May 04, 2007 08:00 ET

Kinross Enters Into Joint Venture for Golconda's South Monitor Properties

CALGARY, ALBERTA--(CCNMatthews - May 4, 2007) - Golconda Resources Ltd. (TSX VENTURE:GA) is pleased to announce that Kinross Gold USA Inc., a wholly owned subsidiary of Kinross Gold Corp. (TSX:K) (NYSE:KGC), has entered into a joint venture with the company for the South Monitor and Monitor Flat Properties.

According to the agreement, Kinross has the right to acquire an undivided 60% interest by spending 4 million US dollars in exploration over a period of five years. At such a time when Kinross completes the earn-in obligation Golconda will have an undivided 32% interest in the South Monitor and a 40% interest in the Monitor Flat Properties.

Kinross is the 50% owner and operator of the Round Mountain Mine which lies about 50 miles north of South Monitor. At Round Mountain the gold mineralization is associated with high temperature quartz-adularia-sericite alteration and the ore body, containing approximately 15 million ounces of gold, occurs partially blind under gravel cover. The higher grade gold mineralization at South Monitor and the low grade gold values encountered in the drill holes at Monitor Flat are also associated with higher temperature potassic alteration. This type of alteration does not form outcrops which make associated ore bodies very difficult to detect.

Golconda is confident that Kinross' experience gained at the Round Mountain Mine and in their recent discovery of the nearby Gold Hill deposit in a similar environment of gold mineralization will bring the best quality of exploration to the properties and will represent the greatest prospect of detecting any existing ore body.

Golconda holds a total of 60 claims in both properties, and Kinross has staked an additional 150 claims over the past few days. These claims cover adjoining ground which shows alteration and anomalous metal values in this very large hydro-thermal system. These additional claims will also fall under the joint venture agreement.

Golconda's CEO Guenter J. 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

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

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