News

Montreal, December 15, 2006 (“Sulliden”) (TSX:SUE) reports that it has filed its interim financial statements and management’s discussion and analysis for the quarter and half year ended October 31, 2006 and which are available on SEDAR at www.SEDAR.com

For the quarter Sulliden reported a loss of $926,290 compared to a loss of $160,100 in the quarter ended October 31, 2005. For the six months the Company reported a loss of $1,051,222 compared to a loss of $532,529 in the six months ended October 31, 2005. The loss in both the second quarter and six months ended October 31, 2006 includes a non-cash expense of $740,679 in respect of stock based compensation.

Excluding the stock compensation charge, administrative expenses for the quarter were $185,611 (2005 - $160,100) and for the six months were $310,543 (2005 -$532,529).

Expenditure on Peruvian exploration costs, including legal fees, amounted to $818,799 for the quarter and $1,945,598 for the six months. The Company’s cash position, including short term investments, amounted to $6,613,964 at October 31, 2006 compared to $2,071,088 at April 30, 2006.

During the period the Company issued stock options to directors, officers, employees and consultants on an aggregate of 1,815,000 shares exercisable at $0.80 per share for a period of five years.

The Company has finalized a revised Agreement with respect to the Torrine property and, in accordance with the Agreement, has issued 900,000 shares representing an acquisition cost of $810,000 to its joint venture partner Aruntani S.A. Exploration work on the Torrine property is scheduled to start immediately.

Shahuindo Litigation:

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

The rights of Sulliden to develop its Shahuindo Property in Peru are founded on an agreement dated November 6, 2002 (the “Agreement”), between Sulliden and Compania Minera Algamarca S.A., (“Algamarca”), pursuant to which Algamarca sold its rights in the Shahuindo Property to Sulliden. New shareholders of Algamarca have since claimed that the Agreement is invalid and commenced legal actions in Peru. This dispute was submitted by Sulliden to an Arbitration Tribunal which on July 19, 2006 rendered an unanimous decision in favour of Sulliden.

Algamarca has filed a Petition in the Commercial Chambers of the Superior Court in Lima seeking a Declaration of Nullity of the Arbitration Award. In this petition, Algamarca argue that the Arbitration Tribunal did not have competence to hear the dispute and that the members of the Arbitration Panel were conflicted. Sulliden has filed its replies to the Nullity Petition and expects that the Petition will be heard by the Superior Court of Lima early in 2007.

Following the Arbitration Award, the Registry Tribunal of the National Superintendent of Public Registers (SUNARP) (the official Peruvian Government State Registry) by Resolution No.454-2006 dated August 2, 2006 directed the Regional Registrar at Trujillo (where twenty of the Shahuindo mining concessions are registered) to register the transfer into Sulliden’s name of the twenty mining concessions. In pursuit of this Administrative Order, the Regional Registrar in Trujillo registered Sulliden as the owner of the twenty concessions on September 8, 2006.

Algamarca and its associate companies have commenced various new court actions against the SUNARP Registry Tribunal (not Sulliden) in different courts in various jurisdictions and have obtained various injunctions directed to the SUNARP, in attempts to frustrate the execution of the Arbitration Decision. These injunctions and orders have been noted on the files.

All of the orders and injunctions registered on the concessions are temporary and can be revoked. The Administrative Order issued by the Registry Tribunal on August 2, 2006 remains as the last administrative decision with regard to registration of the concessions.

In reply to the recent actions taken by Algamarca and its related companies, Sulliden has contested the various court actions, has filed appeals against the court orders and in turn has initiated its own action for breach of the Transfer Agreement and of the Award Injunction.

Sulliden has presented a petition to the 55th Judge of Lima to restore and maintain all of the twenty mining concession claims in Sulliden’s name. The motion of Sulliden was granted and the Order of the 55th Judge was presented to the Registry as a title on November 20, 2006. The Registrar, by official communication dated December 5, 2006 informed the 55th Judge of Lima of all the court orders and the pending registration of titles in the twenty dockets and has requested confirmation of the Judge’s Order.

For more detailed information please refer to Note 4 to the Interim Consolidated Financial Statements for the period ended October 31, 2006.

Although it is the opinion of management and its legal advisors that these claims are without legal merit, Sulliden cannot predict with certainty the outcome of the legal actions of the new shareholders of Algamarca or the impact of these actions on its rights under the Agreement.

Sulliden Exploration Inc. is a mineral exploration company focused on the development of its Shahuindo gold-silver project located 25 km north of Alto Chicama and 70km south of Yanacocha in northern Peru. The resource stands at 1.5 million ounces of gold at an average grade of 0.85 g/t Au and 35.2 million ounces of silver at an average grade of 19.83 g/t Ag, for a total gold equivalent of 2.1 million ounces of gold at a current gold to silver ratio of 1:60. In addition, Sulliden has an option interest to acquire 66% of an adjacent 1,900 hectares known as the Vikingo concessions which brings the Company’s land holdings in this exciting 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 and affiliates.

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 thes 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:

Jacques Trottier, President
Tel: (514) 861-1953
e-mail: sulliden@colba.net

Mr. Jim Coleman, Chairman
Tel: (403) 267-8373