July 31, 2012 16:59 ET

Golconda Enters Into Joint Venture for the Exploration of Oil and Gas on Cold Lake First Nation Lands in Alberta

CALGARY, ALBERTA--(Marketwire - July 31, 2012) - Golconda Resources Ltd. (the "Corporation" or "Golconda") (TSX VENTURE:GA) is pleased to announce that it has entered into a joint venture agreement (the "JV Agreement") with an arm's length private oil and gas company based in Calgary, Alberta ("PrivateCo"), and Tri-Rez Ebay Energy Ltd. ("TRE"), the Cold Lake First Nation ("CLFN") oil and gas company, with respect to the conduct of oil and gas exploration and development (the "Joint Venture") on approximately 1,440 acres of CLFN lands (the "Lands").

Pursuant to the JV Agreement, TRE has agreed with Golconda and PrivateCo (collectively, the "Farmees") to acquire from Indian Oil and Gas Canada ("IOGC") a lease (the "Lease") covering the Lands. The Farmees have agreed to a 10 well work program over a period of three years, which shall consist of the Farmees drilling a minimum of three wells prior to the end of first year of the Lease, a minimum of four additional wells prior to the end of second year of the Lease and a minimum of three additional wells prior to the end of third year of the Lease. The Farmees will each earn a 25% working interest in each successfully drilled or abandoned well.

The Joint Venture is subject to the issuance of the Lease by the IOGC on or before November 30, 2012 and TSX Venture Exchange ("TSXV") acceptance.

Golconda is currently exploring finance options in order to fund its participation in the Joint Venture the details of which are expected to be announced shortly.

Trading in the shares of Golconda will remain halted pending the completion of the TSXV's review of materials regarding the Joint Venture, including an engineering report regarding the Lands. Golconda anticipates completing and filing such an engineering report in the next three to four weeks.

This press release contains forward-looking statements and forward-looking information within the meaning of applicable securities laws. The use of any of the words "expect", "anticipate", "continue", "estimate", "may", "will", "should", "believe", "plans", "intends" and similar expressions are intended to identify forward-looking information or statements. All statements included herein, other than statements of historical fact, constitute forward-looking information and such information involves various risks and uncertainties. There can be no assurance that such information will prove to be accurate, and actual results and future events could differ materially from those anticipated in such information. A description of certain assumptions used to develop such forward-looking information and a description of risk factors that may cause actual results to differ materially from forward-looking information can be found in the Corporation's disclosure documents on the SEDAR website at www.sedar.com. The Corporation does not undertake to update any forward-looking information except in accordance with applicable securities laws.

Completion of the transaction is subject to a number of conditions, including Exchange acceptance. There can be no assurance that the transaction will be completed as proposed or at all.

The TSX Venture Exchange has in no way passed upon the merits of the proposed transaction and has neither approved nor disapproved the contents of this press release.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that 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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