News

Toronto, July 30, 2007– Sulliden Exploration Inc. (“Sulliden” or the “Company”) (TSX:SUE) reports that it has filed its financial statements and management’s discussion and analysis for the financial year ended April 30, 2007.

The Company reported a net loss for the year of $1,538,346 compared to a loss of $1,146,709 in the year ended April 30, 2006. Included in the loss for 2007 is stock-based compensation charge of $838,792 in respect of the grant of stock options, compared to a stock-based compensation charge of $100,246 in the previous year.

During the year the Company invested $2.79 million in exploration and development, including legal fees, on it Peruvian properties, compared to $2.85 million in 2006.

At April 30, 2007 the Company had cash, investment certificates and accounts receivable of $5,177,179 compared to $2,071,088 at April 30, 2006.

This press release should be read in conjunction with the audited financial statements and the notes thereto for the year ended April 30, 2007. The audited financial statements and additional information relating to the Company including Management’s Discussion and Analysis and the Company’s Annual Information Form for 2007 is available on SEDAR at www.sedar.com or on the Company’s website at www.sulliden.com.

Overview of Performance

The fiscal period ended April 30, 2007 was a year of continued frustration, although also marked by significant positive steps, in the ongoing saga of the Company’s Shahuindo gold/silver project in Peru.

On the positive side were the Arbitration Decision and Award issued in July 2006 which confirms Sulliden’s entitlement to the Shahuindo property, the subsequent registration of ownership of all 26 mining concession and surface rights at Shahuindo in Sulliden’s name, both at the SUNARP Registry and at the Minister of Energy and Mines, and the grant of an exploration permit to Sulliden in April 2007.

On the negative side, Algamarca continued to fight the ownership dispute, ignored and tried to frustrate the Arbitration Award and filed a Nullity Petition seeking to have the Arbitration Decision set aside. At the same time, Algamarca challenged the registration of the concessions in Sulliden’s name and purported to “transfer” or mortgage some of the mining concessions to associated companies in an elaborate web and complex legal scheme, culminating in the “sale” of Algamarca and all these related companies to Century Mining Corporation, announced in May 2007, with the “sale” financed by the vendors, the Sanchez Group.

Sulliden also scored some important victories on the legal front with the ruling of Constitutional Tribunal in December 2006 denying Algamarca’s motion to stop the arbitration process; the decision of the Superior Court of Cajamarca in April 2007 dismissing Algamarca petition challenging the registration of the Shahuindo mining concessions in Sulliden’s name; and the decision of the Supreme Court of Peru in May 2007 upholding Sulliden’s appeal against an order previously granted to Algamarca by the Superior Court of Cajamarca.

The hearing by the Commercial Chamber of the Superior Court of Lima of Algamarca’s Nullity Petition seeking to set aside the Arbitration Decision took place on June 27, 2007 and a decision of that Court is awaited. Under the laws of Peru a further appeal to the Supreme Court of Peru against the decision of the Commercial Chamber may be taken by Sulliden but not by Algamarca.

In June 2007 Sulliden filed two lawsuits in the Canadian Courts against Algamarca, Century Mining, Orlando Sanchez Paredes and others seeking to have the Arbitration Decision recognized by the Canadian Courts and seeking damages of US$200 million for breach of contract and breach of the Arbitration Award. Sulliden sees the initiation of new litigation in Canada as a positive development and is more than willing to have the Shahuindo dispute resolved by the Canadian Courts.

The unfortunate aspect is that Sulliden’s efforts to further explore and develop the Shahuindo property continue to be frustrated by the ongoing legal issues, which take time and money to fight and defend. However having invested $23,400,000 in the acquisition of Shahuindo, and $19,372,000 in exploration and development and doubling the resources, including significant legal fees on defending Sulliden’s ownership, Sulliden does not intend to stand idly by and allow the property to be taken from Sulliden by anybody.

Since the issue of the exploration permit in April 2007, Sulliden successfully carried out an exploration program at Shaduindo including a new geochemical soil survey, sampling of old underground adits and pits and a new geophysical magnetic survey.

Management of Sulliden is very pleased and excited about the results obtained so far from the 2007 exploration program at Shaduindo and is also very optimistic about the future follow-up drilling campaign. The results of the new 2007 exploration phase will help to confirm the priority of the outlined targets for the next drilling campaign. The high gold and silver values obtained from the rock and soil samples in areas that have never been evaluated by Sulliden in the past demonstrate the important exploration potential of the property, which could eventually add to the known gold and silver resource at Shaduindo.

Sulliden has also initiated exploration work on the Torrine property and expects that drilling will commence in August 2007 upon completion of the access road to the property. The first phase of drilling will consist of a 10-15 diamond drill hole program totalling about 2000 metres, and is planned to test selected high priority targets for epithermal suliphidation gold mineralization.

Extension of Term of Share Purchase Warrants

On July 26, 2007 the Board adopted a resolution, subject to regulatory approval, authorizing 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 private placement financings completed in August 2006 and would otherwise have expired on August 31, 2007. There are no other amendments of the terms of these warrants and the exercise price of the warrants will remain unchanged at $1.00 per share. Exercise of all of the warrants would generate $5.9 million cash to the Company and would represent approximately 7.5% of the outstanding shares on a diluted basis. To the best of the knowledge of the Company no warrants are held by any insider of the Company and all the holders of the warrants are at arm's length to Sulliden.

Shareholder Rights Plan

On July 26, 2007 the Board of Directors adopted a shareholder rights plan (“Rights Plan”). The Rights Plan is designed to provide adequate time for shareholders of Sulliden and the Board of Directors to consider and evaluate any unsolicited take-over bid for the Company; to provide the Board adequate time to identify, develop and negotiate alternatives for maximizing shareholder value; to provide shareholders with an equal opportunity to participate in any take-over bid; to encourage the fair treatment of shareholders in the event of any bids for Sulliden and to ensure that any proposed transaction is in the best interest of Sulliden’s shareholders.

The Rights Plan is effective immediately subject to ratification by Sulliden shareholders, which will be sought at the Annual and Special Meeting of Shareholders which has been called for August 29, 2007.

The Rights Plan, which has a term of three years, is similar to those adopted by other Canadian listed companies and is consistent with current Canadian corporate practice and institutional investor guidelines. Sulliden is not aware of any pending or threatened take-over bid for the Company.

The Rights issued under the Rights Plan will become exercisable only if a person, together with its affiliates, associates and joint actors acquires or announces the intention to acquire beneficial ownership of Sulliden shares which when aggregated with its current holdings total 20% or more of Sulliden’s outstanding common shares (determined in the manner set out in the Rights Plan), other than a Permitted Bid (as defined in Plan). A Permitted Bid must be made by way of a take-over bid circular prepared in compliance with applicable securities laws, and, among other conditions, must remain open for 60 days and may be taken up only if more than 50% of the shares held by shareholders other than the bidder have been tendered to the bid. In the event that the take-over bid does not meet the Permitted Bid requirements of the Rights Plan, the Rights will entitle shareholders, other than shareholder making the take-over bid, to purchase additional common shares of Sulliden at a substantial discount to the market price of the common shares at that time.

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.

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