Sultan Minerals Inc.
TSX VENTURE : SUL
FRANKFURT : RZN

Sultan Minerals Inc.

December 16, 2009 09:00 ET

Sultan Minerals Year End Update and Project Review

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Dec. 16, 2009) - Sultan Minerals Inc. (TSX VENTURE:SUL)(FRANKFURT:RZN) ("Sultan") is pleased to provide a year-end project review. Sultan has two advanced exploration projects in the Kootenay Region of southeastern BC with drill programs planned for 2010 on both projects. Sultan's experienced management team and board of directors, with a history of exploring, developing and financing mining projects, are committed to advancing Sultan's projects. With over $1.75 million in unallocated working capital Sultan is well positioned to commence its planned 2010 projects.

In 2009 Sultan aggressively explored and expanded the two projects, each of which has a NI 43- 101 compliant mineral resource estimate:

  • Kena: Gold-Copper project
  • Jersey-Emerald: Tungsten-Lead-Zinc-Silver, and Molybdenum project

Kena Gold-Copper Project, BC:

Sultan's 8,173-hectare Kena Gold-Copper Project encompasses two areas of porphyry-style gold mineralization – the Gold Mountain and Kena Gold Zones situated within an 8.0-km long gold geochemical anomaly. Sultan tested the two zones with 12,000 metres of diamond drilling in 80 drill holes and a preliminary NI 43-101 resource estimate was prepared by Giroux Consultants Ltd. in June 2004. The report shows a measured and indicated resource of 11,820,000 tonnes containing 381,000 ounces of gold at an average grade of 1.0 g/T using a 0.5 g/T cut-off grade for gold. An additional inferred resource of 12,150,000 tonnes containing 389,000 ounces of gold at the same grade (June 7, 2004, News Release) expands the potential size and should be increased with additional diamond drilling.

In June 2009, the Company contracted Dr. Jim Oliver, P.Geo to conduct an independent assessment of Sultan's Kena Gold Property. Dr. Oliver's resulting 30-page non-NI 43-101 compliant report concludes that: "Kena is a very significant and likely undervalued gold-copper occurrence."

The report strongly recommends additional exploration including:

  1. Consistently identifying and drill-testing on relatively broad, 200-metre centres, the eastern contact of the Silver King Porphyry;
  2. Re-evaluation carefully the gold and copper potential between the South Gold Zone and Kena Gold Zone;
  3. Follow-up on extensive geochemical, geophysical and geological work on the southeastern extensions of the Kena Copper area, considered a superb stand-alone exploration target.
  4. Drill a minimum of 5,000 metres of NQ core in 20 to 30 exploration boreholes on strong exploration targets in the Gold Mountain, South Gold and Kena Copper Zones.

In September, Dr Oliver's recommendations were followed up with a two-phase work program entailing geochemical sampling and induced polarization (IP) geophysical surveys over the Kena Copper and South Gold zones. The results of the survey have identified a new, high priority geophysical target (November 19, 2009, News Release). The new geophysical anomaly has been defined over a one-kilometre long strike length and remains open to the north and east. The anomaly coincides with a zone of anomalous copper and gold soil values. A program of follow- up drilling and trenching is currently being planned for 2010.

Jersey Emerald Project, BC:

Sultan's 18,000 hectare Jersey Emerald Property is the largest mineral property in the famous Kootenay Arc silver-lead-zinc-tungsten belt. The property is host to five historic mines including British Columbia's second and third largest lead-zinc-silver mines and Canada's second largest tungsten mine. Historic production from the property totals 15.3 million tonnes worth more than $2.0 billion in gross metal values at current prices.

In 2009 Sultan took steps to advance the known tungsten, molybdenum and lead-zinc-silver deposits on the Jersey-Emerald property by:

  1. Expanding its Kootenay land position with the acquisition of the historic HB, Garnet and Aspen lead-zinc-silver mines and the Victory Tungsten Deposit, all of which have existing pre NI 43-101 resources.
  2. Securing title to the 1,100 acre Jersey Mine and Mill site with the final acquisition of the 700-acre Critchlow property, assuring Sultan road access to the Jersey and Emerald mines.
  3. Updating a NI43-101 resource estimate in January 2009 for the Emerald mine showing a
    measured plus indicated resource of 2,719,000 tons averaging 0.358% WO3, and an additional inferred resource of 2,320,000 tons averaging 0.341% WO3 at a 0.15% WO3 cut-off.
  4. Making a new discovery of zinc and tungsten mineralization in the Lost Creek Area approximately 2.0 km south of the historic Emerald Tungsten Mine. Surface samples showed grades of 5.0% zinc and 0.9% tungsten (See News Release of Feb 19, 2009).
  5. Carrying out diamond drilling over three tungsten targets with positive results obtained over two of the targets (see news releases of August 20 and September 28th).
  6. Flying an Airborne Geophysical Survey over the property in cooperation with Geoscience BC, resulting in a detailed HeliGEOTEM Airborne Geophysical Survey which has identified a number of new exploration targets on the property that will require future follow-up.
  7. Carrying out geochemical and geophysical surveys over the Garnet and HB lead-zinc- silver mines in search of new high-quality deposits and extensions to the historical long- life ore bodies. Results for these surveys are pending and are expected in early January.
  8. Contracting Giroux Consultants Ltd. of Vancouver, BC to complete a resource estimate for the Jersey Lead-Zinc-Silver Mine, the largest producer in the camp. This study incorporates assays from 94 exploration drill holes completed by Sultan in 2008 and 4,948 historic production drill holes. Results of the study are expected in February.

For the purpose of National Instrument 43-101, "Standards of Disclosure for Mineral Projects" Mr. Perry Grunenberg, P.Geo., of PBG Geoscience of Kamloops, B.C., is Sultan's project supervisor and "Qualified Person" on the Jersey-Emerald programs. Linda Dandy, P.Geo., is the project supervisor and "Qualified Person" on the Kena Property.

For further information on the Company's projects, visit www.sultanminerals.com.

Arthur G. Troup, P.Eng., Geological
President and CEO

This release was prepared by Sultan's management. This news release includes certain statements that may be deemed "forward-looking statements." All statements in this release, other than statements of historical facts, that address future production, reserve potential, exploration drilling, exploitation activities and events or developments that Sultan expects are forward-looking statements. Although Sultan believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in the forward-looking statements. Factors that could cause actual results to differ materially from those in forward-looking statements include market prices, exploitation and exploration successes, and continued availability of capital and financing, and general economic, market or business conditions. Investors are cautioned that any such statements are not guarantees of future performance and those actual results or developments may differ materially from those projected in the forward-looking statements. For more information on Sultan, investors should review Sultan's filings that are available at www.sedar.com or Sultan's website at www.sultanminerals.com.

Neither TSX Venture Exchange nor its Regulation Services Provider (as the term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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