Montreal , Canada – August 18, 2004 . Sulliden Exploration Inc. (TSX:SUE ("Sulliden") through its wholly-owned Peruvian subsidiary, Minera Sulliden Shahuindo S.A.C., is pleased to report that it has signed a strategic and technical cooperation agreement with Aruntani S.A.C. ("Aruntani"), Peru's largest privately held gold producing company, to assist in advancing its Shahuindo gold/silver property towards the production stage.
Aruntani, widely recognized for its expertise in the design, construction and operation of heap leach gold mines, is acclaimed for the rapid advancement of two of southern Peru's largest discoveries, the Santa Rosa and Tucari deposits, estimated to produce about 180,000 ounces in 2004. These deposits were developed at extremely competitive low capital costs and in record time. Sulliden expects to benefit significantly from Aruntani's expertise in the development of its Shahuindo property.
The President of Aruntani, Mr. Guido del Castillo, has accepted Sulliden's invitation to join as a member of the Board of Directors. Mr. del Castillo has more than 35 years experience in open pit and underground mining operations and is a prominent and highly respected personality in Peruvian mining.
"We are deeply honoured to welcome Mr. del Castillo to the Sulliden board and look forward to strengthening our relationship with a first class operator as Aruntani," added Jacques Trottier, President & CEO of Sulliden on behalf of the Board of Directors. "Sulliden will be entering an exciting new chapter that will ensure the maximization of the rich potential of its Shahuindo property". The Company also wishes to gratefully acknowledge the contributions of Leonard Harris, former President of Newmont Peru, who continues to work diligently as a director of Sulliden.
Mr. del Castillo began his long and illustrious career in mineral engineering having graduated from the Escuela Nacional Ingenieros in Lima followed by graduate studies at the Colorado School of Mines. He is currently President of MDH S.A.C. and Bradley-MDH S.A.C., a joint venture with Bradley Brothers of Rouyn-Noranda of Quebec, Canada.
Sulliden is a mineral exploration company focused on the development of its 100% interest in the Shahuindo gold-silver project located 25 km north of Barrick Gold's Alto Chicama gold deposit and 70 km south of Newmont's Yanacocha deposits in northern Peru. The results of a first phase drilling program of 3,450 meters together with previous drilling by Asarco formed the basis of a resource calculation in March 2004 by Met-Chem Canada Inc. of 25.8 million tonnes of 1.07 g/t gold and 23.97 g/t silver in the indicated category, and 8.5 million tonnes of 0.92 g/t gold and 22.54 g/t silver in the inferred category for a total of 1.14 million ounces of gold and 26.1 million ounces of silver.
The second phase drilling program at Shahuindo is currently underway to outline the property's global potential through diamond drilling on new target areas identified by encouraging soil geochemistry, ground magnetics and trenching results. The first set of drilling results and a geochemistry update are expected to be announced in September 2004. In addition, Sulliden has an option on a further 1,900 hectares adjoining the Shahuindo property known as the Vikingo concessions, bringing its land holdings in this exciting gold district to almost 10,000 hectares.
Certain of the information contained in this news release may constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements include without limitation, statements regarding estimates of reserves and resources, future plans and objectives, results of exploration, uncertainty with respect to changes in general economic or political conditions, title to properties, litigation, legislative, environmental and other judicial, regulatory and competitive developments in areas in which the Company operates. There can be no assurance that such statements will prove to be accurate; actual results and future events could differ materially from those anticipated in such statements. The Company is currently engaged in arbitration over the Shahuindo property (see press release of July 27, 2004). Important factors that could cause actual results to differ materially from Sulliden's expectations are further disclosed under the heading "Risk Factors" in its 2003 Annual Report as well as in its Annual Information Form (AIF) both of which are filed with Canadian regulators on SEDAR.
For Further information please contact:
Sulliden Exploration Inc.
Jean-Charles Potvin, Chairman
Phone: (416) 350-3997
or
Sulliden Exploration Inc.
Donna Yoshimatsu, Vice President Investor Relations
Phone: (416) 362-8809 investors@sulliden.com
