Castle Gold Updates Progress at Castillo Mine

TORONTO, ONTARIO--(Marketwire - Jan. 10, 2008) - Castle Gold Corporation ("Castle Gold" or the "Company") (TSX VENTURE:CSG) is pleased to announce that it has placed approximately 8,500 ounces of gold on the leach pad at its El Castillo mine during the fiscal year of 2007 (ended December 31). Of this amount, approximately 3,000 ounces were placed on the pad in the third quarter of 2007, while 5,500 ounces were placed on the pad during the fourth quarter of 2007. Gold sales from Castillo over the same period were approximately 2,200 ounces.

Mine production rates at El Castillo have been steadily increasing from an average of approximately 60,000 tonnes of ore per month in the third quarter of 2007 to roughly 120,000 tonnes of ore per month in the fourth quarter of 2007. Darren Koningen, Vice President of Operations for Castle Gold, said: "We are happy to report these production numbers for the initial ramp-up period of operations at Castillo. The increase in gold price has allowed us to substantially reduce our mining cut-off grade at Castillo, which in turn has given us access to significantly more ore in the pit area than was originally planned."

Given the increased gold price and reduction in cut-off grade at Castillo, Castle Gold has retained A.C.A. Howe International Limited of Toronto, Canada to prepare a new ore reserve estimate and an updated mining plan for the Castillo project. Management expects to receive the ore reserve estimate and mining plan in the first quarter of 2008, and anticipates that the new mining plan will include a substantial increase in annual gold production. Plans are already underway to accommodate this increase.

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 Durango, 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.

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