January 10, 2007 08:00 ET

Golconda Resources Ltd.: Drilling Continues in Nevada on Ralston Valley Gold Property

CALGARY, ALBERTA--(CCNMatthews - Jan. 10, 2007) - Golconda Resources Ltd. (TSX VENTURE:GA): Drillhole BX-1 reached a depth of 520-feet before Christmas and will be continued to a depth of 1,500-feet when drilling resumes on January 15, 2007.

The hole encountered so far a sequence of 1 cm to 5 cm thick quartz veins in strongly pyritic black shale from 305-feet to 325-feet and a zone of bedded and cross-cutting thin banded quartz-carbonate veins with pyrite and arsenopyrite from 470-feet to 520-feet in limey and silicified shale. This zone may continue with the deepening of the hole. Gold mineralization at Ralston Valley is tied to quartz veining and silicified breccias.

Samples from 170-feet to 520-feet were sent to ALS Chemex for analysis on December 17, 2006.

Initially, four holes will test four gold mineralized areas to a depth of 1,500 to 1,800-feet for the occurrence of Carlin Type gold mineralization in a laminated silty limestone sequence, which is projected to occur below a depth of 1,200-feet.

Guenter Liedtke is the designated qualified person responsible for exploration on the project under NI 43-101.

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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