Castillian Closes Private Placement Financing

TORONTO, ONTARIO--(Marketwire - Dec. 31, 2010) -

NOT FOR RELEASE IN THE UNITED STATES OR TO U.S. NEWS WIRE SERVICES

Castillian Resources Corporation (TSX VENTURE:CT)("Castillian" or the "Company") is pleased to announce that it has completed its previously announced private placement financing through the issuance of 29,825,000 flow-through shares (the "Flow-Through Shares") and 31,131,823 units (the "Units") of the Company at a price of $0.10 per Flow-Through Share and $0.075 per Unit for total gross proceeds of $5,317,386.72 (the "Offering"). Each Unit consisted of one common share of the Company and one-half of one common share purchase warrant entitling the holder thereof to acquire a common share of the Company at an exercise price of $0.10 until December 30, 2012. In connection with the Offering, the Company paid finder's fees of $208,650 and issued a total of 2,343,000 finder's warrants (the "Finder's Warrants") to arm's length finders. Each of the Finder's Warrants entitle the holders to acquire a common share of the Company at $0.10 until December 30, 2012. All of the securities issued in connection with the Offering will be subject to a statutory resale restriction that will expire on May 1, 2011.

Certain funds associated with the MineralFields Group participated in the Flow Through portion of the Offering for a total of 15,000,000 Flow-Through Shares.

The proceeds of the sale of the Flow-Through Shares will be used to incur eligible Canadian Exploration Expenses, as defined under the Income Tax Act (Canada), that will be renounced in favour of the purchasers with an effective date of no later than December 31, 2010. The funds will be used to explore and develop the Hope Brook Gold Project located on the southwest coast of Newfoundland.

About Castillian Resources

Castillian Resources Corp. is a Canadian mineral exploration company listed on the TSX Venture Exchange under the symbol "CT" which has gold and base metal properties in Canada and South America. Castillian's flag ship property is the Hope Brook Gold Project located in southwestern Newfoundland where it is carrying out a 5,000 metre diamond drill program.

About MineralFields, Pathway and First Canadian Securities ®

MineralFields Group (a division of Pathway Asset Management) is a Toronto-based mining fund with significant assets under administration that offers its tax-advantaged super flow-through limited partnerships to investors throughout Canada during most of the calendar year, as well as hard -dollar resource limited partnerships to investors throughout the world. Pathway Asset Management also specializes in the manufacturing and distribution of structured products and mutual funds. Information about MineralFields Group is available at www.mineralfields.com. First Canadian Securities ® is active in leading resource financings (both flow-through and hard dollar PIPE financings) on competitive, effective and service-friendly terms, with investors both within, and outside of, MineralFields Group.

Cautionary Note Regarding Forward-looking Information

This press release contains "forward -looking information" within the meaning of applicable Canadian securities legislation. Forward-looking information includes, but is not limited to, statements with respect to the future financial or operating performance of the Company, its subsidiaries and its projects, statements regarding exploration prospects, statements regarding the potential financing and the financial impact of the proposed financing, the terms and conditions of the financing, receipt of requisite approvals , the benefits of the proposed financing, the identification of mineral reserves and resources, costs of and capital for exploration projects, exploration expenditures, timing of future exploration, requirements for additional capital, government regulation of mining operations, environmental risks, reclamation expenses, title disputes or claims, limitations of insurance coverage and the timing and possible outcome of pending litigation and regulatory matters. Generally, forward -looking information can be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or state that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved".
Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such forward -looking information, including but not limited to: general business, economic, competitive, political and social uncertainties; acquisition risks, the actual results of current exploration activities; delay or failure to receive board or regulatory approvals; timing and availability of external financing on acceptable terms; the business of Castillian and Tucano not being integrated successfully or such integration proving more difficult, time consuming or costly than expected, not realizing on the potential benefits of the proposed transaction; conclusions of economic evaluations; changes in project parameters as plans continue to be refined; future prices of mineral prices; failure of plant, equipment or processes to operate as anticipated; accidents, labour disputes and shortages and other risks of the mining industry; and, delays in obtaining governmental approvals or required financing or in the completion of activities. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward -looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward -looking information. The Company does not undertake to update any forward -looking information, except in accordance with applicable securities laws.

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