SOURCE: Little Squaw Gold Mining Company

April 16, 2007 13:10 ET

Little Squaw Launches 2007 Gold Exploration Program at Chandalar

SPOKANE, WA -- (MARKET WIRE) -- April 16, 2007 -- Little Squaw Gold Mining Company (OTCBB: LITS) ("Little Squaw" or "the Company") has initiated its 2007 seasonal exploration program on its Chandalar, Alaska, gold property, located some 200 miles north of Fairbanks. The Company intends to execute a major, dual-front exploration program to define resources on lode and alluvial (placer) gold targets that includes approximately 17,500 feet (5,300 meters) of combined diamond core and reverse-circulation rotary drilling. Chandalar, which lies in the heart of an historic high-grade gold mining district, covers 23 square miles (37 square kilometers) of mineral rights.

The Company recently mobilized 175 tons of machinery, camp construction materials, and operating supplies to the property, including a rotary drill. This material was "cat trained" over a winter haulage route using bulldozers, snow cats, and sleds from Coldfoot (on the Dalton Highway), 100 miles to the Company's field camp on its mining claims. This route is an historic "miner's trail," for which the State of Alaska recently obtained a public highway right-of-way from the federal government. (See the Company's Press Release 1-07 of January 29, 2007.) Drilling is scheduled to begin after "spring breakup" in late May.

Dick Walters, President of Little Squaw, noted: "With $5 million in our treasury, all permits issued, and the heavy support equipment now in place, we are ready for an aggressive work program on Chandalar this summer season to begin defining our gold resources."

The main program is focused on examining the gold-quartz lodes (also known as vein or hardrock deposits) where the Company believes there is multimillion-ounce discovery potential. The objectives of this program are to:

--  Complete at least 4,500 feet of diamond coring with fifteen or more
    holes on seven or eight prospects.
--  Conduct follow-up core drilling on the better gold intercepts
    encountered during rotary drilling on four of the prospects examined in
    2006. (See the Company's Press Release 15-06 of November 20, 2006.)
--  Acquire sufficient drill data on those prospects that, given favorable
    results on one or more of them, would enable the Company to establish an
    initial and probable gold resource meeting the criteria of the U.S.
    Securities and Exchange Commission (SEC) Industry Guide 7 for public-
    resource reporting.
--  Accomplish scout drilling on several of the many other undrilled
--  Initiate evaluations of the nonquartz vein-related manifestations of
    gold mineralization recently discovered in the district, such as the
    disseminated gold mineralization in schists and altered greenstones.
--  Excavate 30 trenches for about 4,000 linear feet (1,220 meters) on
    seventeen prospects to expose and sample bedrock gold mineralization that
    may result in the development of additional drilling targets.
--  Complete geophysical ground magnetic surveys over all bedrock gold
The Company is looking to secure a drilling contractor to provide a diamond core drill rig for the project, with the planned coring program beginning in mid-July.

The secondary program involves reverse-circulation rotary drilling on some of the placer (alluvial) gold deposits in creeks draining the Chandalar property, where the Company believes the discovery potential is in the range of half a million ounces of gold. This program, which was designed following the 2006 recommendations of Alaska placer mining expert and consultant Mr. Jeffery Keener (See the Company's Press Releases 12-06 of September 18, and 14-06 of October 5, 2006), is to involve:

-- Drilling 90 rotary holes totaling 13,000 feet (3,960 meters) to bedrock
   in three creeks.
    -- Seventy of the holes totaling 10,000 feet (3,050 meters) are to be
       drilled in Little Squaw Creek where, based upon results, the Company
       would look to calculate probable gold resources meeting the criteria
       of SEC Industry Guide 7 for public resource disclosure.
    -- Twenty of the drill holes are intended to reconnoiter Big Squaw and
       Spring Creeks for new placer gold deposits.
-- Completing a geophysical seismic survey in all rotary drilling target
G. F. Back, Inc. of Fairbanks has been contracted for the rotary drilling services, and the drill is now onsite. Additionally, a geological contract to collect, log, and assay the placer drilling samples has been signed with Metallogeny, Inc., a private company owned by Mr. Keener. The rotary drilling is scheduled for a June first start-up.

About the Company: Little Squaw Gold Mining Company (OTCBB: LITS) is a 48-year-old, publicly traded junior mining company with new management, an infusion of capital, and a new vision. The Company is committed to exploring and developing gold deposits on its wholly owned Chandalar mining property in Alaska and finding additional gold properties elsewhere in the Americas. Information on the Company, its Chandalar property, and the gold showings thereon is available on the Company's website at Additional information on the Company and its plans may be found in the Company's SEC filings, specifically its Form 10-KSB/A annual report for 2006, which can also be accessed through the Company's website.

Richard Walters, President, and Susan Schenk, Manager of Investor Relations, of Little Squaw Gold Mining Company are responsible for this news release. For further information please contact Ms. Schenk at (509) 535-6156, or at

Cautionary Note Regarding Forward-Looking Information -- Certain statements contained in this press release are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. By their nature, forward-looking statements are subject to numerous risks and uncertainties, some of which are beyond the Company's control, including its ability to procure the needed equipment and services to carry out its plans and to complete its evaluation of its Chandalar property, and any anticipated results of its prospecting and exploration drilling program thereon, and the Company's ability to file SEC forms in a timely manner. Readers are cautioned that the assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on forward-looking statements. The Company's actual results, programs and financial position could differ materially from those expressed in or implied by these forward-looking statements.

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