News

Toronto, August 15, 2007– Sulliden Exploration Inc. (“Sulliden” or the “Company”) (TSX:SUE) discloses that, based on unofficial information and rumors, it anticipates that the Commercial Chamber of the Superior Court of Lima will grant Algamarca’s Nullity Petition of the Arbitration Decision and Award previously granted to Sulliden in July 2006.

“If this is confirmed, Sulliden will be disappointed but not totally surprised by the decision” said John Kearney, President. “Sulliden has been uncomfortable with the process and objected to the composition of the particular judicial panel appointed to hear the petition and Sulliden declined to participate in the public hearing held by the Chamber on June 27, 2007” (see Sulliden press release dated June 28, 2007).

Sulliden understands that the Commercial Chamber will grant Algamarcas Nullity Petition on the basis that Algamarca was not bound by the arbitration process because the President of Algamarca, in executing the Contract between Algamarca and Sulliden for the sale of the Shahuindo Property on November 11, 2002, did not have proper authority or power to include a provision in the Contract committing Algamarca to the resolution of disputes by arbitration.

Sulliden has been advised by its lawyers that this conclusion is wrong in law. Sulliden has already filed an appeal against the decision of the Commercial Chamber not to accept Sulliden’s Motion of Recusation against one member of the judicial panel and has also filed a Nullity Petition to the Superior Court seeking to set aside the public hearing of June 27, 2007. If the Commercial Chamber grants the Nullity Petition Sulliden will immediately appeal that decision to the Supreme Court of Peru and expects that the decision will be overturned by the Supreme Court.

It should be noted that if the Nullity of the Arbitration Award is confirmed, the effect will only be to set aside the arbitration process and nullify the Arbitration Award based on a legal procedural technicality which was previously considered and rejected by a majority of the arbitration panel. The decision does not address and will not affect the validity of the Transfer Contract between Algamarca and Sulliden, which will continue in full force and effect and Sulliden will remain as the lawful owner of the Shahuindo Property. However, assuming that Algamarca continues the legal dispute and fights the validity of the Contract, and further assuming that the nullity decision of the Commercial Chamber is not overturned by the Supreme Court and the arbitration process is set aside, the legal dispute would then have to be determined by the Courts.

Sulliden has already commenced a comprehensive legal action in Canada against Algamarca and others seeking to enforce the Contract and seeking damages of US$200 million (See Sulliden Press Release dated June 21, 2007) and Sulliden Shahuindo Peru now intends to file a new action in the Civil Court of Lima against Algamarca seeking to enforce the Contract and also claiming damages for breach of Contract.

“The Nullity Award by the Commercial Chamber is a bad decision for Sulliden, said John Kearney, but we will move on to the next round and remain confident in our fundamental legal position and believe that Sulliden will ultimately prevail in this legal dispute”. “We are more than prepared to have the dispute resolved by the Courts and would prefer if this can be done in Canada and outside the Peruvian judicial system”.

ABOUT SULLIDEN:

Sulliden Exploration Inc. is a mineral exploration company focused on the development of its Shahuindo gold-silver project 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; 70km 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’s rights to the Shahuindo property are in dispute and are the subject of extensive litigation in Peru.

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

In addition, Sulliden holds a 66% interest in an adjacent 1,900 hectares known as the Vikingo concessions which brings the Company’s land holdings in this gold district to almost 10,000 hectares.

In southern Peru, Sulliden, through a subsidiary, has entered into an option agreement to earn a 50% interest in the Torrine gold project with Aruntani SAC.

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