October 29, 2007 09:30 ET

Drilling to Start in Nevada; Golconda Intends Private Placement and Extends Warrants

CALGARY, ALBERTA--(Marketwire - Oct. 29, 2007) - At the beginning of November Golconda Resources Ltd. (TSX VENTURE:GA) will start a diamond drill program on the Merger project east of Tonopah, Nevada. Golconda can earn up to 35% interest in the property. The drill target consists of a 600 ft zone containing five parallel veins with high silver grades at or near surface, and sporadic high gold values. The highest samples taken by G. Liedtke showed the following results:

1 ft vein - 0.302 oz Au/ton and 51.50 oz Ag/ton

3 ft zone in trench - 1.562 oz Au/ton and 4.13 oz Ag/ton

A diamond drillhole from 1981 by Keradamex intersected argillic altered tuff to 240 ft depth. Minor stockwork and breccias were intersected to 395 ft depth, including a vein zone from 295 ft to 305 ft that averaged 0.011 oz Au/ton and 7.94 oz Ag/ton. From 395 ft to the end of the hole at 756 ft, the drilling showed strong stockwork and brecciation. Golconda believes that his could be the top part of a boiling horizon with Bonanza-type high grade gold-silver values in the veins at a depth below 750 ft. The holes are projected to go to a depth of 1000 to 1250 ft.

Golconda intends to make a private placement of 1 million units at a price of $0.17 per unit, for proceeds of $170,000.00. Each unit consists of one common share of Golconda and one half non-transferable common share purchase warrant. Each warrant will allow the subscriber to purchase one common share of Golconda at $0.25 for a period of twelve (12) months from issuance. One Golconda insider, David Mullen, has subscribed for the complete private placement.

The proceeds from the private placement, which is subject to regulatory approval, will be used to fund drilling in Nevada.

Golconda also intends, subject to regulatory approval, to extend 2,750,000 warrants with an exercise price of $0.30 to May 14, 2008. These warrants were issued pursuant to a private placement of 5,500,000 shares with 2,750,000 non-transferable share purchase warrants attached. It was accepted for filing by the TSX Venture Exchange effective May, 2006.

Golconda's CEO Guenter J. Liedtke, P.Geol. is the designated qualified person for the purposes of National Instrument NI 43-101 Standards of Disclosure.

On behalf of Golconda Resources Ltd.,

Guenter J. Liedtke, President

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

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