News

• Drilling Continues at Shahuindo
• Sulliden Appeals to Supreme Court of Peru
• Shareholder Rights Plan Adopted
• Share Purchase Warrants Extended

Toronto, Ontario, Canada, August 30, 2007: Sulliden Exploration Inc. (“Sulliden” or the “Company”) (TSX: SUE) reports that at its Annual Meeting held yesterday August 29, in Toronto shareholders were informed that diamond drilling is continuing on the Company’s Shahuindo gold silver project in northern Peru.

The drilling, which is part of the ongoing 2007 exploration program at Shahuindo, commenced in mid August. The first three holes have been completed and the drill is now moving to the fourth hole. A total of about 5,000 metres of diamond drilling in two phases of ten holes each is planned to test the potential extension of the San Jose zone in a previously undrilled area that appears to extend up to an additional four kilometers within the Shahuindo property. The first results will be available within a few weeks and the program is expected to continue for about three months.

Sulliden Appeals to the Supreme Court of Peru:

Sulliden has filed an appeal to the Supreme Court of Peru against the decision of the Commercial Chamber of the Superior Court of Lima dated August 9, 2007 which declared null and void the Arbitration Decision awarded to Sulliden in July 2006.

As previously reported (see Sulliden press release August 15, 2007), the Commercial Chamber set aside the Arbitration Decision on the grounds that, in signing the Transfer Agreement for the sale of the Shahuindo property to Sulliden in November 2002, the then General Manager of Algamarca exceeded his authority to commit Algamarca to resolution of disputes by arbitration.

Sulliden has been advised by its lawyers that this decision is wrong in law. Sulliden has filed an appeal to the Supreme Court of Peru. The effect of the appeal is to suspend the ruling of the Commercial Chamber and, pending the decision of the Supreme Court, the ruling will have no force or effect. Sulliden expects that the decision will be overturned by the Supreme Court.

Shareholders attending the AGM were told that it is important to note that the Commercial Chamber decision only addressed the validity of the arbitration clause in the Transfer Contract and therefore the technical validity of the arbitration process itself but the Court did not deal with any of the merits of the dispute. Consequently, the Transfer Contract remains in full force and effect and Sulliden continues as the owner of the Shahuindo property. Sulliden anticipates that other legal processes will continue, which may include attempts by Algamarca to stop Sulliden’s work on the property or to seek to suspend the registration of title in Sulliden’s name. Sulliden also expects that the legal action commenced by Sulliden in Canada against Algamarca, the Sanchez Group, Century Mining and others seeking damages of US$200 million for breach of contract will proceed but will probably involve, in the first instance, a determination that the Ontario Courts have jurisdiction to hear Sulliden’s case.

Shareholder Rights Plan Adopted:

At the Annual Meeting shareholders approved the Shareholder Rights Plan previously adopted by the Board of Directors on July 26, 2007 (see Sulliden press release July 30, 2007). The Rights Plan is designed to provide adequate time for shareholders of Sulliden and the Board of Directors to consider and evaluate any unsolicited takeover bid for the Company, to provide the Board with sufficient time to explore and develop alternatives for maximizing shareholder value to and provide shareholders with an equal opportunity to participate in any takeover bid, to encourage the fair treatment of shareholders in the event of any bids and to ensure that any proposed transaction is in the best interests of Sulliden’s shareholders.

Share Purchase Warrants Extended:

At the Annual Meeting shareholders approved the extension of the expiry date of 4,687,500 outstanding common share purchase warrants and 1,218,750 outstanding broker warrants by one year to August 31, 2008. The warrants were originally issued as part of a private placement financing completed in August 2006 and would otherwise have expired on August 31, 2007. There are no other amendments to the terms of these warrants and the exercise price remains unchanged at $1.00 per share.

Other Business:

At the Meeting, in addition to the re-election of Directors and appointment of Auditors shareholders also approved certain amendments to the Sulliden’s Share Option Plan.

ABOUT SULLIDEN:

Sulliden Exploration Inc. is a mineral exploration company focused on the development of its Shahuindo gold and silver Project. The Shahuindo project is located in northern Peru, in one of the world’s most prospective gold and silver regions, sitting approximately 25 km north of Barrick’s Laguanas Norte-Alto Chicama 1,100,000 oz/gold per year mine; 70 km south of Newmont’s multi-million oz/gold Yanacocha district and 200 km north of Barrick’s Pierina 650,000 oz/gold per year mine.

Sulliden is currently undertaking an exploration program at Shahuindo and drilling has recently commenced.

Sulliden’s rights to the Shahuindo property are in dispute and are the subject of extensive litigation in Peru.

Further information / Risk Factors:

For detailed information and background in the Shahuindo litigation please refer to Sulliden’s Annual Information Form, the Notes to the Company’s Annual and Quarterly Financial Statements and press releases which can be found at www.sedar.com. For further information on Risk Factors with regard to an investment in Sulliden please refer to Sulliden’s Annual Information Form and to the summary of Risk Factors in the Company’s Management Discussion and Analysis for the year ended April 30, 2007 and for the quarter ended January 31, 2007 which can be found at www.sedar.com.

Caution regarding forward-looking information:

Statements contained in this document which are not historical facts are forward-looking statements that involve risk, uncertainties and other factors that could cause actual results to differ materially from those expressed or implied by such forward-looking statements. This forward-looking information includes, or may be based upon, estimates, forecasts, and statements as to management’s expectations with respect to, among other things, the outcome of legal proceedings, the issue of permits, the size and quality of the company’s mineral resources, progress in development of mineral properties, future production and sales volumes, capital and mine production costs, demand and market outlook for metals, future metal prices and treatment and refining charges, and the financial results of the company. Factors that could cause such differences, without limiting the generality of the following, include: volatility and sensitivity to market metal prices impact of change in foreign currency exchange rates and interest rates; imprecision in reserves estimates; environmental risks including increased regulatory burdens; unexpected geological conditions; adverse mining conditions; political risks arising from operating in developing countries; legal title to properties, outcome of litigation, changes in government regulations and policies, including laws and policies; and failure to obtain necessary permits and approvals from government authorities; and other development and operating risks.

Mineral resources that are not mineral reserves do not have demonstrated economic viability. Inferred mineral resources are considered too speculative geologically to have economic considerations applied to them that would enable them to be categorized as mineral reserves. There is no certainty that mineral resources will be converted into mineral reserves.

Although the Company believes that the assumptions inherent in the forward-looking statements are reasonable,undue reliance should not be placed on these statements, which only apply as of the date of this document. The Company disclaims any intention or obligation to update or revised any forward-looking statement, whether as a result of new information, future events or otherwise.

For further information please contact:

John F. Kearney, President
Tel: (416) 703-8287
e-mail: contact@sulliden.com

James H. Coleman, Chairman
Tel: (403) 267-8373