GOLCONDA RESOURCES LTD.
TSX VENTURE : GA

GOLCONDA RESOURCES LTD.

January 16, 2006 08:00 ET

Golconda Resources Ltd.: News Release

CALGARY, ALBERTA--(CCNMatthews - Jan. 16, 2006) - Ralston Valley, Nevada -Ga -100% Interest

Golconda Resources Ltd. (TSX VENTURE:GA) has entered into a joint venture agreement with two arms-length private parties whereby Golconda can earn a 50% interest in 42 claims by spending US $ 400 000 in exploration over 5 years, and making payments of US $ 5000 per year. Golconda can earn an additional 20% by producing a bankable feasibility study within 5 years after electing to do so. The claims border on Golconda's RV claims and cover the continuation of the two gold mineralized structures being explored by Golconda. The target is Carlin-type gold mineralization and the favourable laminated silty limestone sequence is thought to occur at a depth of 1500 to 2000 ft on the new property, and at a depth of 700 to 1200 ft on Golconda's RV claims.

South Monitor, Nevada - GA - 80% Interest

A major mining company is reviewing the technical data on the South Monitor property. Golconda is contemplating a farm out if the interest continues after studying the data, and if a favourable agreement can be struck.

Wapawekka, Saskatchewan

Golconda Resources has amended the agreement whereby a third party can earn a 30% interest in the Wapawekka claims by spending one million dollars in exploration. The new agreement gives the third party the right to earn an additional 19% for a total of 49% interest by spending an additional $750 000, for a total of $1.75 million in exploration.

Drilling is expected to start up again at the beginning of February.

Guenter Liedtke, P. Geol. is the designated qualified person for the purposes of National Instrument NI 43-101 Standards of Disclosure.

On behalf of Golconda Resources Ltd.

Guenter J. Liedtke,

President


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