News Release 2007-04

Castle Gold Sells First El Castillo Gold At Us $715 Per Ounce

TORONTO, ON, September 27, 2007 - Castle Gold Corporation ("Castle Gold" or the "Company") (TSX-V: CSG) announces the first gold sale from its 100% owned El Castillo mine in Durango, Mexico.  The Company capitalized on the recent increase in the price of gold by selling 450 ounces at an average realized price of US$715 per ounce.  This first sale of El Castillo gold represents production from the first month-and-a-half of pre-production leaching that began in July.

Production at El Castillo is ramping up to the initial operating rate of 200,000 tonnes of ore and waste per month.  Ore is currently being placed on the leach pad at a rate of 75,000 tonnes per month and will increase to 100,000 tonnes per month over the next two months as the pit is developed.  Further increases to Castillo's production rate are planned for 2008.

The El Castillo mine is expected to be producing at a rate of 15,000 ounces of gold per year by year end.  The gold production rate is forecast to increase to 30,000 ounces per year during 2008.  Consideration will also be given to expanding the production rates beyond 30,000 ounces of gold per year through one or two additional expansions.

"I am very pleased that our mine building team has successfully built a second mine in less than two years," stated Christopher Babcock, President and CEO of Castle Gold.  "This tremendous achievement epitomizes our mining objectives of focusing on the fundamentals, enhancing efficiencies, growing production rates, and thereby profitability, at our two producing gold mines.  We could not be more excited about the timing of these events with the price of gold extending to new highs coincident with the ramp-up of the gold production at El Castillo."

Darren Koningen (P. Eng.), Vice-President - Operations, is the Qualified Person under National Instrument 43-101 for the El Castillo Mine.

Castle Gold is a growth oriented gold producer focused on expanding gold production within the Americas.  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, Bridge and Lupita projects in Guatemala.