August 31, 2009 16:24 ET

Golconda Announces Joint Venture With Saskatchewan First Nation

CALGARY, ALBERTA--(Marketwire - Aug. 31, 2009) - GOLCONDA RESOURCES LTD. ("Golconda") (TSX VENTURE:GA) is pleased to announce that it has entered into a joint venture agreement with Mudjatic Enterprises Inc. ("Mudjatic") through its wholly owned diamond drilling subsidiary Lyncorp Drilling Services Inc. The Agreement will establish a diamond drilling operation in Saskatchewan to provide surface and underground drilling services, as well as related services.

Golconda is a Calgary exploration company which owns Smithers B.C. based Lyncorp Drilling Services Inc.

Mudjatic Enterprises Inc. is a Saskatchewan First Nations company controlled by the English River First Nation. The business offices of the joint venture which shall be referred to as Mudjatic-Lyncorp Drilling Services shall be located at Saskatoon SK in a commercial development owned by the English River First Nation. The English River First Nation is based at Patunak Saskatchewan on the Churchill River. The English River First Nation has interests in several other service businesses pertaining to resource development.

The structure of the announced joint venture agreement provides a 51% controlling interest to Mudjatic. Golconda president Sid Dutchak indicates that the announced agreement provides Golconda with an excellent opportunity to be part of a venture to provide quality drilling services in Northern Saskatchewan. "Our partners in this venture are not only very well strategically located, but also have a history of operating successful businesses. We look forward to our relationship with the Mudjatic group."

The newly announced venture will be capable of providing drilling and related services as of September, 2009.

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

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