Connector Zone"; see Figures 1 and 2), located approximately 900 metres (m) southwest of the former Hope Brook open pit. Table 1 lists significant results for all holes completed in the program (see press release dated December 11, 2012 for discussion of results of first four holes).

Highlights from new drilling include:

• Major new near surface target zone within the Connector Zone and above the 240 Zone which extends along strike for approximately 800m to a depth of more than 300m;
  
  
  
  
• Hole HB12-100:1.51 grams gold per tonne (g Au/t) over 14.0m, including 2.03 g Au/t over 8.0m and 1.07 g Au/t over 18.1m core length, including 1.68 g Au/t over 5.5m core length within a 57 m wide silicified zone in the Connector Target; and
  
  
  
  
• Hole HB12-101: 1.04 g Au/t over 8.5m core length, 1.44 g Au/t over 2.9m core length and 1.35 g Au/t over 5.6m core length within an overall 75m wide silicified zone 100m northeast of hole HB12-100.
  
  

Dr. Bill Pearson, P.Geo., President and CEO of Castillian, commented: "This drill program was successful in outlining a major new near surface zone in the Connector Zone that has the potential to add significantly to our already strong mineral resource base. Our exploration team, support staff and drill contractor did a tremendous job completing the planned program in less than two months and on budget." Pearson continued: "We are currently completing interpretation of all of the new drilling data and planning the next drill program. The next program will focus on testing the new target zone and expanding existing resources, especially those that are potentially open pittable. In addition, our technical work has identified a number of areas near the current resource where there is potential to increase the overall grade of the resource."

Mr. David Copeland, P.Geo., Chief Geologist added: "Drilling within the Connector Zone demonstrates continuity of the alteration and mineralizing systems along a shallow southwest plunge between the Hope Brook Deposit and the 240 Zone. The thickness of the silicified zones and encapsulating argillic alteration zone is similar to that seen in the former Hope Brook Mine and 240 Zone." Mr. Copeland continued: "A newly recognized fold system affects the rocks of the 240 and Connector Zone areas, the identification of which has been driven by drilling outside of the main Hope Brook Mine area. This fold system explains why the main silicified horizon southwest of the Hope Brook Mine does not come to surface and why shallow historical drilling within the area failed to intersect both of the zones. This interpretation is corroborated by geophysical data. Further structural modelling and geological work in progress is designed to provide a better understanding of where to target gold mineralization within this extensive fold system."

The following provides a more specific description of the drilling completed in each of the target zones tested.

240 Zone - Mine Zone Connector Target

The Connector Zone was tested with a total of nine drill holes (3,279m; HB12-92 and 93 and HB12-100 to 106). Each of the holes that reached the intended target depth (seven of nine) within the Connector Zone intersected broad zones of silicified altered rocks with variable levels of gold mineralization.

Hole HB12-100 encountered several intermittent zones of pyrite and chalcopyrite bearing grey siliceous alteration from 234.2 to 248.0 m, 288.0 to 319.1 m; and 349.9 to 407.2 m. The silicified zones assayed 1.07 g Au/t over 18.1m (core length), including 1.68 g Au/t over 5.5m (core length); and 1.52 g Au/t over 14.0m (core length), including 2.03 g Au/t over 8.0m (core length).

Hole HB12-101 intersected buff-grey, pyrite and chalcopyrite - bearing silicification with intercalated mafic dykes from 329 to 403.8m (core length) with an 8.5m interval (core length) assaying 1.04 g Au/t. This interval bears many similarities to that described from historic drilling from the nearby 240 Zone and is being considered the eastern extension of the zone.

Hole HB12-106 intersected multiple zones of buff to grey, pyrite bearing siliceous alteration zones from 243.9 to 262.1m, 282.9 to 299.4m, and 331.7 to 334.1m. The siliceous zones were host to multiple minor quartz-tourmaline veins with trace chalcopyrite. Significant assays include 1.82 g Au/t over 1.5m.

Hole HB12-102 intersected a zone of light grey-buff, pyrite-bearing silicification from 262.2 to 281.9m and a zone of buff-grey, pyrite/chalcopyrite-bearing silicification from 151.4 to 183.7m.

Holes HB12-104 and HB12-105 ended short of the Connector Zone mineralization at depths of 162m and 113m respectively due to poor ground and mechanical issues.

Chetwynd and Chetwynd South Prospects

The potential downdip extensions of the Chetwynd and Chetwynd South Prospects were tested by six reconnaissance drillholes (HB12-095 to 099 and HB12-103). Each of the drillholes intersected the targeted silicified alteration rocks with anomalous gold mineralization.

Three drill holes (840m; HB12-095, 096, and 097) tested the Chetwynd South Prospect down dip mineralization encountered in historic holes CW-101, 102, 103, 039, and 098. Each of the drill holes intersected buff to grey, siliceous, pyrite and/or chalcopyrite-bearing mineralization. Quartz and tourmaline veining is prevalent and carries much of the gold mineralization. Anomalous gold values were encountered within the silicified zones and include 1.12 g Au/t over 1.5m core length in hole HB12-095 and 0.68 g Au/t over 1.5m in hole HB12-097.

Two drill holes (602m; HB12-098 and HB12-099) tested for potential gold mineralization down-dip of historic drilling and surface exposure at the Chetwynd Prospect. Although each of the drill holes intersected several zones of intermittent buff and grey siliceous, pyrite-bearing, fragmental rocks, no significant gold values were obtained from the Chetwynd Prospect drilling.

Chetwynd to 240 Connector Target

One hole (353 metres; HB12-103) intersected several grey - buff, siliceous units from 177 - 181.5m, 192.3 - 195.5m, 198 - 202.1m and 229.5 - 230m. The relationship of these silicified zones with the Chetwynd Prospect and the 240-Zone mineralization is currently not clear and requires further investigation. No significant gold values were returned from this hole.

NW Target Area

Five reconnaissance drill holes (714 m; HB12-107 to 111) tested the NW Target area with broad-spacing (75 to 125 m). Each of the drill holes intersected the targeted silicified alteration zones that locally contained disseminated chalcopyrite, pyrite and minor bornite. The best result was 1.16% Cu and 0.28 g Au/t over 1.3m in hole HB-12-109 and 0.68 g Au/t over 1.8m in hole HB 12-108.

Table 1: Significant Diamond Drilling Results, Fall 2012 Program, Hope Brook Gold Project.