NEW SLEEPER GOLD CORPORATION
TSX VENTURE : NWS

NEW SLEEPER GOLD CORPORATION

May 17, 2006 08:42 ET

New Sleeper Gold Completes the Disposition of its Interest in the Sleeper Project in Nevada

LONGUEUIL, QUEBEC--(CCNMatthews - May 17, 2006) - New Sleeper Gold Corporation (TSX VENTURE:NWS) has completed the sale to X-Cal Resources Ltd. (TSX:XCL) of its 50% interest in the Sleeper Gold Project in Nevada. As a result of the transaction, X-Cal owns 100% of the Sleeper Project. The Company received as a consideration $5 million and 10 million common shares of X-Cal. The shares will be restricted for 24 months following closing; 1/4 of the Shares will be released from such trading restriction every six months, commencing six months after closing. The transaction was approved by the Company's shareholders and by the TSX Venture Exchange. New Sleeper, as shareholder of X-Cal, will retain an indirect interest in the Sleeper Project. X-Cal will become operator of the Sleeper Gold Project and will fund ongoing exploration.

As previously announced, the Company intends to focus its attention on projects in the Guiana Shield in South America. The Company has acquired the right to explore, develop and acquire the Antino 1 Project located in Southeastern Suriname and is actively looking for new opportunities in South America. For more information about the Antino project, please refer to the 43-101 Technical Report available on Sedar (www.sedar.com) under New Sleeper Gold Corporation's public documents.

Caution Concerning Forward-Looking Statements

This press release contains certain "forward-looking statements", including, but not limited to, the statements regarding the future transactions, the anticipated benefits of the transaction and the Company's future plans. Forward-looking statements express, as at the date of this press release, the Company's plans, estimates, forecasts, projections, expectations or beliefs as to future events or results. Forward-looking statements involve a number of risks and uncertainties, and there can be no assurance that such statements will prove to be accurate.

Additional information about the Company is available through regular filings and press releases on SEDAR. The Company's website is currently being updated.

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

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