April 12, 2006 08:00 ET

Golconda Announces $1,000,000 Private Placement

CALGARY, ALBERTA--(CCNMatthews - April 12, 2006) - Golconda Resources Ltd. (TSX VENTURE:GA) announces that it will make a private placement of 5,000,000 units at a price of $0.20 per unit, for proceeds of $1,000,000. Each unit consists of one common share of Golconda and one-half of a non-transferrable common share purchase warrant.

Each warrant will allow the subscriber to purchase one common share of Golconda at $0.30 for a period of twelve (12) months from issuance.

The proceeds from this private placement, which is subject to regulatory approval, will be used to settle current debts, for working capital, and for drilling on Golconda's Nevada Gold and Silver Projects.

Lyncorp International Inc., a company controlled by David Mullen will subscribe for 50% of the private placement, being 2.5 million shares and warrants for 1.25 million shares. David Mullen, who controls now directly or indirectly about 9.5% of the company's shares, will increase his share holdings to about 15.1% if the warrants are exercised.

Insiders might subscribe to less than 5% in the private placement.

Golconda plans to carry out exploration programs on the following Nevada properties:

Ralston Valley (GA - 100% interest)

Carlin type gold mineralization occurs in a shale-limestone sequence. Drilling will follow-up on gold mineralized intersections in two holes drilled by Golconda in 2004. These holes were 150-200 meters off the projected mineralizing structures. Three 1200 ft. holes are initially planned.

Golconda also has acquired the right to earn a 70% interest in 42 adjoining claims. Two gold mineralized jasperoid zones indicate the possibility of Carlin type gold mineralization at depth. Surface samples run up to 0.350 oz. gold/ton and Homestake Mining intersected 10 ft. of 6.99 oz. gold/ton in drilling the upper part of one of the jasperoids. The favourable "laminated silty limestone" sequence is estimated to occur at a depth of 1500 ft. No drillhole in this area has exceeded a depth of 600 ft. One hole will be drilled to a depth of 1750 ft.

South Monitor (GA - 80% interest)

Three (3) holes are to be drilled to a depth of 600 ft. each to test a large area of hydrothermal clay alteration. Holes at the edge of this area showed silicification with low gold values starting at a depth of about 300 ft.

The target is gold mineralization of the Round Mountain type in potassic altered rock.

Monitor Flat (GA - 100%)

In 2003, drilling intersected anomalous gold values in four (4) widespread holes in volcanics overlying a shale-limestone sequence. The holes went to a depth of 400 to 600 ft. with low gold values continuing to the bottom of each hole. Three one thousand ft. holes are planned to test the gold mineralization at depth.

Golconda can earn a 35% interest in one silver prospect (Merger) and an 80% interest in silver zinc lead prospect (4-Aces). Surface sampling will be carried out to better define the mineralized areas before drilling.

On behalf of Golconda Resources Ltd.,


Guenter J. Liedtke,


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

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