Telkwa Gold Corporation

Telkwa Gold Corporation

January 15, 2007 08:55 ET

Telkwa Reports on Drill Program at Buckskin North Property, Nevada

CALGARY, ALBERTA--(CCNMatthews - Jan. 15, 2007) - Telkwa Gold Corporation's (TSX VENTURE:TKW) 100% controlled "Buckskin North" property is located approximately 10 miles northwest of Yerington and 45 miles southeast of Reno, Nevada. The gold occurrence at "Buckskin North" was first recognized by Anaconda geologists in 1974 while logging hole D-314. At that time, a three foot-wide shear zone along a granodiorite dike at a depth of 1023 feet assayed 540 ppm gold (15.75 oz/t), and this high grade interval was within a 16 foot interval of 2.76 oz/t gold. Anaconda drilled a total of five widely spaced holes and three deflections that identified gold mineralization along the projected strike of the mineralized trend.

Telkwa's initial hole, B-1, designed to test the projected up-dip extension of the mineralization in D-314, was collared 25 feet southwest of D-314 and drilled vertically to a depth of 1100 feet. A 28 foot thick granodiorite dike was intersected at 982 feet and corresponds to the projection of the mineralized interval in D-314. However, there were no ore grade gold or copper values encountered. Below the dike was a zone of strong gypsum alteration containing up to 594 ppm copper in strongly altered andesitic tuffs. Hole B-2 was drilled to a depth of 580 feet at -60 degrees angle to the southwest from the B-1 site and was designed to test the projected up-dip extension of the mineralized shear zone. Only one 10 foot interval containing 55 ppb gold was found.

On another part of the property, Hole B-3 was drilled vertically to a depth of 495 feet and was designed to intersect the down-dip projection of a specular hematite - copper oxide - gold zone exposed in a small historical prospect pit. No similar style of mineralization was found and the highest gold value was 18 ppb. A six-foot zone from 425 - 431 feet contained disseminated chalcopyrite which assayed 1090 ppm Copper within a 55 ft. interval of highly altered intrusive rock. A sample of the altered intrusive has been sent out for petrographic analysis.

The initial diamond drilling program has shown the geology to be far more complex than originally anticipated. In as much as the gold mineralization is thought to be related to the intrusive suite of rocks associated with the nearby Yerington porphyry copper deposit, it was encouraging to find significant intrusive rocks in hole B-1 and the unexpected altered intrusive in Hole B-3. Telkwa will review and analyze its enhanced property database in order to select additional drill sites based on the new information.

Cores were photographed and stored in a secure facility. Samples were analyzed at American Assay Laboratories in Reno. Gold was analyzed by 30 gram fire assay with an atomic adsorption finish. All other elements were analyzed by ICP. A selection of duplicate samples were sent to ALS Chemex in Vancouver, B. C. for check assays using a 50 gram fire assay-AA finish, and the results showed little variation from the initial readings. Ken Brook, RPG, President of Desert Ventures Inc. was the qualified person who supervised the drilling program.

Results from the exploration program on the Iron Cap property in Nevada are currently being compiled and these results will be announced very shortly. MMI geochemical surveys on both the Stealth and Warm Springs Nevada properties have been completed and are being interpreted.

Michael Marchand, Ph.D. P. Geol., President of Telkwa Gold was the qualified person who reviewed the information in this press release.

Telkwa Gold Corporation's exploration focus is Nevada where it has four properties and it also has two exploration properties located in British Columbia. Telkwa maintains its website with corporate information, reports and images of our exploration projects.

This news release may contain forward-looking statements including but not limited to comments regarding the timing and content of upcoming work programs, geological interpretations, receipt of property titles, potential mineral recovery processes, etc. Forward-looking statements address future events and conditions and therefore, involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements.

This news release is not for dissemination in the United States or to any United States new service, and does not constitute an offer to sell or a solicitation of an offer to buy the securities in any jurisdiction. The common shares of Telkwa Gold Corp will not be and have not been registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States, or to a U.S. person, absent registration or applicable exemption therefrom.

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

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