Castello Casino Corp. - Announcement.

Business Editors

TORONTO--(BUSINESS WIRE)--June 9, 2000

Castello Casino Corp. ("Castello") (OTCBB:CCCZ) is pleased to announce that the Company has completed a US$560,000, 8% convertible debenture financing through Thomson Kernaghan & Co. Ltd.

The proceeds from this financing will be used to acquire options on certain timber concessions in the Republic of Fiji and for working capital.

The Debentures will be convertible commencing June 9, 2000. The conversion price of the Debentures shall be the lower of (i) 75% of the average closing bid price of the stock for the five (5) trading days preceding the conversion date, and (ii) 110% of the closing bid price (US$0.84) on May 9, 2000. Castello shall have the right to redeem the Debentures at any time prior to conversion or redemption at a 125% of the principal amount of the outstanding Debentures plus accrued interest by giving ten (10) days notice. Pursuant to the agreement, Castello must file a registration statement under the Securities Act for the purpose of registering the issuance of not less than 200% of the common stock underlying the Debentures and the Warrants based upon the closing date as the conversion date of the Debentures and the Warrants. On the Closing Date, Castello issued to the Agent a warrant to purchase US$112,000 of common shares exercisable under the same terms as the Debenture. The Warrant expires on April 30, 2003.

The special meeting of sharedholders announced on May 8th, 2000, has been re-scheduled to Monday, August 21st, 2000, from July 5th, 2000.

As previously announced, Castello under agreement will purchase 100% of BioForest Investments, Inc. ("BioForest"). BioForest was formed to participate in the development of an integrated and sustainable forestry enterprise in partnership with the native landowners in Fiji. BioForest has the right to earn 70% of BioForest Products (Fiji) Limited and BioForest Holdings (Fiji) Limited ("H & P") upon providing US$11,000,000 to fund the establishment of the project. H & P are 30% owned by native landowners. Discussions are currently in progress with corporate and institutional funders.

The project is based on the sustainable exploitation of indigenous forest, acquisition of mature mahogany plantations (not native) and the development and planting of fast growing eucalyptus (hardwood) plantations as a source of short fiber wood chip. The initial US$11,000,000 investment will be used to acquire existing timber processing operations, securing the land for the pulpwood plantations, the mahogany plantations and acquiring further forest resources.

In year one the project is expected to have annualized earnings of US$4,000,000, and estimated annual earnings of US$60,000,000 by year five. The project will use its asset base to construct new processing facilities, acquire the mahogany plantations and develop the eucalyptus pulpwood plantations. As 90% of the product will be exported, the company would qualify for a 13-year tax holiday. The project involves the co-ordinated and orderly development of the forestry industry in Fiji with projected annual earnings of US$150,000,000 by year ten.

The group development plans are: 1) An integrated sustainable hardwood business based on 500,000m3/year log harvest by year four; 2) develop a modern centralized processing facility with its own power supply to produce sawn timber, veneers, plywood and blockboards as well as the manufacturing of doors and parquet for the export market; 3) establish up to 100,000 hectares of fast growing eucalyptus pulpwood plantations with 7-year rotation.

The group has been in discussions with senior North American industry entities and will enter into a management or joint venture/partnership arrangement after the initial 12-month establishment period. Currently, an independent senior Canadian forestry consultant is advising the group

The Fiji Islands by virtue of its ex-colonial status is a member of the African-Caribbean Pacific ("ACP") group of countries. The ACP was formed by the EEC to provide aid and assistance to a select group of small countries in the three regions. The EEC particularly encourages the development of private enterprise projects with a minimum of 25% indigenous landowner participation. Assistance is considered on a project by project basis, key elements being the beneficial impact of the project on the country and the region and whether the EEC is a consumer of the product as well as suppliers and constructors of the project. Initial discussions indicate that the BioForest Group qualifies for assistance with both financing and marketing. The company will request the Fiji Government to arrange a meeting with the EEC to establish the framework for the assistance program.

BioForest will be the controlling partner in a medium sized forestry project, which will double the Fiji GNP and be the largest money earner in the country within 10 years. Other unique features of the project include the group's corporate structure through native landowners participation and its commitment to the disciplined development of natural resources. The partnership and the group's philosophy represents the best possible combination for responsible forestry resource development. The unique characteristics of the project enable the company to obtain grants, subsidies and other forms of assistance where other companies or similar projects do not qualify.

Statements in this news release that are not historical facts, including statements about plans and expectations regarding products and opportunities, demand and acceptance of new or existing products, capital resources and future financial results are forward-looking. Forward-looking statements involve risks and uncertainties, which may cause the company's actual results in future periods to differ materially from those expressed. These uncertainties and risk include changing consumer preferences, lack of success of new products, loss of the company's customers, competition and other factors discussed from time to time in the company's filings with the Securities & Exchange Commission.

No securities regulatory authority has approved or disapproved of the contents of this news release.