SULLIDEN EXPLORATION INC.
TSX : SUE

SULLIDEN EXPLORATION INC.

October 27, 2009 16:17 ET

Sulliden Exploration Inc.: Shahuindo Gold Deposit Continues to Grow

TORONTO, ONTARIO--(Marketwire - Oct. 27, 2009) - Sulliden Exploration Inc. ("Sulliden") (TSX:SUE) is pleased to report assay results from the recently completed exploration campaign on its Shahuindo Gold Project. This was the first significant exploration program on the Shahuindo Gold Project deposit since 2004 and was initiated following the successful resolution of all ownership litigation of the Shahuindo property earlier this year.

This exploration campaign consisted of 26 drilled holes totalling 4,100 meters, as well as 500 meters of trenching. Significant new intersections include the following:

- Hole RSH09-09 returning 1.40 g/t gold over 55.5m

- Hole RSH09-11 returning 1.20 g/t gold over 36.0m

- Hole RSH09-13 returning 0.59 g/t gold over 51.0m, then 1.03 g/t gold over 49.5m

- Hole RSH09-16 returning 0.91 g/t gold over 60.0m

- Hole SH09-101 returning 1.48 g/t gold over 31.1m, then 0.62 g/t gold over 29.5m

- Hole SH09-104 returning 0.44 g/t gold over 25.0m, then 1.68 g/t gold over 105.0m

The National Instrument 43-101 ("NI 43-101") resource model prepared by Metchem Canada in 2005 used an economic cut off of 0.3 g/t gold. The Preliminary Economic Assessment currently being prepared by AMEC establishes a preliminary economic cut-off grade of 0.22 g/t gold.

"We are very pleased with the results of the exploration campaign which focused primarily on the gaps in the central part of the Shahuindo gold deposit" commented Stephane Amireault, Vice President Exploration, "The mineralized intersections demonstrate continuity between the mineralized zones and indicate the potential to continue to expand and grow the current mineral resource with additional drilling."

Sulliden has initiated the second phase of exploration at the Shahuindo Gold Project. Approximately 16,000 meters of additional drilling, and surface exploration, are planned over the next 12 months. An Induced Polarization (IP) geophysical survey has been initiated and a Mobile Metal Ion (MMI) geochemical survey will also be carried out.

DRILL EXPLORATION RESULTS

The exploration campaign targeted areas between the East, Moyan Alto and San Jose Zones. The primary target area, identified as the "Gap Zone", is located on trend between the San Jose Zone and the East Zone and has not been explored in detail due to the presence of boulder fields and other transported overburden making soil sampling and exploration difficult. The surface extension of the Gap Zone and other surrounding area is found on Figure 1. Sections 350E and 400E are located at the beginning of the Gap Zone and have good drilling density. In each section the new drill hole data and subsequent re-interpretation have more than doubled the mineralized surface on section, both inside and outside of the preliminary pit outline. The overall current width of the deposit in these two sections is around 300 meters. Sections 500E, 600E 700E are much less drilled, however new drill data has increased the overall mineralization width in each section. Interpreted sections 350E and 700E are included in this press release to illustrate this.

Figure 1 Drill Hole Collar Locations Map is available at the following link: http://media3.marketwire.com/docs/sue1027fig1.pdf.

Figure 2 Section 350E is available at the following link: http://media3.marketwire.com/docs/sue1027fig2.pdf.

Figure 3 Section 700E is available at the following link: http://media3.marketwire.com/docs/sue1027fig3.pdf.

The complete gold assay results in the table below include a total of 18 reverse-circulation holes (RSH series) as well as eight diamond drill holes (SH series) and summarizes intervals where most gold assays were greater than 0.3 g/t gold. Typical sample interval length was 1.5 meters.



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Drill Location From To Meters True Gold
Hole# (m) (m) (m) width (m) (g/t)
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RSH09-01 East Zone 6.0 (2) 85.0 79.5 +/- 55 (6) 0.69
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RSH09-01 East Zone 204.0 215.5 (4) 11.5 +/- 7 (6) 0.62
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RSH09-02 East Zone 34.5 54.0 19.5 +/- 19 (6) 0.58
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RSH09-02 East Zone 117.0 136.5 19.5 +/- 12 (6) 0.92
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RSH09-02 East Zone 165.0 222.0 57.0 +/- 35 (6) 0.35
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RSH09-02 East Zone 243.0 261.0 18.0 +/- 13 (6) 0.56
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RSH09-03 East - Gap Zone 10.5 24.0 13.5 +/- 8 (7) 0.61
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RSH09-03 East - Gap Zone 42.0 100.5 58.5 +/- 40 (7) 0.68
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RSH09-03 East - Gap Zone 109.5 225.0 (4) 115.5 +/- 70 (7) 0.60
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RSH09-04 Moyan Alto Zone
(Junction) 37.5 100.5 63.0 +/- 35 (8) 0.72
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RSH09-05 Moyan Alto Zone
(Junction) 37.5 114.0 76.5 +/- 45 (8) 0.88
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RSH09-06 East Zone 3.0 (2) 21.0 18.0 +/- 18 (6) 0.45
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RSH09-06 East Zone 48.0 54.0 6.0 +/-3 (6) 1.04
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RSH09-06 East Zone 70.5 84.0 13.5 +/-8 (6) 0.34
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RSH09-07 East Zone 3 (2) 87 84.0 +/- 70 (6) 0.43
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RSH09-08 Gap Zone 85.5 94.5 9.0 +/- 5 (7) 0.32
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RSH09-09 Gap Zone 42.0 97.5 55.5 +/- 30 (7) 1.40 (9)
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RSH09-10 Gap Zone 51.0 66 15.0 +/- 10 (7) 0.32
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RSH09-11 Gap Zone 42.0 78 36.0 +/- 20 (7) 1.17 (10)
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RSH09-11 Gap Zone 132.0 139.5(4) 7.5 +/- 5 (7) 0.83
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RSH09-12 Gap Zone 52.5 100.5 48.0 +/- 30 (7) 0.62
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RSH09-12 Gap Zone 121.5 142.5 (5) 21.0 +/- 10 (7) 0.47
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RSH09-13 SE San Jose 9 (2) 60 51.0 +/- 30 (7) 0.59
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RSH09-13 SE San Jose 70.5 120 (5) 49.5 +/- 30 (7) 1.03
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RSH09-14 SE San Jose 25.5 39 13.5 +/- 10 (7) 0.37
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RSH09-14 SE San Jose 48.0 61.5 13.5 +/- 10 (7) 0.37
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RSH09-14 SE San Jose 118.5 166.5 (5) 48.0 +/- 30 (7) 0.59
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RSH09-15 SE San Jose 45.0 69 24.0 +/- 15 (7) 0.44
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RSH09-16 SE San Jose 40.5 49.5 9.0 +/- 5 (7) 0.59
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RSH09-16 SE San Jose 63.0 70.5 7.5 +/- 5 (7) 0.77
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RSH09-16 SE San Jose 85.5 145.5 60.0 +/- 35 (7) 0.91
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RSH09-17 SE San Jose 31.5 55.5 24.0 +/- 15 (7) 0.71
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RSH09-17 SE San Jose 103.5 120 16.5 +/- 10 (7) 1.21
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RSH09-18 SE San Jose No Intersection
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SH09-98 SE San Jose (1) 0 (3) 29.69 29.7 +/- 20 (7) 1.19
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SH09-98 SE San Jose 128.0 135 7.0 +/- 5 (7) 0.62
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SH09-98 SE San Jose 192.07 213 (5) 20.9 +/- 15 (7) 0.48
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SH09-99 SE San Jose 17.2 49.5 32.3 +/- 25 (7) 0.73
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SH09-99 SE San Jose (1) 64.5 145.5 81.0 +/- 55 (7) 0.49
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SH09-100 Gap Zone 45.0 81 36.0 +/- 25 (7) 0.60
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SH09-100 Gap Zone 103.5 138 34.5 +/- 25 (7) 0.51
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SH09-100 Gap Zone 154.5 160.7 6.2 +/- 5 (7) 0.71
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SH09-101 Gap Zone 28.5 41.08 12.6 +/- 10 (7) 0.41
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SH09-101 Gap Zone 45.78 76.9 31.1 +/- 20 (7) 1.48
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SH09-101 Gap Zone 113.0 142.5 29.5 +/- 20 (7) 0.62
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SH09-102 Central San
Jose (1) 30.0 63 33.0 +/- 25 (7) 1.06 (11)
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SH09-102 Central San
Jose 85.5 90 (5) 4.5 +/- 5 (7) 1.49
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SH09-103 Porphyry
Zone (1) 0 (3) 18.4 18.4 +/- 15 (8) 1.47
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SH09-104 Central San
Jose (1) 15.7 40.7 25.0 +/- 15 (7) 0.44
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SH09-104 Central San
Jose 51.2 156.2 105.0 +/- 60 (7) 1.68 (12)
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SH09-105 SE San Jose 34.5 84 49.5 +/- 30 (7) 0.68
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(1) Intersection sought for metallurgical study purposes.
(2) Mineralization starts less than 10m from collar.
(3) Mineralization starts at collar.
(4) Bottomed in mineralization.
(5) Mineralization found less than 10m from hole bottom.
(6) The main axis of continuity is likely to have a strong horizontal
component for RSH09-07 located in the East Zone. True width is
considered in this case to be the vertical projection of the
mineralization.
(7) The true width of each intersection depends on the geological
interpretation on section and also on information found in surrounding
sections. Given the geological framework found for this deposit, a
first order approximation of true width may be made assuming vertical
zones for the San Jose Zone (Central and SE), although complex shapes -
depending in part on the porphyry-sediment contact - are expected in
details. This geological framework may be extrapolated to the Gap zone.
(8) The Porphyry Zone is bowl shaped. The vertical projection of the
intersection is assumed to represent the true width.
(9) Using a high cut-off grade of 7g/t Au, the intersection stands at 0.93
g/t Au over 55.5 m.
(10) Using a high cut-off grade of 7g/t Au, the intersection stands at 1.15
g/t Au over 36.0 m
(11) Using a high cut-off grade of 7g/t Au, the intersection stands at 0.96
g/t Au over 33.0 m
(12) Using a high cut-off grade of 7g/t Au, the intersection stands at 1.58
g/t Au over 105.0 m


QUALITY CONTROL AND ASSURANCE

The exploration samples were received by ALS Chemex in Lima, Peru exercising a thorough Quality Control and Assurance program (QA/QC). All ALS Chemex labs are ISO 9000 registered laboratories. All HQ core assays and RC assays reported in the press release were obtained by standard 50g fire assaying-AA (or gravimetric) finish.

The technical contents of this press release were reviewed by Stephane Amireault, P.Eng., Vice President, Exploration for Sulliden Exploration Inc. Mr. Amireault is the Qualified Person responsible for the management of the exploration program and disclosure of the drill results as defined by NI 43-101.

ENGINEERING UPDATE

The engineering and Preliminary Economic Assessment (PEA) for the Shahuindo Gold Project is on track and progressing well. AMEC advises that the PEA is on schedule for issue in late November. The extension in the delivery of the PEA has allowed for the recently completed exploration drill results to be incorporated in the report. Additional refinements are also being made in the capital and operating costs of the project. Sulliden has completed preliminary agglomeration testing using a polymer in conjunction with cement to evaluate the potential to reduce costs while improving the quality of agglomeration. The testing procedures were conducted on surface samples collected from the same areas where previous detailed heap leach characterization testing was done by Heap Leach Consulting S.A.C. Initial results have been very encouraging and an additional test program will be undertaken to examine additional benefits considering various lime and cement rations with the polymer. Polymers additives produce more competent agglomerates than either cement or lime alone and represent an opportunity to reduce operating costs by lowering cement consumption.

Construction activities on the Shahuindo property are underway for a new administration building that will include both engineering and geology facilities. The Company is also actively upgrading current infrastructure and improving access roads.

CONTINUED MARKETING INITIATIVES

In the next month, Sulliden will be making marketing stops in Montreal, Quebec City and Calgary. The Company is also pleased to be participating in the Hard Assets convention in San Francisco in November followed by marketing in Vancouver and London, and participation in the Mines and Money forum in December.

About Sulliden

Sulliden is a Canadian based mining company focused on the development and exploration of the Shahuindo Gold Project located in northern Peru, one of the world's most prolific gold and silver producing districts. World-class gold mines in the region include Barrick Gold's Lagunas Norte Mine, 30 km to the south, (1.2 million ounces of gold produced in 2008), and the Yanacocha Mine operated by Newmont Mining Company, 80 km to the north (1.8 million ounces of gold produced in 2008).

The Shahuindo Gold Project has a NI 43-101 compliant Mineral Resource Estimation completed by Met-Chem Canada Inc. in 2005 that estimates 38 million tonnes grading 0.95 grams per tonne of gold and 23 grams per tonne of silver of indicated resource (1.2 million ounces gold and 28 million ounce silver) and 17.2 million tonnes grading 0.62 grams per tonne of gold and 12.83 grams per tonne silver in the inferred category (342,000 ounces gold and 7.1 million ounces silver) (See Sulliden Press Release of April 29, 2005 for details regarding the resource estimate)

In March 2009, the five-year legal dispute that disrupted the Shahuindo Gold Project was resolved. With the current resolution, Sulliden now holds 100 percent registered and undisputed ownership of the Shahuindo property and has secured exploration options on sixteen adjoining mining concessions.

In April 2009, the Board of Directors appointed a new Management team with the focus and ability to develop, finance and operate mining projects. With a strong strategic plan to advance the development of its Shahuindo Gold Project and potential for mineral resource expansion, Sulliden is positioned to generate superior value for its shareholders.

The Mineral Resource Estimation was completed by Met-Chem Canada Inc. in 2005 and is available under the Sulliden profile on SEDAR at www.sedar.com.

Shahuindo Gold Project location map is available at the following link: http://media3.marketwire.com/docs/sue1027map.pdf.



On behalf of Sulliden Exploration Inc.
Peter Tagliamonte Stan Bharti
President and CEO Chairman


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Caution regarding forward-looking information:

This press release contains "forward looking information" within the meaning of applicable Canadian securities legislation. Forward looking information includes without limitation, statements regarding the effect of the results on the future financial or operating performance of the Company, the size and quality of the company's mineral resources, progress in development of mineral properties, future capital and operating expenses, capital and mine production costs, future metal prices and treatment and refining charges, the financial results of the company the future financial or operating performance of the Company, the prospective mineralization of the properties and planned exploration programs., the issue of permits, future production and sales volumes, capital and mine production costs, demand and market outlook for metals, planned exploration programs, anticipated production schedule and terms and the availability and likelihood of future acquisitions. Generally, forward looking information can be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or state that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved". Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking information, including but not limited to: general business, economic, competitive, geopolitical and social uncertainties; the actual results of current exploration activities; acquisition risks; and other risks of the mining industry. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward looking information. The Company does not undertake to update any forward-looking information, except in accordance with applicable securities laws.

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