July 16, 2007 15:18 ET

Golconda Resources Ltd. Closes $ 300,000 Private Placement

CALGARY, ALBERTA--(Marketwire - July 16, 2007) - Golconda Resources Ltd. (TSX VENTURE:GA):

The TSX Venture Exchange has accepted for filing documentation with respect to a non-brokered Private Placement announced on May 23, 2007.

The Private Placement, which raised $300,000, consisted of 1,500,000 common shares issued at the price of $0.20 per share, with attached 1,500,000 non-transferable warrants to purchase 1,500,000 common shares at a price of $0.25 per share until the close of business on July 12, 2008. The issued securities bear a legend restricting their transfer until November 15, 2007.

Insiders subscribed for 625,000 shares with attached 625,000 warrants. No commission or finder's fee will be paid in connection with the financing. The proceeds from this private placement will be used for working capital and for drilling on Golconda's gold and silver projects in Nevada.

On behalf of Golconda Resources Ltd.,

Guenter J. Liedtke, President

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

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