Castle Gold Provides Update on Corporate Restructuring Initiatives

TORONTO, ONTARIO--(Marketwire - Sept. 26, 2008) - CASTLE GOLD CORP. (Castle Gold, the Company) (TSX VENTURE: CSG.V) is pleased to provide an update on the Company's restructuring initiatives.

At Castle Gold's most recent Board of Directors meeting the Board of Directors unanimously approved the formation of two advisory committees, specifically:

Mergers and Acquisitions Advisory Committee (M&AAC) - The M&AAC is comprised of three non-management members: Richard J. Adams (Chairman), James Mark Plaxton (member), plus a third member being an experienced, independent mining industry M&A professional to be appointed in the future (several candidates are currently being reviewed). The M&AAC will work with management's three person M&A team lead by Thomas Atkins, President and CEO of Castle Gold to represent the shareholders' best interests in advancing all M&A opportunities through an efficient team effort. The objective of the combined six-person team is to seek out and advise on candidates for potential mergers or acquisitions by or of the Company, provide increased M&A networking, analysis and access to legal and advisory services in an effort to increase efficiencies in the advancement of multiple M&A opportunities.

Finance Advisory Committee (FAC) - The FAC is comprised of three non-management members: James Mark Plaxton (Chairman), Milton Baehr (member), and a third member being an experienced, independent mining industry financial professional to be appointed in the future (several candidates are currently being reviewed). The FAC will work cooperatively with Thomas Atkins, President and CEO of Castle Gold and Janet O'Donnell, the Company's CFO. The FAC is mandated to work with the management of the Company to seek out solutions to optimize the use of the Company's balance sheet to meet its development and growth objectives through an efficient team effort.

James Mark Plaxton, Chairman of Castle Gold Corp. commented on the creation of these committees, stating: "The Board and management recognize the shocks to global capital markets that have taken place over the course of this year, and especially in the past few weeks. As a result of these events, Castle Gold wants to ensure we have the best collective wisdom we can bring to the table to address the challenges and the opportunities such events create. In this regard, the formation of these committees helps to ensure we advance financial and business development activities as a concerted and focused effort to ensure that maximum shareholder value can be created and that such activities are conducted with the highest levels of transparency and corporate governance."

Additionally, at Castle Gold's most recent Board of Directors meeting the Board of Directors approved the Chairman, Director, & Committee Chair/Member Compensation Policy ("Compensation Policy") as presented by James Mark Plaxton, the Chairman of the Compensation & Nominating Committee (C&NC). The Compensation Policy more effectively ties remuneration for all Board and Committee Chairs and Members to their positions, responsibilities, and meeting attendance. Pursuant to the Compensation Policy, the members of the Board of Directors received an aggregate of 825,000 stock options in relation to their positions on the Board of Directors and its committees for the 2008/2009 AGM year. These stock options were granted on September 11th, 2008 at an exercise price of C$0.36/share, approximately a 20% premium to the closing price on the day of the grant and equal to the trailing 5-day closing price average. Similar to other option grants, these options have a five year term from the grant date.

The Corporate Governance Committee (CGC), composed of Leonard Harris (CGC Chairman and former chair of industry standards organizations such as the Mining Task Force of the Chamber of the Americas and the International Committee of the SME) and James Mark Plaxton (CGC Member) is mandated to review and advance or in some instances incept the following corporate governance policies and plans:

- Whistleblower Policy

- Directors Orientation & Continuing Education Policy

- Board, Committee, and Management Structure and Procedures Policy

- Management Succession Plan

- Share Holders Rights Plan

All of these governance policies and plans are scheduled to become republished or published in the 4th quarter of 2008 and made available on the Castle Gold website.

About Castle Gold

Castle Gold Corporation is a growth oriented gold producer with projects focused in the America's. The Company 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-silver-copper project in Mexico and at its El Sastre and El Arenal project in Guatemala.

TSX-V Trading Symbol                          CSG
Total Shares Outstanding:                  75.3MM
Fully Diluted:                             88.9MM
52-Week Trading Range:             C$0.25 - $0.90

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this news release.

Contacts

James Mark Plaxton
Castle Gold Corporation
Chairman
(416) 214-4809 or Toll Free: 1-866-646-3274
(416) 366-7421 (FAX)

Thomas Atkins
Castle Gold Corporation
President and CEO
(416) 214-4809 or Toll Free: 1-866-646-3274
(416) 366-7421 (FAX)
Email: info@castlegoldcorp.com
Website: www.castlegoldcorp.com