Toronto, Ontario, Canada: March 17, 2009: Sulliden Exploration Inc. (TSX: SUE) reports that it has filed its quarterly and nine month financial statements and management’s discussion and analysis for the period ended January 31, 2009. Sulliden reported a loss of $135,571 and $458,441 for the three and nine month periods ended January 31, 2009, compared to losses of $420,837 and $967,587 for the comparative period in 2008.
The decrease is mainly attributable to lower professional fees, lower stock-based compensation charges, and an exchange gain of $94,117 in the nine month period ended January 31, 2009, versus an exchange loss of $60,044 for the same period in 2008.
At January 31, 2009, the Company held $53,766 in cash and $2,666,592 in guaranteed investment certificates, compared to $147,470 and $1,889,000, respectively, held as of the fiscal year ended April 30, 2008. The increase in amounts held in investment certificates is a result of the addition of $3,826,518 in new funding from the exercise of warrants and options, off-set by funds used and invested during the period.
Shahuindo Settlements Completed
On February 27, 2009 Sulliden reached agreements to settle all outstanding issues in the disputes and litigation surrounding the Shahuindo gold/silver property. In summary, all parties agreed to withdraw and abandon all legal processes and Sulliden agreed to make payments, in installments, of US$13,500,000, grant a 1.5% NSR (redeemable for US$10 million) and issue 9,575,000 common shares. The agreements secure Sulliden’s 100 percent registered and undisputed ownership of the Shahuindo property. In addition, Sulliden obtained a three year option on 14 mineral concessions which adjoin the Shahuindo Property.
The Settlement Agreements have now been completed and closed and Sulliden is now is possession and control of all the Shahuindo properties and surface lands. Sulliden made a payment of US$1,250,000 on signing and issued 9,575,000 shares. These shares were issued subject to an Escrow Agreement whereby these shares are held in escrow and cannot be sold or transferred, without the consent of Sulliden, for a period of fourteen months. Sulliden also issued 1,250,000 shares to an arm’s-length third party in payment of a success fee for assistance in facilitating and negotiating the settlements.
Settlement of the dispute avoids the substantial costs of further litigation and will enable Sulliden to get back to exploration and development and finally move the Shahuindo property forward. In the coming months Sulliden plans to initiate a three-part exploration program to open new potential ore zones that should bring the Shahuindo project towards “world class” status and closer to production. The Company will require additional new financing to fund the payment obligations under the Settlement Agreements and its planned exploration and development programs.
Sulliden now has 96,846,805 shares issued and outstanding.
Shahuindo Property
Sulliden is 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 Gold’s Lagunas Norte-Alto Chicama 1,200,000 oz/gold per year mine; 70 km south of Newmont’s 1,900,000 oz/gold per year Yanacocha mine and 200 km north of Barrick Gold’s Pierina 450,000 oz/gold per year mine.
The Shahuindo resource currently stands at 38 million tonnes grading 0.95 g/t Au and 22.99 g/t Ag, containing 1.2 million oz of gold and 28 million oz of silver (equivalent to 1.6 million oz of gold at a gold to silver ratio of 1:60) in the Indicated Category; and 17.2 million tonnes grading 0.62 g/t Au and 12.83 g/t Ag, containing 342,000 oz of gold and 7 million oz of silver (equivalent to 460,000 oz of gold at a gold to silver ratio of 1:60) in the Inferred Category - (Resource Estimation – Guy Saucier, Eng., General Manager, Corporate Development, Met-Chem Canada Inc., Qualified Person for the purposes of NI 43-101 - April 2005 filed on www.sedar.com).
For further information please contact Sulliden Exploration Inc. at (416) 203-6128 or via email at contact@sulliden.com.
For further information contact:
John F. Kearney, President
Tel: (416) 203-6128
E-mail: contact@sulliden.com
Craig A. Geier, VP & Chief Financial Officer
Tel: (416) 728-4108
E-mail: contact@sulliden.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 revise any forward-looking statement, whether as a result of new information, future events or otherwise.
