Castillian Completes Sale of Kagera Nickel Project in Tanzania to Kagera Nickel Ltd.

TORONTO, ONTARIO--(Marketwire - Oct. 28, 2010) - Castillian Resources Corporation ("Castillian" or the "Company") (TSX VENTURE: CT.V) is pleased to announce that all conditions of the previously announced letter agreement (see press release June 15, 2010) with Kagera Nickel Limited (formerly Innovance Limited) (ASX: KNL.AX) ("Kagera Nickel") have been met. Kagera Nickel has acquired a 100% interest in Castillian's Kagera Nickel Sulphide Project ("Kagera Project") located in northwest Tanzania. The Kagera Project comprises mineral rights to six properties totaling 860km(2) in the highly prospective Kabanga-Musongati mafic-ultramafic belt. The key licences are located directly adjacent to the Kabanga Nickel Deposit, the largest undeveloped high grade nickel sulphide deposit in the world. The Kabanga Nickel Deposit is currently undergoing feasibility studies in a 50:50 joint venture between Xstrata Nickel (the operator) and Barrick Gold.

Kagera Nickel has completed a capital raising of AUS$4,000,000 that will fund exploration at the Kagera Project. Kagera Nickel has received approval to list on the Australian Stock Exchange, with trading expected to commence on October 29, 2010 (Australian time) under the symbol "KNL".

Dr. Bill Pearson, P.Geo., President & CEO of Castillian commented: "We are very pleased that this agreement has been completed and the over-subscribed capital raising by Kagera Nickel has been successful. For Castillian it is a very beneficial transaction as it will provide funds to continue exploring the Kagera Project while providing Castillian with excellent exposure to the potential upside of the project through ownership of Kagera Nickel shares. It allows us to focus on our core gold projects in particular the Hope Brook Gold Project in Newfoundland, where we are currently drilling. The agreement provides for a significant exploration program to advance the Kagera Project and significant participation for Castillian in the benefits of any important discoveries."

Under the terms of the agreement, Castillian will receive the following consideration:

--  5 million fully paid ordinary shares in Kagera Nickel; 
--  7.5 million performance shares in Kagera Nickel, convertible into
    ordinary shares upon the drilling of 3 holes with a minimum 4 metres
    intersection grading at least 1% nickel within 3 years of being issued; 
--  7.5 million performance shares in Kagera Nickel, convertible into
    ordinary shares upon the completion of an independent JORC compliant
    Mineral Resource estimate of not less than 5.000,000 tonnes of nickel
    with a grade of not less than 1% nickel insitu or equivalent within 5
    years of being issued; and 
--  7.5 million performance shares in Kagera Nickel, convertible into
    ordinary shares upon the completion of an independent JORC compliant
    Mineral Resource estimate of not less than 10,000,000 tonnes of nickel
    with a grade of not less than 1% nickel insitu or equivalent within 5
    years of being issued. 

As part of the agreement, Kagera Nickel has appointed two Castillian nominees to the Kagera Nickel board, Mr David Gower and Mr David Argyle, both of whom are currently directors of the Castillian.

Dr. Bill Pearson, P.Geo., President and CEO of Castillian and Mr. David Gower, P.Geo., Director, both of whom are qualified persons as defined by National Instrument 43-101, have reviewed and approved the scientific and technical content of this press release.

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 has recently begun a 5,000 metre diamond drill program.

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 the completion of the transaction, the ability of the parties to complete the transaction based on the terms described herein, the exploration potential and timing with respect to the exploration program on the Kagera Project, exploration prospects, statements made regarding the exploration program with respect to Hope Brook Gold Project in Newfoundland, 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;; 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.

NEITHER TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.

Contacts

Bill Pearson
Castillian Resources Corporation
President & CEO
416-861-2968
info@castillian.ca
www.castillian.ca