Sulliden reports third quarter and nine month results

Sulliden Exploration Inc. (”Sulliden” or the “Company”) (TSX:SUE - News) reports that it has filed its interim financial statements and management’s discussion and analysis for the period ended January 31, 2007 which are available on SEDAR at www.sedar.com.

During the three-month period ended January 31, 2007, the Company reported a net loss of $236,568 ($0.01 per share) compared to a net loss of $176,400 ($0.01 per share) for the three-month period ended January 31, 2006. The increase is mainly attributable to the non cash charge in respect of stock based compensation arising on the grant during the period of employee stock options.

During the nine-month period ended January, 31, 2007, the Company reported a net loss of $1,287,790 ($0.01 per share) compared to a net loss of $708,929 ($0.01 per share) for the nine-month period ended January, 31, 2006, with the increase being largely attributable to stock based compensation expense on the options granted during the period.

Expenditure on Peruvian exploration costs, including legal fees, amounted to $575,122 for the quarter and $2,520,720 for the nine months. The Company’s cash position, including short term investments, amounted to $5,916,745 at January 31, 2007 compared to $2,071,088 at April 30, 2006.

During the period the Company issued stock options on an aggregate of 400,000 shares exercisable at $0.50 per share for a period of five years and 310,000 stock options were exercised for a cash consideration of $89,900.

During the period, the Company issued 297,372 common shares at a deemed issue price of $0.87 per share, for a total consideration of $258,714 in part payment of legal and advisory fees to six arm’s length service providers in Peru. Such payables were accounted for in Sulliden’s financial statements for the quarter ended October 31, 2006. Also during the period 181,250 shares were issued in settlement of other debt obligations.

Exploration Starts at Torrine

The 2007 exploration program commenced on the Torrine gold project. In preparation for a drilling campaign access agreements have been concluded with the local landowners and a road is being constructed to enable heavy equipment to access the property. At the same time a new program of rock sampling and some trenching has been carried out in the target areas.

The first phase of drilling will consist 10 to 15 diamond drill hole program totaling about 2000 metres. The drilling is planned to test selected high priority targets to determine high sulphidation gold type mineralization. The drill targets were selected based on geological, geochemical, geophysical and satellite remote sensing for alteration identification and structure feature interpretation. Drilling will commence in about three months upon completion of the access road. (See Sulliden Press Release February 21, 2007).

Shahuindo Litigation

The Company’s rights to the Shahuindo property in Peru are in dispute and are the subject of extensive litigation in Peru. (See Sulliden Press Release February 7, 2007).

The hearing by the Commercial Chamber of the Superior Court of Lima of Algamarca’s Nullity Petition appeal is expected to be held in late March 2007. In this petition Algamarca seeks to have the Arbitration Decision and Award issued in Sulliden’s favour in July 2006 declared null and void, arguing that the Arbitration Tribunal did not have the competence to hear the dispute and that the members of the Arbitration Tribunal were conflicted.

This Nullity Petition is an appeal procedure provided under the General Arbitration Law of Peru and is applicable to all arbitrations’ and is available to all parties. The hearing will deal with procedural legal process only and the merits of the case will not be reconsidered. The petition will be heard by a panel of three Superior Court Judges. Under the laws of Peru a further appeal to the Supreme Court against a decision of the Commercial Chamber of the Superior Court in this case may be taken by the Respondent (Sulliden) but not by the Petitioner (Algamarca). Further, following determination of such appeal, it would remain open to any party to institute separate constitutional proceedings against the decision of the Arbitration Tribunal.

In December 2006 the Constitutional Tribunal (Peru’s highest constitutional court) rejected a petition by Algamarca to stop the arbitration process on conditional grounds.

In compliance with the Arbitration Decision, the Arbitration Award, the Administrative Order of the SUNARP Registry Tribunal, and the Injunction of the 55th Civil Court of Lima, the twenty mining concessions at Shahuindo have been re-registered in the name of Sulliden Shahuindo effective November 2002 and Minera Sulliden Shahuindo is now recorded as the registered owner of 20 Shahuindo mining concessions in the SUNARP registry in Trujillo and the other six Shahuindo mining concessions in the SUNARP registry in Lima. Further the Minister of Energy and Mines has recorded Sulliden as the owner of the 26 mining concessions in the “Mining Rights System and Catastro-Sidemcat” of the National Institute of Mining Concessions and Cadastre - INACC, the official register of owners of mining concessions maintained by the Ministry of Energy and Mines.

Sulliden is aware that Algamarca had purported to try to transfer some of the mining concessions to various associated companies, including Inversiones Mineras Sudamericanas SA and Minera Pilacones SA. These companies in turn have attempted to transfer the concessions to another Panamanian company, Andean Mining Gold Inc., which in turn has purported to grant a mortgage to yet another Panamanian company, Import & Export A.C.D. SA. All of these companies are believed to be associated directly or indirectly with Compania Minera Aurifera Santa Rosa S.A. (COMARSA), a private company controlled by the Sanchez family which operates a gold mine, located about 50 km south of Shahuindo in Cajamarca Province Peru. All of these transfer contracts are ineffective against Sulliden as per the Arbitration Award and are subject to the Transfer Agreement and to the prior registration of the Transfer Agreement from Algamarca to Sulliden Shahuindo of November 11, 2002.

In view of the Arbitration Award and its strong legal position, Sulliden remains confident that the outcome of all legal actions in this dispute will be favourable in Sulliden. Sulliden will take whatever further legal action may be necessary to ensure enforcement of the Arbitration Award and to secure full ownership of the Shahuindo Property in Sulliden’s name. However, as in any litigation where there is a dispute, Sulliden cannot predict with certainty the outcome of the various legal actions or the impact of these actions on Sulliden’s rights and entitlements to the Shahuindo property.

ABOUT SULLIDEN:

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 gold to silver ratio of 1:60.

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

In addition, Sulliden has an option 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.

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, 2006 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

John F. Kearney, President, Tel: (416) 703-8287, E-mail: contact@sulliden.com
James H. Coleman, Chairman, Tel: (403) 267-8373